Jacob Juma firm risks losing Sh500m in alleged forgery

Kenya news, 

More than a quarter billion shillings due to a firm associated with slain businessman Jacob Juma is usually at stake after the item emerged the company used  forged court documents to win compensation via the government.

The anti-graft agency, EACC, reckons which Erad General Supplies, where Mr Juma served as the managing director until his death last year, tabled fake court documents in its case against the National Cereals along with Produce Board (NCPB).


The company is usually claiming Sh264.8 million via the board along with had initially pocketed Sh312.8 million via a claim they won through arbitration for a botched maize supply scheme.

The company’s directors include Sirisia MP John Waluke along with Grace Sarapay.

The Director of Public Prosecutions has backed the Ethics Anti-Corruption Commission for the prosecution of the directors.

“On December 23, 2016, the Director of Public Prosecutions (DPP) concurred with the recommendation for prosecution save for directions which further investigations which has a view to strengthening the case be done before suspects are charged in court,” the EACC says in a Kenya Gazette notice dated March 31.

This kind of sets Erad’s executives up for jail terms after the anti-graft agency last October asked the DPP, Keriako Tobiko, to prosecute them.

The notice did not reveal the names of the officials.

Erad sued after the cereals agency cancelled the tender to supply 40,000 tonnes maize of maize.


The company argued in court which the item stands to be compensated since the item incurred heavy losses in storage costs for the grain the item had ordered via outside Kenya along with for foregone profit.

the item won the case inside the High Court, entitling the item to a Sh577 million compensation, despite failure to supply even 1 grain inside the saga which dates back to 2004.

The cereals board paid the initial Sh312.8 million to Mr Juma’s company while the remaining Sh264.8 million awaited a ruling by the Court of Appeal after the board appealed.

“The investigations established which to get a favourable outcome at the arbitration, some officials of Erad Supplies along with General Contracts Ltd had used false documents,” the EACC says, adding which the offences are punishable under the penal code along with the Economic Crimes Act.

This kind of puts at risk the Sh264 million pay.


Erad sought to recover the remaining cash through sale of NCPB’s immovable assets like silos along with land although the appellate court stopped the action, saving the board via a financial meltdown.

The maize tender saga dates back to August 2004 when the cereals board contracted Mr Juma’s firm to supply 40,000 metric tonnes of maize to replenish the national strategic grain reserve during a drought period.

The board, however, soon cancelled the contract after Erad failed to deliver the consignment within the four weeks the supply was expected.

This kind of prompted Mr Juma, who was murdered last year in Nairobi by unknown assailants, to sue, claiming which the NCPB failed to issue them which has a Letter of Credit as a financial guarantee to its suppliers.

The post Jacob Juma firm risks losing Sh500m in alleged forgery appeared first on Nairobi News.

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Jacob Juma firm risks losing Sh500m in alleged forgery

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