This archive report was first published on 21 July 2019.
On July 21, 2019, a Nairobi court dealt a significant blow to businessman Zaheer Jhanda, setting aside a Sh140 million award he had won through a default judgment in a land deal related to the Standard Gauge Railway project.
The High Court judge, Chacha Mwita, stopped the payment made to Jhanda's company, Altana Corporation Ltd, against Clarence Matheny Leadership Training Institute (CMLTI) after it was established that the judgment was entered prematurely.
The judge observed that the time allowed by the rules of procedure had not lapsed when a High Court Registrar ordered the church to pay Sh139.9 million, which had been set aside for consultancy services allegedly offered by Jhanda.
The judge noted that the action had deprived the church an opportunity to be heard and was, therefore, condemned unheard against the rules of natural justice.
The CMLTI, through its lawyer, argued that the judgment was irregular because it was entered before the time required for them to respond or file a defence had lapsed.
The Ethics and Anti-Corruption Commission (EACC) also supported the case, saying the judgment was entered prematurely against procedural justice and the right to a fair hearing.
Mr Jhanda argued that his firm offered consultancy services in seeking adequate compensation in the events leading to the compulsory acquisition of the property and was entitled to 15.3 per cent of the total award to the church.
However, the judge set aside the judgment and the consequential orders and granted CMLTI leave to enter appearance 'as the fault was that of the court.'
The case will now start afresh. In the wake of the scandal, EACC is pursuing former NLC chairman Muhammad Swazuri to face further graft charges.
