Joho family urges state to end harassment as State denies wrong doing

Auto Port Container Freight Station [CFS] workers protest against the closure of the firm, on January 28, 2016 in Mombasa. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP

What you need to know:

  • Mr Khamis said the closure of the two firms, Autoports Freight Terminal and Port Side Container Freight Stations, would have major implications.
  • But CFS operators dismissed the KRA position, saying container freight stations did not shoulder the responsibility of collecting tax, a task assigned to the KRA.
  • State House has defended the latest move with Director of Communications Munyori Buku saying it had nothing to do with politics.

The family of Mombasa Governor Ali Hassan Joho has urged the government not to wage a war on the family’s business for political reasons, saying the abrupt closure of their two freight stations had sent a chilling signal to investors.

“It is not criminal to have a family member in politics,” said Hussein Khamis, a brother of Mr Joho. “Let our business be without victimisation based on political differences.”

Mr Khamis said the closure of the two firms, Autoports Freight Terminal and Port Side Container Freight Stations, would have major implications.

“As we speak, more than 1,200 families don’t have a bread-winner because of this action. This is just not fair,” he said.

Mr Khamis spoke as the Kenya Revenue Authority defended its move, saying it was part of a war against tax evasion.

KRA Commissioner-General John Njiraini said the authority would expand its crackdown on what he described as wrongdoing among players in the port business.

“In respect of the recent suspension of operating licences for two CFSs, namely Autoports and Portside Container Freight Stations, the grounds for the actions taken have been provided in the letters communicating the decision and signed by the Commissioner of Customs & Border Control,” said Mr Njiraini.

But CFS operators dismissed the KRA position, saying container freight stations did not shoulder the responsibility of collecting tax, a task assigned to the KRA.

“KRA is in control of the cargo scanner at the port and also has personnel at the port to open and verify any suspect consignment before release to the transit sheds,” said Container Freight Association chairman Daniel Nzeki.

Mr Nzeki said the fact that KRA controls the entire chain including operating an electronic cargo tracking system meant that any tax evasion should be detected by KRA officials rather than freight stations which simply processed goods in transit.

Lawyers for the two companies, Mr Paul Buti and Mr Dennis Mosota, also protested the action.

“The actions of KRA are very grave in nature and drastic in consequence. The rules cited are just a lame excuse to give legal semblance to otherwise patently illegal and unconstitutional acts,” said Mr Mosota.Mr Buti said the actions would be challenged in court.

NO ILL AGENDA

“As a matter of fact, the rules do not at any rate supersede the constitutional requirements of fair administrative action as well as all the derivatives of natural justice being adequate notice, reasons for decisions and right to be heard."

"KRA’s actions are an affront on a fundamental principle of law known as Audi alteram partem – the duty to give persons affected by a decision a reasonable opportunity to present their case.” 

The closure of the two firms has raised a political storm with Cord leader Raila Odinga saying the government was taking the country back to the days in the 1970s and 1980s when businesses associated with anti-regime figures were closed for political reasons.

But State House has defended the latest move with Director of Communications Munyori Buku saying it had nothing to do with politics.

A chain of communication between KRA and management at Autoport shows that KRA initially wrote to the management asking for several containers not to be transferred to the importers on August 14, 2015.

This was duly done but the sudden flurry of developments leading up to the destruction of the contraband goods and the closure of the two companies so soon after an exchange of words between Senators Joho and Mike Sonko at a presidential function in Mombasa has raised eyebrows.

NOT POLITICAL

A source within the company said they viewed the move as an effort to punish the governor for his political stand and claimed the move would be read as an attack of businesses owned by indigenous coastals as the two were the only freight stations owned by locals in Mombasa and among the busiest.

But Mr Njiraini insisted the latest measure had nothing to do with politics, saying recent incidents and investigations in progress had raised concerns over the likely involvement of some CFSs in actions that abet tax evasion.

Meanwhile, Association of Importers of Kenya chairman Peter Mambembe warned against politicisation of business issues, and criticised Mr Odinga and Mombasa MPs for their stand on the matter.