The Director of Public Prosecutions (DPP) has approved charges against five individuals and twelve companies linked to an alleged scheme to defraud the government of approximately Kshs 3.9 billion in Value Added Tax (VAT).

The five individuals charged, Henry Ateka Nyabwari, James Ojiambo Nyengenye, Amisi Zamda, Frank Nyabwari and Hesbon Onyoni, were alleged to have been involved in registering seventy companies that were instrumental in executing the scheme.

“The decision to charge follows joint investigations and a comprehensive review of seventy inquiry files conducted by the Office of the Director of Public Prosecutions (ODPP) in collaboration with the Kenya Revenue Authority (KRA),” ODPP mentioned in a statement.

The investigations revealed that a network of companies, commonly referred to as “missing traders,” was used to generate false transactions and electronic tax invoices. The fraudulent invoices were subsequently used by other businesses to unlawfully claim VAT refunds or reduce their tax liability, despite no genuine purchases having been made.

“Upon review of the files, the DPP approved prosecution in thirty-six cases involving transactions valued at approximately Kshs 3.22 billion, resulting in an alleged VAT loss of about Kshs 518 million. Of these, six have been prioritized for immediate prosecution, with a VAT implication of about Kshs 17 million,” ODPP said.

Some of the companies involved in the case include; Renova Limited, Larigi Enterprises, Njemtar Agencies, Jeflar Construction Company, Namtek Transporters Company Limited, Jawari General Supplies and Tekaza Investment and General Supplies.

The remaining files will be registered in court in due course, and the suspects involved therein will be charged accordingly.

The ODPP reaffirmed its unwavering commitment to combating economic and financial crimes, including sophisticated tax fraud schemes, and protecting public revenue.

APERIT FM, HII NI YETU