Iron ore dealer given go-ahead to load ship for ex­port in dis­pute with KRA

Business Daily (Kenya) - - CORPORATE NEWS - Philip MUYANGA [email protected]­tion­media.com

An iron-ore trad­ing com­pany got a ma­jor re­prieve after it was al­lowed to load its 55,000 met­ric tonnes of the min­eral to a ves­sel for ex­port to In­dia pend­ing hear­ing of an on­go­ing dis­pute with the tax­man.

Jus­tice Eric Ogola yes­ter­day di­rected Kenya Rev­enue Au­thor­ity to en­sure that the load­ing of Sam­rud­dha Re­sources Kenya Ltd's (SRKL) iron-ore on MV Densa Cougar for ex­port con­tin­ues ex­pe­di­tiously.

The judge also di­rected that the ves­sel be cleared to sail with the min­eral, which orig­i­nated from Kishushe in Taita Taveta county, with­out any de­lay or un­due hin­drance.

SRKL had filed an ap­pli­ca­tion,through lawyer San­jeev Kha­gram, say­ing KRA had with­out jus­ti­fi­ca­tion with­drawn its ap­proval for the load­ing of the iron ore on the ship for ex­port to In­dia. When the case was men­tioned yes­ter­day, how­ever, the court was told that load­ing started on Wed­nes­day.

SRKL, which has sued KRA, the Di­rec­tor of Crim­i­nal In­ves­ti­ga­tions, and the At­tor­ney Gen­eral ar­gued that the de­mur­rage in re­spect of the ves­sel con­tin­ued to ac­crue at a daily rate of Sh150,000 hav­ing ar­rived in Mom­basa on Oc­to­ber 23.

The firm ar­gued that re­spon­dents were con­duct­ing them­selves in dis­re­gard of the prop­erty and fair ad­min­is­tra­tion ac­tion.

“Po­ten­tially, their con­duct is likely to re­sult in the pe­ti­tioner be­ing un­able to ful­fil its con­trac­tual de­liv­ery obli­ga­tions re­sult­ing in a ter­mi­na­tion of sales of the iron ore to in­ter­na­tional pur­chasers,” ar­gued SRKL in its ap­pli­ca­tion.

SRKL sought con­ser­va­tory or­ders pro­hibit­ing the re­spon­dents from in­ter­fer­ing with its pro­pri­etary rights or its ac­cess to the iron ore con­sign­ment cur­rently stored at Africa Ports & Ter­mi­nals Ltd yard in Mom­basa.

The com­pany also wanted a con­ser­va­tory or­der to com­pel KRA to re­lease the ex­port en­try num­ber and per­mit of load­ing the ves­sel.

It has sought the or­ders pend­ing hear­ing and de­ter­mi­na­tion of its ap­pli­ca­tion in­ter-par­ties which has now been marked as set­tled.

Ac­cord­ing to SRKL, the re­spon­dents act­ing un­der the guise of a multi-agency which it (SRKL) ar­gues is not an en­tity an­chored in law were con­duct­ing them­selves il­le­gally.

“The pe­ti­tioner has all rel­e­vant ex­port doc­u­ments in­clud­ing the li­cense is­sued by the Min­istry of Pe­tro­leum and Min­ing,” part of the ap­pli­ca­tion stated.

The com­pany also wanted a con­ser­va­tory or­der to com­pel KRA to re­lease the ex­port en­try num­ber

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