Economy

MPs order audit into missing Sh2.6bn Uganda containers

nassir

Audit Mr Abdulswamad Nassir, PIC chairman. FILE PHOTO | NMG

Parliament has directed Auditor-General Edward Ouko to conduct a special audit into the disappearance of containers destined to Uganda and Rwanda in 2015.

Public Investments Committee (PIC) took the decision after the Kenya Revenue Authority (KRA) figures differed with Kenya Ports Authority and that of the Auditor-General.

Mr Ouko, yesterday told PIC that the number of containers, which may have been cleared out of the port since 2015 had risen to 4,202.

The KRA issued a demand notice to KPA demanding that it accounts for 1,844 containers, but a Central Co-ordination Unit task force report on the long stay cargo at the port of Mombasa put the figure at 80 containers.

The KRA and KPA have been at loggerheads over the containers believed to have led to Sh2.6 billion tax losses.

The KRA, through a letter signed for Beatrice Memo, the commissioner of customs services directed KPA to provide 2,636 containers or arrange to pay Sh2,636,000,000.

The Uganda bound containers comprised 1,052 20 foot containers and 792 40 foot containers.

“To address this matter, I am directing that Auditor- General Edward Ouko conducts a special audit because no information was given to the Auditor by both KRA and KPA during his audit,” PIC chairman Abdulswamad Nassir said.

John Njiraini, the KRA Commissioner-General told PIC that the Central Co-ordination Unit comprising KRA, KPA, Kenya Maritime Authority, Kenya Shipping Agents Association, Inter-government Standing Committee on Shipping, Kenya International Freight Forwarders & Warehousing Association, Container Freight Stations Associations and Shippers Council of Eastern Africa officers was put together to address complaints by Ugandan businessmen that Kenya had stolen their containers.

“When the exercise was completed, there was no Ugandan container that was lost at the Port of Mombasa. The Unit found that only 81 containers had overstayed at the port on or before November 30, 2015,” Mr Njiraini said when he appeared before the committee to respond to audit queries for the 2014/15 and 2015/16 financial years.

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