Wednesday, April 20, 2011

Court shown letter by Kosgey PS on car imports

By Judy OgutuMinistry of Industrialisation PS had last year disputed allegations that the law was abused when the minister granted exemption for vehicles over eight-years-old.
It emerged in court on Tuesday that the PS Karanja Kibicho wrote to his Finance counterpart, Joseph Kinyua on August 25, last year. Mr Kibicho was giving evidence in a case where former Industrialisation Minister Henry Kosgey has been charged with abuse of office.
Nairobi Principal Magistrate Elijah Obaga heard that Kibichio wrote the letter in response to Kinyua’s letter dated August 20, last year on importation of second hand vehicles, which were exempted from requirements of the Kenya Standard KS: 1515:2000.
KS: 1515:2000 is a Kenyan standard on inspection of motor vehicles imported into the country. It stipulates what Kenya Bureau of Standard (Kebs) should observe it when inspecting imported vehicles.
"This is to acknowledge receipt of your letter dated August 20, 2010 on the above matter with thanks. However, I wish to dispute allegations labelled against the Ministry that there is abuse of law in exercising the powers granted to the minister under Section 8 of Legal Notice No 78 of 2005 and Clause 2.5 of exemption of vehicles which are over eight-years-old and Clause 2.4 for left hand drive vehicles," reads Kibicho’s letter in part.
List of vehiclesIn the letter, read in court on Tuesday, the PS had indicated the requirements provided by Kebs for exemption, which included vehicles brought by returning citizens.
Kibicho had also indicated to Finance PS they would like to be provided with any information where application of the procedures were violated. He attached a list of vehicles, which had been cleared between June 25 and August last year.
On Tuesday, when asked about the letter by Kosgey’s advocate, Mr Julius Kemboy, he told the magistrate that when he wrote the letter, he was asking for information from the Finance PS. He also denied that he had disputed the allegations saying the letter was in reference to a list of vehicles he had attached therein.
Kosgey, who is also Tinderet MP, is alleged to have allowed three companies and three individuals to import 113 vehicles that were more than eight-years-old.
Initially, the number of vehicles was 123 but the charge was amended on Tuesday to indicate 113. While being led in his evidence by Special prosecutor Patrick Kiage, the PS said Kenya Revenue Authority (KRA) Commissioner General Michael Waweru had expressed concern over an upsurge in the number of non-compliant motor vehicles.
KRA had also expressed disappointment on the alarming record of vehicles being exempted from the 8-year-old rule. KRA, the court heard, complained that it had within a period of three months received more than 80 exemption letters.
Kibicho said he thereafter made an impromptu check on their records and established the number of vehicles cleared by the ministry through his office was seven but according to Kebs records there were 87 cleared.
Hearing continues.

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