Mutito MP Kiema Kilonzo was accused of extorting money from Mastermind Tobacco (K) Limited on a question he filed in Parliament over tax arrears the company owes the Kenya Revenue Authority April 19, 2012. FILE
By CAROLINE WAFULA cwafula@ke.nationmedia.com
Posted Thursday, April 19 2012 at 22:30
Posted Thursday, April 19 2012 at 22:30
A minister on Thursday accused an MP of extorting money from a company, raising serious questions on the integrity of the House.
Finance assistant minister Oburu Oginga alleged that Mutito MP Kiema Kilonzo had attempted to extort Sh6.6 million from Mastermind Tobacco Ltd.
The MP had asked a question in the House regarding the company’s tax arrears.
Dr Oginga’s claims were backed by Gwassi MP John Mbadi who challenged the MP to declare his interest in the question.
“It is true Kiema went to solicit money from traders and he was given Sh300,000 and another Sh200,000 for his brother,” Dr Oginga told the House.
Also caught up in the controversy is the Prime Minister’s Office which is said to have written to KRA asking it to settle the matter with Mastermind.
Dr Oginga was responding to Mr Kilonzo’s question.
The assistant minister stood by his statement and promised to substantiate the extortion claims next week.
“This matter is true. I will bring an affidavit from the person he solicited the money from next Tuesday,” he said.
Mr Kilonzo had asked the minister to confirm that Mastermind had not been remitting taxes since 2007 and owed KRA more than Sh12 billion.
He also asked why the company had not paid the arrears despite several tax demands KRA had sent to it.
“Can the minister confirm that the failure by KRA to enforce the several tax demand notices is attributed to corruption and if so, what measures will the ministry take to ensure that all companies which have not remitted due taxes do so with the appropriate penalties?” the MP asked.
Dr Oginga said Mastermind had remitted Sh6.6 billion and had a Sh4.5 billion debt, which included interest and penalties arising from various additional assessments.
The company has been settling part of the debt through urgency notices that KRA has placed on its bank accounts.
Part of the arrears is subject to a court case after the company challenged the amounts.
But Mr Kilonzo insisted that only a small part of the arrears was subject to the court case and that the company must be forced to clear the debt.
Mr Mbadi also accused the MP of skipping the House last month when the question was due to be raised.
“This House shall not be used by people who go out there and extort money from companies. This is a shame to Parliament that an MP can come here to use the floor to ask questions for money,” the MP said.
Mr Kilonzo denied the claims and blamed parliamentary clerks for the delay in bringing the question.
“I had to ask the Speaker to intervene and it is he who ordered the question to be replaced after warning some people in the Clerk’s office,” he said.
Stood by his claims
But Mr Mbadi stood by his claims.
“Some MPs ask their brothers and sisters to go out and ask for money, extorting money from the private sector. Declare your interest! ”
Mr Kilonzo claimed Mastermind Tobacco Ltd was untouchable, saying that the letter from the PM’s office attempted to block taxation efforts by KRA.
“Where did I receive the money from… this multi-billion company does not want to pay taxes,” he said urging the House to get to the bottom of the matter.
Gichugu MP Martha Karua called for substantiation of the claims to save the face of Parliament.
She questioned whether there was political interference in tax matters, citing a letter from the PM’s office on the same matter.
“The minister said money changed hands, some of us MPs have participated in this question in good faith and these allegations are before the entire nation. How shall we then proceed to ask questions on this floor if there is fear of claims of money changing hands?” she said.
Dr Oginga said he was aware of the letter but that it was “simply transferring responsibility”.
“The taxpayer went to the PM’s office to complain and the PM ordered KRA, Treasury and the taxpayer to sit down and discuss and agree on the figures that were being disputed. There was no violation, he (the PM) is the coordinator of government business and has right to deal with matters of complaints,” he said.
Deputy Speaker Farah Maalim directed the Powers and Privileges Committee of Parliament to investigate the matter and report to the House in two weeks.
“Do it within a week if possible, the dignity and integrity of the House is at stake,” he said.
In the letter Mr Kilonzo tabled in Parliament addressed to the KRA Commissioner General Michael Waweru in 2010, acting Permanent Secretary in the Prime Minister’s office Andrew Mondo requested KRA not to enforce the tax demands against Mastermind.
The letter, dated May 4, 2010, and copied to Treasury permanent secretary Joseph Kinyua, said this was to facilitate further review of the matter.
“This is further to your telephone conversation with the Rt Hon Prime Minister on April 28, 2010, on the above subject. (Tax Demands on Mastermind Tobacco Kenya Ltd). We specifically request you to suspend the agency notices dated April 22, 2010, addressed to various bankers and the demand notices issued to the company requiring payment within 30 days,” the letter said.
The letter indicated a meeting that had been scheduled to take place on May 12, 2010, at 10am between KRA, Treasury and Mastermind Kenya on the 14th floor boardroom at Treasury Building.
Posts
No comments:
Post a Comment