Absa recovers 14 vehicles seized in the Itare dam project

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Absa recovers 14 vehicles seized in the Itare dam project


Absa Bank along Muindi Mbingu Street in Nairobi on April 9, 2020. PHOTO | EVANS HABIL | NMG

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Summary

  • Absa Bank Kenya has recovered 14 vehicles that were seized from the bankrupt Italian company CMC Di Ravenna, which was to build the controversial Itare dam in Nakuru.
  • Absa had financed the Italian company to the tune of 585 million shillings for the purchase of the vehicles and the agreement gave it rights to the equipment used within the framework of the project.
  • The director of criminal investigations is still holding 17 other vehicles as police focus on criminal investigations against the Italian firm.

Absa Bank Kenya #ticker:ABSA has recovered 14 vehicles that were seized from the collapsed Italian company CMC Di Ravenna which was to build the controversial Itare dam in Nakuru.

The lender took the vehicles from a contractor Benisa Limited who had previously seized them from his client CMC.

Absa had financed the Italian company to the tune of 585 million shillings for the purchase of the vehicles and the agreement gave it rights to the equipment used within the framework of the project.

Judge David Majanja ordered Benisa to immediately hand over the vehicles to Absa. The construction company had tied up the vehicles – claiming 30 million shillings after it was terminated by CMC – and advertised them for sale in February.

“The seizure is lifted and the vehicles released immediately,” the judge said.

Vehicles include trucks, Isuzu double cabs, jeeps, graders and Mercedes Benz. Last October, Absa auctioned off another batch of more than 40 vehicles as part of debt collection.

The director of criminal investigations is still holding 17 other vehicles as police focus on criminal investigations against the Italian firm. The DCI says the vehicles were acquired with public funds.

The Italian company has been contracted by the Rift Valley Water Services Board (RVWSB) to build the Irate dam at Kuresoi-Molo in Nakuru County for 36 billion shillings.

CMC halted construction of the dam in November 2018 and left the site after closing its offices in the country before handing over the project to the RVWSB.

Absa says it financed the purchase of 98 motor vehicles, through an agreement signed with CMC on May 23, 2017.

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