Brookside Dairy Sues KDF over Sh2 million unpaid milk delivery!

"Kenya’s leading milk processor Brookside Dairy, which is owned by the Kenyatta family, has sued the Ministry of Defence over a Sh2 million debt. The company wants the government compelled to pay the debt plus interest at a rate of 12 per cent per annum from September 21, 2012. The money claimed arose out of a judgement issued in a case filed in 2004. Brookside accused the Defence ministry of failing to pay for milk supplied. However, the ministry denied entering into contract with Brookside and denied the products were supplied. The company says the government never appealed against the court decision requiring it to pay the debt but defied the order. Brookside says it has no other option of realising the judgement from lower court, since it is barred from executing against the government. The documents filed in the lower court indicate Brookside tendered to supply milk to the Department of Defence. The tender was successful and the company was authorised to supply milk and milk products to the Eldoret, Isiolo and Nairobi units. To support its case, the company called Andrew Mbote to testify in 2003. Mbote tabled four invoices for a total of Sh939,120, which were signed between Brookside and the DoD. The government, he said, only paid Sh84,240, leaving a balance of Sh854,880 for milk supplied in Eldoret. Also exhibited were three more invoices for Sh35,144 for milk supplied to Kahawa barracks, an invoice for Sh17,400 for milk supplied to 78 tank battalion, a Sh825,516 for milk supplied for the Armed Forces Memorial Hospital. Of that amount, Sh247,816 was paid and Sh570,699 was paid by two cheques. Mbote told the court the ministry owed the company Sh1,013,399 and refused to pay, despite being issued with notice to sue. Brookside rebutted the Ministry’s denial of existence of contract through its witnesses who tabled tender documents. Magistrate TC Wamae said the Defence ministry had a chance to call witnesses and testify if the milk was delivered, but failed to do so. Yesterday, when the matter came up for hearing before justice George Odunga, the parties sought adjournment. The matter will come up January 28." CREDIT - The Star Kenya