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Citizen Weekly

Sunday, 1 March 2015

Mombasa firm devices crooked ways to evade tax

Our Reporter

A cartel that imports rice has devised a new scheme to dodge the taxman and other government agencies at the Port of Mombasa to evade payment of taxes and other levies, Weekly Citizen can authoritatively reveal.
Documents in our possession and accounts from our sources at the port indicate that the cartel is now using the names of the dead and companies to import the commodity to shield themselves from KRA and other government agencies.
It has emerged that several companies whose owners do not do import and export were being used to ship rice into the country without consent of the owners.
A source at the port also revealed that the cartel’s schemes also cover the importation of the said rice and though they pay tax they undervalue the commodity.
The danger is that the true owners of the companies used are facing the danger of either accumulating huge unpaid taxes or arrest for ‘doing’ unscrupulous trade.
Ray Stores Limited based in Homa Bay was shocked to find that the company was being used to import rice into the country.
Documents in our possession indicate that the company was used to ship into the country 10 containers of rice from Pakistan without his consent.
“The company has established that certain individuals and or companies are fraudulently misusing and making use of the company name so as to carry out import and export trading business,” states a statement from Ray Stores Ltd director in Kisumu.
The said rice was imported by Talreja International a company listed as based in Karachi, Pakistan and was by the time of going to press stored at Autoports Freight Station in Mombasa.
According to the Bill of Lading, the rice was in 5,000 bags weighing 250,000 metric tonnes and its agents named as Safmarine Kenya housed at Shaaraf House, Archbishop Makarious close, off Moi Avenue.
Rice and sugar imports business through the port of Mombasa is traditionally shrouded with controversies and cartels behind the trade are daring and ready to do anything to remove anyone who challenges them.
Like drug cartels at the port, they are ready to kill and they use powerful people in government to shield their illegal trade making them difficult to trace.
And the use of names of the dead people and or registered companies without the consent of the owner is a new twist in the illicit trade but the police and anti-corruption officials are said to reluctant to nab the perpetrators.
 Ray Stores Limited Ltd said “the company does not engage in any form of import/export business and as such all transactions in which the company’s name is being misused are null and void as against the company and liability shall by any law accrue to the company”.