Former Wajir Governor Mohamed Mohamoud has been declared bankrupt due to his failure to settle a Ksh7.6 million debt owed to a construction company.
Despite a court order issued in January 2020, both Mohamed Mohamoud and his wife, Kheira Maalim, failed to pay the outstanding debt, leading the construction company to file a bankruptcy petition against them.
In the recent ruling, High Court Judge David Majanja appointed the official receiver as the trustee of the couple’s estate.
“There is no reason a bankruptcy order should not be made as the decretal sum is not disputed and has been outstanding since 2020 when judgment was entered against the debtor. This is clear evidence of inability to pay debts by the debtors,” Justice Majanja ruled.
The matter began in 2006 when the couple sought tiles from the company to construct the shopping mall in Eastleigh in Nairobi County. However, after delivering the goods, the company complained that the governor failed to pay them the agreed amount.
In their defense, the couple argued that the company delivered substandard and weak tiles that broke barely a week after being laid out. They added that the company did not replace the damaged tiles.
Since 2010, the former Wajir Governor, his wife, and the company have been entangled in a legal battle, with numerous court appearances and disputes.
According to the Business Registration Services (BRS), bankruptcy orders provide protection for debtors by preventing creditors from harassing them and seizing their property.
“A bankruptcy order can be lifted if the debtor pays off his debts. The bankrupt will automatically be discharged from bankruptcy after three years whether the debt is paid or not,” BRS explains on its website.
Mohamoud the second Wajir governor was impeached in May 2021, after being accused of abuse of office, gross misconduct, financial impropriety, and violation of the constitution.
Members of the County Assembly (MCAs) accused him of unlawfully delegating powers to his wife, circumventing legal procedures.
