His arrest stems from a warrant issued due to his failure to pay a substantial debt owed to a company, resulting in a legal battle that has been ongoing for years.
The arrest warrant was issued by Justice J Ngaah on May 31, 2024, after Associated Automobile Distributors (K) Limited sought legal action against Oanda.
The company had previously secured a court ruling mandating the Mombasa County Government to pay Sh67,557,859.92, which includes the principal amount and accrued interest.
The initial debt of Sh17,751,529.10, dating back to April 2008, had been ordered to be paid in monthly installments of Sh1,000,000. However, the amount has significantly increased due to accrued interest.
The case against Oanda is rooted in a long-standing dispute that began in July 2000 when Associated Automobile Distributors filed a civil suit against the Municipal Council of Mombasa.
The company sought Sh13,541,815 in payment. A consent judgment in 2004 required the council to pay this debt in monthly installments. However, the council's failure to adhere to these terms led to further legal action.
In 2006, a court order demanded the Town Clerk of the Municipal Council of Mombasa pay additional amounts, including accrued interest. By 2010, a warrant of arrest had been issued against the Town Clerk for non-payment.
Despite some payments being made, the debt remained largely unpaid. By January 2024, the total amount owed had escalated to Sh67,557,859.92.
Oanda, who succeeded Maryam Mbaruk as Finance CEC, now faces the consequences of this unresolved debt. Justice Ngaah's recent ruling authorized Oanda's arrest and ordered his appearance in court to explain why he should not be imprisoned for up to six months.
This action shows the court's frustration with the county government's failure to settle the debt, which has been a point of contention for many years.
The Mombasa County Government, listed as a respondent in this case, has not adequately addressed the court’s previous rulings regarding the debt.
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