Gold Bars
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SH Trading DMCC, a Dubai-based firm, has filed a legal suit against Kerongwe & Sons General Traders Ltd and its CEO, John Kerongwe Mwita.
The suit claims a refund exceeding Sh63 million (approximately $489,950) due to an unresolved gold transaction. The allegations arise from a failure to deliver 700 kilograms of gold for which payment was made. According to court documents filed by SH Trading DMCC, a comprehensive agreement on delivery arrangements was established, targeting the arrival of the gold in Dubai by June 5, 2024.
However, the firm reports that the shipment did not occur, resulting in notable financial losses and disruptions within their supply chain.
The Dubai firm specializes in gold importation for the medical sector and has expanded its operations into Kenya. It initially engaged with Kerongwe & Sons following referrals from officials in the Kenyan Ministry of Mining.
During their meetings, SH Trading representatives inspected about 720 kilograms of gold, and a sample test supposedly conducted by the Ministry confirmed the metal's authenticity. Documentation includes an evaluation certificate dated May 24, 2024, which facilitated a contract for the purchase of the gold after officials viewed the bars at Kerongwe & Sons' Spring Valley offices.
Kenneth Amondi, the attorney representing SH Trading DMCC, notes that photographic and video evidence of the demonstration will be introduced in court. In its filing, SH Trading DMCC asserts that the breach of contract resulted in business losses amounting to $28 million, significantly disrupting their manufacturing operations and delivery capabilities.
The funds for the gold were transferred through multiple channels, including cash, wallet transfers, and bank transactions. The company is seeking a refund, accrued interest, and additional damages related to the breach and consequential financial impacts.