Swiss firm denies BAT bribe helped it win KRA tender

Ms Mary M’Mukindia (centre), a KRA board member and Martha Karua’s (left) 2013 presidential campaign adviser. Mr Paul Hopkins, a former BAT employee and the whistleblower in the bribery scandal. PHOTOS | FILE 

By DAVID HERBLING, hdavid@ke.nationmedia.com

In Summary

• SICPA, which won the five-year KRA contract in December 2012, dismissed claims that BAT wanted it to bag the deal over other bidders.
• Reports of BAT’s alleged bribery of Ms Karua added a new twist to the excise tax stamps contract, which was marred by tender wars, legal hitches and delays since it was first advertised in 2008.
• SICPA excise stamps solution has already been rolled out at Kenya’s factory lines producing alcoholic drinks, water, juices and carbonated drinks – and the system can transmit real-time data to KRA servers to help the taxman monitor companies for tax compliance.

The Swiss security printing company at the centre of bribery allegations against BAT and former Justice minister Martha Karua has denied being a beneficiary of corrupt payments that reportedly influenced the Kenya Revenue Authority (KRA) to award it a lucrative tender for the supply of excise duty stamps.

Former BAT employee Paul Hopkins, the whistleblower in the scandal, has claimed that he paid Ms Karua a £50,000 (about Sh7.5 million) bribe to access confidential information regarding procurement of the excise tax stamps, which the tobacco firm used to block a rival firm from winning the lucrative tender by the KRA.

Ms Karua has denied the bribery claims, but has admitted receiving Sh2 million from Mr Hopkins — which she supposedly understood to have been a personal donation for her 2013 presidential campaign.

“If BAT, as alleged, attempted to influence the tendering process in Kenya on behalf of a favoured provider, then SICPA as an independent provider is also a victim of their action,” the Swiss company, SICPA, said in a response to the Business Daily queries.

SICPA, which won the five-year KRA contract in December 2012, dismissed claims that BAT wanted it to bag the deal over other bidders.

Allegations of the bribery were first published by Britain’s Independent newspaper.

Mr Hopkins, who worked with BAT in Africa for 13 years, has submitted his evidence to the UK’s Serious Fraud Office.

He also told the BBC’s investigative programme Panorama that opposition leader and former Trade minister Moses Wetang’ula solicited bribes from BAT to influence the dilution of anti-tobacco legislation in Parliament.  

The KRA has said that it is investigating the claims, and has contacted Mr Hopkins and the Ethics and Anti-Corruption Commission on the matter.

“We would like to emphasise that SICPA has a clear code of business conduct in place to assure ethical behaviour throughout its activities,” the Swiss company said.

Reports of BAT’s alleged bribery of Ms Karua added a new twist to the excise tax stamps contract, which was marred by tender wars, legal hitches and delays since it was first advertised in 2008.

Mr Hopkins has alleged that he bribed Ms Karua through her aide to block an unnamed company from bagging the tender to supply excise tax stamps at the KRA.

“They then had the contract deliberately delayed while they secretly lobbied to get their own system chosen,” the London newspaper reported.

Bidders for the excise tax stamps tender included three Indian firms: Madras, Holistic and Security Printing Press; British company De La Rue, Apple Inc. subsidiary AuthenTec, and Ukrainian firm EDAPS.

Mary M’Mukindia, currently a KRA board member, was the conduit through which BAT allegedly bribed Ms Karua to peddle her influence in the awarding of the multi-billion shilling tender, according to the Independent report.