Agency clears taxman of wrongdoing in Sh17bn deal
What you need to know:
- The agency says the Kenya Revenue Authority (KRA) did not break any law by single sourcing SIPCA Solutions
The Public Procurement Oversight Authority has cleared the revenue authority of any wrongdoing in the awarding of a Sh17 billion contract to a Swiss firm for the supply of electronic tax stamps for excisable goods.
In a letter to Parliament, the agency says the Kenya Revenue Authority (KRA) did not break any law by single sourcing SIPCA Solutions in the deal that would see the company earn Sh1.50 for every stamp attached to each manufactured item under the scheme.
The authority said it would have been preferable for KRA to subject the process to an open tender, but noted that the tax agency had an option of single sourcing so long as it reported the proceedings when required, which it did.
“The subject procurement was processed under the ambit of the repealed Public Procurement and Disposal Act, 2005. Under the Act, the choice of procurement methods and management of the proceedings were at the discretion of the procuring entities,” said PPOA in the letter signed by its director-general, Mr Maurice Juma.
“Open tender was the preferred method of procurement but entities are allowed to use alternative methods. They are, however, expected to submit reports on procurement activities,” he said.
