The multi-billion shilling grain suit pitting Atta Kenya Limited and Grain Bulk Handlers Limited entered the homestretch Tuesday with two more defendant witnesses taking to the stand.
The two witnesses were at pains to explain to the Mombasa High Court who authorized the disposal of 29,500 metric tons of wheat belonging to Atta Kenya Limited.
The plaintiff, Atta Kenya Limited, wants the court to declare the sale of the wheat illegal and surcharge Grain Bulk Handlers Limited, Commissioner – Customs and Border Control, Beyond Auctioneers, Grain Industries Limited and Oloo and Chatur Advocates who are listed as respondents.
According to court documents, the plaintiff, Atta Kenya Limited, agreed with Louis Dreyfus Company Limited for the purchase of 38,500 metric tons of milling wheat.
Some 29,500 metric tons were to be delivered to Atta Kenya Limited, where the payment for the shipment was done in June 2014 to LDCL, totalling USD 7.565 million (Sh1.1 billion).
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 said it received a letter that the consignment had been sold by Beyond Auctioneers to Grain Industries Ltd at a total cost of Sh217.48 million, which is way below the market value of Sh730.3 million.
Appearing before the High Court Judge Florence Macharia on Wednesday, the two defendants' witnesses failed to explain how the auction price was arrived at and who authorized the sale of the milling wheat.
The cross-examination was being done by Atta Kenya Limited lawyer Mila Bwire, who needed answers to what exactly transpired during the receivership of the wheat consignment to its sale.
The case continues on March 14, where the cross-examination of the last defendant witness will take place.
