Metropolitan International Holdings faces lawsuit over alleged fraudulent share transaction in Kenya

METROPOLITAN International Holdings (MIH), a Johannesburg Stock Exchange-listed Momentum Group subsidiary, is facing legal action in Kenya over an alleged fraudulent share transaction involving Cannon Assurance Ltd.

- DIEKETSENG MALOKE [e-mail]

The case was brought up by the estate of the late Jafferali Gulamhusein and his son, Vashir Jaffer, who are former owners of the Kenyan insurance company.

MIH has acknowledged the lawsuit but has refrained from making further public statements.

“We are aware of the pending case and we are responding appropriately to the legal process; we will therefore not be commenting further at this time,” the company stated.

The dispute centres on a 2014 transaction in which MIH acquired shares in Cannon Assurance Ltd, a long-established Kenyan insurance company. As part of the agreement, Cannon’s properties were to be transferred to Indies-Induna Talwar as a “dividend in specie” — a form of non-cash compensation.