Cement Racket Exposed

Cement Racket Exposed
01 June 2004

Police have unearthed a major syndicate in which the East African Portland Cement Company (EAPC) is losing over Sh3 million per month in transport commissions.  Sources said two vehicles loaded with cement are already under police custody having been confiscated in a deal suspected to involve transporters and some senior managers at the cement firm.

The racket which is believed to have cost the firm over Sh15 million since January this year, involve drivers collecting cement from EAPC Athi River depot for distribution to the firm’s upcountry depots, but instead offload the consignment to stockists in the city and its surrounding area. The firm is then surcharged inflated transport costs, a rate normally granted to far-off destinations.

Police is said to have also launched investigations into the possibility of EAPCC losing cement in the syndicate, which they suspect also involves depot managers, transporters and the firm’s marketing managers.

Published under Cement News