KRA staff accused of abetting tax evasion to remain in cells

Some of the 38 employees of the Kenya Revenue Authority who were arrested for allegedly abetting tax evasion. They appeared in court yesterday. [David Gichuru, Standard]

The court on Monday gave prosecution two weeks to continue holding 38 Kenya Revenue Authority (KRA) employees arrested on suspicion of abetting tax evasion and money laundering.

The prosecution had requested the court to grant them 21 days to hold the suspects pending conclusion of investigations.

Through an affidavit filed by Arthur Onyango, investigators want the suspects detained at Central and Kamukunji police stations to allow, among others, forensic analysis of laptops and phones seized from them.

The suspects were arrested on May 10 at KRA Domestic Taxes and Customs and Border Control departments.

Another 48 KRA officials, said to be part of the alleged criminal enterprise, are being sought by police.

Mr Onyango said at the time of their arrest, their laptops, phones and other electronic gadgets were seized and were yet to be subjected to forensic examination and reports obtained.

“DCI opened inquiry Number 102 of 2019 in relation to commission of criminal offenses being committed by KRA staff and a number of tax payers,” said Onyango in his affidavit.

Appearing before Milimani Senior Resident Magistrate Edna Mayova, prosecutor Duncan Ondimu said together with other teams of investigators, they had obtained court orders to get the suspects subscriber details, line history, IMEI history, text messages and Call Data Records (CDR) for the period of July 1, 2017 and last May 9.

“Among the offenses that DCI is investigating are tax evasion, money laundering, abuse of office and neglect of duty,” he said.

Onyango told the court the investigations were complex and required detailed analysis in respect to more than 178 mobile phone numbers and M-Pesa statements.

The court was informed that information gathered and credible intelligence so far received showed that the suspects were actively involved and colluded with certain taxpayers in a criminal enterprise to evade payment of taxes or reduce tax liability.

He said the suspects's actions posed great risk to the mainstay of the economy and therefore must be fully investigated.

“...the investigations and the leads being followed make the respondents a flight risk... they should thus remain in custody pending investigations,” he added.

He told magistrate Mayova that the suspects, being employees of KRA on contract and permanent basis, might interfere with investigations and the systems.

Lawyer John Swaka, representing 20 of the accused, said the suspects had been in custody since last Friday and that there was no reason to hold them further.

“The cells are in a pathetic condition and some of the suspects are parents who are lactating, while others are pregnant,” said Mr Swaka, while opposing an application by prosecution.

The lawyer said one of the suspects suffered from hypertensive illness and was due to undergo a medical procedure at Nairobi Hospital when she was arrested.

Swaka said she left her children unattended and could not pick them from school at the time of the arrest.

“The plight of the children is unknown because they do not have anyone to take care of them,” said.

Tom Ojienda, another defence lawyer, said the suspects were being detained in very inhumane conditions yet the prosecution still wanted more days to continue holding them.

“Seeking more days is a direct insult to the Bill of Rights because the suspects do not know why they were arrested, what they are being charged with and why they are being investigated,” said Prof Ojienda.

He said they had not been served with documents, yet according to media reports, this was the fourth month of the probe.

The court will rule on the matter today afternoon.