$300,000 Worth of Goods Stranded in Mombasa After Ugandan Buyer Vanishes

Summary:

• Over $300,000 worth of electric motors from India’s Marathon Electric Motors are stuck in Mombasa after the Ugandan buyer vanished. The shipment, intended for Chemique Adhesives and Sealants in Uganda, was discovered to be a fraudulent front using the name of a legitimate UK company.

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MOMBASA, (Examiner) – Over $300,000 (Shs1.1b) worth of goods from Marathon Electric Motors, an Indian company, are stranded at the port of Mombasa, awaiting re-exportation to India after the Ugandan buyer vanished.

The shipment, consisting of 59 electric motors, was intended for Chemique Adhesives and Sealants Limited, located in Uganda. According to an affidavit from Mr. Mitul Zaveri, director of Marathon Motors, communication ceased with the Ugandan buyer upon the goods’ arrival in Mombasa, and attempts to locate the buyer were unsuccessful.

A local investigation revealed that Chemique Adhesives and Sealants Limited does not exist at the provided Mulwana Road address in Uganda, though a legitimate company with the same name operates in the United Kingdom. This led to suspicions that the Ugandan entity falsely presented itself as affiliated with the reputable UK company to gain Marathon Motors’ trust.

Legal proceedings have allowed for the re-exportation of the stranded goods. “The re-export process shall begin after a 14-day advertising period as directed by the judge,” stated Mr. Daniel Angualia, a lawyer involved in the case. The goods have been at the port for over a year, with clearance delayed pending Kenya Revenue Authority (KRA) and Uganda Revenue Authority (URA) approval.

Court documents indicate that URA requires a court order for re-exportation and that customs duty must be paid regardless of whether the goods are claimed. Marathon Motors had received a purchase order from the fraudulent buyer on November 3, 2022, and shipped the goods in February and March last year, only to lose contact with the consignee shortly after.

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