Directors Charged With 162 Million Shillings In Tax Fraud

Directors of two different companies were today charged before Mombasa Chief Magistrate Ms. Edna Nyaloti for fraudulently inflating the cost of purchasing supplies by 162 million shillings to reduce their tax liability.

The suspects, Mr. Hussein Sheikh Omar of Lensk Trading Company Ltd and Mr. Suleyman Mwalimu Chengo of Qwali Group Ltd, separately faced four and two counts respectively, for reducing their tax liability by a total of 7,968,917 shillings.

Mr. Hussein Sheikh Omar and his firm Lensk Trading Company was charged with another not before court for unlawfully claiming VAT refunds/reliefs through their VAT returns for the months of June, July, August and September 2019. This led to a reduction of their tax liability by a total of 5,743,873 shillings.

On the other hand, Mr. Suleyman Mwalimu Chengo and his company Qwali Group Limited were charged for reducing their tax liability by a total of 2,225, 044 shillings by unlawfully claiming VAT refunds/reliefs through their VAT returns for the months of September and October 2019.

The alleged suppliers denied ever transacting with the suspects indicating that the transactions were fictitious and designed to evade payment of taxes.

They both pleaded not guilty and the court released Mr. Hussein on a surety bond of 5 million shillings with an alternative cash bail of 2 million shillings, while Mr. Suleyman was released on a surety bond of 2 million shillings and an alternative Kshs1 million cash bail. The case will be mentioned on 10th December.

The professional enablers providing tax advice and financial services for the companies are also being pursued as part of the wider investigations.