Water Ministry on KRA Radar After Firm Awarded Sh342m Tender Evades Tax

The Kenya Revenue Authority has written a demand letter to the Water Ministry to help recover shs 8.3 million from a company that was awarded a shs 342 million tender.

The tax man said he is seeking to recover a total of shs 8,342,851.
The Company, Frontman consultants whose directors are Paul Kitonga Daudi and Stella Mary Mwangangi was awarded the tender in 2019.

The tender was consultancy services for implementation of Mwache dam resettlement action plan (rap).
The tender included resettlement of the vulnerable and marginalized group plan (vmgp) and was contract no. mows/kwscrp-2/002/2018-2019.Example Ad #2 (only visible for logged-in visitors)

On 26th November 2021, KRA wrote to the Ministry to settle this cash instead of paying any monies owed to Frontman Consultants.

Frontman Consultants limited is registered by the registrar of companies as CPR/201277634.

The director’s particulars are Stella Mary Mwangangi ID number 24655662 and Paul Kitonga Daudi of ID number 20228470.
The KRAs demand letter was written by Northern Regional manager Geoffrey Sigei.

“In exercise of the powers conferred upon me by section 42 of the tax procedures Act ,2015, I hereby declare you to be an agent of the above taxpayer and require you to pay me the sum of ksh 8,362,851 being tax due by the said taxpayer from any money,” Sigei’s letter to the Ministry of water reads.

Paul Kitonga Daudi and his wife Stella Mary Mwangangi are embroiled in another row after some businessmen asked EACC to investigate how they won the consultancy tender.

On 20th July, the businessmen wrote to the EACC to investigate the fraudulent issuance of the tender saying the testimonials used were forged.

***Paul Gitonga Daudi, one of the directors in the company that has been accused of evading taxes***

The scandal has put Several Ministry of Water officials on the spot for awarding the shs 342 million contract to a company yet it does not remit tax.

In the EACC letter, the businessmen want Engineer Simon Mwangi and Paul Kitonga Daudi probed.

Mwangi is the project manager.

Other ministry officials on the spot are Irene Muchoki a Communication Specialist-KWSCRP-2, Mwache Dam Project and Catherine Kinuthia a Procurement Specialist, Kenya water Security and Climate Resilience Project.

When reached for comment, all the officials did not respond to text messages and phone calls.
“Simply text me what it is about” Kitonga said and hanged up.