Managers defraud paper making firm of Shs1.8b

Mr Aniket Patel (right), the former managing director of Crown Converter Limited, with his lawyers at the Anti-Corruption Court in Kololo on Tuesday. Photo by Ephraim Kasozi

What you need to know:

Report. The managers carried out fictitious deals.

Kampala. Paper making company, Crown Converters Limited (CCL), has lost more than Shs1.8 billion in four years through falsified transactions by its managers, an internal audit report has shown.
According to the report by Kenyan-based independent auditors, Grande Afrique Consulting, former managers of CCL led by Mr Aniket Patel, colluded to fleece the company money in fictitious transactions.

Mr Aniket, the former managing director, Mr Laximkant Patel (shop manager), Mr Dave Shailesh Kumar (shop manager) and Mr Alpesh Kumar (tailor) and Mr Jagdishbhai (accounts assistant) are charged with 14 cases of embezzlement, theft and forgery in connection with loss of more than Shs1.8 billion.
Mr Godfrey Mwika, the managing director Grande Afrique Consulting, tendered the internal management report in the Anti-Corruption Court on Tuesday before Justice Margaret Tibulya as an exhibit.

He told court that the accused persons diverted company sale returns to their personal bank accounts whereas Mr Aniket and Mr Jagdishbhai stole Shs705, 040,994, and that Mr Aniket authorised and approved 141 cheque payments worth Shs385.5 million to a non-existent person, Murali Dhara. The witness told court that the accused persons received company proceeds on their individual bank accounts which they partly transferred to their superior, Mr Aniket.
Earlier on, two stationery traders from northern Uganda testified that the accused persons directed them to pay money through their personal bank accounts.

Prosecution witnesses Joseph Komakech and Paul Oketa also testified that they received supplies from CCL but were asked to pay through bank accounts owned by two company workers Laximkant and Shailesh Kumar.
It is alleged that between June 2005 and December 2009, while working as managing director at CCL in Kampala, Mr Aniket stole Shs108, 055,100, the property of his employer. The state also alleges that Mr Aniket stole company motor vehicle worth Shs13.5 million to which he had access by virtue of his job.
Meanwhile, court has set August 4 for cross examination of Mr Mwika.