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 scandal linked to the Standard Gauge Railway project.
The court, led by High Court judge Chacha Mwita, stopped the payment 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 Mr 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 church, through its lawyer, had 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 church's case, stating that the judgment was entered prematurely against procedural justice and the right to a fair hearing.
Mr Jhanda had argued that the church was served with the court documents and summons to enter an appearance but failed to appear. However, the judge set aside the judgment and the consequential orders, granting the church leave to enter an appearance 'as the fault was that of the court.'
The case will now start afresh. In the wake of the scandal, the EACC is pursuing former NLC chairman Muhammad Swazuri to face further graft charges. Prof Swazuri is accused of inflating a compensation package and using a company owned by Mr Jhanda to collect kickbacks from the church group.
