Central Organisation of Trade Unions (Cotu) secretary-general Francis Atwoli is embroiled in a legal tussle with politician Cyrus Jirongo over a Sh100 million debt. Mr Atwoli claims in court papers that he advanced a friendly loan to the tune of Sh100 million which was payable within 50 days at an interest of Sh10 million based on an agreement made on August 10, last year.
Mr Jirongo, who is also a former Cabinet minister and former Lugari MP, made an undertaking on October 10, admitting his indebtedness to Mr Atwoli and undertook to effect the payment on or before October 21. “Despite demand made, Mr Jirongo has totally refused, failed and ignored to effect payment as per the terms of the agreement,” said Mr Atwoli in court papers.
The Cotu boss is seeking damages from the former lawmaker for breach of contract, an interest on the Sh110 million at 25 per cent with effect from August 10 when the agreement was made as well as full payment of the debt. He also wants to be paid costs of the suit.
In the agreement filed in court by Mr Atwoli, Mr Jirongo had said he acknowledged receipt of $1 million from Mr Atwoli, “as a friendly loan payable back to him within the next 50 days from proceeds of damages payable to my company Kuza Farm Ltd by Nairobi City County.”
The City Hall was allegedly supposed to pay Mr Jirongo’s firm following a consent order recorded before the Environment and Land Court dated July 6, 2016, in a case that was filed in 2014. Mr Atwoli said Mr Jirongo also undertook before Cotu chief’s lawyers to repay the principal amount with a top up of $100,000, making a total of $1.1 million (Sh110 million) payable within the agreed period.
The Cotu chief says Mr Jirongo’s letter also stated that Mr Atwoli would be at liberty to attach the former MP’s judgment or enforce repayment against him personally or any property belonging to Mr Jirongo, to recover the full sum due as well as costs incurred.
In the consent recorded before the Environment and Land Court, the City Hall, the AEF Reuben Primary School board of directors, the National Land Commission and Attorney-General were to pay Mr Jirongo’s firm Sh250 million as compensation for his land in Nairobi measuring 1.012 hectares.