Three businessmen have been charged with defrauding an investor of Sh129 million in a scrap metal deal.

Ibrahim Ahamed Ibrahim, Abdul Zarak Rehan and Mohammed Suleiman appeared before Milimani Senior Principal Magistrate Martha Nanzushi and denied the charges.

They allegedly defrauded foreign investor Shahzada Aniq Ayub of Sh129,187,756 between December 4, 2023 and June 6.

Prosecutors said the three conned the businessman by alleging they were in a position to secure him a work permit and trade licence from the government to deal in the scrap metal business.

They allegedly failed to deliver on their promise and kept giving Ayub empty promises.

Although senior State prosecutor Herbert Sonye did not oppose the suspects’ bid for bond, he asked the magistrate to consider the amount of money involved.

“I have no instructions to oppose the three being admitted to bond. However, I urge this court to take judicial notice of the large sum of money allegedly lost by the complainant, Ayub,” Sonye pleaded.

Fixed abodes

In their rebuttal, the accused urged the court not to be swayed by the figures in the charge sheet, pleading for lenient bond terms.

“Bond should not be punitive but reasonable to enable suspects to meet the terms [and] leave incarceration to defend their innocence from their homes,” the defence submitted.

The magistrate also heard that the accused are Kenyans of fixed abodes known by the police.

“I note that the prosecution is not opposed to releasing the accused on bond,” Nanzushi said.

“Also, no compelling reasons have been advanced to warrant this court to [deny] the accused bail,” Nanzushi observed in her ruling.

She released the accused on a Sh5 million bond each, with one surety of the same amount.

According to the charge sheet, between December 4, 2023 and January 6, 2024, in Nairobi, Ibrahim, Rehan and Suleiman, jointly with others not before court, conspired to commit a felony—stealing $881,009 (Sh113,650,254.46) and Sh15,537,500 from Ayub, pretending they were in a position to help him secure a work permit and a scrap metal dealer’s licence.

They also allegedly promised to supply him with 1,100 tonnes of scrap metal and used batteries.

Rehan was separately charged with forging a scrap metal certificate and purported it to be a genuine document.

The case will be mentioned on September 10 for pre-trial directions.