Ssebutinde Grills URA Over Loss Of 180m/-

Sep 05, 2002

THE Assistant Commissioner Audit, Mrs. Alexandria Mwogeza (above), was yesterday put to task by the URA probe commission to explain circumstances surrounding a clearing company that has defrauded the Government of sh180m in revenue, reports Milton Olupot.

THE Assistant Commissioner Audit, Mrs. Alexandria Mwogeza (above), was yesterday put to task by the URA probe commission to explain circumstances surrounding a clearing company that has defrauded the Government of sh180m in revenue, reports Milton Olupot.

The commission of inquiry, chaired by Justice Julia Ssebutinde, quizzed Mwongeza and Willy Kagarura, an acting revenue officer, on why the company, A.K. Cargo, had never been audited and no tax profile done on it.

Ssebutinde produced a sh10m voucher for an alleged bribe paid by A.K. Cargo clearing company to forestall an audit. The two denied taking the bribe and expressed shock over it.

A.K. Cargo cleared goods valued at over sh1b for the Electoral Commission from 1996 to 2001 attracting Value Added Tax (VAT) of sh180m, which was never remitted to the URA by A.K. Cargo. Mwogeza, however, gave A.K. Cargo a tax assessment of only sh7,579,682.

Mwogeza and Kagarura yesterday gave contradicting testimonies and openly disagreed before the commission. Kagarura said Mwogeza had earlier given him instructions to audit the company but later stopped him after meeting the company director, Olive Kagoro. Mwogeza denied knowledge of the audit and ever meeting Kagoro then.

“I did not issue such instructions and I did not stop the audit. If I did, it would have been in writing. Let him produce the documents. Since there is no letter of instruction, I do not remember issuing such instructions,” she said.

Mwogeza and Kagarura appeared before the commission with acting assistant commissioner, Domestic Direct Taxes, Silver Oyet and principal revenue officer Simon Tolit.

The other probe commissioners are Fawn Cousens and James Kahoza.

Tolit said he delayed to carry out a profile of the company because the commissioner for expansion and tax collection, Feddy Mwerinde, had called for its file.

The witnesses angered the commission when they all said their communications and instructions were verbal.

“The commission cannot trace any documents relating to the transactions to do with the company.
“We have more evidence here of a sh10m bribe paid to the URA audit team to forestall an audit. This brings the total to sh14.75m.

“We would not like to believe that you took a bribe. We are looking for a report of an audit; you can’t produce it,” she said.

“You knew A.K. Cargo was bad for business so the only thing was to pay up everybody. URA paid a public body but you run it like a duuka (retail shop). Even in the duuka, you write down the date you bought the kabalagala (pancakes) for sale,” she added.

Ssebutinde said record-keeping was very poor and available records were scanty and not dated.
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