EACC puts rogue car importers on notice

Second hand cars at shipping yard in Japan [Photo:Courtesy]

 

Disquiet is brewing in the used motor vehicle segment, after government moved to seal corruption loopholes surrounding importation of used vehicles into the country.

The company that won the motor vehicle pre-shipment inspection contract, Quality Inspection Services Japan (QISJ) is now required to submit inspection details of motor vehicles imports.

The move has sealed loopholes previously exploited by importers who would smuggle over-age vehicles into the county. Others could import vehicles infected by radiation material. Ethics and Anti-Corruption Commission (EACC) has been investigating cases involving importation of overage vehicles and those infected by radiation material.

The Standard on Saturday also established that at least five Pakistan nationals are alleged to have been behind the cheap imports of over age vehicles. Importers can no longer push through cheap auto imports given that all vehicles must now undergo inspection.

“We have taken strong action against corruption involving importation of motor vehicles. We are not going to allow cheap imports that involve overage motor vehicles. People will make noise, but we will do our work as provided in the law,” said EACC Chairman Mumo Matemu. This happened even as a section of used car importers threatened to move to court to force the State to overturn what they alleged to be ‘monopoly’ enjoyed by Japanese firms in the inspection of vehicles imported into the country.

The over 80 officials also want the State to harmonise conflicting regulations and requirements on the eight-year age limit policy on used cars. They also issued a one week ultimatum to  the Kenya Bureau of Standards (Kebs) to license three more car inspection firms.

Shipping time

The dealers accuse the State of ignoring their pleas to licence three more firms to handle pre-shipment inspection services. This, they say, will bring down the cost of importing vehicles and reduce delay in shipping them to Kenya. QISJ beat East African AutoMobiles (EAA) and Export Inspection Company to clinch a tender to carry out pre-shipment inspection of motor vehicles into the country on behalf of the Kebs. EAA unsuccessfully appealed the award at Public Procurement Oversight Authority.

The importers who met in Mombasa under the lobby, The Car Importers Association of Kenya said the imports are delayed for three days at the inspection process leading to losses. They claim QISJ can only inspect half of the 300 units shipped into the country daily, allegations QISJ Managing Director Hatano Kiyoaki refuted.

“We are a reputable company in official business. We deal with official figures. The figures of what we do every day are available at Kebs for anybody to verify,” he said. “We will continue doing our work with utmost integrity. We wish to say no more because we are not idle.”