- Swiss authorities say SICPA was “criminally liable” for failing to prevent its staff from bribing foreign officials
- SICPA has been slapped with 91.5 million fine for bribing officials in Brazil, Colombia and Venezuela.
- The Swiss firm has been contracted by the Kenya Revenue Authority to supply tax stamps.
A Swiss firm contracted by Kenya Revenue Authority to supply tax stamps has been fined $91.5 million on graft claims. Security ink company SICPA has been ordered to pay the fine by Swiss Attorney General citing corporate criminal liability.
The Swiss Attorney General identified organisational deficiencies that saw SICPA staff bribe public officials in Brazil, Colombia, and Venezuela.
“Organisational deficiencies were particularly evident in the areas of corporate governance, risk management and compliance,” reads the press release by the Office of the Attorney General of Switzerland (OAG).
Ordered to pay a fine
“With the penalty order issued in accordance with Art. 102 para. 2 SCC in conjunction with Art. 322septies SCC, SICPA SA (SICPA) has acknowledged that it failed to take all necessary and reasonable organisational precautions to prevent bribes to foreign public officials. The OAG has accordingly ordered the company to pay a fine of CHF 1 million and imposed an equivalent claim for compensation amounting to CHF 80 million under Art. 71 para. 1 SCC,” the statements adds.
The Swiss firm has been embroiled in a controversy in Kenya since 2015. Graft claims have always shrouded its tender to supply Kenya with excise duty stamps. Some lawmakers have accused Sicpa of extorting taxpayers over the cost of the stamps.
In January 2023, minority leader Opiyo Wandayi said hiking the cost of excise duty stamps would cost taxpayers $1.2 billion in five years.
Cost will be borne by taxpayers
“The proposed increase in the excise stamps cost raises a number of concerns including ownership of the Excisable Goods Management System. Based on the previous contract that put its proceeds at $593 million in 5 years, these new costs will translate to $11.9 billion in 5 years.
“This cost will be borne by taxpayers since the cost will be passed on by manufacturers. The question is, why is the Kenya Kwanza Government abetting this and increasing the cost of goods for the poor ‘hustlers’ that they promised to give a lower cost of living?” he said.
On14th March 2023 Mr Wandayi asked the Treasury to explain whether the KRA-SICPA contract has been transparently executed. Further he sought to know what actions have been taken to guarantee transparency.
The minority leader also sought a report on the funds collected and the value for money obtained from the KRA-SICPA contract. He also wanted Treasury to provide an explanation for the recent surge in cost of excise stamps despite the fact that the SICPA contract came to an end last year.
In March, National Assembly’s Finance and National Planning Committee Chairperson Kuria Kimani, said the committee was investigating the KRA-SICPA contract.
SICPA’s business
SICPA provides security inks for currencies and sensitive documents, including identity documents, passports, transport and lottery tickets.
According to the Counterfeiting Intelligence Bureau’s International Anti-Counterfeiting Directory, SICPA provides more than 85 percent of the world’s currency inks.
The company is also involved in the market for secure traceability of products subject to excise duties, such as alcohol and tobacco stamps, and regulated products, such as halal products.
