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"contents": "<span style=\"font-weight: 400;\">Days after the Kenyan Revenue Authority (KRA) announced it would audit British American Tobacco Kenya, (BAT Kenya) the corporation’s area director has resigned.</span>\r\n\r\n<span style=\"font-weight: 400;\">The KRA was prompted by a Bath University study exposing a </span><span style=\"font-weight: 400;\">$28-million tax </span><span style=\"font-weight: 400;\">discrepancy in the company’s profits. </span>\r\n\r\n<span style=\"font-weight: 400;\">On Saturday, 22 February, BAT Kenya announced that André Joubert had resigned “after expressing his wish to exit the company”. Joubert, a chartered accountant, was the area director, BAT East & Southern Africa.</span>\r\n\r\n<iframe class=\"scribd_iframe_embed\" tabindex=\"0\" title=\"Bat Kenya-Announcement of Changes to the Board of Directors-2024\" src=\"https://www.scribd.com/embeds/832096974/content?start_page=1&view_mode=scroll&access_key=key-2ju1SDGeb7OWJPsmJ2da\" width=\"100%\" height=\"600\" frameborder=\"0\" scrolling=\"no\" data-auto-height=\"true\" data-aspect-ratio=\"0.8124436429215509\"></iframe>\r\n\r\n<span style=\"font-weight: 400;\">The multinational’s </span><a href=\"https://www.batkenya.com/who-we-are/corporate-governance/the-board/andre-joubert\"><span style=\"font-weight: 400;\">website</span></a><span style=\"font-weight: 400;\"> describes the Pretoria University graduate as having worked in “the tobacco, mining, banking and audit industries and across several jurisdictions notably the United Kingdom, South Africa, Indonesia, Switzerland and Zimbabwe”.</span>\r\n\r\n<span style=\"font-weight: 400;\">The changes to the board include the exit of Sidney Wafula, who served as an alternate director since 2020, and take effect on 31 March.</span>\r\n\r\n<span style=\"font-weight: 400;\">Wafula, a graduate of The Catholic University of Eastern Africa, is a member of the Institute of Certified Public Accountants of Kenya. He previously worked in various positions for BAT in the Middle East & Caucasus and BAT Nigeria. He remains as head of finance for sub-Saharan Africa.</span>\r\n<h4><b>Shining a light </b></h4>\r\n<span style=\"font-weight: 400;\">The </span><span style=\"font-weight: 400;\">KRA on Wednesday, 20 February 2025, announced it would investigate evidence of a $28-million tax discrepancy involving British American Tobacco Kenya’s (BAT Kenya) declared profits between 2017 and 2018.</span>\r\n\r\n<span style=\"font-weight: 400;\">Analysis by the University of Bath’s Tobacco Control Research Group, the </span><a href=\"https://investigativedesk.com/\"><span style=\"font-weight: 400;\">Investigative Desk</span></a><span style=\"font-weight: 400;\">, and </span><a href=\"https://www.taxjusticeafrica.net/about-us/our-organisation\"><span style=\"font-weight: 400;\">Tax Justice Network Africa</span></a><span style=\"font-weight: 400;\">, has shown a 9.6-billion Kenyan shilling ($93-million) discrepancy for which “the company did not provide a plausible explanation”.</span>\r\n\r\n<b>Read more: </b><a href=\"https://www.dailymaverick.co.za/article/2025-02-20-kenya-investigate-british-american-tobacco-28m-tax/\"><span style=\"font-weight: 400;\">Kenya to investigate a $28m British American Tobacco tax ‘discrepancy’</span></a>\r\n\r\n<span style=\"font-weight: 400;\">The Bath study conducted an analysis of six years of BAT Kenya annual reports compared with production data the company had supplied to KRA. What they found indicated “a massive discrepancy of millions of cigarettes between what the company produced and said it sold”.</span>\r\n\r\n<span style=\"font-weight: 400;\">Authors Tim Luimes, Mirjam van der Puijl and editor-in-chief Marcel Metze concluded this “could indicate tax avoidance or evasion of up to 28-million USD in profit tax”.</span>\r\n\r\n<span style=\"font-weight: 400;\">The BAT Kenya announcement made no mention of the KRA announcement. </span>\r\n\r\n<span style=\"font-weight: 400;\">BAT Kenya board chairperson Rita Kavashe said:</span>\r\n\r\n<span style=\"font-weight: 400;\">“André Joubert, currently area director of BAT in sub-Saharan Africa, resigned as a director of the BAT Kenya board following a personal decision to retire from the BAT Group, effective 31 March 2025. André’s resignation consequently impacted Sidney Wafula’s appointment as André’s alternate on the board, necessitating his resignation.</span>\r\n\r\n<span style=\"font-weight: 400;\">“The changes were subsequently publicly announced in line with Kenya’s Capital Markets Authority Code of Corporate Governance for Issuers of Securities to the Public 2015.</span>\r\n\r\n<span style=\"font-weight: 400;\">“These resignations are not part of a Board reshuffle. Further, there is no connection whatsoever between these Board changes and the recent statement by the Kenya Revenue Authority, which noted the allegations made against BAT Kenya in a misleading report published by The Investigative Desk.</span>\r\n\r\n<span style=\"font-weight: 400;\">“I reiterate that BAT Kenya unequivocally rejects the allegations made in the report. As important, BAT Kenya is committed to conducting its business in line with applicable laws and regulations, as well as our company policies and guidelines that enable us to do the right thing and deliver with integrity.” </span><b>DM</b>",
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