DCI probes three over container racket

Police have opened investigations into a container smuggling racket at the Port of Mombasa, targeting three top executives at the Kenya Ports Authority (KPA).

The Directorate of Criminal Investigations (DCI) has asked KPA Acting Managing Director John Mwangemi to allow the police to record statements with managers in operations and container divisions.

The DCI says three top executives at the ports authority are key suspects in a breach that is believed to have deprived Kenya millions of shillings in tax revenues.

“This office is investigating a case of suspected smuggling of containers from the Port of Mombasa,” said a letter to Mr Mwangemi from Mr John Gachomo, head of the Investigations Bureau at the DCI.

Government agencies and officials at the Mombasa port have faced frequent and widespread accusations of colluding with rogue importers and exporters.

The current investigation hinges on release of containers through a manual system, which allows for cargo to exit the port without taxes being paid.

Online system

Containers are expected to be cleared through an online system -- the Kilindini Waterfront Automation System (Kwatos) -- which was installed in 2008 to curb tax evasion.

Details of the containers cleared manually are later fed into Kwatos to indicate they are within the KPA premises.

The port has become a focal point for a campaign by President Uhuru Kenyatta to boost economic growth by improving efficiency and fighting criminal cartels.

Now, the DCI is seeking data captured on the Kwatos portal on all containers that have arrived at the port since February 2021.

Police also want ownership documents of all containers and information on the amount of taxes paid to the Kenya Revenue Authority (KRA) over the past eight months.

The investigators are also seeking a list of containers that were cleared manually from the port from January and registrations of vehicles that have hauled cargo from the port since February.

“To enable us to successfully finalise our investigations, we request your good office to facilitate our investigators to get (these documents),” said the letter to the KPA boss.

Administrative action

“Kindly take the necessary administrative action to preserve the integrity of Kwatos system, which is holding important data at the centre of these investigations.”

KPA has had a series of leadership changes in recent years amid allegations of corruption involving top executives.

The KPA board in July this year appointed Mr Mwangemi, a former diplomat, as the acting managing director. He replaced acting MD Rashid Salim who retired.

KPA has been without a substantive head for more than a year after Daniel Manduku resigned in March 2020 in the wake of corruption charges.

Recruitment has been suspended three times.

The Mombasa port is a vital artery for East African trade, handling fuel and other imports for landlocked neighbours including Uganda and South Sudan.

The region’s main exports, tea and coffee, are also shipped out through Mombasa.

Western diplomats say it is also the main exit point for ivory poached in East Africa and smuggled to Asia, and has become a key entry point for narcotic drugs bound for Europe.

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