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Nairobi. A paper by the Kenya Revenue Authority (KRA) revealed how some companies have violated the narcotics import regulations in the country disguised as sugar.
The paper, presented at the joint session of the Agriculture and Trade Commissions of the National Assembly investigated the smuggling sugar in the country, also claims that the government lost about 36.5 billion shillings in duties and VAT exemptions on imported sugar between May and December 2017.
The two committees, co-chaired by MP Kieni Kanini Kega and his colleague from Mandera South, Adan Ali, are expected to table their preliminary report on Thursday afternoon.
He served for the past five days and met with a number of witnesses, including Henry Rotich (Treasury), Fred Matiang & # 39; i (Interior), Adan Mohamed (Industry and Commerce) and Mwangi Kiunjuri ( Agricu The committee sat for six days to investigate fears that the sugar on the market was unfit for human consumption because it contained foreign matter, including heavy metals such as mercury.
Tuesday, Commissioner General of KRA John Njiraini told lawmakers that "in July 2016, an audit conducted by government agencies on one of the containers imported by Mshale Commodities Ltd – a company registered in Uganda – revealed that substances considered narcotics were hiding in bags of sugar 19659002] "The audit conducted by the antinarcotic police unit revealed four unsealed polypropylene bags di ssimulated in bags of sugar with a substance packaged in blocks suspected to be narcotics, "says Mr Njiraini in the report presented to deputies. He added: "The four bags gave 90 blocks of the article and the marks on the blocks of the substance read" Lacoste "."
Other than the Ugandan company, there is, Mshale Commodities Ltd, Mombasa, which is registered in Kenya
According to the KRA report, the 90 blocks suspected of being narcotics were marked as parts to conviction and packed in evidence bags and held by the anti-narcotics police unit.
On May 12 of last year, the CS National Treasure Henry Rotich issued a notice from the Gazette authorizing the duty-free importation of sugar. as a result of prolonged drought in sugarcane growing areas.
Notice No. 4536, however, did not specify the quality and quantity of the sugar to be imported, thus permitting the entry of raw sugar unfit for human consumption. If Mr. Rotich would have been specific about the quality of the sugar to be imported and by whom, it would have saved the country billions of shillings lost in taxes. This is because individuals have exploited the window to import sugar for industrial purposes without paying the mandatory taxes.
According to the regulation of the Agriculture, Food and Fisheries Authority, duty-free sugar should have been applied to brown sugar or table sugar used for domestic consumption.
The Gazette notice allowed even those who were not allowed to import the product, which could compromise the quality standards of the commodity.
On August 31 of last year, the Treasury realized that there was too much sugar in the country.
million. Njiraini said KRA had received requests to facilitate the entry of duty free sugar whose arrival would have been delayed by various logistical difficulties.
He told legislators KRA informed the National Treasury of his inability to admit sugar duty-free since Notice 4536 had expired.
"KRA intercepted an import of 40,000 metric tonnes of brown sugar supposed to come from Brazil," he said.
However, KRA refused to allow duty-free import and demanded 2.5 billion shillings in taxes to verification of import documents. 19659002] The importer objected to the application and filed a case in court that is still pending before the Supreme Court. (Daily Nation)
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