A Sh14.5 billion tax evasion case against former Keroche CEO Tabitha Karanja will proceed in October without fail, a Nairobi court has said.
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Karanja stepped down as CEO a month ago and handed over the mantle to Chief Financial Officer Potas Anaya.
Milimani senior principal magistrate Esther Kimilu gave the defence a warning of proceeding for hearing in the absence of the accused should she fail to attend.
“I adjourn this case and lift the warrant of arrest for Tabitha Karanja. Let it be noted that the trial will proceed if she fails to attend court as provided under Article 50 of the Constitution,” the magistrate said.
Kimilu also cautioned Tabitha from changing advocates to delay the case.
We will not take the journey of delaying the case again, she said.
The magistrate further said the matter is a 2019 case and she is answerable to the public if she doesn’t proceed.
“I refuse adjournments as I don’t want Kenyans to say I m lazy. Don’t put me in a situation where I am not able to explain my case. The case must proceed” she said.
The court was also told that in case the parties want to settle out of court, the case will be taken for mediation.
The hearing will be on October 2.
On Wednesday, the court issued a warrant of arrest for Tabitha for failing to attend the hearing of her case.
The case was scheduled for two days starting on Wednesday and today.
In April, the Nakuru senator was charged afresh and denied 10 counts of tax evasion.
This was after the prosecution requested to amend the charges, saying some particulars were missing in the 2019 charge sheet.
According to the charge sheet, the accused and the company on dates between February 20, 2015, and January 20, 2016, unlawfully made incorrect statements in their excise duty returns by reducing their duty by Sh1.8 billion.
She allegedly also made incorrect statements for the January to December 2017 returns, which affected payable excise duty by Sh3.6 billion.
According to the prosecution, between February 20 and July 20, the accused unlawfully omitted from their VAT returns for January to June affecting their VAT liability by Sh196 million.
Tabitha was also accused of under-declaring production volumes by 820,601 litres and misapplication of excise duty rates on Vienna Ice by using Sh27.06 instead of Sh175, thereby reducing her excise duty liability by Sh1, 855, 403, 900 payable to the commissioner as required by the Excise Duty Act.
The defence however indicated to the court that they seek to settle the matter out of court.
“We have already initiated the process of settling the matter with KRA and if the court allows, we wish to have the matter settled,” the court was told.
A KRA representative who was present in court said the office had no intentions to have the matter settled out of court since they have not received any information.
By Mpasho