NAIROBI, Kenya, Sep 15 – Bidco Africa Chairperson Vimal Shah has told the court how he lost about Sh102.4 million in an unfulfilled foreign exchange deal during a dollar shortage in Kenya in 2023.
Shah said Bidco was seeking US dollars to pay for imports of raw materials when his friend and business associate, Nicholas (Nik) Nesbitt, offered to help the company access the currency.
He said Bidco had conducted two transactions with Nesbitt in March and April 2023, but they were unsuccessful.
“Ultimately what he did was, after not being successful, he sent us some dollars for some shillings, and the rest he gave us the shillings back to say, ‘Fine, here’s your shillings back,’ and that was returned to us,” Shah told the court.
He said Nesbitt approached him again on May 18, 2023, claiming he had found a reliable source of dollars that could deliver the currency within 24 hours after receiving shillings.
Nesbitt introduced Shah to his business associate Bulent Boytorun, whom he described as his 50/50 partner and an expert in cryptocurrency.
“He said Bulent Boytorun is the expert on crypto and how to convert foreign currency through stable coin and through cryptocurrencies. And if you give the shillings today, tomorrow your dollars are in, and it’s all legitimate, it’s all okay, and they’re doing it regularly,” Shah said.
Shah said he trusted Nesbitt because they had known each other for 15 to 20 years and had worked together at IBM and in business organisations including the Kenya Private Sector Alliance (KEPSA) and the East African Business Council.
He said Nesbitt’s previous positions and business relationships gave him confidence in the proposed transaction.
“I did not know who this Bulent Boytoun is, I don’t even trust him, I don’t even know him. And I knew Nik Nesbitt because I’ve known him for the last 15–20 years since IBM, and of course since our association in KEPSA and East African Business Council,” Shah said.
Shah also said his trust was reinforced after Nesbitt told him that both parties used Standard Chartered Bank.
He contacted a bank official to verify whether Nesbitt and his associates conducted transactions through the bank and was informed that Nesbitt was a customer and that BNB Kenya Limited had an account with the bank.
“Yes, and I trusted him because he’s a friend, not only a friend but also an acquaintance in business,” Shah said.
He said the existing relationship with Nesbitt, rather than Boytorun, was the main reason he proceeded with the transaction.
“We had a full trusting relationship with him, and therefore it was him that I trusted, not anyone else, and that friendship,” Shah told the court.
After agreeing on a rate of Sh137.5 per US dollar, Shah said the funds were supposed to have arrived in the company’s account on May 24, 2023, but did not.
“And if you look at the contract it’s clearly saying that 23rd if we sign and on 24th the dollars the entire amount of dollar 745,000 would be in our account in our dollar account that that was the agreement account in full now since we have to buy raw material every day and we have to pay for it he knew the urgency because this would stop our factory in terms of getting our raw materials now what happened on the 24th nothing arrived no money was sent to our account.”
