Firm defends airport buses import deal

Due process was followed in importing buses offering passenger transfer services at the Jomo Kenyatta International Airport, the firm concerned has said.

In a statement yesterday, Relief and Mission Logistics Managing Director John Kihoro denied claims that the five buses were smuggled into the country, with no taxes paid.

“Relief and Mission Logistics wishes to clarify that apron buses supplied to KAA were imported and duty paid as per the rules and regulations of the Kenya Revenue Authority,” said Mr Kihoro.

SMUGGLED IN
Appearing before the National Assembly Transport committee, the Kenya Airports Authority board disowned the contract, claiming the buses were smuggled in.
Mr David Kimaiyo, the chairman of the board, said members were initially led to believe that KAA was the owner of the buses but were later “shocked and surprised” to learn it was not.

However, all KAA officers interviewed by the Transport committee have said the board had resolved to have the buses bought and managed through a concession. Minutes presented by former Managing Director Lucy Mbugua show that the matter was discussed  by the team on February 11, 2011, as part of a master plan for JKIA, which the board approved. The team was then chaired Mr Martin Wambora, now the Embu governor.

Mr Kevin Kariuki, a member of the board, said no duty was paid for the five buses imported from Germany.

“I’d like to astound the members this morning, to tell you that the apron buses delivered to KAA were actually smuggled into this country,” said Mr Kariuki. “No duty was paid on these particular buses.”

WAIVER OF DUTY

Relief and Mission Logistics, however, presented two letters from KRA to the chief manager in charge of port operations, authorising the waiver of duty for the five buses. The first was written by an official named B N Chacha on October 8, 2014 and the other is dated December 30 the same year by an official named E M Njuguna on behalf of the commissioner of customs.

The bus contract was cancelled following President Uhuru Kenyatta’s directive given during a visit to the airport.

Mr Kimaiyo said the matter was being investigated even before President Kenyatta criticised the deal during the opening of Terminal Two on May 15.

At yesterday’s briefing, MPs warned the board over its decision last week to fire Ms Mbugua and General Manager Finance John Thumbi as well as the acting airport engineer, Mr Christopher Warutere, before the investigations are over. They said KAA risks having to pay them for wrongful dismissal.

Last week, Relief and Mission Logistics invoiced KAA for Sh40.9 million and threatened to go to court for damages if it is not reinstated at the airport, where its buses are now parked and idle.