The Court has issued a new ruling in the petition Royal Media Services (RMS) Chairman SK Macharia over the ownership of Directline Assurance Company Limited.
A Court in Nairobi has extended the temporary orders to stop the execution of a search warrant on RMS.
Citizen TV reports that the court extended the orders barring the Director of Criminal Investigations (DCI) from executing search warrants against Royal Credit Chairman, Dr. SK Macharia in the ongoing case against Directline company.
In its previous ruling, the court issued orders stopping the search until October 30 (today), when the matter was to be heard inter-party.
In the case, SK Macharia through lawyer Danstan Omari filed an application at the Milimani Law Court seeking court orders to vacate orders granting the DCI permission to search RMS premises.
Macharia argued that the court didn’t hear and did not have all the materials before issuing the orders.
He mentioned that Terry Wanjiku Kiarie known as Janice Theresa Wanjiku Kiarie is not a shareholder of Directline Assurance and should not speak as one.
“It is in the interest of justice that the court vacates its orders and gives an opportunity to be heard to the applicant and the 1st respondents so that the court can be presented with all facts thereof,” reads court papers.
SK Macharia Say He is the Rightful Owner
Additionally, Macharia argued that he cannot steal Directline since he is a legal shareholder, and the Company belongs to him.
“The police went to court ex-party and got orders to repossess three vehicles owned by SK Macharia and to Royal Media Services to search for cheques, the court has vacated those orders, and the complainant one Terry found that she fraudulently registered herself as a shareholder,” Omari said.
Also Read: Directline Saga: New Twist as Regulator Refutes Closure of SK Macharia’s Company
The lawyer reasoned that RMS and Directline fall under two different entities and the search warrant would therefore impact innocent citizens not involved in the case.
“That the republic is misguised by confusing entities that have no nexus and as such is not aiding the court since Royal Media Services and Royal Media Credit are two separate and distinct entities,” read court documents.
Also Read: SK Macharia Warns Passengers Against Boarding Vehicles Covered by Directline Insurance
How Macharia & His Wife Founded Directline
According to Omari, Macharia and his wife Gathoni Macharia are the original founders of Directline.
He explained that the couple had initially secured licenses for two of their businesses: Royal Media Services and Directline Assurance.
Omari explained that they initially needed to raise Ksh100 million as a deposit to qualify for the license, but after meeting this requirement, new regulations raised the amount to Ksh250 million just before the license could be finalized.
“They managed to raise the necessary funds and successfully acquired the license for the insurance company,” Omari stated.
Despite securing the license, the Macharia decided to concentrate on growing Royal Media Services, placing Directline temporarily on hold.
The company resumed operations under their late son’s guidance once he was old enough to take charge.
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