Scandal: URA Faces Huge Revenue Deficit As Good Brothers’ Sluggishness Causes Traffic Congestion,Theft At Namanve Industrial Park

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Namanve Industrial Park is grappling with significant traffic congestion, with an alarming buildup of trucks parked along roadsides and occupying vacant spaces. This situation has created opportunities for theft, particularly targeting fuel, batteries, and other valuable truck components.

Denis Onencan, the Criminal Investigations Officer for Namanve Industrial Park, revealed that the congestion has turned the area into a hotspot for criminal activities. A primary trouble spot has been identified around Good Brothers ICD Limited, where a lack of adequate space has exacerbated the challenges.

On December 31, 2024, heavy truck congestion was observed near Good Brothers and other companies like Plascon. The backlog included over 100 trucks, with approximately 20 linked to CEVA Logistics and the remainder to Good Brothers. However, within four days, the Uganda Revenue Authority (URA) had reportedly cleared the trucks. This swift clearance raised questions about the thoroughness of the verification process.

Truck drivers have expressed their dissatisfaction with the prolonged delays in clearing goods at Good Brothers. Many reported waiting for weeks under challenging conditions.

Yayeri Kagoya, one of the drivers, lamented the lack of basic necessities such as food, clean water, and sanitation facilities, highlighting that the premises only had one functional toilet. “I’ve been stuck here for days, forced to bathe inside and change clothes in my vehicle. This is extremely stressful after a long journey from Mombasa,” he said.

Another driver, Alex Luganda, shared a similar experience, criticizing the inefficiency compared to Kenya, where clearance processes are reportedly much faster. Frustrated, Luganda left his truck unattended for two days, only to find the goods still uncleared on his return. He emphasized the need for more experienced URA officers to expedite the process and suggested redirecting trucks to alternative Inland Container Depots (ICDs) to ease congestion.

Shamim Ceaser, a clearing agent, attributed the delays to the limited parking capacity at Good Brothers, which struggles to accommodate the high volume of trucks. This leads to vehicles lining up on public roads, causing further congestion.

There are also allegations of inefficiencies and irregularities in the customs clearance process. Some clearing agents reportedly develop close ties with URA officials, potentially facilitating tax evasion. These practices could lead to significant revenue losses, with estimates of tax savings on some imports reaching 300-400 million shillings.

The backlog of trucks often limits the ability of URA officials to physically verify goods, increasing the risk of under-declaration and fraud. A source within Good Brothers admitted that, due to the congestion, clearance is sometimes based solely on documentation rather than thorough inspections.

Instances of undervaluation have also been reported. For example, a recent textile consignment was falsely declared as cheaper materials like PVC tarpaulin. Concerns have also emerged regarding forged URA documents and the removal of goods without proper duty payments.

Despite evidence of misconduct involving URA officers at other ICDs, such as Lexus ICD, accountability remains elusive. Officers implicated in fraudulent activities are often reassigned rather than dismissed, and goods are rarely seized to recover lost revenue.

Yakubu Muloopa, Business Manager at Good Brothers, announced plans to acquire and develop adjacent land into a parking facility to reduce congestion. He noted that the current surge in vehicles and customers is a seasonal issue.

Meanwhile, Namanve Police have urged Good Brothers to strengthen security measures by deploying more personnel to deter theft from trucks and bonded warehouses.

While the situation underscores the urgent need for systemic reforms in customs operations, stakeholders fear that without robust interventions, both revenue losses and security challenges will persist.

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