We got Sh15bn contract fairly – Swiss firm
Cord leader Raila Odinga says SICPA Security Solutions got deal irregularly
A Swiss company has dismissed allegations by Cord leader Raila Odinga that it was involved in a Sh162 billion revenue rip off on imports.
The opposition leader made the allegatiions on Saturday, during the burial of veteran journalist David Ohito’s mother Joyce Aol in West Ugenya ward.
SICPA Security Solutions Ltd regional vice president Michele Castegnaro yesterday said the firm was awarded the Excisable Goods Management Systems contract regularly by the Kenya Revenue Authority.
“Our company has no business with goods imported because it supports the KRA in marking excisable goods in the Kenyan market,” he said.
“This includes alcohol, cigarettes and other products under the KRA guidance and orders. Our role within EGMS is first and foremost helping ensure tax compliance for excise tax collection purposes and not fighting counterfeits and illicit trade, a role that other agencies in Kenya are responsible for.”
While answering questions from the Adan Keynan-led Public investments Committee in September, SICPA executive Bruno Frentzel said the firm’s subsidiary alongside 200 other companies are under investigation.
“I am aware we are being investigated, but I don’t know what they are looking for,” he said.
SICPA Security Solutions was awarded a Sh15.9 billion excise duty stamps printing contract by the taxman.
It was cleared by the Public Procurement Regulatory Authority.
The Public Procurement Regulatory Authority gave the go-ahead to the KRA to implement the multibillion-shilling Excise Goods Management System contract to SICPA to print, supply and deliver 12.8 billion excise duty stamps for five years.
PPRA director general Maurice Juma said the taxman was “reasonable” in engaging SICPA for extra scope of the electronic stamps contract, since the company installed software which could verify the authenticity of stamps.
“The procurement was necessitated by the amendment of the Customs and Excise Regulations vide the Customs and Excise Regulations, 2013 - Legal Notice No.110 of June 18, 2013,” Juma said in a letter, a copy of which has been sent to the Clerk of the National Assembly.
“These regulations expanded the scope of products to be affixed with the stamps, thus increasing the need for stamps from 3.55 billion stamps to approximately 12.8 billion stamps.”
The tender will see excise duty stamps extended to water, beer, soft drinks and cosmetics. Currently, the revenue security stamps are used on cigarettes, wines and spirits.
Standard five pupils Austine Kamau, Kelton Njuguna and Peter Irungu sort out plastics for sale at the Dandora dumpsite on Saturday. The three work at the dumpsite during school holidays and earn between Sh70 and Sh100 per day