KRA Chief Summoned by MPs Over Alleged Sh62 Billion Palm Oil Tax Evasion Scandal
Kenya Revenue Authority (KRA) Commissioner-General Humphrey Wattanga has been called to appear before Members of Parliament regarding allegations that the country lost Sh62 billion in taxes linked to a palm oil importation deal.
The Finance and National Planning Committee of the National Assembly is seeking clarification from the KRA chief concerning accusations that Louis Dreyfus Company (LDC) Asia PTA Limited and Louis Dreyfus Company Kenya (LDC) Limited did not accurately declare the taxes owed for palm oil consignments brought into Kenya over four years.
“To address the critical issue of revenue collection, the Committee has decided to invite you to a session to provide further insight,” stated Senior Deputy Clerk of the National Assembly Jeremiah Ndombi in an August 29 letter to the KRA head.
“This letter serves as a formal invitation to the meeting scheduled for Tuesday, September 19, 2024, at 10 AM. The venue will be communicated shortly,” it continues.
Tax Misdeclaration Allegations
The summons follows the presentation of documents to the committee, which suggest that the taxes on products imported by the companies for use in Kenya and other East African nations via the Port of Mombasa may have been misdeclared.
The palm oil shipments in question were imported from Malaysia and Indonesia, the top global exporters of palm oil products, including RBD palm olein, RBD palm stearin, and crude palm kernel oil.
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Palm oil stearin, a by-product of palm oil refining, is commonly used in soap and cooking fat production. RBD palm olein is refined palm oil, while crude palm kernel oil, also a by-product, is utilized in soap manufacturing.
Crude palm olein, which is partially processed to separate the liquid portion from the solid part of the oil, is subject to a 10 percent import duty.
Review of Import Documents
To thoroughly investigate the issue, the committee has requested Mr. Wattanga to provide comprehensive details on the total volume of palm oil imported by LDC Asia PTA through the Port of Mombasa between February 23, 2023, and June 26, 2024.
They also require copies of all relevant import documentation, including port health reports, Kenya Bureau of Standards (Kebs) reports, bills of lading, and cargo manifests for all 120 palm oil consignments imported by the company during this period.
Additionally, the committee seeks a list of consignees for all palm oil shipments handled by the company during the specified timeframe.
The committee is also asking for details on the volumes of palm oil imported by LDC Kenya Limited, Acee Limited, Mazeras Oil Limited, and Vipingo Industries Limited via the Port of Mombasa during the same period.
Furthermore, Mr. Wattanga must provide information on the taxes and fees paid by these companies during the period, along with copies of all import declaration documents for these firms.
KRA Chief Summoned by MPs Over Alleged Sh62 Billion Palm Oil Tax Evasion Scandal
