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Former Moi spy chief fights auction of petroleum business

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www.cynenergy.co.ke

A former spy chief of retired President Daniel arap Moi, Wilson Boinett, is locked in a court battle with a financing firm, making him the latest aide of the previous Head of State to face suits over botched deals.

Cyn Energy, which sells petroleum products on wholesale and is associated with Mr Boinett, has moved to court to block the sale of its assets by a Nairobi-based asset financing company.

The oil marketer wants the court to stop Synergy Industrial Credit from confiscating its fleet of road tankers over a disputed debt, arguing that the action will lead to its collapse.

The financier says Cyn Energy is in default to the tune of Sh74 million, but the dealer reckons that it owes the lender Sh20 million.

Mr Boinett served as head of Kenya’s National Intelligence Service (NSIS) between 1999 and 2006 before he was replaced by Michael Gichangi.

He becomes the latest aide of Mr Moi to be locked in legal suit. Others are former powerful Cabinet minister Nicholas Biwott,  John Lokorio, a former State House comptroller and Joshua Kulei, a former private secretary of the retired President.

Mr Lokorio and Mr Kulei have been accused by the National Social Security Fund of selling forest land belonging to the fund at Sh40 million.

Chopper firm Lady Lori has sued Mr Biwott for refusing to pay a leasing debt of Sh14.5 million.

The documents filed in court show that the credit advanced to Cyn Energy was signed and guaranteed by Mr Boinett in his capacity as a director of the oil firm.

“There is now a continuing threat by the defendant to confiscate and impound the plaintiff’s fleet of motor vehicles thereby crippling the plaintiff’s commercial operations,” says Muema Mbai the managing director of Cyn Energy in court documents.

Confiscate

Synergy is yet to respond to the suit but the correspondence filed in court shows that the loan size is at the centre of the row.

Mr Mbai says Cyn Energy took credit from Synergy Industrial Credit in 2011 to boost its cash flow and used eight vehicles and a parcel of land in Kajiado as security.

The oil dealer reckons that it will be wrong to confiscate the vehicles given that it has not declined to settle the debt, but needs a statement on the status of the debt and its repayment.

It highlighted conflicting debt figures provided by Synergy, arguing that the financier demand Sh20 million in November 4 before seeking the Sh74 million towards the end of last month.

-Business daily

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