Be Forward, a Japanese car exporting company is in $500,000 (about Shs1.8 billion) losses after compensating all its clients who were defrauded by one of their affiliate companies in Uganda- Steel Logistics Nagoya last year.
In November 2022, a total of 53 customers were reportedly defrauded by Steel Logistics Nagoya after they paid it to import their vehicles from Be Forward Japan where they (Steel Logistics Nagoya) were working.
Instead of importing the vehicles, the company vanished with the money.
Last November, Police arrested two employees of Steel Logistics Nagoya and indicated that investigations into the matter are on. The company was the seventh agency importing used cars from Japan through Be Forward Japanese car exporters.
Speaking to journalists in Kampala on Monday, officials from Be Forward said that they had taken the initiative to pay all the claimants as they track the agents-turned-fraudsters.
“For us, we prioritize solutions. We took the initiative, verified all the payment information by our clients, and decided to compensate them by sending their vehicles,” said Joseph Bogere, the Be Forward, Uganda country manager who is based in Tokyo but was at the press conference at Be Forward offices in Kampala.
“As we keep on tracking these people, we have decided to take the initiative and clear our brand, which we have built for years,” he added.
John Mutahi the senior manager in charge of South/East Africa said that the unfortunate incident made them assess before acting.
“Apparently, we have not arrested any of the suspected fraudsters. We are still tracking them but wanted to start by compensating the affected customers because they made their payments and expected vehicles,” he said.
Marvin Ayebare, the publicity secretary of the association of used car importers in Uganda, said that every complainant received their vehicles as they already paid for them.
“I want to caution the public to desist from just transacting with every company they come across. They should take initiative to do thorough checks,” he added.
Some of the complainants including Mr Andrew Kisitu told reporters that they had received their vehicles after exerting pressure on the company which later cooperated.
Kisitu said that after the scandal, the company reached out to him and asked him to pay the remaining balance so that he can get his car.
“I had paid $10,000. So, after finishing my balance, they sent my vehicle which is now in Mombasa,” he said.
Other Be Forward agents in Uganda are Kheri Group Limited, Pre Motors-Limited, Mpaatanel Company Limited, Fahd Enterprises Limited, Meik Car Hub Limited and Beetonda Auto Limited in Masaka.
