KAA chiefs queried over Sh500m loan from pri­vate firm

The Star (Kenya) - - Politics Parliament -

Kenyans could lose more than Sh500 mil­lion af­ter it emerged that Kenya Air­ports Au­thor­ity granted its ti­tle deed as se­cu­rity for a bank loan to a pri­vate com­pany.

For­mer KAA man­ag­ing di­rec­tor Ge­orge Muhoho is said to have signed a let­ter of con­sent to charge the au­thor­ity on a Sh510 mil­lion loan ad­vanced to Trans­global Cargo Cen­tre by the Stan­dard Char­tered Bank.

This means that should the firm de­fault, the prop­erty of the KAA will be at­tached to re­cover the money, in­clud­ing in­ter­est ac­crued.

Trans­global Cargo Cen­tre, owned by busi­ness mogul Peter Muthoka, had an ini­tial lease to build, op­er­ate and trans­fer the cargo han­dling fa­cil­ity at JKIA for 20 years but the agree­ment was ex­tended in Au­gust 2013 un­der un­clear cir­cum­stances.

The KAA man­age­ment led by new MD John An­der­sen was at pains to ex­plain to the com­mit­tee how the cargo han­dling firm man­aged to get a land rent num­ber, tech­ni­cally as­sum­ing own­er­ship of the par­cel of land as a sub-divi­sion be­fore sur­vey.

“It is per­plex­ing how a pri­vate com­pany ended up get­ting a par­cel of land at the KAA with­out a sur­vey be­ing con­ducted and then went ahead to take a loan and at­tached prop­erty reg­is­tered un­der KAA,” com­mit­tee chair­man Adan Key­nan said yes­ter­day.

The man­age­ment ad­mit­ted that the land had no LR num­ber be­cause there was no sur­vey done, which raises con­cerns that the firm could have fraud­u­lently ob­tained the num­ber to ac­cess the bank fa­cil­ity.

“As far as we are con­cerned the land be­longs to the Kenya Air­ports Au­thor­ity,” KAA com­pany sec­re­tary Cather­ine Kisira said.

“It would be ir­re­spon­si­ble to spec­u­late on the is­su­ing of the LR num­ber be­cause the KAA was not party to that.”

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