The Commercial Division of the High Court has ordered Nile Breweries Limited (NBL) to pay over Shs 322 million to Fuel Stick Uganda Limited, ending a bitter dispute over alleged fraud and undelivered fuel supplies.
The court also awarded Fuel Stick Shs 45 million in general damages, plus interest, after Nile Breweries failed to prove its claims of forgery and counterfeiting against the supplier and three former employees.
Fuel Stick sued Nile Breweries in 2022, seeking recovery of Shs 322,848,000 for biofuel conditioner S19 supplied to Nile Breweries’ Mbarara plant in March and April 2022. The company claims the brewer confirmed delivery through goods received notes and purchase orders but then refused payment.
Nile Breweries had countered aggressively, alleging a sophisticated fraud scheme. Represented by Henry Agaba of M/s Meritas Advocates, the brewer claimed the supplies were counterfeit, substandard, and part of a racket where fictitious purchase orders were entered into its electronic procurement system — costing the company Shs 2.3 billion over three years.
Fuel Stick, however, dismissed the accusations as baseless, insisting all goods were genuine, delivered on time, and properly documented. “There was no forgery. There was no fraud,” the company maintained in court.
During proceedings, Fuel Stick relied on operations consultant Sachin Joshi, while Nile Breweries called witnesses from its sister company Tanzania Breweries Plc and its security firm, KK Security Limited.
Justice Patience Rubagumya sided with Fuel Stick, emphasizing that the signed and stamped delivery notes and goods received notes confirmed the supplies. She noted that Nile Breweries had the opportunity to inspect and reject the goods but failed to do so, effectively accepting them.
The ruling nullified Nile Breweries’ claim for Shs 2.3 billion in damages and instead found the company in breach of contract for failing to pay Shs 322,848,000 within 120 days.
The court ordered NBL to pay the outstanding amount with interest at 2% per month (36% per annum) until full payment, plus Shs 45 million in general damages with 6% monthly interest, reflecting losses from years of delayed payment.
The ruling sends a stark message to corporate giants: even the mightiest can’t evade accountability when contracts are clear and documentation is in order.
