Mumias company imported 10,000 tonnes of sugar in 2012, despite the board earlier denying it, the Kenya Revenue Authority said yesterday.
KRA commissioner general John Njiraini appeared before the National Assembly’s Committee on Implementation.
He said the consignment was processed under an agent, Dantes Peak Ltd, acting on behalf of the miller. This contradicted an earlier position of members of the Mumias Sugar Company board.
The board told the Agriculture committee the company was not party to the importation.
“Mumias board said they were not involved in the importation of the 10,000 tonnes. In your submission you have said Mumias Sugar did the importation, which is which?” vice chairman Godfrey Osotsi said.
The consignment was meant to bridge the firm’s production deficit at the time. Dantes Peak imported the raw sugar from Sudan’s Kenana Sugar Company.
“Further to the confirmation by the Embassy of Sudan and Kenana Sugar Company Ltd that the sugar was imported by Mumias Sugar Company Ltd, the customs entry Number 2013MSA4050717 (B15 ) also confirms the importer was Mumias Sugar Company through Dantes Peak Limited,” Njiraini said.
“The master agreement for supply between Dantes and Mumias confirms Dantes was to import sugar on behalf of Mumias.”
The MPs asked why the import licence was granted to a third party when the regulations were clear it was not transferable.
KRA appeared before the committee to give an update on the status of the Sugar Crisis Report.
The report by the last Parliament recommended investigations and action taken against officers from Mumias Sugar and KRA, who it said were complicit in the irregular importation.
Njiraini absolved his officers from blame, saying they did due diligence and only released the consignment after confirming all documentation.
“When it was released, I made sure it ended up in Mumias [Sugar],” Njiraini said.