Eco Bank’s new chief executive officer Jeremy Awori risks being jailed for defying court orders. Commercial Court Judge Dola Chepkwony has given Avistia S.R.O Limited green light to pursue Awori and two other senior bank managers- Samuel Odhiambo and Eva Schumatez Anyango over battles between Avistia S.R.O Limited and KiwiPay PTE Limited.
The court had directed Eco Bank to deposit Sh1.6 billion in the respondents’ accounts until the matter between Avistia and the two Kenyan firms is heard and determined.
But according to Mr. Vladmir Hristov, the director of Avistia, Eco bank has only released Sh1.1 billion to KiwiPay. Hristov claims that all his interests in the matter stand in abeyance as a result of the bank’s move to disobey the court’s preservatory orders, prompting him to file a contempt of court proceedings against Mr. Awori.
“Leave is hereby granted to the applicant to institute contempt proceedings and summons be issued for personal attendance of Mr Jeremy Awori, Samuel Odhiambo and Evan Schumatez Anyango being officers of the third respondent (Eco Bank), before the honourable court, to show cause why they should not be cited for contempt of court for disobeying the orders of the court issued on November 17, 2022,” Justice Chepkwony ruled.
The judge asserted that Eco bank should not release the contested money to Kiwi PTE and Kiwi Kenya pending determination of the matter.
Avistia’s lawyer George Ogembo told the court that KiwiPay had withdrawn more than Sh1.1 billion in dollars in only six days. He added that the company withdrew more than Sh435 million on November 22 and followed it up with another withdrawal of Sh734 million on November 28.
“Apart from the said withdrawals, there still exist other and further withdrawals that are done secretly by the first and second defendants (Kiwi PTE and Kiwi Kenya) as permitted by the third defendants through their online platforms, which could clearly be shown and indicated by issuance of an order for production of duly certified bank statements of the said accounts covering the period when the order herein was in force,” Odhiambo argued.
By the time Avistia was filing its case, the account had at least Sh2.2 billion after withdrawals were made despite the bank being aware of the existing court orders.
“Transacting against the already existing court orders depicts disobedience, lack of respect to court orders and was in violation of and blatant contempt of the orders of the court and any act undertaken on the furthering of the said contempt are illegal, null and void and ought to be reprimanded accordingly,” said Avistia.
Avistia which entered a deal with KiwiPay for digital payment services argues that it expected the company to remit at least Sh1.6 billion but it has failed to do so.
“The said sums as presently held in the aforesaid bank accounts form the substratum or subject matter of the suit herein yet the first and second defendants in collusion with the third respondent and other third parties seek to withdraw the sums or deal with the said sums in a manner prejudicial to the commercial interests of the plaintiff,” Ogembo added.
Justice Chepkwony ruled that Awori, Odhiambo and Schumatez should respond to the application within seven days or risk going to jail.
Awori was recently appointed the new chief executive of Eco Bank replacing Ade Ayeyemi who retired after attaining the age of 60 in accordance with the bank’s policy. He exited Absa Bank Kenya after serving as chief executive for 10 years.
