High Court quashes Sh17billion tax evasion case against businessman
Businessman Humphrey Kariuki can breathe a sigh of relief after the High Court declared his prosecution over Sh17 billion tax evasion unconstitutional.
Justice Antony Mrima while giving out the ruling barred the government from further proceedings with the prosecution of Kariuki and his co-accused case.
The judge stopped the ongoing prosecution against Kariuki by Kenya Revenue Authority (KRA) prosecutors on grounds that they are not the proper persons to prosecute the case against the tycoon and his co-accused.
Justice Mrima said the prosecutorial role in criminal cases in the country is mandated by the DPP.
“That prosecution of criminal offences in Kenya must only be undertaken by lawful prosecutors (being either the Director of Public Prosecutions or such other persons exercising the delegated powers of the DPP under Article 157(9) of the Constitution or the entities conferred with powers of prosecution pursuant to Article 157(12) of the Constitution),” the judge ruled.
The judge concurred with Kariuki’s lawyers Kioko Kilikumi and Ceceil Miller that whereas KRA can investigate any offences relating to tax laws, it cannot prosecute such offences in court.
“It is apparent that the criminal case lacks any legal leg to stand on since the decision to charge was made by the National Police Service who was the investigator. Further, the charges were also drafted by the same investigator and that the prosecution was undertaken by the complainant (KRA),” Justice Mrima stated.
The judge also ordered no court in Kenya shall forthwith accept, register and in any manner whatsoever deal with any Charge Sheets not prepared and signed by any of the lawful prosecutors.
This comes after businessman Kariuki challenged the prosecution of his tax case by employees of the Kenya Revenue Authority (KRA) citing a lack of independence and conflict of interest.
Kariuki was charged alongside Peter Njenga Kuria (Director Africa Spirits Limited), Robert Thinji Murithi (director, WOW Beverages) and Geoffrey Kaaria (Director Africa Spirits Limited), Kepha Gakure (tax manager, Africa Spirits) and Simon Maundu.
Kariuki and his co-accused had been indicted to pay tax of Sh17, 782,553,085 to the commissioner of domestic taxes between January and December 2016.
Kariuki was thrust into the limelight in February 2019 after the Directorate of Criminal Investigations raided the premises of Africa Spirits Limited in Thika, a company he owns over tax fraud claims.
This was followed by what appeared to be a cat and mouse chase between the sleuths and the tycoon with the latter presenting himself before the court where he denied the charges and was released on a Sh11 million cash bail.
Kariuki, an alcohol manufacturer mogul, was charged with tax evasion.
They had also been accused of omitting Sh832, 048,543 in Value Added Tax (VAT) for Africa Spirits Limited (ASL), an amount which had been included in the returns, for the period January to December 2016.
In 2017 Kariuki allegedly failed to remit Sh5, 981,840,025 while ASL failed to remit Sh2, 188,622,304.
Fast-forward to 2018, the directors of Wow Beverages Limited (WBL) and ASL were charged with failing to remit Sh5,673,829,000.
Director of Public Prosecutions (DPP) Noordin Haji would come in and give prosecutorial authority to KRA to lead evidence in the case against the businessman.
The DPP brought two tax-related cases against the alcoholic beverages manufacturer and seven others, before bringing KRA on board.
Haji would later reduce the number of charges against Kariuki from 19 to 11 in the fresh case filed at the Milimani Law Courts.
The reclusive billionaire is said to have vast interests in the beverages, energy, real estate and hospitality industries under the Janus Continental Group.
