Italian firm in Ksh.21B dams scandal says it has encountered financial challenges

An Italian firm at the center of the Ksh. 21 billion dams scandal now says it has indeed encountered financial challenges.

In response to a case filed by Barclays Bank, CMC di Ravenna, said it had commenced pre-insolvency proceedings before an Italian court in a bid to rescue it’s business operations and avoid liquidation.

The company — in court papers filed on March 29, 2019 through Board Chairman Alfredo Floretti — said the allegations by Barclays Bank that it had commenced insolvency proceedings is incorrect and premature.

According to Mr. Floretti, the motor vehicles cannot be used to settle any other debts or disposed of before the completion of payment of the amounts due to the applicant.

The respondents have had several engagements with the bank aiming to explain in details the company’s plan of action to ensure that the bank’s interests are safeguarded.

The company also indicated willingness to hand over the keys of the motor vehicles and equipment for the purpose of preserving and securing them from wear and tear or disposal; an offer which was accepted by the bank.

CMC di Ravenna also requested for more time for the parties involved to negotiate with an aim of settling the matter.

The company further submitted that the application seeking to have the Director of Public Prosecutions (DPP) and the Director of Criminal Investigations (DCI) enjoined in the case is misconceived.

They stated that the two parties are seeking to be enjoined in a civil suit whose gravamen arises from contractual obligations which they are not party to.

“The applicant’s application demonstrates a lack of legal and factual clarity on the nature of the investigations that are currently undertaking, which they are not constitutionally entitled to undertake and how those investigations are linked to the transaction the subject of this suit,” read court papers.

The High Court also directed the DPP and DCI to release to the bank vehicles belonging to CMC di Ravenna.

Justice Francis Tuiyot directed Barclays Bank to take a written undertaking that it shall not transfer or dispose the said vehicles from the jurisdiction pending hearing and determination of the case.

The case will be mentioned on May 21, 2019.