Senator Lintuli faces arrest over Ksh 530 million loan forgeries

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By Kenya Confidential Crime Desk, Nairobi – March 16, 2021

Meru Senator Mithika Linturi faces imminent arrest over claims that he used forged signatures to secure a Ksh 530 million bank loan with properties of his estranged wife as collateral.

Justice Weldon Korir declined to offer the Meru senator an anticipatory bail and instead chose to hear from the Director of Public Prosecutions (DPP) and the police ahead of court action. Linturi and Emily Nkirote Buantai went to court seeking protection claiming there are plans to arrest them yet the matter was being handled through civil cases pending before various courts.

The fiery tangatanga Meru senator and wheelbarrownomics crusader reckons that the DPP has recommended his arrest and prosecution for criminal offences linked to the loans, overdrafts and other credit facilities from the lender. The charges, he said, include giving false information, obtaining credits by false pretences, impersonation, abuse of office and fraudulently procuring the registration of charge documents.

The planned arrest comes in the middle of a court battle pitting Ms Kitany against the senator over the vast business empire that the couple built before their acrimonious break-up. Ms Kitany is a former chief of staff at Deputy President William Ruto’s office.

Linturi has denied that Ms Kitany has been his wife, claiming he had hosted her on compassionate grounds after she lost her job in 2017. The senator’s quest for Ruto‘s hustler nation is reported by insiders as an indirect effort to assisted by the deputy president from his self-inflicted misery. That is how Ruto buys loyalty from Mt Kenya politicians.

Linturi and Tuto – file photo

At the centre of the commercial and forgery dispute is Atticon Limited, a firm that Linturi fully owned before ceding 50 percent shares to Baron Estates Ltd, which is associated with the estranged wife. The ceding of ownership was in exchange for Baron Estates guaranteeing a Ksh 50 million loan that Linturi intended to borrow at Family Bank.

Linturi is, however, accused of fraudulently booting out Baron Estates from ownership of Atticon and further increasing the loan secured using the Baron’s property to Ksh 530 million without its consent.Documents filed in court identify Baron Estates’ signatories as Rodha Kitany and Collins Kipchumba Ngetich.

The forensic audit report filed in court indicates that Rodha Kitany’s signature was forged to secure loans of Ksh 100 million from Family Bank, another loan of Ksh 325.7 million, and a separate overdraft facility of Ksh 100 million using the properties of Baron Estates. Whether Ruto will salvage Linturi in exchange for political support in his 2022 presidential campaign remains to be seen

But the report indicates that Linturi’s signature on the documents authorising these loans are genuine. Sometime in August 2015, Baron Estates says, it was approached by Atticon emissaries to aid in the liquidity and workings of their firm. The firm says it agreed to charge two of its properties to secure Ksh 50 million 12-month overdraft facility from Family Bank for consideration of 11,000 shares equivalent to 50 percent.

Linturi was left with 50 percent shares, which he owned through Litany Investments Limited. Further, the two shareholders in April 2017 agreed to appoint two directors each to run the business. Emily and Linturi agreed to resign as directors to allow the new directors to take over.

But Linturi is accused of breaching the agreement after declining to allow the new directors to take over, thereby single-handedly running the affairs of the firm, including the operation of bank accounts. The frustrations allegedly led to the directors’ resignation, which he promptly accepted and re-appointed himself and Ms Nkirote as directors.

Former Deputy President’s chief of staff says she first met the Linturi at the DP’s office in 2013. Kitany in another case said that Meru Senator seduced her when her former boss, Ruto, sent her to convince the senator to withdraw an impeachment Motion he had tabled against the then Devolution Cabinet Secretary Anne Waiguru.

In October 2018, the ownership of Atticon was changed to Linturi with 10,950 shares and Ms Nkirote with 50 shares.