RRA speaks out on scam by former paymaster

Authorities at the national tax collection agency say they have embarked on strengthening backup, information and communication systems to deter any cases of fraud at the institution in the future. The move follows a financial scandal, published in The New Times yesterday, where Estarico Mazimpaka, a former senior human resource officer in charge of Rwanda Revenue Authority’s payroll, manipulated the system and was able to swindle almost Rwf85 million in a period of 30 months. The revenue body has since acknowledged the incident and said it’s working with national security agencies, including the Criminal Investigative Department and Interpol to bring to book the culprit who is still at large. Collaborative effort During a news conference in Kigali, yesterday, Richard Tusabe, RRA’s commissioner-general, said they are working with the Ministry of Public Service and Labour, central bank and other stakeholders to plug any loopholes that the culprit used to commit the fraud. “We are working to ensure strong security measures that cannot be manipulated by any one and have requested to get a strong feedback mechanism from the central bank so that we can consistently monitor our accounts effectively,” Tusabe said. He added that the revenue authority has a zero tolerance policy on fraud and is prepared to punish any of its employees involved in such criminal activities. “Even when we have suspected you and have reasonable evidence to base on, we will act accordingly,” said Tusabe, A recent report by the Auditor-General for the year 2013/14 sighted the need to the tax body’s quality controls for efficiency and transparency. A trader waits for a receipt to print from an electronic billing machine in Kigali. RRA says it is plugging loopholes that allowed a former HR officer to fleece taxpayers. (Timothy Kisambira) Capacity challenges, especially in tax audits which have led to low audit coverage and many contested audit results, was also cited in the report. However, according to Tusabe, the situation is set to improve given the internal and external mechanisms being put in place. New EBM approach launched Meanwhile, the revenue body has launched a new approach that is geared towards strengthening the use of the electronic billing machines (EBM). The new approach, named ‘My EBM Invoice’, aims at strengthening the sensitisation and use of the electronic billing machines among taxpayers. Introduced in March 2013, the EBMs aim at increasing tax compliance especially among taxpayers registered for VAT. “It is a rigorous move by the tax body to reach out to every EBM user and discuss the obligations, existing laws and regulations and how the system can be improved,” Tusabe said. Nearly after two years since it was introduced, the mechanism has increased revenue collection by 5 per cent, officials say. And we expect to have this number increase to about 8 per cent in the next financial year, Tusabe added. Meanwhile, Drocelle Mukashyaka, deputy commissioner for taxpayer services department, said this particular platform, will aid effective communication on constructive ideas about the use of EBMs. editorial@newtimes.co.rw

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RRA speaks out on scam by former paymaster