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Absa auctions 40 cars linked to Itare dam scam


Absa head office in Westlands, Nairobi. FILE PHOTO | NMG

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Summary

  • The Itare dam is the focus of criminal investigations.
  • The Italian firm went bankrupt and filed for insolvency in Italy to rescue its operations and prevent the company from being liquidated.
  • It sought to freeze the auction in Kenya pending a decision of the Italian courts, but Justice Francis Tuiyott rejected the application.

Absa Bank Kenya #ticker:ABSA has put up for auction over 40 vehicles purchased by a bankrupt Italian firm for use in the construction of the controversial Itare Dam in Nakuru over a Sh585 million loan.

The forced sale of the seized vehicles and equipment — including Isuzu D/Max, tippers, prime movers and cranes — has been scheduled for October 28, according to a notice issued by Phillips International Auctioneers.

The Itare dam is the focus of criminal investigations.

The Italian firm went bankrupt and filed for insolvency in Italy to rescue its operations and prevent the company from being liquidated.

It sought to freeze the auction in Kenya pending a decision of the Italian courts, but Justice Francis Tuiyott rejected the application.

Absa and the Italian firm fought over the cars in a period that saw the Director of Criminal Investigations seize 17 vehicles on claims they were financed using public funds.

The auction follows a consent signed…

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