A Rwandese investor Desire Muhinyuza has filed an application accusing two Kenyan advocates of fraudulently obtaining consent from court to be paid Sh 74 million in legal fees.
In the application filed at Milimani court, Muhinyuza through his lawyer Danstan Omari claims that the lawyers fraudulently obtained the consent when they knew the ownership dispute was still pending in court.
Omari claims that the consent was stage-managed by the two on behalf of Stay Online.
He wants the court to review the consent informing the court that one lawyer is not the director of the company in question and that it was all a scheme to unlawfully withdraw the money held by the company in the guise of legal fees.
According to court papers, the two failed to disclose to the court that there were proceedings active in court on the ownership dispute.
“The impugned consent order was obtained without the lawyers making material disclosure to the court as to the status of Stay Online Ltd and that these proceedings were commenced in bad faith with ill intention of unlawfully utilizing funds amounting to Sh 74,300,00 held in Stay Online’s bank accounts at UBA,” Omari claims in court papers.
On December 27, the High Court declared that a Sh400 million disputed fintech firm belongs to a Rwandese investor.
The court said Desire Muhinyuza was the legit owner of Stay Online Limited (SOL).
“Accordingly, I find and hold that the 1st plaintiff (Muhinyuza) is the beneficial owner of the company. The 1st defendant committed fraud by not filling the form for beneficial ownership properly at the time of the incorporation of the company,” Justice Alfred Mabeya ruled.
The judge ordered $100,000 (Sh15.6 million) be paid by the 1st defendant, which he is said to have received from the Rwandese investor for tax purposes but never paid.
By Star