The Nation (Nairobi)

Kenya: Court Grants Re-Verification to Sugar Firm

Nairobi — The process of re-verifying 25 containers of sugar which has been detained at the port of Mombasa for the last two years has begun.

Mumias Sugar was granted the order to scrutinize the contents following reports that some unknown people were intending to clear the consignment, allegedly imported into the country illegally by a Ugandan registered company.

High Court judge Mohammed Ibrahim also allowed the local miller to inspect the consignment after being informed that some unscrupulous businessmen were planning to steal some of the sugar.

The commodity estimated at 437,000 US dollars (Sh34, 086, 000) 37 million was imported by Semliki Mineral Resources which is registered in Uganda and was packed it into gunny bags that bore the name of Mumias Sugar Company.

There is an injunction issued in February last year against disposal, clearance, sale, distribution or interference with the consignment pending the hearing and determination of the suit.

Two weeks ago, another Ugandan company Arua Mercantile which claims to own the 12, 460 bags of sugar had placed an advert in a local daily for the sale through a public auction which was to take place on November 10, 2009.

It was alleged that a Mr Humphery Babukiika imported the sugar from the United Arab Emirates (UAE) through the port of Mombasa using Semliki in which he was a managing director.

There is now a dispute in court where the sugar miller has sued the importers for allegedly infringing on their brand name and trade mark by labelling the gunny bags the company's name.

While calling for the sale of the consignment, Arua alleged that it had obtained judgment in Uganda against Semliki and wanted it enforced in Kenya under the Foreign Judgment Enforcement Act, and was consequently granted the orders after appearing before former Mombasa High Court judge Leonard Njagi.

The company had accused Mr Babukiika, Semliki and Mumias of collusion, in that they knowingly packaged the consignment bearing the local miller's name so as to represent the origin and ownership.

The company also claimed the three occasioned unreasonable delay in transiting the sugar from Kilindini port to Kampala with the intent to facilitate its unlawful release into the Kenyan market.

In addition, they allegedly colluded to break the 25 seals of the containers so as to deceive, mislead and conceal its involvement in the conspiracy to defraud the company.

But since Mumias was aggrieved by the orders granted by Justice Njagi, their lawyer Manase Ananda went before deputy registrar Richard Kirui who stayed the intended sale.

Semliki also claimed that they were strangers in the judgment and accused the purported owners of trying to use the backdoor to defeat the cause of justice in Kenya to have the sugar disposed of.

Mumias claimed that Arua was also being uncanny and acting in bad faith by intending to subvert the cause of justice.


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