3 United Millers directors charged with fraud in Sh79.4m sugar deal

Three directors of a Kisumu-based miller were Monday charged with fraud over a Sh79.4million sugar deal said to have taken place six years ago.

Mr Sunil Narshi Shah, Mr Kamal Narshi Punja Shah and Magnesh Kumar Verma of United Millers Limited are accused of defrauding businessman B N Kotecha & Sons Limited of Sh79,471,000 in the deal.

Defence lawyer Ibrahim Stanley Ogejo applied to have the accused released on similar bail terms as United Millers General Manager Henry Munywoki Kavita, who was charged on April 27.

State prosecutor Evelyn Onunga did not oppose their plea to be freed on bail, saying they complied with a court order for an appearance in order to plead to seven counts.

Ms Onunga had informed the court that the plea-taking was to take place on June 3, 2020.

She said the three were freed on a Sh70,000 police bond by the Muthaiga Police Station commander when they appeared for interrogation.

Although the State did not raise any opposition, lawyers Tom Ojienda and Meso Ogada, for B N Kotecha & Sons, said stringent bail terms should be imposed since the accused have been taking the court round in circles since June 3 last year.

Mr Ogada told the magistrate although the accused informed the court that they had been advised to stay in isolation by doctors at Jaramogi Oginga Odinga Teaching and Referral Hospital, they had not been to the hospital.

But Mr Andayi informed Mr Ogada that medical issues were addressed when Mr Kavita was arraigned.

Mr Ogejo had been asked to produce the directors in court as soon as they obtained clearance to interact with others.

Mr Andayi released each of the accused on a cash bail of Sh400,000 or a bond of Sh1 million until May 24, when they will appear in court for the fixing of hearing dates.

The directors were also warned against travelling outside the jurisdiction of the court without permission.

The three directors and Mr Kavita are charged that on April 2, 2015, they jointly conspired with intent to defraud B N Kotecha & Sons of Sh79.4million.

The four allegedly pretended they had lost business, as United Millers, to their clients through failure to supply sugar.

They are charged with defeating the course of justice by filing Kisumu High Court Civil Suit Number 38 of 2015 allegedly using falsified documents.

United Millers Limited sued B N Kotecha & Sons Limited, Hemal Kishor Kotecha and Harshil Kishore Kotecha.

Mr Kavita was separately charged with forging a local purchase order, number 106 of April 15, 2015, for Alysam Stores and presenting it as genuine.

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