Primepile Logistics Limited and its owner Issadin Gabane Mohamed may face criminal charges for failing to deliver 300 tons of sugar to Akish Investment Limited.
Akish Inv. has already commenced a civil case against the two where they are demanding to be paid Sh 49.7 million.
The plaintiff wants to be paid an outstanding balance of Sh 30,450,000 and loss of business and profit at an estimated sum of Sh 19,251,654.
In a supporting affidavit by Akish Investment ltd Managing Director Jacqueline Akinyi, the two breached the contract by failing to deliver the goods and services due to the her company, hoodwinking and purporting to be trading in sugar business.
Akish Inv. told the court that at all material times it carried on the business of supplying usable and consumable goods while Primepile Logistics ltd and Issadin Gabane Mohamed were its main wholesale supplier, having a long standing business relationship.
“Consequent to the business relationships, on or about 9th December 2021, Akish Investment ltd ordered 300 tons of sugar at the cost of Sh 30,450,000 which was to be collected at the Primepile Logistics ltd and Issadin Gabane Mohamed warehouse situated at palm oils transporters along Kingangombe Road,” Akinyi said.
Akinyi avers that soon after, the company raised some invoices which amounted to Sh 30,450,000.
“In earnest to honour the said invoices, the plaintiff made two separate but consecutive payment on 22nd January 2022 one for Sh 15,600,000 and Sh 14,850,000 respectively,” she added.
Akish further argues that at the time of formation of the contract the Issadin Gabane Mohamed was involved in either his own capacity or as an agent of the Primepile Logistics.
According to the plaintiff, the two subsequently breached the agreement by failing to deliver the ordered quantity (300 tons) of the sugar and still retained all the money paid to them.
The plaintiff further states that “in anticipation of the ordered sugar we procured two clients (Sendy Store Ltd & Paleah Stores Ltd) who ordered 150 tons of sugar each.”
This would have seen Akish make a profit of Sh 19,251,564 from the transaction.
In addition, the plaintiff claims that as a result the blatant breach by the Defendants the Plaintiff has suffered huge financial loss, damages and loss of business and profits.
Akinyi further states that there is also a potential civil suit by its two main clients due to the defendants’ breach of contract by refusal to deliver the goods and services to them.
She further accuses the respondents of obtaining money from her company and failing to deliver the goods and services, ignoring her calls, emails communication and defrauding her.
“Despite demand and notice of intention to sue being issued, Primepile Logistics ltd and Issadin Gabane Mohamed have failed, refused, ignored or neglected to make good the debt thus rendering this claim necessary,” swears Akinyi in her affidavit.
Mohamed was arrested for the offense but was released on a police cash bail of Sh 5000,000 pending arraignment in court.
A charge sheet has been drafted by police and awaiting to be signed by the Director of Public Prosecution.
According to the charge sheet, between 23rd and 25th January 2022, Primepile Logistics Limited and Issadin Gabane Mohamed with intent to defraud obtained Sh 30,450,000 from Jacqueline Akinyi by falsely pretending that he was in position to supply her with 6000×50 kilograms of sugar a fact he knew to be false.
According to sources from Directorate of Criminal Investigations, Gabane was supposed to be charged on 1st July but plea was differed to 12th July after DPP declined to approve the charges.
The plea was again pushed to 26th July.
This comes in the midst of a battle between the police and the DPP on who has the mandate to draft and sign charge sheets.
The war between the two bodies has delayed justice since the police have refused to use charge sheets drafted by the DPP and vice-versa making people like Mohamed not to plead to the charges against him until further notice.