Firm owes KRA Sh3bn, says Githae

Photo| FILE

Mr Githae told the MPs that Kingsway Tyres and Automart Limited had no money in their accounts.

The company at the centre of a controversy surrounding the picking of Mr Mumo Matemu to head the Ethics and Anti-Corruption Commission owes the taxman Sh3 billion in arrears.

Finance Minister Njeru Githae admitted in Parliament that Kingsway Motors and Automart Limited owed the money, but it was difficult to recover the money from a long “dead” firm.

MPs want action

The minister said Kingsway Tyres and Automart Limited changed its name in unclear circumstances to dodge the payment of taxes and the directors registered a new company, Kingsway Tyres Limited to which they transferred all the assets.

The minister said the colossal unpaid tax was as a result of collusion between officials in the KRA and directors of the company.

Mr Githae told the MPs that Kingsway Tyres and Automart Limited had no money in their accounts.

MPs Njoroge Baiya (Githunguri) and Olago Aluoch (Kisumu Town West) said that in law, the minister could lift the veil to know who the owners behind the multi-billion shilling scam were and what they were up to.

The MPs urged the minister to recover the taxes.