The High Court has dismissed an application by the National Bank of Kenya (NBK) seeking to unfreeze five properties belonging to a Ministry of Lands official, which were frozen two years ago over suspicion of being acquired corruptly.
The lender moved to court arguing that the five properties in Nairobi belonging to Mr Nicholas Owino Ochiel, which are part of Sh1.2 billion targeted by the anti-graft body for forfeiture to the state, were charged to the bank as security for loans.
Justice Nixon Sifuna dismissed the application stating that the bank should await the outcome of the case filed by the Ethics and Anti-Corruption Commission (EACC).
“The bank should during the pendency of the proceedings, keep off the proceedings and the suspect property until the suit has been determined,” the judge said.
Court documents show that the official acquired the properties between January 2003 and November 2018 by allegedly abusing his position by entering into deals with property development companies, organisations, and individuals seeking services such as valuation, payment of government stamp duty, and title processing among others.
The commission is targeting properties including his residence in Karen valued at Sh80 million, a house in Thome estate worth Sh130 million, flats in Parklands valued at Sh100 million, and an uncompleted commercial building in Kisumu worth Sh190 million.
But as the matter was pending, the lender moved to court seeking to join the matter and plead with the court to unfreeze five properties in Nairobi, including two properties in Thome and Mirema Estates.
The judge said once any property is tainted or alleged to be tainted or is subject to a corruption case, it cannot be released until the case has been determined, except for exceptionally compelling reasons that cannot await the determination of the case. Justice Sifuna added that the lender was not claiming ownership of the property or defending the manner in which the properties were acquired.
“For that reason, a charge of a property cannot have as against the property a better title than the chargor himself,” he said. The court said the lender should follow the money instead of the property or call for payment of the sums advanced or even ask for alternative property as a substitute for security.
Justice Sifuna further discharged the bank from the proceedings saying it will no longer participate in the case. The anti-graft body obtained orders blocking him from selling or transferring the houses, land, and cars being targeted for forfeiture to the state, over claims that he amassed them through corrupt schemes.
Mr Ochiel challenged EACC’s petition saying it was incompetent as it did not state the time frame of the investigations or specify the property targeted.
The EACC said the official is suspected to have used privileged information at the ministry for financial gain through companies associated with him including, Ternic Valuers Ltd and Ternic Enterprises Ltd.
