DCI mounts hunt for Kariuki over Sh41b t*********n
Billionaire businessman Humphrey Kariuki, against whom a warrant of arrest has been issued over a Sh41 billion tax evasion scam, now finds himself in a catch twenty-two situation.
The business mogul, said to be in Dubai, could either return to the country to face arrest or opt to stay away.
But Director of Criminal Investigations (DCI) George Kinoti said last evening that his office would use Interpol to help arrest him. “We shall go for him from wherever he shall be, as long as it is on this earth. There is no option. He must face the law,” he said.
Director of Public Prosecutions (DPP) Noordin Haji yesterday ordered for the arrest of Kariuki and eight others after investigations and an audit by the Kenya Revenue Authority (KRA) revealed their company had evaded tax amounting to Sh41, 539, 038, 448.
Money laundering
The DPP directed Kinoti to launch investigations into suspected money laundering activities by the businessman and his partners.
The four directors of African Spirits Limited and WOW beverages Limited were identified as Stuart Gerald Herd, Peter Njenga Kuria, Robert Thinji Mureithi and Geoffrey Kaaria Kinoti Mbombua. Others are Sethu Prabhu, an assistant production manager and Africa Spirits Limited, Eric Mulwa, a driver, the company’s shift manager only identified as Simon and Kepha Githu Gakure, a tax manager at the company.
Last evening, detectives arrested Muriithi and Kuria along Mandera Road in Kileleshwa and in Thika town respectively.
Kariuki is said to be out of the country, with reports indicating he was last seen at an airport in Johannesburg.
Meanwhile, samples from a consignment of 80 drums of suspected ethanol examined at the Government Chemist confirmed the substance recovered at the company in January, was pure ethanol spirit.
The company management has also been accused of tampering with the production system at the factory plant in Thika, which led to the submission of false declarations to KRA.
Haji said some of the parties implicated in tax evasion at the company were given an opportunity to settle the matter with KRA but the process was unsuccessful.
The suspects will be charged with being in possession of uncustomed goods, conspiracy to fraudulently evade payment of tax or duty, being in possession of counterfeit excise stamps, and aiding the commission of a tax offence.
The controversial businessman Kariuki, 62, is the founder of Janus Continental Group, a conglomerate that includes The Hub in Karen, Dalbit Petroleum, Africa Spirits, and Great Lakes Africa Energy.
He is also the owner of the 5-star Fairmont Mount Kenya Safari Club, Mount Kenya Wildlife Conservancy and Animal Orphanage. Dalbit is one of the largest oil distributors in East and Southern Africa. He has employed over 3,000 Kenyans and foreign nationals
In January this year, the government raided the company’s alcohol manufacturing plant in Thika on suspicion of tax evasion and manufacture of illicit drinks.
The management of Africa Spirits, a licensed manufacturer of portable spirits including Legend brandy, Blue Moon vodka and Furaha gin was found to have been evading tax by affixing illegally acquired KRA labels on their products.
KRA boss, then a commissioner, Githii Mburu said during the raid that the company could have been smuggling ethanol from Tanzania.
It was during the raid that millions of revenue stamps were seized from the distillery in Thika. They were suspected to have been stolen from KRA. Insiders then confirmed that the stamps, affixed on alcohol bottles to confirm payment of taxes, existed as entries in the Excise Duty Management System.
Counterfeit stamps
The raid followed intelligence reports pointing to large consignments of counterfeit excise stamps and suspected illicit ethanol in their premises.
A team from the Kenya Revenue Authority, Bank Fraud Investigations Unit and Office of the Director of Public Prosecutions grilled the men.
In February this year, KRA obtained orders freezing 11 bank accounts associated with Kariuki over alleged tax evasion.
