Kenya Commercial Bank (KCB) is under spotlight for involvement in internal fraud, as well as intention to defraud Uganda’s taxman. The court case is likely to lift a lid on serious and dirty fraud going on inside the Kenyan bank operations in Uganda.
The revelation came to the fore following KCB being caught pants down using another company’s TIN to file returns claiming they were suppliers to the bank, yet, the two had never done any business transactions.
Now the Kenyan bank has been dragged to court by a company whose tax identity the bank used to commit fraud.
The case which is expected to be eye popping as well as eye opening, has already started making heads turn at KCB, as well as inside the commercial court.
The commercial court case is on file number 347 of 2020, where Netcom general supplies sues KCB for infringing on their Tax Identification Number (TIN) in their attempt to dodge paying their taxes, and possibly, orchestrating an internal fraud.
The fraud came to the fore after Uganda Revenue Authority issued an assessment for taxes for Netcom which realised they had not supplied a client in the name of KCB, who had used their TIN.
‘KCB used Netcom TIN claiming that Netcom supplied with items but they were lying. They filed their returns showing that Netcom dealt with KCB,’ says an official we shall not reveal for a moment, to speak more about the matter.
When URA confronted Netcom, they denied doing any business with KCB which prompted the management to follow up on the matter with KCB Uganda who had claimed they purchased raw materials amounting to sh150 million.
The material was dustless chalk, and many people are wondering what the hell was the bank doing in purchasing ‘dustless chalk’ to that tune.
On the above, URA slapped Netcom with a bill of sh4,988,379 in taxes which the company insists KCB Uganda should pay.
KCB has admitted to the accusation, but, alleges to have used Netcom’s TIN ‘in error’, which the later does not take lying, because it has cost them lot.
Netcom’s lawyers JP Muganga stated that their client demands demands because it has lost their business as a tax agent due to falsification of declarations to URA by KCB Uganda.
This is one of the cases of fraud inside KCB that Watchdog website is planning to reveal in the coming couple of days.
This website has tracked a number of fraud cases at KCB, making the bank a hotspot for dangerous money laundering and fraud, which should attract the regulator and security, if they were awake.
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