Mburu was arrested even as former Managing Director of the Kenya Bureau of Standards Charles Ongwae and former director of Quality Assurance Eric Kiptoo are set to face charges for colluding with three companies to undervalue imported goods.
The Kenya Revenue Authority (KRA) also seized six top-of-the-range vehicles belonging to the businessman.
Mburu and his brother Hillary Kamau are accused of using their company, Landmark Freight Services Limited, to defraud the taxman. Kamau has been on the run, since being put on the wanted list.
Other companies implicated in the scandal are Gendipe Enterprises and Rupai Trading Limited.
Gendipe and Rupai with the help of Landmark imported goods from Dubai, which they declared to be machinery (whose payable taxes are between 0-10 per cent) but were later found to be cooking oil (taxes range from 25-35 per cent).
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Valuation confirmed that the actual taxes payable by Gendipe Enterprises and Rupai Trading Ltd were Ksh7.1 million and Ksh52 million, respectively.
“Further it was established that Gendipe Enterprises paid a penalty of Sh148,816 instead of the required Sh4.4 million while Rupai Trading Ltd paid a Sh148,300 penalty instead of Sh4.4 million. In general, the country lost a total of Sh64, 944,112 that would have been received as revenue,” said Director of Public Prosecutions Noordin Haji.
“Following numerous cases of evasion and avoidance of tax payment that has affected collection of government revenue, the DCI commenced investigations with regard to mis-declarations and importation of contraband products into the country,” he added.
The individuals and the companies will face charges of connivance to commit an offence, concealment of imported goods, abuse of office, neglect of official duty, wilful disobedience of statutory duty and breach of trust.
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