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Pay TV firm links ex-MP to Sh153 million fraud


By Nairobian Correspondent

A city court is set to go to full hearing in a case in which a former MP and a company associated with him have been accused of defrauding a multinational pay TV company.

What will be at the centre of the case will be whether or not James Maina Kamau is culpable of obtaining Sh153 million from MultiChoice to pay the Kenya Revenue Authority (KRA) for imports made by Mainkam Ltd on behalf of the pay TV operator.

The former MP and Mainkam Ltd, a logistics firm associated with him, have been sued by MultiChoice, whose DSTV brand dominates the city’s satellite TV scene, for breach of contract.

MultiChoice claims to have paid Mainkam Sh287.6 million for the consignments, of which Sh239 million was indicated by the logistics firm as payment for customs duties and other taxes.

But KRA claimed to have only received Sh47 million.

He is named in court documents as the managing director and owner of Mainkam.

MultiChoice claims he falsified and forged documents to clear the imported goods without paying customs duty and value added tax, which KRA later demanded from the multinational.

MultiChoice argued at the earlier hearing that it was Kamau who induced the company to deal with Mainkam but when it detected the anomalies on the payments of taxes on its various imported consignments and notified him, he allegedly transferred his shares to another director.

However, a bid to have his name deleted as a party to the suit was turned down by Justice Alfred Mabeya on April 12.

The judge said his absence as a party to the case would deny MultiChoice the opportunity to interrogate him on the funds he is alleged to have received for payments of various taxes.

He added that Kamau would not be prejudiced by being in the suit.

The former MP has denied that he is guilty of fraud.

He has also dismissed claims that he induced the pay TV company to deal with his logistics firm and that Mainkam is a shell company used as a front and a vehicle to defraud MultiChoice.


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