County impounds investor’s trailers over non-payment of iron-ore mining revenue

Voi, Tuesday, May 2, 2023 

KNA by Wagema Mwangi

The county government of Taita-Taveta has threatened to halt the operations of a multi-billion shillings mining ore company in the region over protracted dispute arising from alleged non-payment of Sh 53 million cess revenues.

Deputy Governor Christine Kilalo said Samruddha Resources International had continued to act with impunity by violating several agreements that required timely remittance of monies charged as cess monies for mining and transportation of iron ore.

Speaking at Ndii area Tuesday during the inspection of eight trailers that were impounded by the county revenue enforcement team, Ms Kilalo said the county would not tolerate unscrupulous investors who were minting millions from the county resources without giving back to the community and the county government.

She added that several engagements with the investors have not borne fruits as the latter kept reneging on his promises to pay the money he owes the county.

“We have had it with this investor. He has consistently failed to meet his obligations despite making pledges to remit the monies owed to the county. We will not sit back and watch as he makes money at the expense of the county,” she explained.

Dozens of reinforcement officers from the county government on Saturday night impounded trailers that were allegedly sneaking out over 200 tons of iron ore from the mining site. According to county officials, the drivers were operating at night to avoid paying cess because the revenue officers do not operate at night.

The DG further disclosed that the company has also failed to remit Sh 30 million intended for Corporate Social Responsibility (CSR) activities for the community in Kishushe area. This money is for the last three years.To date, the firm has only paid Sh 8.9 million.

“We had a leaders’ meeting in February where the firm official promised to clear the CSR monies owed to the community for the last three years. To date, they have only paid less than a third. This is unacceptable,” she said.

Mr. Chombo Shete, the chairperson of Kishushe Ranch where Samruddha Resources is engaged in mining activities termed the investor as mischievous and slippery. He stated that the ranch is demanding over sh 100 million in arrears from the investor.

He added that in 2021, they had tried to evict the company over violation of agreements but the investor obtained a court order that extended his stay in the region.

“We wanted him to go but the court brought him back. He is yet to fulfill a lot of what we agreed with him,” said the chair.

In February, the county leaders led by Governor Andrew Mwadime held a meeting that was chaired by the Mining Cabinet Secretary Salim Mvurya over the row on revenue payment by the investor.

The meeting agreed that the investor should deposit Sh 30 million in a new Community Development Agreement (CDA) account that had not been paid since 2021.

Courtesy; K.N.A