Detectives on trail of possible Sh5 billion tax evasion racket in mobile phone theft – Nairobi News

Investigations into Sh120 million mobile phones theft has taken a twist with detectives now on the trail of the owners of the recovered stolen gadgets for a possible tax evasion.

Rolling Cargo Company had on April 9, 2020 reported to police that their cargo comprising 750 cartons of Infinix phones had been stolen on transit from the African Cargo at the Jomo Kenyatta International Airport (JKIA) to their warehouse in Eastleigh, Nairobi.

CONTRABAND

However, the spotlight has now been turned on the owners of the company with Directorate of Criminal Investigation (DCI) detectives and customs officials launching a fresh probe into allegations of a Sh5 billion tax evasion through importation of undervalued and undeclared goods.

The DCI sleuths and customs officials from the Kenya Revenue Authority (KRA) are now seeking to establish if the owners were deliberately under-declaring the consignments or smuggling taxable products.

This is after detectives, on a fact-finding mission on contraband electronic goods at the African Cargo facility on Monday, stumbled on another consignment of electronic goods, mainly mobile phones, that had just been imported. The shipment included mobile phones waybills of various numbers.

A waybill (UIC) – a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods – generally indicates the names of the consignor and consignee, the point of origin of the consignment, its destination and route.

Already, forensic experts from the Economic Crime Unit are combing through the firm’s records and contracts with various traders from Nairobi’s City Centre, Eastleigh and Mombasa.

UNDERVALUED

“We suspect contraband goods are being allowed into the market as well as false declaration of the value of imports to attract less tax or failing to inspect all containers, thus allowing substandard goods into the country,” the custom officers said.

The officials claim the goods had been undervalued to evade levies due to the government blaming the practice on “an organized cartel” that has been defrauding the government and in the process denying it taxes running into hundreds of millions of shillings.

Preliminary investigations point to a collusion between the owners and some rogue KRA officials, with the later facilitating false declarations as well as allowing in counterfeits into the country, denying the taxman requisite taxes such as import duty.

The detectives claimed the suspect is a major player in the importation of substandard electronic goods that do not have ‘Certified by a Verification Company’ from country of origin into Kenya.

VEHICLE WENT MISSING

However, the firm officials denied the claims saying they are ready for investigations maintaining they had paid all due bills.

Mr Mohamed Hassan Mohamed, the director of Rolling Cargo Ltd, had last month reported that he had lost 750 cartons of assorted mobile phones valued at Sh120 million while on transit.

This is after the motor vehicle which was transporting the goods went missing before reaching its destination within Eastleigh Section 3.

The vehicle was later recovered on Mara Road with only seven cartons of assorted mobile phones recovered while more goods were recovered in a house in Imara Daima estate.

At least three suspects are facing charges in court over the goods that were recovered.

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