UK FIRM PAID KSHS.10M MORE FOR COVID-19 TENDER ACCUSED OF TAX EVASION

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A foreign firm which grossly undervalued a declaration to the Kenya Revenue Authority KRA to evade tax, was also overpaid by over Kshs. 10milllion for Covid related supplies to the Kenya Medical Supplies Authority (KEMSA), investigations have revealed.

Investigations by the National Assembly’s Public Investment Committee (PIC) revealed that the United Kingdom-based firm which had been awarded a tender worth Kshs. 170million for supply of Personal Protective Equipment (PPE) was actually paid Kshs. 180million, a fact it failed to declare to KRA.

The shocking corruption scandal, which could implicate KEMSA officials, revealed that apart from being overpaid by a massive Kshs.10 million above the actual value of the Covid-19 tender, Deekay Relief Limited lied that it had done business worth only Kshs.9.1 million, for which it paid Kshs.3.3 million in tax, grossly undervaluing the business it did to the taxman.

Parliament, which is investigating the Kshs.7.8 billion KEMSA Covid 19 scandal, has directed the taxman to follow up with the company, and collect the taxes.

Appearing before the committee, Deekay Relief Limited Director Stephen Mutunga admitted that the company issued an invoice for Kshs.180 million. Out of this, Kshs.170 million was wired to its UK accounts while the Kshs.10 million was deposited in a local bank.

“The information coming before us is an indication that the directors of Deekay
Relief Limited had entered into a deal for the tender to be awarded and the loot
shared with top managers at KEMSA,” revealed Abdulswamad Nassir PIC chairman.
Revealing the depth of the scam, it further transpired that the transaction, in dollars, was done without approval from either the KRA or the Central Bank of Kenya.

KEMSA, the National body tasked with providing PPEs for Kenyans during a global pandemic, has been indicted for engaging in corruption, creating what are now referred to as Covid millionaires, at the expense of the health and lives of Kenyans.

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