BY SAM ALFAN.
A judge has warned of serious consequences if Kenya Revenue Authority (KRA) has released a withheld consignment to Blue Nile Rolling Mills limited, which was imported under Special Operating Framework Agreement.
Justice Bahati Mwamuye said there will be consequences if the withheld goods had been released against his orders.
“If those goods have been released there shall be extremely serious consequences if they are not able to satisfy me why I should do something else,” said Judge Mwamuye.
The judge issued the warning after Senior Counsel Ahmednasir Abdullahi alleged that a lawyer was using court orders to solicit for bribes.
Last year, the court issued the orders blocking the release of the consignment belonging Blue Nile Rolling Mills Ltd, pending the determination of an application filed by Elvis Charo Kasena, James Maina Magare and William Mohaa Masengo.
The three urged the court to restrain KRA and its officers from further approving or permitting tax exemption, waiver or tax reduction pursuant to the Special Operating Framework Agreement (SOFA) signed between the manufacturer and the ministries of Treasury and Trade Ministries and Industries.
The three petitioners further urged the court to issue summons against the directors of the firm Botu J Rao. Kranti Kumar and Kutni Kumar, as well as the KRA Commissioner General Humphrey Watanga to appear in court.
They want the directors and the KRA boss to show cause why they should not be committed to civil jail for contempt of court.
They claimed in the petition that Kenya has lost an estimated Sh199 million in taxes as a result of the Sopa granted to Blue Nile Rolling Mills.
The 10-year exemption was granted to Blue Nile Rolling Mills and 17 other firms, on import taxes
But the petitioners allege that the exemptions to the steel manufacturer, created an uneven playing field in the steel industry and deprive the government of revenue.
The application also sought an order staying the implementation or enforcement of the Sofa between the ministry and the manufacturer.
