Flour miller Atta Kenya Limited sues Grain Bulk Handlers, 4 others over illegal wheat sales

KENYA – Atta Kenya Limited, a prominent manufacturer of wheat flour and animal feed products based in Mombasa, has filed a lawsuit against Grain Bulk Handlers Limited and four other entities, alleging a multi-million-shilling grain dispute that has persisted for over a decade.

The move comes after two defendant witnesses volunteered to take to the stand, to explain who authorized the disposal of 29,500 metric tons of wheat to Grain Bulk Handlers Limited belonging to Atta Kenya Limited in 2014.

Appearing before the Mombasa High Court on February 19, the plaintiff, Atta Kenya Limited wants the court to declare the sale of the wheat illegal and surcharge the Grain Bulk Handlers Limited, Commissioner – Customs and Border Control, Beyond Auctioneers, Grain Bulk Handlers Limited and Oloo and Chatur Advocates.

Grain Bulk Handlers Limited (GBHL) is a private company that commenced operations in 2000. It owns and operates a specialized terminal for the handling of bulk grain imports and is the sole operator for mechanical bulk grain handling at the Port of Mombasa.

According to court documents the plaintiff, Atta Kenya Limited entered into an agreement with Louis Dreyfus Company Limited for the purchase of 38,500 metric tons of milling wheat for US$7.565M.

However, the plaintiff fell behind in paying the required customs duty and storage fees owed to the Commissioner – Customs and Border Control and the second defendant Grain Bulk handlers.

As the matter was under review by all the parties Atta Kenya Limited received a letter that, the consignment was sold to Grain Industries Limited by Beyond Auctioneers at a total cost of 217.48 million Kenya shillings (US$1.5M) way below the market value of 730.3 million shillings (US$5M).

Appearing before the High Court Judge Florence Macharia, two defendant witnesses were at pains to explain how the auction price was arrived at and who authorized the sale of the 29,500 metric tons milling wheat.

The cross-examination was being done by Atta limited lawyer Mila Bwire, who needed answers to what exactly transpired during the receivership of the wheat consignment to its sale.

The case will continue on the 14^th of March, where the cross-examination of the last defendant witness will take place.

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