MPs told tax evaders used Sony Sugar Company

The acting managing director of Sony Sugar Company Limited Bernard Otieno now says that the company was used by some private entities to evade Sh2.5 billion import duty during last year’s sugar importation into the country.

The national assembly committees investigating the alleged presence into the country of contraband sugar, heard on Wednesday that M/s Holbud Limited used Sony to import 50,500 metric tonnes of the commodity worth Sh3.5 billion.

“We were looking to get some money. We did not spend anything as they financed everything in the importation of the commodity,” Mr Otieno said even as he confessed that he never saw the sugar.

DUTY FREE SUGAR
On September 29, 2017, Treasury Cabinet Secretary Rotich issued a gazette notice No. 9801 allowing importation of sugar duty- free by local millers until December 31. The notice was an extension of the 4,536 notice, which had expired on August 31.

On Tuesday, Kenya Bureau of Standards acting Managing Director Dr Moses Ikiara told the two committees of Agriculture and Livestock and that of Trade and Cooperatives co-chaired by Mandera South MP Adan Ali and his Kieni counterpart Kanini Kega that Sony was paid Sh82 million in agency fee that was used to pay farmers and other suppliers.

BLACKLISTED

The directors of Holbud Limited are said to be the same as those of Stuntwave Limited, which brought in 13,375 metric tonnes, Hydrey (P) 186,070 metric tonnes and One Commodity limited 37, 650 metric tonnes. Stuntwave limited is one of the companies that were blacklisted in the importation of sugar by the 11th Parliament.

Similarly, the go downs of One Commodity Limited were never inspected when the committee members were in Mombasa for the field visit with claims that the sugar was dumped on the ground.

Mr Otieno did not produce the importation permit from the directorate of sugar despite the members’ insistence.