EABL loses Sh240m claim against former top manager

 

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High Court judge Joseph Sergon on Friday dismissed a civil suit EABL filed against its former procurement director, Aristide Nkoumondo.

The judge ruled that EABL should have sued the shell company that Mr Nkoumondo allegedly used to illegally sell 2,500 refrigerators owned by the beer maker. The refrigerators were valued at Sh240 million.

Mr Nkoumondo is accused of having embezzled the funds on four different occasions between April and October 2011 in collusion with other EABL employees who are yet to be brought to book.

Beer maker East African Breweries Limited has lost a Sh240 million claim against an ex- employee whom it accused of using a shell company to steal from the firm.

High Court judge Joseph Sergon on Friday dismissed a civil suit EABL filed against its former procurement director, Aristide Nkoumondo.

The judge ruled that EABL should have sued the shell company that Mr Nkoumondo allegedly used to illegally sell 2,500 refrigerators owned by the beer maker. The refrigerators were valued at Sh240 million.

EABL filed the suit claiming that its former procurement director used a bogus Seychelles- registered company called RBS East Africa to open a fake bank account from which he allegedly received payments for the refrigerators from one of EABL's suppliers - Frigorex.

Justice Sergon argued that RBS is an independent entity and declined to lift the corporate veil on it. EABL insisted that Mr Nkoumondo is a director at RBS, leaving him at the centre of the alleged fraudulent transaction.

"It would appear that EABL has no intention of bringing RBS into these proceedings. EABL

was represented by an advocate whom I thought would clarify the issue. I am convinced that the plaintiff has not demonstrated a case with triable issues. I therefore dismiss the application," held Justice Sergon.

The judge, however, granted EABL room to appeal his decision.

EABL holds that Mr Nkoumondo named the firm RBS in a bid to trick Frigorex into believing that the account belonged to the Royal Bank of Scotland, which the brewer uses for such deals.

READ: Former EABL director charged with stealing Sh243m

The former procurement boss has since been charged with stealing the sum in the Chief Magistrate's court. Mr Nkoumondo is facing four counts of theft by servant, which carries a prison term of up to seven years if found guilty of the offence.

He is accused of having embezzled the funds on four different occasions between April and October 2011 in collusion with other EABL employees who are yet to be brought to book.

Mr Nkoumondo denied the claims, and said he only implemented management decisions while working for the brewer.

"As an employee of EABL I only acted to implement its management decisions. I have never offered for sale neither did I sell refrigerators belonging to EABL. The refrigerators alleged to have been sold are still in EABL's possession and allegations that they have been sold are superfluous," said Mr Nkoumondo.

But EABL says he withdrew most of the funds from the fake RBS account and stashed the cash in secret Jersey bank accounts.