Cement Company contract denied

Cement Company contract denied
Published: 01 March 2004

Nairobi: A parastatal boss has denied responsibility for a multibillion-shilling contract signed with a cement dealer last year. Lawyer Desterio Oyatsi, for East Africa Portland Cement, yesterday told High Court judge Leonard Njagi the contract in dispute had been signed by acting managing director E.C. Birya without the knowledge of the company and its board. The court heard that the former MD had breached his duties and that, according to the present MD, Ms Mary Wairimu Ngari, the agreement was null and void.

Four other companies applied to be enjoined as parties in the case filed by Donholm Rahisi Stores for alleged breach of contract and for allegedly failing to comply with a court order that the manufacturer continue to supply cement until the dispute is resolved. They had deposited more than Sh140 million with the cement manufacturer. Lawyer James Orengo, who appeared for them, said it was necessary for them to be enjoined because the case was of great public interest.

East African Portland Cement’s managing director, Ms Ngari in an affidavit says that the orders applied for seeking to condemn both the company and her to jail for contempt of court for failing to supply goods is incompetent , misconceived and defective. Ms Ngari claims that the company failed to pay for goods in cash or by advance payment through bank guarantees of Sh100 million which the company has exceeded. This, she claims, is contrary to clause 24 of the terms of the contract.