Babusa Hamid Salim
Bendegwa Limited Director
The recent legal proceedings in Mombasa Law Court have brought to light a significant case involving tax fraud allegations against Babusa Hamid Salim a Member of the County Assembly (MCA) in Tana River County. The accused, Kinakomba Ward MCA Babusa Hamid Salim, stands charged with tax evasion amounting to KShs. 8,697,748, stemming from his role as the proprietor/director of Darweish Constructors Limited.
Background of the Case
The allegations against MCA Babusa Hamid Salim revolve around his company’s dealings with the County Government of Tana River, where goods worth KShs 21 million were supplied. Despite deriving substantial income from these transactions, Salim is accused of failing to fulfill his tax obligations.
Details of the Allegations
The charges leveled against Salim include six counts of tax fraud, primarily focusing on the non-payment of corporation tax and the omission of VAT returns. Specifically, he is accused of evading corporation tax totaling KShs. 5,688,468 across three consecutive years, as well as omitting significant amounts from VAT returns.
Legal Proceedings
On April 24, 2024, MCA Babusa Hamid Salim appeared before the Principal Magistrate, Hon. David Odhiambo, to face these charges. He pleaded not guilty and was subsequently released on a bond of KShs. 2 million. The case has been scheduled for pre-trial on June 10, 2024.
Bond and Pre-Trial
Salim’s release on bond indicates a temporary freedom pending the outcome of the legal process. The scheduled pre-trial session will likely involve further discussions and evidence presentation before the case proceeds to trial.
Previous Case and Involvement of KRA
This incident marks the second instance of tax fraud involving suppliers to the Tana River County Government flagged by the Kenya Revenue Authority (KRA). Bendegwa Limited, another company implicated in a similar scheme, underscores the broader issue of tax compliance within the region.
Case of Bendegwa Limited
Bendegwa Limited, like Darweish Constructors Limited, supplied goods to the County Government of Tana River. The directors of Bendegwa Limited, Imani Sango Mponoa, and Vilimine Nababe Moses, are also facing charges related to tax evasion.
Comparison of Cases
The similarities between the two cases highlight a pattern of non-compliance within the county’s procurement processes. Both instances underscore the need for thorough investigations and stricter enforcement of tax laws.
Implications of Tax Fraud
Tax fraud not only undermines the government’s revenue but also erodes public trust in institutions. The misappropriation of public funds through such schemes has far-reaching consequences for service delivery and overall development.
Importance of Tax Compliance
Adhering to tax regulations is paramount for sustainable governance and economic stability. It ensures equitable distribution of resources and fosters an environment conducive to business growth and investment.
Responsibility of Public Officials
Public officials, including MCAs and directors of companies, bear a significant responsibility to uphold transparency and accountability in financial matters. Their actions directly impact the welfare of the communities they serve.
Role of Kenya Revenue Authority
The role of the Kenya Revenue Authority extends beyond tax collection to enforcement and deterrence. Cases like these underscore the importance of robust oversight and proactive measures to combat fraud and corruption.
Also Read: Mohammed Yasin Botan Denies Charges of Forgery and Perjury
The case against MCA Babusa Hamid Salim and others implicated in tax fraud highlights the urgent need for comprehensive reforms in governance and procurement practices. It underscores the collective responsibility of both public officials and private entities to uphold ethical standards and comply with legal obligations.
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