When tasked to explain how he acquired the title, CEO Jabavu village Limited Abdulkadir Ahmed Hussein shocked the committee when he said that he cannot explain how the title for the land landed in his hands.
“ I am still trying to remember who gave the title for this land,” he told the investigating committee.
Hussein could also not explain why cement processing was still taking place at the site while it was not part of the agreement.
National Bank vows To Auction The Houses.
National Bank of Kenya whom loaned the developer Sh1.9 billion has now warned that it will auction the houses if the Sh1.9 billion loan is not settled in full.
The bank representatives while appearing before Nairobi County Assembly committee warned that in the event the developer, Jabavu Village Limited fails to pay the debt in full, it will have no choice but to auction the houses.
The warning comes amid reports that the project has attracted over 1,500 potential buyers eagerly waiting for their units to be completed and handed over.
“In the worst case scenario, we will have just to rely on the legal advice and we will be forced to auction these houses to recover our money as per the agreement,” said National Bank Managing Director George Odhiambo.
When asked to explain why the bank went ahead to issue the loan without consulting the county government, Odhiambo said that the title which was presented was under the name of Nairobi Bachelors Jeevanjee Estate Limited who were the owners of the property.
It also emerged that proper valuation was not done before the loan was advanced since the value of the 3.2 acre land is much higher than the Sh1.9 billion.
The committee was also astonished to learn that the developer attached an addendum to the principal joint agreement which stated the items that should be used as securities and the title was not among them.
Interestingly, County Attorney Christine Ireri said that the addendum had not been properly registered when the loan was sought, raising more questions about how the bank even gave out the loan.
Ireri further said that Jabavu had not only breached the original agreement but had also used unofficial addendum to apply for the loan.
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