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KRA suspends two employees over fake logbooks scam

KRA

The Kenya Revenue Authority headquarters in Nairobi. Photo/FILE

Two Kenya Revenue Authority employees have been suspended on suspicion of irregularly issuing more than 1,000 logbooks.

KRA believes the logbooks are in circulation and may have been used to register vehicles irregularly.

“Two staff members directly involved in the handling of the logbooks in question have been suspended and ongoing investigations will determine what further actions will be taken against them,” said KRA Commissioner-General John Njiraini.

The logbooks were illegally issued in two batches, one in June 2011 and the other in January 2012.

One batch of the logbooks has serial numbers between S172501 and S173000 while the other batch has serial numbers between S363501 and S364000.

“We suspect the logbooks to be lost and in circulation. The public should be on the lookout and alert us if they come across the quoted series,” Mr Njiraini said.

He said a routine check of logbook records had revealed irregularities in the registration details of one motor vehicle.

He said KRA had tightened procedures to prevent registration of motor vehicles older than eight years and those in transit to other markets.

“The stringent requirements may lead to the emergence of fraudulent registration schemes using fake or stolen motor vehicle registration documents,” said Mr Njiraini.

He said vehicles in transit were at times hidden in containers and declared as household goods before being diverted to the domestic market.

In one incident, two top-of-the-range BMW vehicles were impounded after having been disguised as household goods intended for the Ugandan market.

It is suspected fraudsters were using number plates of salvage vehicles to illegally register the vehicles afresh using stolen logbooks. The employees would collude with the fraudsters to enter the details of the new vehicles, which are then sold in the local market.

“Some of KRA’s senior managers are the ones allowing the dumping of transit goods into the local market. We have spoken to them and we expect them to take action on a serious matter like loss of logbooks,” said Kenya Autobazaar Association (KABA) chairman Charles Munyori.

He said there were a number of brokers who camped in the areas between Agip House and Times Tower with the intention of brokering deals involving outsiders wanting services and some KRA managers.

He said the senior managers stonewall any investigations or actions on the cartels. The KABA chair said the organisation had advised KRA to have all number plates of old or salvaged vehicles and motor bikes removed from the system.

Mr Njiraini said investigations would establish whether other KRA staff members were involved in the loss of logbooks.

The internal investigations would be backed by Criminal Investigations Department detectives who are expected to pursue leads on suspects outside the KRA system.

Mr Njiraini said clearing agents who had been involved in some of the fraudulent activities had been suspended.

New regulations, training and a code of conduct would be rolled out for clearing and forwarding agents who are still in business.

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