The Nation (Nairobi)

Kenya: Dealers Mint Cash From Smuggled Old Cars

Gitonga Marete

8 July 2009


Nairobi — A smuggling syndicate that specialises in importing over-age motor vehicles is ripping off unsuspecting buyers in Mombasa.

The racket involves unscrupulous importers, clearing agents and container freight station operators.

If you are planning to buy a car from one of the "showrooms" that have mushroomed in the town over the past few months, chances are that you will not get one registered less than eight years ago as required by law -- it could be up to 15 years old.

A Toyota Corolla manufactured in 1995 can cost as little as Sh140,000 and with duty of Sh160,000, the total cost of importation is Sh300,000.

The dealers, however, sell the vehicle at double this amount, purporting it to be in the eight-year age limit.

The scandal involves forging of import declaration documents and certificates of worthiness at cyber cafes in Mombasa to claim that the vehicles were registered in 2002.

Working in cahoots with motor vehicle registration officers, the crooks also falsify authorisations including Kenya Bureau of Standards (Kebs) stamps.

At the centre of the scandal is the Kenya Revenue Authority, whose officers are said to have released 32 vehicles that exceed the eight-year age limit without Kebs authorisation.

The Kenya Anti-Corruption Commission seized the 32 cars, reportedly imported by a single dealer, bringing the number of cars the anti-graft team has impounded to 52 after seizing another 20 last week.

It said documents relating to 20 others were being scrutinised for irregularities.

Mr Nicholas Simani, a public relations official at the anti-graft commission said, however, that the original documents that would have helped identify the officers who released the vehicles had disappeared.

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"This seems to be a big syndicate and we concerned as it involves the welfare and safety of the public," he said.Mr Simani said innocent people were being duped into paying huge sums of money, believing the cars they were buying were within the stipulated age limit.

A source at Kebs said corrupt KRA officers had released the vehicles without their knowledge. "The Kebs stamps on some of the papers were fake," said the source who requested anonymity as he is not authorised to speak on the organisation's behalf.

Kebs public relations officer Patricia Kimanthi said the issue was being handled by the anti-graft commission. "We are waiting for investigations to be completed," she said.

Mr Kennedy Onyonyi, in charge of communications at KRA, said a statement would be issued soon.

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