Investors lose Shs9b in deal

Five oilseed milling companies in Lira City have lost Shs9 billion in an questionable investment scheme.

The duped companies are owned by investors from Pakistan and India. 

They include Pramukh Millers Ltd, which lost Shs3,635,589,600, Faruq Agro Shs2,320,000,000, Mian Agro Shs644,800,000, Umaima Business Solution Shs724,440,000 and Guru Nanak Investment, which incurred a loss of Shs1,569,600,000.

The companies allege that they supplied soybeans, cotton and sunflower to Agri Exim Ltd in Iceme Town Council in Oyam District between March and April and payment was to be made in June.

However, Agri Exim allegedly later denied conducting business with them.

Mr Basra Gurcharan Singh, the director of Guru Nanak, said they supplied sunflower, soybeans and cotton in March.

“We went to their office in Kampala and the CEO of Agri Exim told us to give them 15 days to check their accounts but later they told us that the company had already paid our money to others and refused to pay us.
When we asked for clarity, the company refused,” Mr Gurcharan added.

 The affected businesses have been employing more than 1,000 Ugandans and were working with more than 500 farmers.

They claim the alleged fraud has rendered more than 200 Ugandans jobless. 

 Mr Dev Patel, the director of Pramukh Millers Ltd, said he is claiming payment for soybeans and sunflower worth Shs3.6b.

According to documents seen by Daily Monitor, Mr Patel on February 27 entered into a memorandum of understanding with Agri Exim to supply 1,500 metric tonnes of soybeans on credit at a unit cost of Shs2,650 per kg, amounting to Shs3,975,000,000. 

He was reportedly paid only Shs400 million a few months later. This agreement was drafted by an advocate, Mr James Okello Atiang.

“Instead of paying us, Agri Exim has hired some hooligans to intimidate and threaten us,” Mr Muhammad Shahid of Mian Agro Uganda Ltd said.  Daily Monitor could not readily verify this. 

Mr Atiq Nawaz, the president of Pakistan Association in Lira, has warned that the prices of oilseeds will drop since there will be no company buying them.

“Investors will have no hope in doing business in the Lango Sub-region and Uganda since they will feel they are not protected,” he told Daily Monitor last Sunday.

When contacted in August, a financial manager at Agri Exim in Iceme, who declined to reveal his identity, told Daily Monitor that they would start paying those they owed in two weeks’ time upon reconciling their accounts.  

“We are going to pay them. Why are they running to the media,” he said.
A case of fraud was also lodged against Agri Exim Ltd at Kireka Police Station.

Police say
When contacted on Monday, police spokesperson Fred Enanga said he was engaged and referred Daily Monitor to CID public relations officer, Mr Twiine Mansio.

“If one company supplies to another company and it is a company versus a company that is a breach of an agreement. Why is it a criminal matter?” Mr Twiine said by  telephone on Monday.

He added: “Crime is an individual liability not a company but I am going to read and also consult and then I will give you a better version.”

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