Police in Mombasa defy court order and shut Joho port firms

Police yesterday defied a court order and stormed two container freight stations (CFSs) associated with Mombasa Governor Hassan Joho. The police commander leading the operation cited ‘orders from above’ as he cordoned off the area.

The High Court had on Monday issued an order suspending a blockade imposed by Kenya Revenue Authority (KRA) on Friday last week. During the raid, police ordered all CFS employees and KRA staff off the premises saying a new investigation had been launched. The crisis between the Joho family and the State reached new levels when the police entered the premises and ordered the suspension of all operations.

This led to frustration among workers and importers who had rushed in to clear goods after the High Court issued an order on Monday evening suspending a KRA decree that suspended the CFS' licences.

A Police officer attempts to walk away from irate workers of Auto Ports Freight Terminals CFS and clearing agents after they forced the owners of the CFS to stop clearing cargo from the CFS with orders from above, February 02, 2016. The CFS jointly with Port Side CFS were closed last week by the Kenya Revenue Authority but the seals were removed on Monday by KRA paving way for operations to continue. However, the owner of the two CFS obtained a court order to start operations. The two CFS have been closed until further notice. (PHOTO: GIDEON MAUNDU/ STANDARD)

A CFS is a privately owned yard that handles cargo on behalf of the port of Mombasa. It is commonly known as a dry port. Although it is a private investment, Customs officials from KRA operate from there to ascertain whether taxes have been paid before goods leave the CFS.

Legal problems for Portside Freight Terminals and Autoports Container Freight Station began on January 20 when the Kenya Ports Authority suspended delivery of cargo to the two stations without stating the reasons.

The High Court suspended that order for 21 days on January 25 but no sooner had normal operations resumed than KRA arrived with its own decree on January 29 suspending the CFS' licences. KRA alleged they were under investigation for allowing illegal goods, including contraband sugar.

KRA also claimed the two stations were under investigation over claims they had assisted diversion of transit sugar into the Kenyan market.

On Monday, the High Court issued a new order directing KRA and KPA and their agents not to interfere with the operations of the two stations for seven days.

Mombasa Port OCPD Zacchaeus Ng'eno, who led two contingents of anti-riot police officers said he was acting on "orders from above" and added that there were further investigations going on in the stations.?

Portside Freight Terminals Limited Managing Director Hamid Salim Sadru termed the new twist in the saga  "unexpected malice against legitimate business".

"Orders are that leave is granted on condition that the substantive notice of motion be filed within seven days from today owing to the disclosed urgency," states the orders issued by Justice P.J. Otieno.?

Other orders applied for by the Joho family were to stop KRA and KPA from "harassing the company shareholders, directors and the family members by carrying the search, requesting bank statements unless authorised by the court".

Ng'eno said the police were yet to see Monday's court order and ascertain its authenticity and insisted that he was just implementing orders as instructed by his seniors.

Hundreds of importers who were clearing their goods were ordered out, bringing to a stop operations that had resumed on Monday after KRA agents removed seals placed on January 29.?

"There appears to be a very, very strong force behind what is happening here. Police came at around 2pm and instructed our workers and KRA officers operating here to close down. We wonder why KRA broke the seals at the gates to allow the movement of goods only for the police to stop it," said Mr Sadru.?

Ng'eno said he did not know the scope of the investigation or the time it will take.