Tribunal saves PCEA church official from auctioneers

The Co-operative Tribunal has stopped an auctioneer from attaching household goods and vehicles belonging to a church official to recover a loan of Sh5.8 million, which he borrowed from Sheria Sacco in 2018 and defaulted.

David Nderitu Ndumo, who was recently elected the honorary treasurer of the Presbyterian Church of East Africa (PCEA), rushed to the tribunal after 15 members of Sheria Sacco engaged Wright Auctioneers to attach his assets after he failed to repay the loan, forcing them to take up the liability as guarantors.

The tribunal that is chaired by Beatrice Kimemia granted a temporary stay of execution pending hearing of the matter on Monday next week .

The auctioneers had raided Ndumo’s home in Marurui Estate and identified several items including electronics, furniture and cars. Ndumo argues that he was never served with the application and was unaware of the claim.

He also says he only became aware of the claim and the judgment when he was served with warrants of attachment on February 14 this year.

The 15 guarantors made a claim against Ndumo on November 28, 2019, stating that he borrowed various loans between March 14 and August 7, 2018 amounting to Sh5.8 million from the Sacco but failed to service them despite several demands.

For its part, the Sacco said it followed the law in pursuing the defaulted loans. The tribunal heard that the Sacco gave the guarantors a loan known as Mkombozi, which was used to offset the debt.

In the decision made on August 3 last year, the tribunal said the Sacco was required to engage Mr Ndumo before giving a demand notice to the guarantors.

It said the guarantors signed the loan application forms in favour of Mr Ndumo on their own volition and were given Mkombozi loans to ease their repayment plan without attaching their deposits.