Companies

Probe Nakumatt over fraud, says landlord

shah

Nakumatt Holdings's Atul Shah. FILE PHOTO | NMG

A former Nakumatt Supermarkets landlord in Mombasa wants the Director of Public Prosecutions Noordin Haji to direct the Inspector General of Police to investigate the retailer over alleged fraud.

Ideal Locations Ltd, owners of City Mall Mombasa where the struggling retailer was located, claims that the directors of Nakumatt Holdings Ltd committed acts of fraud, false accounting and obtaining goods and credit on false pretence.

In a letter to the DPP written by its lawyer Senior Counsel Ahmednasir Abdullahi, Ideal Locations says the retailer’s administrator Peter Kahi informed a parliamentary committee that he uncovered a “hole” in Nakumatt’s stock worth Sh18 billion.

“He further informed them that Mr Atul Shah wrote off stock worth billions of shillings and that he would investigate or look into the issue,” the letter dated October 19 reads in part.

Mr Abdullahi says his client is owed Sh42.5 million and the non-payment has caused it financial strain.

The letter to the DPP — copied to the Director of Criminal Investigations George Kinoti — says it is regrettable that there have been no investigations into the alleged fraud.

“Our instructions are that Mr Kahi also informed members of the public that the money may have been siphoned out of the country,” the letter further states. In May, the court ordered the retailer to be reinstated at City Mall premises on condition that it pays Sh74.4 million rent arrears.

The judge directed Nakumatt Holdings and Mr Shah to pay the outstanding rent arrears within 30 days in order to be allowed back. The retailer did not pay.

Last month the supermarket was given seven days to vacate the strongroom.

Justice Charles Yano said that in default of the directive, Ideal Locations could break the strongroom under the supervision of the officer in charge at Bamburi Police Station.

“Any items therein to be kept at the police station pending collection by the defendants,” said Justice Yano.

Ideal Locations had argued that it handed over the premises to a new tenant who had not taken full possession since the supermarket had declined to vacate the strongroom.