Investigations into Kenya Revenue Authority (KRA) manager Joseph Chege Gikonyo have revealed that the bureaucrat’s Sh597 million portfolio could have been constructed on bribes paid by clearing and forwarding companies on the Mombasa port in return for releasing cargo or reducing their tax liabilities.
Yesterday, Mr Gikonyo, his spouse Lucy Kangai Stephen and their firm Giche Restricted denied fees of tax evasion earlier than chief Justice of the Peace Lawrence Mugambi.
Mr Mugambi granted the couple Sh5 million bail every, with an alternate of Sh10 million bond every.
In his ruling the courtroom launched the 2 accused on a money bail of Sh5 million saying the quantity is commensurate to the quantity claimed in tax.
“The quantities concerned are large and bail have to be commensurate with the declare concerned in order that the general public can have faith with the administration of justice,” Mr Mugambi dominated whereas granting bond.
The couple and their agency, Giche Restricted, have been accused of evading Sh38.6 million in taxes, which accrued from wealth made between 2010 and 2015.
Mr Gikonyo’s day job concerned valuations and doc processing for items imported by means of the Mombasa port.
Importers often rent clearing and forwarding companies to pay and procure doc clearance from the KRA.
In netting Mr Gikonyo, Ethics and Anti-Corruption Fee (EACC) detectives traced 20 clearing and forwarding brokers who stated that paying the KRA bureaucrat to launch their cargo had develop into a traditional prevalence.
The 20 clearing and forwarding brokers tracked down by detectives admitted to paying Mr Gikonyo Sh258.four million to have their items launched.
Investigations corroborated the claims, as they indicated that Mr Gikonyo obtained Sh43.9 million by means of cellular cash switch and Sh214.four million in money.
Mr Gikonyo’s spouse, Lucy Kangai Stephen, is now entangled within the saga as detectives say she benefitted from the ill-gotten wealth.
Ms Stephen can be a co-director of Giche Restricted, an funding firm Mr Gikonyo integrated to develop his funding portfolio.
Giche Investments is at the moment price not less than Sh597 million, having acquired properties in Nairobi, Kilifi and Mombasa Counties.
The EACC in 2018 filed a restoration swimsuit towards Mr Gikonyo, Ms Stephen and Giche Restricted following two years of investigations.
On Monday, Director of Public Prosecutions Noordin Haji authorised the EACC’s request to press tax evasion fees towards the trio.
The restoration swimsuit has revealed that Mr Gikonyo has not less than 10 homes and condo blocks unfold throughout Nairobi, Mombasa and Kilifi.
Mr Gikonyo additionally has shares in Fairness Financial institution, Safaricom and KenGen. He has insurance policies with Madison Insurance coverage and the Kenya Reinsurance Company.
When the anti-graft courts froze Mr Gikonyo’s property in 2016 pending an Ethics and Anti-Corruption Fee (EACC) probe, his six financial institution accounts had a cumulative Sh15.1 million stability.
Mr Gikonyo and his spouse have been yesterday directed to deposit their journey paperwork in courtroom and warned towards leaving the jurisdiction of the courtroom with out permission.
Making use of for his or her launch on bond, defence legal professionals Abbas Esmail and Gibson Kimani acknowledged that the prosecution of the 2 is an abuse of the courtroom course of since they’ve been paying the arrears claimed by KRA.
“Mr Gikonyo, is an assistant supervisor with KRA however is on interdiction,” Mr Esmail advised the Justice of the Peace.
Mr Esmail stated Mr Gikonyo developed the properties in Mombasa by means of a financial institution mortgage.
EACC officers picked the accused from his residence in Mombasa and drove him to Nairobi to face trial.
State prosecutor Annette Wangia insisted that the problem earlier than the Justice of the Peace’s courtroom is solely about tax.
She argued that a person may be charged even after taxes have been levied.
The case can be talked about in July 13, 2020 for pre-trial instructions.