Underworld operations of Mombasa Milly Glass Works

A court case involving Milly Glass works formerly Bawazir Glass Works has exposed how the firm manipulates court proceedings to mint millions of shillings and evade statutory taxes.

Those aware of the said case aver that whereas African Spirits was by then targeted by Uhuru Kenyatta’s regime of evading taxes, and producing substandard alcoholic drinks, Milly Glasses were also linked but how it survived Kenya Revenue Authority crackdown with its transaction with African Spirits remains a mystery.

In fact, it is said Milly Glasses was used by powerful forces in the former regime to link African Spirits to tax evasion to fix it on grounds that the tycoon owner was backing and financing president William Ruto campaigns.

The case in question involves Milly Glass Works of Rashid Sajjad and tycoon Humphrey Kariuki of African Spirits Limited.

In the case, African Spirits petitioned court to set aside the decree issued on February 27 2020 and all consequential orders arising from the matter.

An affidavit sworn by Priscilla Kamau on April 4 2024 for African Spirits shows how Milly Glass obtained an interlocutory judgment herein, and a decree was issued on February 27 2020 for the sum of Sh84,139,264 and a further Sh1,117,955 taxed as costs.
African Spirits was never notified of the proceedings as there was no service of summonses upon it and or any of its directors. Milly Glass obtained the filed pleadings and affidavit of service relied upon in endorsing the interlocutory judgment.

It emerged that the process server in the said affidavit sworn on February 4 2020 stated that when he visited the African Spirit’s premises on December 24 2019, he was informed that the company had closed shop.
That no effort was made to serve the firm save for service via registered post which substituted service was affected without leave of the court.

By then, African Spirits had no access to its premises since January 2019 as a result of the legal battles with KRA, who with other investigative agencies chased away staff and took up sole control of its premises from January 2019 to December 2022 when they handed back the premises in a ruined state.

Surprisingly, African Spirits was never made aware of the instant proceedings until a statutory insolvency notice was issued in HCC Comm No E071 of 2024 on March 20 2024 and the same were served via the spirits director’s email address.

In an affidavit sworn on May 6 2024 by Mohamed Khandwalla, the financial controller of Milly Glasses hesitated that they commenced the suit herein by way of plaint dated November 29th 2019 on account of non-payment of goods supplied to African Spirits despite its knowledge of the same.

Despite follow-ups by the Milly Glasses, African Spirits never responded to the same nor made any attempts to settle the debt necessitating the filing of the suit herein, almost five years ago.

To Milly Glasses, the default judgment sought to be set aside herein against African Spirits and the application had been overtaken by events.
In the ruling, the court had the benefit of perusing the draft defence and established that it raises tribal issues.

African Spirits Notice of Motion application dated April 4 2024 was allowed with terms: The interlocutory judgment and decree issued on February 27 2020 and all consequential orders arising therefrom be, and are hereby set aside. African Spirits was granted leave to file and serve statement of defence, and all requisite documentation within 30 days from the date therein.

African Spirits was ordered to pay Milly Glasses thrown away costs of Sh150,000 million within 21 days.

That Milly Glasses underground operations are suspicious is dubious as is also manifested in a case Ethics and Anti-Corruption Commission has moved to court to recover Sh380 million parcel of land belonging to the Kenya Ports Authority.

The two-acre parcel of land is located in Liwatoni, Mombasa, and part of it houses the Kenya Fisheries Service offices.

The parcel of land was alienated by the then Commissioner of Lands Wilson Gachanja in 1996 and part of it was allocated to Bawazir Glass Works Limited.

The land was divided to create two parcels of land MSA/BLOCK/XLVII/158 and MSA/BLOCK/XLVII/156. The parcel MSA/BLOCK/XLVII/156 was allocated to Bawazir Glassworks Limited and an allotment letter, reference number TP3/2/XIX, was issued on February 12 1996.
Bawazir Glassworks is currently trading as Milly Glassworks Limited after it changed its name on May 25 2000, vide certificate number 50266.

Milly Glassworks was listed as the first defendant and Gachanja listed as the second defendant in the suit.
“The plaintiff (EACC) prays for an order of eviction directing the first defendant (Milly Glassworks Limited), its servants, agents or assigns to vacate from land MSA/Block/XLVII/109 and MSA/Block/XLVII/156 respectively,” EACC said.

It also wants the sub-division of the land, MSA/Block/XLVII/109 and subsequent creation of the land parcel MSA/Block/XLVII/156 to be declared null and void.

“The letter of allotment to Bawazir Glassworks should also be declared null and void for illegality and fraud, thus incapable of conferring interest to the first defendant (Milly Glassworks),” EACC said.

“An order directing the chief registrar of land to cancel and expunge from the register the entry relating to the registration of the suit property in favour of the first defendant (Milly Glassworks Limited).”

In the documents filed at the Mombasa environment and lands court on April 22, the EACC said the land in question was first allocated to the then East African Railways and Harbours on May 1 1965.

The East Africa Railways and Harbour then leased the land to the government in July 1966 for 82 years, and the lease agreement stated that it was to be used for the department of fisheries.

In 2002, the East Africa Harbours changed its name to KPA vide a legal notice number 160 of 11 October 2001, and subsequently, the title deed MSA/Block/XLVII/109 was issued to KPA on August 19 2002.

EACC said the property was reserved for public use and hence, not available for alienation.
However, Gachanja subdivided the land to create two parcels before allocating one to Bawazir Glassworks, now Milly Glassworks Limited.

It is imperative to note that Rashid Sajjad at one time, was battling Mohammed Bawazir from importing and trading in glassware. Sajjad changed the name to Milly Glasses to take control. With all the said skeletons, many are asking why Sajjad has earned a title Alhaji Sajjadbhai Rashid Mohammed. Sajjad now lives in Mombasa, Dubai and London.