Two activists, Okiya Omtatah and Mohamed Ahmed Mohamed, have claimed in court filings that they have evidence showing collusion by
Mr Njiraini, former KRA boss Michael Waweru, Ethics and Anti-corruption Commission chairman Mumo Matemu and Kisumu governor
Jack Ranguma to help Kingsway Tyres to evade tax.
Mr Omtatah claims that despite the High Court having authorised KRA to collect the Sh2.4 billion tax claim from Kingsway 10 years ago,
the amount remains uncollected due to the alleged collusion.
“The petitioner recently acquired documents providing incontrovertible and conclusive evidence that the respondents have colluded to
defeat the public interest in the recovery of the Sh2.4 billion tax arrears,†says Mr Omtata in an affidavit.
They want the court to order the anti-corruption watchdog and the Directorate of Criminal Investigations to investigate the claim of bribery against the current and former bosses of KRA, whom he sensationally claims pocketed Sh900 million. The petitioners have listed KRA board of
directors, Kingsway & Auto Mart Limited and Kingsway Tyres Limited as respondents to the case.
The former top KRA officials are sued in their personal capacity for the period they served at the tax authority. Mr Njiraini, the current KRA
boss, served as commissioner for Large Tax Office, Mr Waweru was the Commissioner General, Mr Matemu served as the commissioner for support services, the legal arm of KRA, while Mr Ranguma was commissioner of domestic taxes/income Tax.
KRA in May 2004 instructed Speedman Commercial Agencies Limited to seize and auction the goods of Kingsway Tyres & Auto
Mart Limited to recover the unpaid tax. In September 2004, Speedman attached all goods belonging to the firm and threatened to auction it if the tax arrears was not paid in 10 days.
Kingsway allegedly wrote to Mr Ranguma proposing to settle the outstanding 2.4 billion tax arrears in instalments of Sh1.5 million per week and requested their premises to be opened for business.
Mr Ranguma allegedly approved the arrangement and ordered the company to release the secured assets. Despite this arrangement Kingsway moved to court to challenge the tax, which it lost to the KRA in 2007. The petitioners claim that KRA put up a weak defence but disclosure made by the Speedman Commercial Agencies assisted it to win the case. They reckon that despite the favourable judgment, KRA has failed to collect the tax, which stands at Sh3 billion as at April 2012.