Joho firms closure triggers war of words

The closure of two firms owned by Mombasa Governor Hassan Joho’s family has sparked a fresh war of words between the Opposition and the government.

The government insists the firms were closed over failure to pay taxes and handling contraband goods, while the opposition says it’s politics.

National Assembly Majority Leader Aden Duale said all Kenyans were under obligation to pay taxes and that the Kenya Revenue Authority had a job to ensure everyone complied.

Cord leader Raila Odinga, on the other hand, claimed the closure was driven by politics after Mr Joho refused to support the Jubilee Party during President Uhuru Kenyatta’s recent month-long tour of Mombasa.

Mr Duale challenged the ODM leader to declare his interest in the two container freight firms that were shut down on Thursday by the Kenya Revenue Authority.

Mr Odinga said the closure of Autoports Freight Terminal and Port Side Container Freight Stations was a sign of “a return to the 1970s and 1980s when businesses were deregistered, slapped with hefty taxes and shut because the owners were perceived to be anti-government or were unwilling to toe the government line.”

“This is about the return of strong-arm politics, intimidation and blackmail to cow the Opposition, individuals and communities into surrender,” said Mr Odinga.

But Mr Duale told off Mr Odinga, and said: “Nobody, even Raila or the President, can stop the Kenya Revenue Authority from making sure that taxes are paid. The closure, seizure and impounding of suspect goods is the sole prerogative of the KRA,” he said on the phone.

He said the authority had gazetted new regulations to manage freight stations and “some may be closed”.

Mr Duale told Mr Odinga: “He should know that political patronage cannot help you evade taxes,” he said.

CONTRABAND

Mr Munyori Buku, a senior director of communications at State House, questioned Mr Odinga’s criticism, saying the revenue authority had the final say on tax matters.

“Raila Odinga should stop crying more than the bereaved unless his claim is a case of he who pays the piper calls the tune,” he said in a statement.

On Thursday, the taxman shut Autoports Freight Terminal and Port Side Container Freight Stations, saying they had handled contraband goods.

“Information in our possession shows that your facility handled a substantial proportion of the contraband sugar recently imported and disguised it as assorted hardware materials destined for a neighbouring country,” Mr Julius Musyoki, the Commissioner of Customs and Border Control, said in a letter to the companies.

“In the circumstances, it has been decided that your licence to operate as a customs bonded cargo handling facility be suspended with immediate effect. No cargo clearance shall take place at your premises, following the ongoing investigations,” he said.

On Friaday, more than 700 employees of the two stations protested outside Autoport terminal. Mr Mohamed Audi, a clerk said: “We have families to feed. We are not interested in politics but to earn a living.”

Present were MPs Badi Twalib (Jomvu), Rashid Bedzimba (Kisauni), Abdulswamad Shariff (Mvita) and Omar Mwinyi (Changamwe).

Mr Sheriff said: “There has been contraband including illegal goods being seized at the port but they have never closed the port. Why shut it instead of going for the importers.”

CONTAINERS SEIZED
Mr Mwinyi said the law had not been followed in closing down the companies.

In the past, the Kenya Revenue Authority, the Ethics and Anti-Corruption Commission and the National Intelligence Services have impounded containers of contraband goods stored in freight stations in Mombasa.

On January 15, they impounded 39 containers of contraband Brazilian sugar and 64 containers of ethanol.

The sugar containers were stored at three freight stations — Auto Port, Focus and MCT — in Mombasa after they were intercepted while those containing ethanol were said to be within the port.

According to the officials, the containers had 17,600 bags of sugar of 50 kilogrammes each, with a value of Sh56 million.

They had been declared as hardware material, whole lentils, photocopiers, office furniture, new shoes and dried grapes.