Reprieve for firm in illegal sugar probe
What you need to know:
- The firm has been unable to process any sugar after its facility in Ramisi, Kwale County, was cordoned off by the multiagency team.
- Two independent firms that Kwale International hired to test its sugar—SGS and Intertek—held that the sweetener meets Kebs’s standards.
- The sugar miller fears that its business could permanently shut down if it is not allowed to resume production.
A firm in Kwale County has, thanks to a court order, successfully fended off a raid by a multi-agency task force charged with cracking down on illicit sugar.
Kwale International Sugar Company, whose premises had been cordoned off by a team that includes the Kenya Bureau of Standards (Kebs), Kenya Revenue Authority (KRA), and the Trade ministry, last week got a reprieve from Mombasa High Court Judge Eric Ogolla.
RESPONDING
On June 25, the team conducted a raid on the plant, sealed it off and conducted random tests on the sugar that was being processed. The shut-down followed the testing of the samples.
As a result, the sugar firm sued Kebs, KRA, the Trade ministry, the Attorney-General, Mr Paul Kihara Kariuki, the Directorate of Criminal Investigations (DCI) and Inspector-General of Police Joseph Boinnet.
It accused the multi-agency team of not responding to letters.
STERILISED
Kwale International says the random tests were done against normal practice with samples tested by hand instead of using sterilised containers.
Last week, Justice Ogolla ordered the team of investigators to release 3,700 tonnes of sugar that was seized during the raid on the Kwale plant.
“Having heard the submissions by Prof Tom Ojienda for Kwale International and Ms Rasanga for Kebs and Mr Kirugu holding brief for Mr Ochieng' for KRA and Mr Nguyo Wachira, State Counsel for the AG, Ministry of Trade, DCI and Inspector-General of Police, it is hereby ordered that the judgment herein will be delivered on January 17, 2019.”
PROTOCOL
In ordering release of the impounded sugar, the judge cited a protocol, which requires that the sugar that complies with Kebs standards be released to the miller. This, he said, was in accordance with Kebs’ letter of October 20.
On September 25, Justice Ogolla barred the multiagency team from destroying Kwale International’s sugar until he determines the suit.
In its court documents, the company noted that the multi-agency team did not exist in law at the time it raided the factory on June 25.
SAMPLES
The team’s mandate became operational through a gazette notice by the Cabinet Secretary of Trade of on July 27.
On August 2, Kebs released results of samples taken from Kwale International’s plant, which showed that only one batch did not meet the required standards, and yet they went on to shut down the whole operation against their own provisions in the Standards Act.
Kwale International demanded fresh tests through letters to Kebs and DCI, arguing that the initial ones were done in violation of normal investigation practice, particularly the drawing and handling of samples.
ORGANISMS
On visiting Kebs, Kwale International’s directors were furnished with a report, which stated its sugar had high levels of unacceptable organisms. The report recommended that the sugar be blocked from being released for sale.
Kwale International says it is “cock-sure” that the consignment in the multiagency team’s custody meets requirements for brown sugar, and is agreeable to having the sugar sampled afresh and tested in the presence of both Kebs and an independent expert of its choice.
SHUT DOWN
The firm has been unable to process any sugar after its facility in Ramisi, Kwale County, was cordoned off by the multi-agency team.
Two independent firms that Kwale International hired to test its sugar—SGS and Intertek—held that the sweetener meets Kebs’s standards.
The sugar miller fears that its business could permanently shut down if it is not allowed to resume production.
IMPORTATION
“Kwale International does not engage in importation of sugar and to date has never imported any sugar from any foreign country in furtherance of its trading activities as it does not even have a sugar import permit. At all material times Kwale International’s sugar has been approved as being compliant with Kebs standards. Kebs took a sample of Kwale International’s sugar and certified the sugar as compliant with Kebs standards on November 16, 2017 and March 27, 2018.”
FORECLOSURE
“Kwale International has suffered material loss as it is facing foreclosure as it has been unable to sell and pay its loans within the last three months over which its factory has been closed down illegally,” the firm’s Head of Legal Affairs Benson Nzuka says in court papers.
It is now left to be seen if the multi-agency team will comply with the court directive.
