Consumers Federation of Kenya could go to court to compel the state anti corruption agency to investigate two senior government official over an irregular tender of a tax management system.
This follows revelations in parliament on Wednesday that a company contracted to install the Excise Goods Management System did not exist when it allegedly won the tender.
"Parliament said it will give a report soon and we ask them to take time to make the right decisions," Cofek secretary general Stephen Mutoro said Friday.
Mutoro said Treasury officials and Kenya Revenue Authority John Njiraini should be held accountable for the alleged fraud.
In a hearing over the case, Public Procurement Oversight Authority shocked the Public Investments Committee by revealing that SICPA Solutions SA was awarded the EGMS contract three years before it was registered in Kenya.
EGMS was initiated in 2013 as part of government's efforts to seal tax leakages by combating production of illicit production and sale of sensitive goods such as alcoholic spirits, wines and tobacco. The previous system relied solely on printed paper excise stamps, making it easy for unscrupulous producers to sell illegally through fake stamps.
"The EGMS contract was awarded to SICPA Security Solutions SA in December 2012 following international competitive bidding. It is therefore gross misrepresentation to claim that the contract was awarded in 2010," KRA said on Friday.
Despite this, Cofek said it will take the matter to court if need be, to compel the Ethics and Anti Corruption Commission to launch investigations into the deal.
“We have never been involved in any stakeholder consultation between KRA or any of its’ partners on EGMS. It’s a scandal in the making. Its’ against consumer interest as it is meant to escalate costs of consumer goods while denying government the much-needed revenue. It must be stopped. Instead of losing Sh1.50 per item, such money would do better to be provided for enhancing consumer awareness, which will be more cost-effective and sustainable than the proposed EGMS system," Mutoro told the Adan Keynan led committee.
KRA said it is working with Treasury to address issues that have risen in connection with EGMS implementation for low priced products. But Cofek said the benefits aside, investigations should still be launched to clear any doubts over the matter or punish those culpable to weed out corruption.
“The purported legal framework enabling the EGMS is inconsistent with the Constitution at Article 94(5). The direct procurement by KRA and failure to allow for competitive bidding and procurement unmasks the scandal that must be fully blamed on KRA and Treasury," said Mutoro.