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A company identified as Mega Wholesale limited company is on the spot over a Sh 26 million case it was suppose to pay Fanaa Investment company for supply of rice.
Available documents indicate that the company refused to pay shs 26,220,000.00 for rice delivered.
On the spot is Gamas Abdi, Mowlid Sheikh, Abdi Mohamed and other key individuals who swindled the millions by diverting the funds into private use.
Investigations have revealed that Mega Wholesalers is currently rebranding to Musha wholesalers and have opened new branch in Meru.The company is synonymous with tax evasion and smuggling of goods.
The company is on the radar of Kenya Revenue Authority’s (KRA) Investigations into a Sh30 billion tax evasion scheme by rogue Kenyan companies.
This comes a week after 18 people were arrested in Eastleigh over a multi-million-shilling tax evasion scheme
The 18 were arrested for orchestrating a sophisticated cargo dumping scheme to evade taxes in a major crackdown on tax evasion.
An officer at KRA revealed that Mega Wholesalers in one of the Companies on the train even as Fanaa Investments company pursues the Sh 26 million debt swindled by directors at Mega wholesalers.
Fanaa Investments delivered over 7000 cement bags to the Mega wholesalers which confirmed receipt of the bags.
Intelligence reports also indicate that the top leadership at Mega wholesalers have been colluding with rogue KRA staff in the past with intention to evade payment of tax.
KRA investigators in collaboration with the Directorate of Criminal Investigations (DCI) who determined to exposed the well-planned network that manipulated cargo tracking systems to divert goods meant for transit are set to turn attention to Mega Wholesalers.
In a statement, KRA investigators revealed that the suspects falsely declared locally bound goods as transit cargo to avoid paying taxes.
They then altered vehicle registration plates mid-journey and tampered with electronic tracking seals on trucks transporting the cargo.
These seals, monitored in real time by KRA’s Regional Electronic Cargo Tracking System (RECTS), are designed to prevent diversion and unauthorized offloading of goods.
“The culprits in this scheme distort the truck’s identity to conceal the diversion of the goods and stay off the monitoring teams at KRA’s Central Command & Control and Rapid Response Units (RRU) radar,” KRA stated.
The scheme involved switching truck identities to evade detection. Normally, transit goods are required to reach designated border points before the seals are removed, but the suspects illegally intercepted the shipments en route.
One of the intercepted consignments involved a 40-foot container loaded with textiles that left Mombasa under the guise of transit goods destined for the Democratic Republic of Congo.
However, authorities tracked the truck as it deviated from the designated route and was offloaded in Eastleigh, Nairobi.