NAIROBI, Kenya- The Director of Public Prosecutions has approved charges against five people and 12 companies over an alleged scheme to defraud the Government of about Sh3.9 billion in value-added tax.
In a statement dated October 15, the Office of the Director of Public Prosecutions said the decision followed joint investigations with the Kenya Revenue Authority and a review of 70 inquiry files.
The suspects are Henry Ateka Nyabwari, James Ojambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyony.
The DPP said they were allegedly involved in registering 70 companies that were used to carry out the scheme.
The five and the companies named in the cases have not been convicted.
They will have the opportunity to respond to the allegations in court.
36 cases approved for prosecution
The DPP approved prosecution in 36 cases involving transactions valued at about KSh3.22 billion, with an alleged VAT loss of approximately Sh518 million.
Six cases have been prioritised for immediate prosecution.
The DPP said these cases involve an estimated VAT implication of Sh17 million. It did not name the courts where the cases will be filed or give a date for the first appearances.
The cases involve companies including Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment & General Supplies.
The statement did not specify which of the named companies are linked to the six cases selected for immediate prosecution.
Alleged use of fictitious invoices
Investigators said a network of companies, described as “missing traders”, was used to generate fictitious transactions and electronic tax invoices.
The invoices were used by other businesses to claim VAT refunds or reduce their tax liabilities despite no genuine purchases having been made, according to the DPP.
The DPP said the remaining inquiry files would be registered in court in due course, and that suspects linked to them would be charged.
The DPP said the cases followed a review of the investigation files conducted jointly with the KRA.
The office said it remained committed to prosecuting economic and financial crimes, including tax fraud, and protecting public revenue.
