Police in Mwingi, Kitui county, are holding three Chinese nationals over allegations of defrauding a local contractor Ksh320 million in a botched business transaction.
The suspects identified as Le Lei, Le Chuan Chen and Qi Zhao Zin were arrested on Monday, December 5, 2022, after a complaint was lodged by Ederman Properties Kenya.
According to Mwingi Sub-county Police Commander Peter Mutuma, the suspects had been contracted to supply the firm with a manufacturing machine worth Ksh320 million to the company owned by their compatriot.
The firm known for manufacturing gypsum ceiling boards is said to have paid the suspects the full amount in 2020 but they delivered substandard equipment before going into hiding.
The police boss said the suspects will be arraigned in court to face charges of conspiracy to defraud and obtaining money by false pretence once a Chinese interpreter is available on Wednesday.
Agreement
The signing of the agreement between the three and Ederman Properties Kenya shows that the three ran a company by the name Teng Fei.
According to Ederman Ltd Managing Director Zeyun Yang, the trio delivered substandard equipment which didn’t much the specification they were given by the company, leading to a disagreement.
He claimed that the suspects wanted to escape liability by giving false information to the Chinese Embassy and police.
Ederman Properties Kenya has been manufacturing gypsum ceiling boards at Mutwangombe along the Mwingi-Garrissa highway since 2012.
