The Ethics and Anti-Corruption Commission (EACC) sleuths have arrested a Kenya Revenue Authority (KRA) manager and his wife for allegedly evading Ksh 38 million tax.
Joseph Chege Gikonyo a manager at KRA and his wife Lucy Kangai Stephen are accused of fraudulently failing to remit their taxes and taxes of Giche Limited-a company they own together amounting to Ksh38,692,694.
The detectives have been investigating the couple for their unexplained wealth.
“The Ethics and Anti-Corruption Commission (EACC) has been conducting investigations into allegations of possession of unexplained wealth by Joseph Chege Gikonyo a Manager at the Kenya Revenue Authority (KRA) and fraudulent failure to pay taxes by himself, his wife Lucy Kangai Stephen and their Company M/s Giche Limited” said EACC in a statement.
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The Commission established that between the years 2010 and 2015, the couple accumulated unexplained assets amounting to Ksh 597,457,059.
Subsequently, according to Section 55(2) of anti-corruption and economics act, a civil suit was filed for forfeiture of the assets.
“Further, the Commission established that Joseph Chege Gikonyo and Lucy Kangai Stephen both being directors of Giche Limited, a Limited Liability company registered under the Laws of Kenya, fraudulently failed to pay taxes due to the Kenya Revenue Authority for the sum of Kshs 38,692,694.00 being the company’s tax due and accrued expenses”, EACC CEO Twalib Mbarak added.
Following the discovery, a civil suit (ACEC No.14 of 2018 EACC-v- Joseph Chege Gikonyo and 2 others) was filed at the EACC’s economic crimes division.
Upon conclusion of the investigations, the DPP granted consent to the arrest and prosecution of the two on charges of tax evasion contrary to section 45 (1) as read with section 48 of the anti-corruption and Economic Crimes Acts No.3 of 2003.
“Upon completion of the investigation and pursuant to Section 35 of the Anti-corruption and Economic Crimes Act of 2003, the file was submitted to the Office of the Director of Public Prosecutions (ODPP) who upon review has granted consent to apprehend and arraign before court Joseph Chege Gikonyo, Lucy Kangai Stephen and M/s Giche Limited on charges of, fraudulent failure to pay taxes amounting to Kshs 38,692,694.00 payable to Kenya Revenue Authority Contrary to section 45 (1) (d) as read with section 48 of the Anti-corruption and Economic Crimes Acts No. 3 of 2003” said Mbarak .
The suspects will be arraigned in court to take plea on June 30.