Britain probes BAT for bribing officials
The front of the headquarters of British American Tobacco, at Temple Place in central London. British American Tobacco is being investigated for possible fraud regarding company activities in Kenya. PHOTO | ISABEL INFANTES | AFP
The company said UK authorities were investigating reports that it stifled anti-smoking laws and illegally acquired its rivals’ trade secrets.
A whistleblower alleged that Senator Moses Wetangula and gubernatorial candidate Martha Karua were some of the beneficiaries, claiming that Ms Karua was given a Sh6.5 million (50,000 Pounds) “donation” through an aide, while the Senator was provided with a free business class air ticket to London, among others. Both have denied wrong doing.
PROBE
“We are investigating, through external legal advisers, allegations of misconduct. We have been co-operating with the Serious Fraud Office and BAT has been informed that the SFO has opened a formal investigation,” the company wrote on its website.
The SFO had earlier indicated that it was investigating suspicions of corruption in the conduct of business by BAT, its subsidiaries and personnel.
British authorities also opened a confidential channel for those with information about the scandal.
BAT, the world’s largest tobacco company, previously downplayed the significance of a whistleblower.
Mr Paul Hopkins, who worked for BAT for 13 years, handed a large number of documents to the SFO in December 2015, giving details of the affair. The company dismissed him as a rogue former employee.
CIGARGATE
Mr Hopkins said he paid bribes on the company’s behalf to Kenya Revenue Authority to access information that BAT could use against its local competitor, Mastermind.
He added that BAT Kenya paid bribes to government officials in Burundi, Rwanda and the Comoros to undermine tobacco control laws.
BBC’s Panorama programme named one of the candidates to have been among the recipients in the scandal chistened “Cigargate”, making him to seek a gag order against the international broadcaster.
Former KRA director Mary M’Mukindia was named as the conduit through which BAT acted to block a rival firm from winning a tender at the tax agency.
Swiss company SICPA, which was controversially single-sourced by KRA to provide the excise tax management systems, has since denied claims that BAT played a key role for it to win the mega tender.
Ms July Adell-Owino was fingered for organising bribes for State officials.
She quit as corporate affairs executive at East African Breweries Ltd when Mr Hopkins made the claims.
