A poisoned chalice orchestrated by slain businessman Jacob Juma has come back to haunt his business associates in a Sh297 million scandal.
The company is said to have won a tender to supply 40,000 metric tonnes of white maize after the government advertised for the supply of 180,000 metric tonnes to ameliorate the resulting hunger in August 2004.
The company was obliged to ship the maize to the port of Mombasa within four weeks from August 26, 2004 when the deal was signed.
The defence argued that it was Jacob Juma who wrote to NCPB on October 8, 2008 informing them that they were being pursued on storage charges, adding that the arbitration award was paid to Erad’s lawyers.
Out of the Sh278 million,Grace Wakhungu got Sh40 million, Walukhe Sh50 million, while Juma who played a major role in the deal is said to have pocketed more than Sh100 million.
Out of the Sh40 million, she paid some creditors - Brian Yongo (Sh7.5 million and Sundip (Sh6 million).
Erad, that won Sh577 million as compensation for damages suffered, was paid Sh321 million in 2016 as the remaining Sh264 million was put on hold for the Court of Appeal to hear and determine an appeal by the board. The money was paid through garnishee proceedings.
Few months later, Juma was shot dead while driving past Lenana School.
The company and its remaining two co-directors’ tribulations started when the Ethics and Anti-Corruption Commission (EACC), now led by Twalib Mbarak, came knocking on the grounds that the invoice used for payment was fraudulent.
Comments