DPP approves prosecution of 69 in tax evasion racket

Kenya Revenue Authority (KRA) employees who were interdicted two months ago could be charged with abetting tax evasion and corruption.

Sixty-nine of the 75 workers who were sent packing are likely to appear in court next Thursday after their charges were approved.

Director of Public Prosecutions (DPP) Noordin Haji has, however, directed investigators to tighten the case by adding more documentary evidence before they arraign the suspects.

In an internal memo to KRA Commissioner General Mburu Githii, the acting commissioner for the Intelligence and Strategic Operations department said although the DPP concurred with the charges, more work needed to be done.

The memo dated July 8 says the ODPP team had reviewed 45 files touching on 44 individuals from the domestic taxes department, 18 from customs and border control, and seven non-KRA staff.

“There was concurrence with the multi-agency team to charge suspects before the 18th of July with various offences. However, the ODPP raised pertinent issues that must be covered before charging/plea taking,” the memo reads.

According to the document, the DPP wants evidence to be attached for all individuals who had sent money to the customs and border control officers, linking them to clearing agents.

Haji also wants a cyber forensic analysis report (telephone and KRA systems) and a KRA ICT officer to record a statement highlighting the iTax system process in respect to issuance of Tax Clearance Certificates (TCCs).

Proxy phones

The DPP has further asked the team to provide statements from all those who sent money, all authentic owners of the proxy phones used in the deals, and all directors of the companies in question.

Consequently, the teams met yesterday at the DCI Training School in South C to review the files and are set to inform all the suspects today of the charges they are facing, in compliance with a High Court directive.

Among the offenses detectives are investigating are tax evasion, money laundering, abuse of office and neglect of duty.

On May 17, High Court Judge Luka Kimaru released each of the 38 suspects on Sh200,000 cash bail.

The DCI had asked the court to detain the suspects for 21 days, but Senior Resident Magistrate Paul Mayova said they would be held for 14 days.

The KRA employees then moved to High Court and were released after their lawyers complained that Mr Mayova had erred in his ruling.

Justice Kimaru barred the suspects from accessing KRA premises until the conclusion of investigations, or until further orders were issued by the court. They were also prohibited from accessing KRA servers and database.

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

KRA had said 75 staff members were suspected of involvement in activities that undermined the institution’s mandate by abetting tax evasion and facilitating access to services through bribery and corruption.

The practices in question included facilitation of irregular/fraudulent clearance of cargo, fraudulent amendment of tax returns so as to help taxpayers evade taxes, and the irregular issuance of TCCs.

Sixty-one of the suspects are from the Domestic Taxes department while 14 are from the Customs and Border Control Department. The bulk of the cases (62) touch on staff based in Nairobi.