Taxman effects management changes as probe begins

Massive changes have been effected at the Kenya Revenue Authority at senior management level as detectives from Directorate of Criminal Investigations descend on Times Tower.

The changes affect commissioners, deputy commissioners and general managers in what insiders say is an attempt to ward off relentless pursuit by DCI and also succession politics within the KRA.

This week, KRA board met for the whole day in what is believed to be preparations for an internal response if DCI decides to make arrests.

Commissioner General John Njiraini, who has been sued for being in office illegally, is expected to leave in early 2019 and insiders say the recent changes are geared at ensuring he places his trusted men and women at vantage positions.

In his annual report, Auditor General Edward Ouko said that Mr Njiraini is in office illegally, after he failed to go on terminal leave last year.

Mr Ouko, in his audit report as at June 30, 2017, says that Mr Njiraini should have gone on terminal leave from September 4, 2017, pending his retirement in accordance with a government circular of November 23, 2010.

Activist Okiya Omtatah went to court seeking orders to force Mr Njiraini to retire.

PROCUREMENT

An attempt by the board chaired by Dr Edward Sambili to have him go on leave was overturned by President Uhuru Kenyatta in May after he sacked five of its members through a special gazette notice.

Besides Dr Sambili, the other board members kicked out were Mr Evans Kakai, Ms Constance Kandie, Mr Rashid Ali and Mr Abdi Barre Duale.

The board is now chaired by Ambassador Francis Muthaura.

The Auditor General also raised issue with the taxman who awarded a human resource contract to Working Smart Limited, the job was then given to one of its directors as a technical manager for six months. The contract was single-sourced, the auditor general noted.

The detectives, according to insiders, have trained their eyes on the procurement department.

Of interest is how Swiss firm SICPA Security Solutions was awarded the Excisable Goods Management Systems (EGMS) contract worth Sh17.8 billion.

Detectives are also interested in how Integrated Tax Management System (ITMS) was converted to ITAX system.

Also in the crosshairs are all companies that were single-sourced to offer services at KRA.

CORRUPTION

KRA communications office confirmed that DCI detectives have been at Times Towers in recent days.

“KRA is aware of the ongoing investigations by Directorate of Criminal Investigations (DCI) on various malpractices at the agency.

"The agency wishes to reiterate its support for the government in the fight against corruption and is fully collaborating with all the investigating agencies to ensure that those found culpable are arrested and prosecuted in accordance with the law,” Deputy Commissioner, Marketing and Communication, Grace Wandera said in a reply to our queries.

Insiders says that panic has gripped top management as detectives demand for documents which do not seem to be forthcoming.

Two top managers left for an Indian Ocean Island nation to plot how to thwart the investigations, sources indicated.

The recent changes at top management saw Ruth Wachira, who was deputy commissioner Domestic Taxes, appointed as acting commissioner in the same department with effect from July 6, 2018.

She replaces Benson Korongo whose contract was not renewed. Also exiting in the coming months is commissioner in charge of Customs and Border Control, Mr Julius Musyoki.

TRANSFERS

Mary Masiro Ojee, formerly deputy commissioner, Policy and Tax Advisory division, was transferred to Customs and Border Control department as head of Risk Management and Post Clearance Audit division with effect from July 1, 2018.

Elizabeth Meyo, Deputy Commissioner was moved from DTD operations office and appointed head Sameer Park — compliance Control Area and Service Centre with effect from July 25, 2018.

George Muia, Deputy Commissioner, was transferred from customs and border control department to domestic taxes department as Head of Public sector division with effect from July 1, 2018.

Kevin Safari, western regional coordinator was transferred to North Rift region with effect from July 1, 2018.

Caxton Musudi Ngeywo - deputy commissioner domestic taxes - was appointed as Head of policy and Tax advisory division with effect from July 1, 2018.

Mr Ngeywo’s meteoric rise has raised eyebrows at KRA since he has been promoted several times in the last four years by passing his colleagues in the process.

PROMOTING EFFICIENCY

North Rift Regional coordinator Florence Anyango was transferred to strategy, innovation and risk management department and deployed to the Corporate Risk management division with effect from July 1, 2018.

Charity Wakarima Giteru, Deputy Commissioner, domestic taxes was transferred to Northern Region as the regional coordinator with effect from May1, 2018.

Anne Nyaguthii Irungu, deputy commissioner, public sector, division domestic taxes department ,was appointed as Head DTD enforcement with effect July 1, 018.

John K Gatharwa, Chief Manager, customs and border control was appointed as acting regional coordinator western region with effect from July 1, 2018.

“Staff changes at KRA are normal and occur frequently. The recent changes as pointed out in your query are aimed at enhancing efficiency in line with the Authority’s Vision, to facilitate Kenya's transformation through Innovative, Professional and Customer-Focused Tax Administration,” Ms Wandera said.

But sources indicated there may be more than meets the eye.

“There has been massive disorganisation going on, destruction of evidence and removal of all possible witnesses is happening fast and furious,” a source said.