Kenya Revenue Authority (KRA) says it has arrested 18 people in connection with ‘cargo dumping’ scheme with intent of evading taxes to the tune of Ksh 3.53 million shillings.
The suspects were arrested in Eastleigh, Nairobi County on Tuesday by KRA investigators in collaboration with by officers from the Directorate of Criminal Investigation (DCI) in a three-day operation.
“Investigations on the scheme revealed that truck drivers alter vehicle registration plates mid-journey within the country and tamper with the electronic seals which enable real-time monitoring of trucks transporting transit goods vide the Regional Electronic Cargo Tracking System (RECTS) used by KRA’s Customs and Border Control,” said KRA.
The authority says the arrests were made after unearthing the tax evasion scheme where inland goods are misdeclared as transit goods with the intent to divert and dump the goods locally without payment of requisite taxes.
The scheme involved a forty-foot container full with textiles (fabrics) loaded in Mombasa and declared as transit goods destined to Democratic Republic of Congo for a consignee named Kandama Kasongo Franchoise were diverted and offloaded in Eastleigh, Nairobi under the watch of DCI’s elite Operation Support Unit (OSU) and KRA’s Investigation & Enforcement officers.
“During the intelligence-led covert operation, investigators watched as the truck driver- Meshack Leo, who is among the 18 suspects arrested, change the truck’s registration at the Machakos Junction and tampered with the Customs
electronic seal before proceeding with the journey towards Nairobi,” stated KRA.
The suspects who were being trailed by KRA investigations officers were seen erasing the “transit goods” marks on the trailer before making a uturn in Mai Mahiu.
Further investiations have revealed that the consignee has over time imported and dumped a total of nine consignments with a tax implication of Ksh 21,956,664.81.
Among those arrested on Tuesday include store owners Yusuf Mohammed Noor and Abdi Nasir. The truck/Trailer loaded with the said exhibits was escorted to a KRA customs warehouse for safe custody awaiting completion of investigations.
