etlink in court battle over money transfers WEDNESDAY, JULY 20, 2011 - 00:00 -- BY DOMINIC WABALA Regional airline Jetlink is embroiled in a court battle with another airline over cash transfers and account operations. George Kivindyo, a director of East African Safair Air Express Limited in an application certified as urgent wants the court to stop Kiran Patel and Elkana Aluvale both directors of Jetlink from transferring funds from Jetlink Express Limited accounts into their personal accounts until an application filed on July 14 2011 is heard and determined. “The defendant has established that there have been some unusual movements of money from the plaintiff’s accounts as more particularly set out in the affidavit of George Kivindyo. The defendant has also established that the plaintiff is at the moment experiencing cash flow problems and has faced difficulties in meeting its re-current expenditure. It is vital that the application be heard immediately to set aside and/or vary the order of 18th November 2009by requiring the defendant to deposit additional security sufficient to secure the defendants claim forUS$902,143,” the application reads. Kivindyo through his lawyers Hamiliton Harrison & Mathews argues that East African Safari Air Express Limited might not be able to recover the money because Aluvale and Patel are involved in a number of transfers of large sums of money of Jetlink Express funds which are unjustified and is a clear indication that the assets are being stripped. He alleges that Jetlink is experiencing cash flow problems and has consequently been delaying payment of employees salaries over the last six months. According to the application, due to the cash flow problems experienced by Jetlink Express Limited, Kenya Airports Authority has since March 15 2011 put the airline on cash basis due to delays in the paying of landing and parking fees. He says the airline also issued four cheques in favour of Kobil Petroleum Limited each totaling US$34,500 (Sh3,070,500) which were dishonored by its bankers Equity Bank Limited while owners of some of the aircraft leased by the company have charged Jetlink interest for late payment. The application says that Jetlink Express Limited accounts have been manipulated to show there has been an increase in capital without any actual injection of money by the directors. It says Jetlink Express Limited received US $ 174, 93500 (Sh11,230,927) as an insurance claim from Regent Insurance company but it was instead deposited in equal instalments of Ksh 5,615,413 each into Aluvale’s and Patel’s personal accounts. In cites a second payment where Jetlink received US$402and US$300,000 (a total of Sh49,191,000) from Meridiana Africa Airlines Limited but it was reflected as shareholders loan and later transferred as share capital in equal amounts to Eagle Airlink Ltd and Divine Investments Ltd owned by Kiran Patel and Elkana Aluvale respectively. - See more at: the-star.co.ke/news/article-56491/jetlink-court-battle-over-money-transfers#sthash.JahOdV3l.dpuf
Posted on: Sat, 22 Feb 2014 16:32:44 +0000
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