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Monday, January 16, 2017

BIG READ: The Rise and Fall of Coast tycoon TSS

Prominent Mombasa businessman Tahir Sheikh Said, popularly known as TSS, was laid to rest on Tuesday, marking the end of his reign over a multibillion-shilling empire.

Despite the massive wealth he accumulated, Said died heartbroken and left a family in turmoil as his sons fight to control his wealth.

Said joins a list of former Coast kingpins whose influence was once felt in one way or another in the region. Others include Ronald Ngala, Karisa Maitha (popularly known as ‘Mgogo wa Pwani’ — the pillar of the Coast) and Kanu stalwart Shariff Nassir.

Although he kept a low profile, Said was a kingmaker who controlled Coast politics by financing candidates and blocking opponents.

According to his close confident, Said was the right-hand man of retired President Daniel Arap Moi and was also appointed as Kanu branch chairman in Lamu, making him a powerful tycoon.

Said was born in Moyale in 1942 but later settled in Lamu, where he invested in properties and charity organisations that build schools, Madrassas and mosques, making him a dominant figure in the Muslim community.

The tycoon was buried at the Kikowani Muslim cemetery in Mombasa.

Former Chief Kadhi Sheikh Hammad Kassim led thousands of mourners in the last prayers at TSS Mosque along Haile Selassie Avenue.

Leaders present included Mombasa Senator Hassan Omar, politician Suleiman Shahbal, former Kisauni MP Anania Mwaboza and Mombasa Governor Hassan Joho’s elder brother Abubakar.

Said’s body was flown to Kenya early on Tuesday from South Africa and taken to his family home at Kizingo.

TSS Towers in Mombasa town.Photo / JOHN CHESOLI

AMONG LARGEST LANDOWNERS

A Wealth in Kenya report for 2014 listed Said as one of the largest landowners in the country, citing land he acquired during the Kanu regime.

But after the end of the Moi era, his empire crumbled when another regime took over led by President Mwai Kibaki, despite him funding Kibaki’s campaign in Mombasa.

At one point, the tycoon was denied access to the VIP section at Moi International Airport during a visit by Kibaki in 2000. The then provincial commissioner Ernest Munyi told him he was not invited, forcing the tycoon to drive off from the airport frustrated.

In 2014, his fortunes seemed to take a turn for the worse when the government cancelled title deeds to large tracts of land in Lamu county associated with him.

Some of the land is said to have been used to secure loans in excess of Sh5 billion from two banks listed on the stock exchange.

Speaking to the Star, former Kenyan Ambassador to Saudi Arabia Said Hemed said he had known Said for decades, describing him as a kind-hearted, generous philanthropist.

Hemed said Said supported various projects, including building schools and mosques, offering scholarship and medical assistance for the poor, among other charitable activities his foundation supported.

Mombasa leaders described him as an icon whose death is a big blow to the society that depended on him. Said was known for helping the less fortunate.

“It is with profound sadness that we mourn the death of Said. He was a well-known fatherly figure, mentor to most prominent personalities of Mombasa and beyond, and a kind-hearted, generous philanthropist," Mombasa Governor Hassan Joho said.

Sons of the deceased TSS owner Mohamed Twahir and Twahir Said while addressing the media in their father's compound in Kizingo Mombasa county. Photo Mkamburi Mwawasi.

BITTER END

Sheikh died a frustrated man.

His frustrations began after his sons moved to court fighting for the ownership of his property and the debts surrounding him.

In November 2016, the tycoon appeared to be worn down by debts and fighting among his sons and other family members over his vast wealth.

The fighting, some of which ended up in court, appeared to have taken a toll on Sheikh’s health.

Late last year, Sheikh obtained restraining court orders, stopping the Bank of Africa from forfeiting his assets over a Sh1 billion loan.

He blamed his financial problems on some of his sons and a brother-in-law.

The orders also stopped the bank from accessing assets of his other firms related to the one that had taken the loan.

The bank wanted to access assets owned by TSS Transporters Ltd and TSS Investments Ltd, while the loan was taken by a related firm called Juja Coffee Exporters Ltd.

Five parcels of land in Mombasa, registered in the names of TSS Transporters Ltd and TSS Investments Ltd, are cited in the suit.

In May, TSS Unga Millers was taken by the Kenya Commercial Bank over another Sh1 billion loan. KCB, which has non-performing loans with TSS Unga Millers, issued a notice in May, indicating it had taken over operation of the miller.

Sheikh is said to have Sh8 billion in non-performing loans with several banks, booked under subsidiaries in his business empire.

His children also have a case in court, fighting for his property.

Son Sabir has accused his brother Noorein, of Transmara Logistics, of alleged fraud. Sabir, through lawyer Muriu Mungai, alleged the transfer and registration of vehicles and trailers by Noorein’s company was done fraudulently.

“I wish to put the record straight and refute claims by my brother [Noorein] that he owns three motor vehicles, two trailers and three 30,000-litre fuel tankers,” he said.

Mungai said Sabir is the bona fide owner of the vehicles, registered under TSS’s Pop-In Service company in Nairobi. Sabir told Justice Njoki Mwangi he is the legal owner of the Pop-In Service Stations chain.

He dismissed his brother’s claims that he will suffer loss if he is allowed to retain the property.

“Let Noorein prove he owns the property listed in this suit and prove the loss and damages he will incur if I retain the property,” Sabir said.

Sabir’s lawyer said his client has no intention of unlawfully repossessing the vehicles.

He said his client is entitled to the repossession and use of all vehicles.

“The move was initiated after Sabir was instructed by the majority shareholders of TSS Investments to collect and account for assets at the service stations,” Sabir’s lawyer said.

Sabir said he was instructed to recover the vehicles after they were abandoned on the side of the road in Tudor, Mombasa county.

He said it was not until June that they discovered there was change of ownership of the vehicles after documents were filed in court through his brother.

“The service stations show the management was oblivious all along of any change of ownership,” Sabir’s counsel said.

He said his client’s brother purported to convene a meeting of the board of directors of the service station early this year, knowing the meeting was not genuine.


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