UK firm paid Sh10M more for Covid-19 tender accused of tax evasion
A United Kingdom-based firm that was awarded Sh10 million more than the value of its Covid-19 supplies tender by Kenya Medical Supplies Authority (Kemsa) has been accused of tax evasion.
Despite the firm receiving Sh180 million payments for Sh170 million worth of Personal Protective Equipment(PPE), it lied to Kenya Revenue Authority that it had done business worth Sh9.1 million, for which it paid Sh3.3 million in tax
The National Assembly’s Public Investment Committee (PIC) investigating the
Sh7.8 billion Kemsa scandal committee heard that Deekay Relief Limited undervalued the business it did to KRA.
KRA has been directed to write to the company and demand the right amount in taxes the firm should have remitted.
“This is a matter KRA should now follow up with the company,” said Abdulswamad Nassir PIC chairman.
Appearing before the committee, Deekay Relief Limited Director Stephen Mutunga said Deekay Relief Limited won a Sh170 million tender to supply PPEs but an invoice issued by Kemsa management indicated that Sh180 million was paid.
Mutunga said that Sh170 million was wired to its UK accounts while the Sh10 million was deposited in a local bank.
Gideon Simiyu, who is the company’s representative in Kenya revealed that Kemsa wired Sh180 million in dollars without approval from the relevant authorities.
Nasir confirmed that they have no documents from Kemsa indicating it sought the approval of either KRA or the Central Bank of Kenya.
“This is something that we will take up with Kemsa as a committee,” Nassir said.
However, Simiyu denied Deekay Relief Limited-UK was paid an extra Sh10 million, saying documents held by the company indicate they were only paid Sh170 million, which was wired to Lloyds Bank in the UK.
Simiyu said Deekay Relief Limited whose headquarters is in India was paid 90 days after delivery of 20,000 of PPE.
According to documents being examined by the committee, Manpreet Singh Kohli did all the paperwork in relation to the tender while in the UK and used Simiyu to deliver them to the Kemsa headquarters.
“The way communication was done between these two entities, it shows that someone was communicating with Kemsa and you were just sent to deliver samples,” Nassir told the witness.
Further, Mvita MP questioned why the firm was paid before local companies
which to date have not received a single coin for their supplies.
“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,” Nassir claimed.
Mutunga was also put under pressure to explain why Kohli had failed to honour
invites by the committee despite several emails and phone calls made by the committee’s clerk.
