Firm wants Chinese ordered to pay Sh20m for SGR
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.