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Investigations

How Chinese Firm Housemart Limited Conspired To Steal Sh3B Of Kenyans Money Through Large Scale Money Laundering And Tax Evasion

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Mr Ye Wei, Managing Director Housemart Ltd In Court.

Kenya struggles to stay afloat with heavy foreign and domestic debts and the weight rests on the taxpayers who by design have to bare the wrath. We’re spending more than we’re earning interms of revenue collection which by reports has not been meeting targets. KRA has been failing to meets its obligations and they largely attribute it to non paying population.

Kenya and China have created a commercialized bond in the past decade and we’re witnessing an increased number of Chinese investors streaming into the country given cordial relationships to set up their companies here.

There’s an influx of Chinese nationals in Kenya but that’s a story for another day, the immigration department is currently doing a swoop on illegal immigrants many of which are Chinese and have been deported, just a few though meaning the problem still is intact.

Apart from mistreatment of locals, a good number of Chinese firms have been accused of several malpractices and fraudulent rings including tax evasion and that’s why we’re talking about Housemart Company Limited a subsidiary of Sunda International Ltd a leading exporter in building materials.

The Chinese company’s offices which are located on Mombasa road and are involved in the importation of various items including construction materials and household commodities, are also at the centre of a multi billion tax evasion scandal.

High Court’s Lady Justice Hedwig Ong’udi recently issued orders freezing the accounts of Housemart Company Ltd following an application by the Kenya Revenue Authority claiming that the Chinese firm has evaded tax through under declaration of Value Added Tax of its products since 2010 totaling to Sh2B.

The order was issued for preserving funds and prohibiting the release, transfer, payment or other dealings involving the money held by the company at Barclays Bank of Kenya, Standard Chartered Bank, NIC Bank and Bank of Africa pending determination of the suit.

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KRA says the Chinese company is engaged in tax evasion and money laundering through the creation of “briefcase companies” who have no physical presence in Kenya and used to syphon millions of shillings from the country.

According to preliminary findings of investigations done by KRA and presented before the court, it revealed that the company has evaded taxes amounting to sh2,243,781,488 between 2015 to 2017.

Playing their cards smart, Majority shareholders and beneficial owners of Housemart are foreigners and corporations with foreign addresses which are suspected to be tax havens, therefore, making it difficult to repatriate the funds once they exit Kenyan borders, a line of argument raised by KRA’s lawyer Sylvester Okello.

According to an affidavit filed by KRA forensic investigator Cyrell Wagunda, they received information in January that six companies were registered and used to open bank accounts in which proceeds from sales by Housemart Ltd were being channelled.

The companies include Colila Ltd, Akubi Ltd, Nkemm Ltd, Obest Ltd, Sunda Industrial Company Ltd and Wise Databank Ltd.

He swore that he discovered tax fraud and money laundering through diversion of sales and using fictitious forms to claim VAT refunds.

“We discovered they were using their employees or security groups contracted to transport cash totalling sh4 billion. Once the funds are transferred to the six companies’ accounts, they then wire it to another company based in China without declaring their tax,” swore Wagunda.

In one instance, the KRA official stated that a total of Sh515 million was deposited to Colila Ltd, Akubi Limited received Sh241 million, and Wise Databank Limited received Sh3.5 billion between 2015 and 2017.

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Separately, Housemart’s MD Mr Ye Wei was also caught in the same problem, the Chinese national was charged in a Nairobi court with three counts of tax evasion. Mr Ye was arraigned at the Milimani Law Courts where he was jointly charged with others not before court evading on payment of tax amounting to over Ksh 800 million and an additional count of failing to declare sales amounting to more than Ksh 3 billion.

He denied the charges and was released on a Ksh 2 million bond with a surety of a similar amount or a cash bail of Ksh 1 million. The case will be heard on November 21, 2018.

Between 1st January 2016 and 30th June 2017, he is alleged to have willfully defaulted in paying Ksh 154,328,071 being income tax payable to the Commissioner of Domestic Taxes in contravention of the Tax Procedures Act.

In the second count, Mr Ye is alleged to have defaulted in paying Ksh 583,353, 575 between 1st January 2016 and 30th June 2017, while in the third count, the defaulted income tax is indicated as amounting to Ksh 85, 082, 282. This is for the period between 1st January 2015 and 30th January 2017, according to the charge sheet.

In the fourth count, Mr Ye is alleged to have deliberately defaulted on an obligation to declare sales amounting to Ksh 3, 232, 584.773 for the period covering 20th January 2016 and 20th December 2017 to the Commissioner of Domestic Taxes as required by the Value Added Tax.

A look into this raises a serious concern over the levels of money laundering going on in the country more specifically with Chinese firms which I gather are very rampant. Outright, all these can’t hapoen without complicity and conspiracy with local authorities. It’s in this backdrop that as investigations advances, those KRA officials who’ve helped the company engage in this scam must also be investigated.

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Kenya can’t afford to humbly stay in a relationship with China when its not symbiotic. I doubt if there could be leniency if a Kenyan engaged in such scams in Beijing. Companies like Housemart and directors like Ye Wei ought to have their operation licenses withdrawn and conspirators like the fraud manager Ye and alike be thrown in jail.

Goodnews is the accounts are frozen even though Housemart has sued KRA for their action. While denying any link to the alleged malpractice, the firm noted that the caveat placed on its bank account has crippled its business operations and pleaded with the court to lift the freeze order.

Lemme say in my opinion, they deserve to suffer and even be thrown out of the country and operations if they can’t pay taxes and laundering money to tax havens. Doing business with such a company is also another risk one need to consider before inking any deal because you can imagine how many businesses have been now stalled with the accounts frozen. They should remain frozen until taxpayers recover their stolen money.

Money laundering and tax evasion is now becoming a real issue and Kenya Insights is dedicating efforts to highlight and expose scamming companies like Housemart, we’re therefore appealing for any useful information and tips on this topic so we can expose these frauds. Send me an email (in.kenyawest@protonmail.com)


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram

Kenya West is a trained investigative independent journalist and a socio-political commentator on matters Kenya and Africa. Send me tips to [in.kenyawest@gmail.com]

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Investigations

Exposed: Nairobi Women Now Using ARVs To Add Weight And Mass

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While majority of women in Kenya’s urban areas are struggling with obesity and weight loss, a breed of women have emerged that are doing everything to gain weight.

City women are now using antiretroviral (ARVs) to enhance their body mass and weight in well-organized groups of 10 from a popular social media app.

These women are first brought together through posts who later form or added to Facebook groups. Majority are always resistant to enter into this perilous and prohibited act at first.

Sources to the writer indicate that the Facebook groups are used to lure and convince the naive and unsuspecting souls who are desperate to gain weight.

Many of these women are willing to do anything to get to their anticipated weights. Majority also don’t know where to get the ARVs.

The source further says that the willing group members are later taken to a city pharmacist who sells them ARV drugs at Ksh 5,000. The now-unnamed Pharmacist is allegedly HIV positive. That’s how he’s able to access the drugs more often.

The prescription runs in a year.  With some women saying that they would only stop taking drugs when they hit the weight of their choice.

also related:Cocaine Laced Marijuana And Prostitution In TUK

Dr Patrick Gichohi a HIV-AIDS specialists states that injection of ARVs in a healthy body changes the distribution body fats. Majority of Nairobi women confuse it with body and weight gains.

“Various antiretroviral drugs, for instance Efavirenz may possibly cause psychiatric complications.  Whereas protease inhibitors, anti-HIV replicator drug, may well elevate levels of cholesterol,” Dr. Gichohi revealed.

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The HIV-AIDS specialist also said that ARV will have calamitous effects on their bodies sooner or later.

 


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram
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Investigations

Opposition Leader From Western Involved In Sh400M Gold Scam

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Blocks of fine Gold Photo|CNN

Sheikh Mohammed bin Rashid Al Maktoum the leader of Emirate of Dubai has filled complain to Kenya that an opposition senator has conned the Royal family Ksh 400 million of gold.

The opposition senator is among a gang of six cartels that are under the keen eye of DCI’s investigations of their involvement in the Gold scam. The gold fraud has implied strong complaints from the Vice President and Prime Minister of the United Arab Emirates.

The DCI is trailing a scheme that saw the royal family scammed multi-millions allegedly to secure a release of 5 tons of gold that had been purportedly seized at JKIA.

The Directorate of Criminal Investigations says the alleged seizure was, supposedly, to be the first batch of a 23 tons gold shipment that was to be illegally brought in the country from DRC.

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The trail has unraveled that the opposition senator flew to Dubai severally to persuade Royal Family that he has associates who would release alleged seized gold.

The said opposition Senator, a politician and a businessman who runs a private jet leasing company at Wilson Airport have since denied all the allegations from the Royal family.

Preliminary investigations show that the scheme started September 25, last year when the Senator and his group approached a nephew of Sheikh Maktoum, Mr Ali Zandi. Ali is a representative of Dubai based gold trading company, Zlivia.

The cartel told Mr. Ali that they can deliver 4.6tons of gold from DRC. They had secured services of a Russian gold dealer who wanted down payments and transportation charges to Dubai.

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The senator and his cronies contacted Mr. Ali on September 27 alleging that the gold consignment had been incarcerated by customs officials at JKIA.

Investigations indicate that Massoud Zandi a representative of Zlivia Gold Trading Company called the Senator for help and on 15th December last year the opposition senator flew to Dubai on the invitation of Mr. Zandi.

The senator demanded cash to ease the release of the alleged confiscated consignment. Mr. Zandi was of the contrary opinion and flew in the country on 24th December last year with hopes of meeting a senior Kenyan government official.

Mr Zandi could not manage a sit down with the government official instead the senator and his cartels took Zandi to JKIA and showed him sealed boxes allegedly holding Gold.

On January 21, this year, Zandi was secretly moved at night to meet a Cabinet secretary imposter at a Karen Hotel. The senior government imposter met Mr. Zandi in a car in the presence of the Senator.

They, the Senator and the CS imposter guaranteed Zandi that his Gold will be released in a week time after he flies out back to Dubai. Zandi says he has neither received his gold nor heard from the six cartels months later.

Sheikh Maktoum has forwarded a written complain to Kenya through the Interior Cabinet Secretary Fred Matiang’i. The Royal family leader has requested immediate actions to those involved in masterminding a gold scam against the Family.

Sheikh decided to contact the government directly after the cartels lied to him that the delay to release the consignment was caused the DusitD2 attack.

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“Nevertheless, now we need your immediate and strong action to release the totality of Zlivia Gold shipment to UEA as soon as possible and accordingly to the instructions by our General Manager Mr Zandi who is there in Kenya to organize the shipment.” Quote from the Sheikh’s letter to interior CS dated 20th January.

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Since the Shiekh wanted the matter to be solved as soon as possible, a Russian national Yulian Stankov and Mohammed Rashi both wanted international scammers were on Friday arraigned before the Milimani Law Courts in Nairobi. The two are said to be in connection of the Ksh 400 Million scam.

Investigators told the court that Stankov did not have any identification documents. He was arrested after saying that he’s shipping 5tons of gold to Dubai.
DCI Investigators demanded the permission to access cell phones of the accused persons to aid in the investigations of their involvement in the gold scam and other related Cybercrimes.


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram
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Investigations

How Nairobi Girls Are Lured Into Prostitution On Instagram

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The society has been filled with ‘get rich quick’ mentality. Many of young generation are doing whatever they are capable of doing to ‘prosper’.

Our desk has received information of couple of Instagram accounts that are luring girls into prostitution.  Nairobi girls are being lured into sex for cash business in what is termed as private parties and businesses in foreign countries.

The Instagram Direct message post says an agency in Nairobi has orders from sponsors who offer cash for sex.

                     Instagram Direct Message screenshot     Photo|Christine_rence

They even claim to have a quotation of  Ksh 50 thousands for a single sex session. They convince unsuspecting girls that they conduct vital tests before joining the agency.

Instagram has been flooded by photo maniacs’ celebrities and fake Socialites who are actively promoting prostitution.

Socialites have taken over the Instagram app.  Currently majority of gram users are Posting and sharing travel pic and the Porsche lifestyles.

Instagram is now a certified prostitution platform.  The platform has verified sex for cash accounts that have misled the entire generation.

Young girls are tricked to joining agencies that later connect them to sex addicts in Dubai, Qatar, UAE and many other destinations.

Fake lifestyles posts and big currency quotation are key things these slavery agencies invest in to lure young naive girls.  With some posting fake ownership of businesses on some of the world’s greatest destinations.

Many cases of sexual assault and abuse have been reported by Kenyans working in diaspora. Some who Kenyan embassy had no idea they were in the respective foreign countries.

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So many young naive girls’ minds have been besmirched by fake travel pics and lifestyles on Instagram. Majority have been enticed to travel to foreign countries like Dubai, Qatar and other Middle East countries only to get sexual abused and assault.

Instagram has turned a blind eye on the increased sex for cash and sexual slavery promoting agencies on its community.

They also have verified socialites with fake lifestyles. The same people who are alluring girls into prostitution in foreign countries.

This makes them accomplices in the now most famous activity on their platform.

Here’s A Facebook post of Oge Nwabueze elucidating her awful sexual experience in Foreign terrestrial

 


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram
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