Equity bank has surrendered two of its staff members for prosecution stating that they colluded with KRA officials in fraud scheme that saw the revenue collector lose over Sh124 Million.
The suspects tampered with KRA’s systems to show that customers importing goods had settled their tax obligations but in the real sense there was no such payment done. They were therefore allowed to clear with the port.
The proceeds from this manipulation was therefore shared among the culprits. A report from KRA states that over sh68 Billion was evaded last year due to such cover-ups but are now being investigated.
“This office has been investigating allegations that the subject agent banks have been facilitating manipulation of the Simba system to the effect that Customs entries that have not been paid for are reflected as having been paid for… The irregular payment information is then relied upon by the DPC (Document Processing Centre) to pass the entries and the goods are then released,” one of the internal KRA memos read in part.
After the Equity bank scam, KRA are also determined to scrutinize Kenya Commercial Bank and the National Bank of Kenya which are the three biggest tax authorized agents.