Mining firm wins court battle over impounded goods

Mining Cabinet Secretary Najib Balala (right) addresses the press during the Governing Council meeting of Southern and Eastern Africa Mineral Centre) SEAMIC) at the Intercontinental Hotel in Nairobi on June 4, 2014. A mining company has survived the wrath of the Ministry of Mining after the court directed that its impounded goods be released. PHOTO | SALATON NJAU |  NATION MEDIA GROUP

In Summary

• Mr Justice Ogola directed the commissioner of mines and geology and the Cabinet secretary of Mining, the defendants, to assess the fees payable for the export permit, as well as royalty for the crushed malachite.
• The dispute emerged when the commissioner and the Ministry of Mining said that Stema Alloys Enterprises had not satisfied the pre-set export rules including payment of Sh2,000 processing fees as well as royalty at eight per cent value of the consignment.

By NATION REPORTER
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A mining company has survived the wrath of the Ministry of Mining after the court directed that its impounded goods be released.

High Court Judge Eric Ogola said that the consignment should be released to Stema Alloys Enterprises Ltd, once the firm pays for export permit and royalty.

Mr Justice Ogola directed the commissioner of mines and geology and the Cabinet secretary of Mining, the defendants, to assess the fees payable for the export permit, as well as royalty for the crushed malachite.

The consignment was packed in 198 bags weighing 240,446 kilogrammes which were supposed to be exported to South Korea.

The dispute emerged when the commissioner and the Ministry of Mining said that Stema Alloys Enterprises had not satisfied the pre-set export rules including payment of Sh2,000 processing fees as well as royalty at eight per cent value of the consignment.

The court rejected allegations by the defendants that the export permit was forged saying there was no evidence to support such a claim.

The commissioner and the ministry argued that since there was no valid export permit, the consignment should be forfeited to the State.

However, Mr Justice Ogola said that the defendants, as government entities, have a duty to promote trade.

“Impounding goods and choosing not to notify the affected party is to act in impunity. The defendants ought to have given a written notice to Stema Alloys Enterprises explaining the reasons as to why the goods were impounded, and citing provisions of the law as to what would happen to the goods,” Mr Justice Ogola said.