The High Court has ordered that Clarence Matheny Leadership and Training Institute (CMLTI), an American-owned church group, be paid Sh710 million for its Ongata Rongai property.
The institution had accused National Land Commission staff of soliciting bribes to secure compensation for the land.
The prime land was acquired to put up part of the standard gauge railway phase 2A infrastructure (Nairobi-Naivasha) but a three-pronged fight erupted between the church group, which owned the property, the Ethics and Anti-Corruption Commission (EACC) and suspected fake gold merchant Zaheer Jhanda.
EACC wanted to stop payment of Sh927 million to CMLTI, arguing that the value of the land had been inflated and that some NLC and Kenya Railways officials were set to benefit from bribes in releasing the money.
The second fight saw Mr Jhanda’s Altana Corporation claim consultancy fees of Sh139 million from CMLTI.
After CMLTI sorted out its issues with the EACC out of court, Justice Enock Chacha Mwita has now ordered that Sh710 million be released to the church group.
The NLC had deposited Sh927 million – the originally agreed compensation package – in court in February last year.
Justice Mwita further ordered that Sh77 million be released to the National Treasury.
The fate of the Sh139 million balance will be known after the case between Mr Jhanda’s Altana Corporation and CMLTI is determined.
The EACC has been looking into claims that former NLC chairman Muhammad Swazuri tried to extort up to Sh200 million from CMLTI to secure compensation for the land, where part of the standard gauge railway line sits.
Mr Jhanda’s Altana Corporation last year sued CMLTI in Nairobi, claiming Sh139 million in consultancy fees, arguing that it helped the church group secure compensation.
CMLTI had secured a Sh927 million compensation package. Justice Mwita then ordered that the Sh927 million be deposited in court until the case is determined.
Separately, the EACC went to the Kajiado High Court, arguing that the value of the land had been inflated and wanted payments stopped.
But late last year, EACC and CMLTI struck an out-of-court deal that was to see the church group pocket a reduced figure of Sh850 million for its land. This almost wholly settled the Kajiado case, with the only pending issue being who pays the legal bills for the suit.
Following the Kajiado outcome, CMLTI successfully applied to have Justice Mwita release Sh710 million to it and give the taxpayer a Sh77 million refund.
Mr Jhanda had opposed the application, arguing that his firm would lose if the money is released to CMLTI.
But Justice Mwita held that the money sought to be released is not the subject of any dispute after CMLTI and the EACC had settled the grievances they had.
Justice Mwita added that the out-of-court deal was accepted by another High Court judge, and he has no constitutional authority to revoke a decision made by his peer.
Mr Jhanda’s Altana, the judge argued, should have asked either the same Kajiado court that accepted the out-of-court settlement, or the Court of Appeal, to stop execution of the deal.
Mr Jhanda has vowed to appeal against the EACC-CMLTI out-of-court settlement recorded in Kajiado.
The EACC last year started investigations into Dr Swazuri, NLC deputy director of valuation and taxation Joash Oindo and his boss Salome Munubi over the Ongata Rongai land saga.
Anti-graft detectives also held that NLC illegally agreed to pay CMLTI Sh98 million as professional fees, relocation and alternative accommodation fees, which is not provided for in Kenya’s laws on compulsory acquisition of land.
A number of Kenya Railways staff were also on the anti-graft watchdog’s radar at the time, and detectives believe that they tried to use Mr Jhanda’s Altana to receive their cut.
Should the EACC arraign Dr Swazuri over the Ongata Rongai land, it will be the third set of charges against the former NLC boss.