Posted  Sunday, August 28  2011 at  16:52

A businesswoman at the centre of a legal row over a Sh2 billion real estate project, wants a company behind the venture dissolved.

Mrs Nancy Gatabaki has lodged a petition in the High Court seeking the winding up of Muga Developers Ltd, a joint venture between her, the husband Dr Samuel Gatabaki and Suraya Group Ltd.

The Gatabakis and Suraya formed Muga to undertake the Fourways Junction project on a 200-acre piece of land in Kiambu at an estimated cost of Sh2 billion.

But Mrs Gatabaki wants the company dissolved because it has allegedly failed to honour the agreements as negotiated between the two parties. The petition is set for hearing on October 28.

She has instituted the suit as a shareholder of Muga and also on behalf of Sagana Developers, which is a shareholder of Muga and a director negotiated.

She accuses the directors of Suraya, Peter Muraya and Sue Muraya of acting in total breach of the agreement, including fraudulent activities and transactions.

The Gatabaki’s and Muraya’s entered into an agreement in 2009 and established Muga Developers Ltd.

She claims it has emerged to her that the company was created with an intent to defraud her and Sagana Developers off their land benefits and profits.

Mrs Gatabaki accuses the other shareholders, Suraya Property, Suraya Fourways and its directors Peter Muraya and Sue Muraya, of failing to inject funds and not paying for the land as agreed in the contract.

She feels that Muga has turned out to be a weapon of oppression and fraud against her.

“In the circumstances, it is just and equitable that the company should be wound up,” she says.

According to Mrs Gatabaki Muga has been used to charge and mortgage the parcel of land without any valid company resolutions or authority.

On April 2011, Muga, without any board resolutions, secured Sh1.5 billion from Equity Bank. Another mortgage of Sh400 million was obtained illegally from I&M Bank.

The company further obtained Sh200 million by supplementary charge from I&M  in October 2010, according to Mrs Gatabaki.

Muga, which is owned by the two parties on equal basis in terms of share holding, has failed to honour the agreement according to Mrs Gatabaki.