Rising cases of maritime fraud have prompted the Kenya Ports Authority to organise special training on combating such scams for its managers.

At a recent training session, one of the presenters highlighted a range of scams, including letter of credit (L/C) frauds, that can be used in maritime frauds.

Dramatic fraud

Principal consultant at the Maritime and Management Institute of East Africa, Martin Soita, outlined a dramatic fraud perpetrated by a man already convicted and jailed in the US and Germany for fraud, who managed to sail out of Mombasa with a cargo-laden vessel, never to be seen again.

Posing as an investor, the man flew into Kenya, established Zambezi Shipping Line and set up an impressively staffed and equipped office.

He then chartered a vessel, which he agreed with the owners would be paid for in full when it arrived in Karachi, Pakistan and solicited mainly freight prepaid cargo. The ship set sail, only to be repainted and renamed on the high seas. It has not been knowingly seen since.

L/C scam

Soita told the trainee managers that another common fraud in the maritime industry is the forgery, altering, fabrication or adulteration of the bill of lading.

Once forged, Soita suggested the document could then be presented to banks to support fraudulent L/C transactions.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.