Police woman, traders charged with tax evasion over NYS businesses

A policewoman and two traders have been charged with Sh85 million tax evasion arising from dealings with the National Youth Service (NYS).

Caroline Atieno Mango (pictured), Phyllis Njeri Ngirita and Catherine Wanjiku Mwai are said to have traded with NYS when the State agency lost Sh588 million through ghosts tenders.

Mango, a police corporal based at Jogoo Police Station, was the biggest casualty in the push by Kenya Revenue Authority (KRA) to recover taxes allegedly not remitted by her companies.

Mango faced 20 different counts, ranging from omission to declare tax returns, failing to pay value-added tax, and omitting from the tax returns the money she ought to have paid to KRA, amounting to more than Sh60 million.

The charges were the result of a probe into her companies – Maanti Logistics, Jupecar Garments, Ajol General Enterprises, and Corrotexx Enterprises – that supply office equipment.

Firms’ dealings

The investigation into the firms’ dealings with the Devolution ministry led to several people, including former PS Lillian Mbogo-Omollo, being charged.

State Prosecutor Doris Ing’ahizu told Milimani Senior Principal Magistrate Bernard Ochoi that Mango’s actions led to the loss of Sh87 million.

Ngirita, whose four relatives are among suspects being prosecuted for fraud, faced four counts of failing to pay Sh20 million in taxes.

The prosecution said Ngirita failed to remit income tax returns for her company, Njewanga Enterprises Limited, which supplied NYS with various goods and services.

Ngirita was also accused of failing to pay Sh6.9 million in corporation tax from her 2016 income.

Wanjiku faced seven counts of failing to pay Sh13 million in income taxes for her company, Kunjiwa Enterprises, which benefited from NYS contracts between 2016 and 2017.

But lawyer Evans Ondieki argued that the charges against Wanjiku were an abuse of the criminal justice system.

Mr Ondieki said matters of tax evasion should be referred to the tax tribunal for arbitration.

Mango was released on a cash bail of Sh3 million, while Ngirita was granted Sh1 million cash bail. Wanjiku secured her freedom after depositing Sh500,000 cash bail.

The cases will be mentioned on November 8.