Firm wants Chi­nese or­dered to pay Sh20m for SGR

The Star (Kenya) - - Politics Judiciary -

A com­pany hired to con­struct a sec­tion of the Sh350 bil­lion stan­dard gauge rail­way line has ap­plied to have two di­rec­tors of a Chi­nese com­pany ar­rested for re­fus­ing to pay it more than Sh20 mil­lion for work done.

Mjomba Agen­cies Ltd urged High Court judge Lucy Nju­guna to or­der the ar­rest of Yun­wen Hu and Xueren Wei, both di­rec­tors of Mvule In­vest­ments Com­pany Ltd. Mvule is one of the Chi­nese com­pa­nies con­struct­ing the SGR. Mjomba wants Mvule com­pelled to de­posit se­cu­rity equiv­a­lent to the amount owed.

Mjomba says it com­pleted the work it was hired to do in May and has not been paid the Sh20,281,856. Mjomba’s lawyer Nel­son Masaviru told Nju­guna un­less the court in­ter­venes and orders the ar­rest of Yun­wen Hu and Xueren Wei they may leave for China with­out pay­ing.

But the Mvule di­rec­tors’ lawyer Odera Obera said there is a clause in the agree­ment that pro­vides a win­dow for ar­bi­tra­tion should a dis­pute arise.

“The is­sue of ar­bi­tra­tion is a de­lay­ing tac­tic by Mvule,” Masaviru said.

Nju­guna ad­journed the case to Fe­bru­ary8.

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