Doreen Mbingi Ndombi the Deputy Commissioner of the Large Taxpayer Office, is the woman under spot after allegations emerged that she has been used by some players in the betting industry to close down other players.
Our source indicated that a notice from the office of the president required Betting companies to comply with a number of issues before their licenses were renewed.
Among the several requirements was clearance from KRA. The Deputy Commissioner used this window to frustrate small players to deny them the opportunity to renew their license.
This move was intended to create a monopoly for the leading betting company. It is believed that the Deputy Commissioner and a Manager by the name of Patricia Ngina have been in the payroll of the leading bookmaker.
Our source informed us that Doreen receives a monthly stipend of Kshs 5 million and the Manager Patricia Ngina receives Kshs 1 million every month.
So confident is Doreen Mbingi Ndombi that she has been telling everyone in her team that no one can touch her because the top boss is her lover and she is poised for promotions before the new government takes over.
The leading bookmaker has been using KRA and the corrupt officers to stifle competition and make the market favorable for the leading bookmaker.
The leading bookmaker was exempted from an Audit that was mandatory to all the other betting companies and despite this, they were given clearance among the first people.
Our reliable source indicated that the Deputy Commissioner was given Kshs 200 million and was given firm instructions by the leading bookmaker to ensure that less than 10 companies get the license.
As we went to press we were informed that indeed only 10 companies had their licenses renewed. This is not the first time Doreen Mbingi Ndombi is being mentioned in shady deals, According to a story in The Standard website.
In 2011, she against a court order and style raided a small company with thugs disguised as KRA agents collected all records and effectively shut down the company.
Several years back, a company called Samura Engineering Ltd was awarded Sh25 million contract by Kenya Revenue Authority (KRA) to install security equipment in one of their premises.
Businessman Mungai Ngaruiya, his wife Elizabeth and a relative called Ng’ang’a own the company. The three also own seven other companies, in hotel and farming business, among other sectors.
After Samura had completed the work, Doreen Mbingi Ndombi wanted a cut from the profits and when the company refused to pay, she also refused to pay them saying it was not done as per the terms of contract. The dispute was taken before an arbitrator P T Gichuhi.
On February 12, 2011, as the matter was still pending before the arbitrator, KRA officials led by Doreen Mbingi Ndombi and police officers raided Ngaruiya’s offices and Bounty Hotel in Industrial area, Nairobi and took away files, computers and other items.
They searched the premises, ordered employees to disclose computer passwords and took them away.
They carried a box containing Mr Ngaruiya’s Will, school records for their children, family medical documents and files containing court papers including those on the dispute between the company and KRA.
The officers led by Ms Doreen Mbingi, had not notified the couple of the intended raid and did not have a search warrant. The raid paralysed operations at the companies. Ngaruiya wrote to KRA several times demanding his property back.
In March the following year, Ngaruiya, his wife and Ng’ang’a and all their eight companies sued KRA.
Their lawyer claimed KRA had violated their constitutional right to privacy under Article 31, the right to property under article 40, among others under the Bill of Rights and Freedoms. The petition was heard Justice David Majanja.
The lawyer argued the raid was in total violation of the Constitution and Income Tax Act saying KRA officers should have asked them to produce specific documents.
Under Section 119 of the Act, a warrant must be obtained to seize documents. Section 120(1) allows KRA to take only extracts of copies of books required and not all books.
The couple said all their companies had complied with tax returns and produced certificate issued by KRA. “This was harassment, intimidation and abuse of power by the respondent,” the lawyer submitted. He added even if the directors had refused to produce documents, KRA would still have had the right to charge them for a criminal offence.
He said KRA officials had been disrespectful to his companies, their families and employees.
Ngaruiya demanded a declaration that their rights had been violated and they were entitled to compensation.
They also asked for a permanent injunction stopping KRA from raiding their premises and taking away any other property and an order to release everything they were holding.
The arrogant and corrupt Doreen Mbingi Ndombi defended her actions, saying KRA had a constitutional mandate to impose taxes.
And because they refused to bribe her, she made a decision that the company directors were not remitting appropriate taxes dating back to 1995.
So reckless were actions that Judge Majanja analysed details of Section 119 of the Income Tax Act, and told her off, saying she had put KRA at risk with her gluttony and disregard for the law.
“The search and seizure complained by petitioners could not have been under the Income Tax Act as no warrant of search was obtained,” the judge held. “The Act does not permit carrying away books but only extracts of those books and documents.”
After analysing the actions and evidence before him, he concluded there was no reasonable basis for KRA officers to enter the premises, search and seize the property without a warrant.
There was no evidence that the seized material had evidence of tax evasion or criminal offences.
There was no justification for taking personal items such as a Will, school reports and correspondence with lawyers and doctors.
The judge took issue with Ms Mbingi’s statement on tax evasion and the need to take everything away from the premises.
“This is troubling because there was no evidence from which the court could reasonably conclude that the petitioners were tax evaders. The law does not permit the respondent (KRA) to seize everything found on the premises. To allow this course suggested by the respondent is to allow a police State,” the judge said.
Justice Majanja said he was convinced that mere declarations as requested by the petitioners would not suffice in the case.
“It must be followed by an award of damages which will reflect the court’s view that wanton violation of privacy is not acceptable.”
On March 9, the judge awarded all the eight companies Sh800,000. Mr Mungai Ngaruiya was awarded Sh1.2 million and his wife Elizabeth Sh600,000 as compensation for violation of their right to privacy.
The court also directed KRA to release all documents and equipment taken from the Ngaruiya’s within two weeks and to pay the couple all the costs of the petition.
In her office, the demotivated juniors are in constant fear since they can’t also meet their targets since Doreen Mbingi Ndombi and Patricia Ngina are in bed with most of the tax payers and their juniors have to falsify tax records as their bosses gorge themselves full from deal to deal day in, day out.
With full protection from the top boss to claims to be a born again Christian but cheats on his with with Doreen Mbingi Ndombi, she has been bragging that she is now worth a cool Sh 800 million and she wants to cross over into the billionaires club before the next government comes into power.