V.G Keshwala & Sons Limited, a member company of the Keshwala Group has been implicated by the Uganda National Bureau of Standards (UNBS) for being in possession of and distributing underweight pre-packaged sugar from Kakira Sugar Limited (KSL).
This follows a sting operation mounted by UNBS in close collaboration with KSL that found several bags of underweight sugar at V.G Keshwala’s stores in Soroti district.
According to a Wednesday, June 26, 2024 statement by UNBS, the standards body seized 700 bags of underweight sugar from V.G Keshwala and Sons Limited in Soroti district.
The raid by UNBS followed the discovery of 10 underweight 50kg bags of Brown Kakira Sugar in a supermarket in Soroti on Thursday, June 13, 2024.
“During the inspections, it was discovered that the packaging material of the underweight sugar was tampered with, as the inner polyethylene layer was found with holes,” UNBS announced in the statement.
In related operations, UNBS also seized underweight bread from outlets of two bread makers⏤ Supa Loaf and Jonisa Bread.
“Management/owners of the culpable businesses have reported to UNBS for further interrogation and prosecution will follow on offences of possession and distribution of underweight pre-packaged goods. It should be noted that packing, selling, being in possession of or holding for sale underweight pre-packaged goods, is an offence punishable by law, as it contravenes the UNBS Act as amended 2013, the Weights and Measures Act and the Weights and Measures (Sale and labelling of goods) (Amendment) Rules 2020,” UNBS further said in its statement.
UNBS, is a Government Agency responsible for developing, promoting and enforcing national standards in the protection of Public Health and Safety, and the Environment against harmful and sub-standard products.
Keshwala denies illegally profiting from illicit sugar trade
Keshwala Group is a multi-company family-owned conglomerate that through its subsidiaries such as V.G Keshwala & Sons Limited, Glorrie Industries Ltd, Imperial Steel Industries and Mitayimbwa Steel Manufacturers Ltd manufactures, distributes, imports and exports a range of goods such as textiles, commodities alcoholic & non-alcoholic beverages, hardware, FMCG and Telecom products.
Some of its major clients for whom it distributes include 3R Agro Industries Ltd, Jinja Packaging Solutions Ltd, Makepasi Match Ltd and Nile Poly Sack Ltd, Airtel, Bidco, Kakira Sugar, Kenafric Industries, Kenafric Manufacturing, Krystaline Salt, Nile Breweries, Pepsi, Varta, Weetabix and 3M.
Keshwala Group was founded by an Asian businessman, the late Viram Giga Keshwala who came to Uganda in the 1950’s. In 1983, Viram Giga Keshwala was joined by another family member, Ranmal Viram Keshwala. Following the demise of the company’s founder, Ranmal Viram Keshwala took over leadership of the company and expanded it to the large conglomerate that it is today.
Today, Ranmal Viram Keshwala is the board Chairman, while another Keshwala, Sagar Keshwala, is the Managing Director.
Sagar Keshwala, in a WhatsApp interview with this reporter, denied that his company was involved in any tampering with their clients’ sugar.
“Keshwala Group does not engage in repacking of sugar of any sort,” he said.
He thereafter blamed the company’s drivers.
“The drivers have been stealing the sugar,” he wrote.
He also stated that his company had initiated a police investigation (SD RFF 41/15/06/2024).
“Tampering and selling pre-packed sugar are baseless rumours,” he later said, adding: “We move tonnes of sugar every day. It is not in our interest to engage in substandard activities.”
Kakira Sugar speaks out, blames the distributor for tampering with the pre-packaged sugar
Africa Takes The Stage: From Raw Supply To Brand OwnershipIn an emailed statement, the management of Kakira Sugar Limited (KSL) put the blame squarely on their distributor. The sugar maker confirmed that they were made aware of the incident of underweight bags, upon which they promptly dispatched a quality assurance team to investigate the matter. The KSL team inspected the underweight bags for origin and weight.
“The underweight bags were confirmed to be from Kakira Sugar Limited, with proper stitching, serial numbers, and Digital Tax Stamps in place,” KSL said in their statement, adding: “All the bags in question were re-weighed and found to be underweight. Despite being labelled as 50kg bags, none met the required weight.”
Weighment Slip Validation with the KSL factory also showed that weighment slips from KSL’s sugar weigh-bridge showed no variation, confirming that the bags left KSL with the correct weight.
Subsequently, each bag was opened and the sugar was decanted to inspect the inner liners. This is when it was discovered that all the inner liners had holes, indicating that sugar had been drawn out after the bags were sealed.
“Our investigation concludes that the tampering with the bags occurred after the sugar had been delivered from KSL. This is supported by the fact that all pre-dispatch checks, including auto-weighing scales, warehouse weighing, and exit weigh-bridge weighing, showed no discrepancies. Additionally, our weighing scales were calibrated in May 2024 to ensure accuracy,” the Sugar maker emphasised in their statement.
KSL also told this reporter that they have in place strict pre-dispatch inspections and quality control processes that include auto weighing scales that ensure that every 20 bags are checked and records kept, as well as exit weigh-bridge weighing that verifies product weight before dispatch. the company also said that its weighing equipment is calibrated regularly, with the most recent calibration having been done in May 2024.
“The Uganda National Bureau of Standards (UNBS) conducted a random check on our respective warehouses and found all bags to be within specification, with no variations. This independent verification further confirms the integrity of our dispatch processes,” KSL said, adding: “We are encouraging all wholesalers and all our customers to carry out random checks at the delivery of the sugar. We are also cooperating fully with authorities and the distributors take action against those responsible for this tampering”.
“We reassure our customers and partners that Kakira Sugar Limited’s Quality Management System is certified ISO 9001:2015 and remains committed to delivering products of the highest quality and integrity. We appreciate the vigilance of our wholesaler and the cooperation of UNBS in addressing this matter promptly,” KSL concluded.
UNBS has in their statement urged all manufacturers, importers and traders of pre-packaged goods to adhere to standards and laws.
“UNBS also encourages consumers to demand for safe, certified, quality products and report any dealers of substandard goods to UNBS using our toll-free lines 0800133133/0800233233, WhatsApp line: 0713227580 and social media pages,” the standards body said, adding: “UNBS is committed to performing its mandate of consumer protection and ensuring fair trade”.
After discovering 10 underweight 50kg bags of Kakira Sugar in a Soroti district supermarket, a joint sting operation by UNBS, working with Kakira Sugar Limited, led them to the stores of V.G Keshwala & Sons Limited, where 700 underweight bags were seized.
The Keshwala Group has denied enriching itself illicitly and has blamed its drivers for tampering with the bags and stealing the sugar, but has not explained how the underweight sugar made its way into its stores and out of the stores to customers without inspection.
UNBS has stated that it will prosecute the company responsible for the theft.
In an additional written statement, issued on the 29th of June of 2024, but shared with this publication, on 1 July 2024, V.G Keshwala & Sons Limited, further said:
“In early June 2024, our attention was drawn to inconsistent weights in some sugar bags via social media posts. The following day, we received a truckload of sugar and as per our stringent quality control measures, refrained from offloading the consignment until an inspection was conducted by Kakira Sugar Works officers. During the inspection, it was discovered that some bags had been tampered with, showing holes in the inner polythene lining. These compromised bags were promptly isolated from our standard inventory.
Subsequently, our team, alongside Kakira Sugar Works officers, visited a customer in Soroti who had reported similar issues. Our investigation confirmed that several 50 kg bags were underweight. These bags were retrieved and transported to our Soroti storage facilities for further examination, where it was confirmed that tampering occurred during transit from the factory. Efforts to reach the driver responsible for the transit have been unsuccessful as the individual is currently untraceable.
The incident was immediately reported to the police, and a formal investigation is underway. After few days, The Uganda National Bureau of Standards (UNBS) has also become involved, and we are fully cooperating with all governmental bodies to resolve the issue.
As investigations continue, V.G Keshwala & Sons Limited has implemented additional stringent measures and controls to prevent the recurrence of such incidents. We remain committed to maintaining the highest standards of integrity and ethics in our operations.
V.G Keshwala & Sons Limited has been a cornerstone of Uganda’s business landscape for over 40 years. We assure our customers, suppliers, and the public of our steadfast commitment to quality and ethical business practices.
