KPA, KRA employees charged with Sh20m tax evasion plot
Port workers celebrate outside Mombasa Law Courts after nine KRA, KPA and Kenya Bureau of Standards officers were released on bond on August 8, 2016 after they were charged of abetting Sh20 million tax evasion. PHOTO | KEVIN ODIT | NATION MEDIA GROUP
What you need to know:
- They jointly and knowingly conspired to contravene provisions of East African Community Customs Management Act, 2004 by making entries for containers loaded with new clothes to falsely read as ladies plastic shoes with intent to evade payment of customs duty and other charges.
- Prior to the accused taking plea, lawyer William Mogaka for the clearing agent told the court that his client had been charged and paid the fine in respect to the offence before the court.
Employees of two state agencies and a clearing agent were on Monday charged with conspiracy to evade payment of Sh20 million in taxes.
The case against Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) staff relates to importation of clothes.
Prosecutors say they jointly and knowingly conspired to contravene the provisions of 2004 East African Community Customs Management Act by making entries for containers loaded with new clothes to falsely read as ladies' plastic shoes with the intent to evade payment of customs duty, among other charges.
Dorosila Omondi, Joshua Misoi, a clearing agent Abdihafidh Farah, Alex Mwamba, Henry Otieno, Bernand Okoth, Thomas Mwandoga, Stephen Kamau and Hamisi Mwangarashi appeared before Mombasa chief magistrate Douglas Ogoti on Monday.
The accused were also charged with Godwin Crispin Nyakora with aiding and abetting Mr Farah in importing concealed goods.
Mr Farah, who was not present in court, was also charged with importing new clothes in containers using custom entries that did not correspond with the goods.
Apart from Mr Nyakora, the accused were charged with using falsified customs declaration documents required for the purpose of assessing liable duty.
The magistrate released each accused on a Sh50,000 bond with a surety of similar amount or an alternative of Sh10,000 cash bail.
According to the prosecution, the offences were committed on May 11 at Kilindini Port, Mombasa County.
Before the accused pleaded to the charges, lawyer William Mogaka, for the clearing agent, told the court that his client had been charged and paid the fine in respect to the offence before the court.
“There is no tax which has not been paid to the government,” Mr Mogaka said, adding that the taxes were compounded to Sh14 million and a Sh1 million fine paid by Mr Farah.
Another defence lawyer, Jared Magolo, told the court that there was no need for the accused to plead to the charges if duty had been paid.
Senior Principal Prosecution Counsel Peter Kiprop said fines were paid in a criminal case in Nairobi and the prosecution was not sure whether that case is related to the matter before the magistrate.
The prosecution had not opposed the release of the accused on bond but wanted the court to note the seriousness and gravity of the offence.
Another prosecutor, Daniel Wamotsa, opposed the production of a letter from the KRA indicating duty had been paid to buttress the defence application to have the accused released on a free bond.
“What you have been told are just allegations, there is no case number for the alleged case (in Nairobi),” said Mr Wamotsa.
Through their lawyers, the accused had also argued they are junior employees at the KRA and KPA who ought to be released on a free bond.
Mr Magolo told the court that the accused had cooperated with investigators even before they were arrested.
The case will be heard on August 22.
