Rwanda: DN International boss arrested
The Chief Executive of DN International, Nathan Lloyd, has been arrested on charges of swindling his clients.
Lloyd is alleged to have received money from 19 people who bought houses at Hill View Estate, which was developed by DN International, but never handed over the ownership documents as promised
Some of clients had paid the full amount of Rwf 55million each to DN International for a house at the estate based in Masaka, Kicukiro District.
Hill View Estate was constructed with a loan from Fina Bank. However, the developer failed to pay back as agreed in the contract, compelling the bank to start procedures to auction the houses.
The Bank has lately been placing adverts in newspapers notifying the public about an auction to sell the 19 houses on August 25.
A statement from police, released yesterday, says that Lloyd’s arrest was premised on the fact that his company did not fulfill its promise to clients who paid for the houses.
“Those who bought the houses will lose their money. It is a swindling case because the company used fraudulent means to get money from the victims promising to give them their titles and keys immediately after payment, concealing the fact that the titles are held at Fina Bank,” Police spokesperson, Theos badege said.
“Lloyd is detained at Remera Police station”.
Before Lloyd was arrested, Rwanda Development Board, which is the investors’ caretaker, called for a meeting of all parties concerned so as to come up with a win-win solution that would not jeopardise individual home buyers.
“Both Fina Bank and DN International have informed us that they have arrived at an agreement which if implemented, would not affect home buyers who have fully paid for their houses. We urge them to implement their agreement in the agreed time line, particularly for DN International to clear its balance with the Bank,” said the CEO of RDB, John Gara.
The Managing Director of Fina Bank, Rao Balivade, confirmed that there was a temporary arrangement with DN International.
“The arrangement is that we suspend the auction for some time, that is all I can tell you, no further details,” he said.
When contacted, the Managing Director of DN International, Joseph Kapukha, said that he has direct orders from his bosses not to address the media on this issue.
However, a reliable source disclosed that the auction will go ahead if DN International does not pay FINA Bank Rwf 100 million in the next 45 days.
The Project cost over Rwf 800 million with the outstanding debt owed to Fina Bank approximately 400 million.
Looming loss of KCB contract
Meanwhile, DN International recently acquired another loan from Kenya Commercial Bank-KCB-Rwanda to construct Green Park Villas consisting of 50 housing units. The estate is located in Rusororo, about 15 kilometres from Kigali International Airport.
Each house is valued at Rwf 75million.
Latest reports indicate that the developer may lose the KCB-Rwanda deal as well if the bank indeed proves that he DN International defrauded Fina Bank.
“We shall have to review the circumstances under which he acquired a loan and a decision will be taken,” the Managing Director KCB-Rwanda, Maurice K. Toroitich, said.
RDB went on to recommend that the Rwanda Housing Authority puts in place regulations to protect clients.
By Edwin Musoni, The New Times
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