Controversy over Sh34m sugar back in court

The controversy surrounding 25 sugar containers impounded by police resurfaced in court on Tuesday, with a local miller accusing a foreign company of deception.

Mumias Sugar Company said Arua Mercantile, a Uganda-registered firm, illegally obtained orders to have the consignment attached before calling for its sale.

This is despite an injunction issued in 2008 against the sale, disposal, clearance, distribution, or any interference.

The orders in favour of the miller were granted in Mombasa by Mr Justice Joseph Sergon.

He had complained of infringement on the company’s brand name and trade mark by labelling the gunny bags in the firm’s name.

The 12,460 bags of sugar, estimated to be worth about ShSh34 million, were imported by Semliki Mineral Resources, which is also registered in Uganda.

The consignment was packed in bags that bore the name of the Mumias Sugar Company.

Mombasa High Court judge Mohammed Ibrahim was told that Arua Mercantile did not have the right to have the sugar attached because of the injunction, which was still valid.

The ruling on which party should pay the auctioneers’ charges will be made on July 15.