Trans Nzoia has downplayed a bid by a contractor seeking to have the county government declared bankrupt over a Sh5.3 million debt.
Mwamba Valuers served the county with the notice of bankruptcy over the outstanding debt for preparing a valuation roll for Kitale town, other urban centres, and agricultural land in Trans Nzoia.
Through lawyer Karani Greiy, the county government said the company’s advocate did not follow due procedure saying the notice will not see the light of the day.
“He should have considered taking up judicial review proceeding and particularly apply for an order and serve it to the county secretary,” he said.
Greiy also said that for the county to be declared bankrupt, one has to demonstrate that the entity is unable to settle the debts that are due against it.
“There also has to be a prove that the entity or individual is overwhelmed by the debts and its financial ability is far less than the debts that are pending,” he said.
Mwamba was contracted four years ago to prepare a valuation roll for Kitale Municipality, Kitale municipality-extended areas, Township and Agricultural Land at Sh23,500,500.
After they presented their quotation, the county paid Sh19 million as a down payment and remained with a balance of Sh4.5 million which is yet to be paid. The interest accruing from the contract has raised the debt to Sh5.3 million.
A decree notice issued in December last year stated: “It is ordered and decreed that the county government of Trans Nzoia do pay the plaintiff sum of Sh4,500,000 with costs and interest on the principal amount.”
Mwamba Valuers, through their lawyer Steven Nyakundi, told the Star that the county received summons in April last year but denied owing his client the said money hence their move to seek a bankruptcy order.