High Court Justice Esther Maina granted the Ethics and Anti-Corruption Commission (EACC) powers to investigate the multibillion- shilling Tatu City real estate project in Kiambu over claims of tax evasion and money laundering.
EACC said Tatu City was practicing a form of money laundering known as loan back scheme. Tax evasion and money laundering are effected through paper transactions involving a chain of interlocking companies, nominee shareholders and purported loans and financing structures.
“It is my finding that in this case the matters being investigated transcend the dispute between the individual shareholders and the petitioners as they revolve around the commission of the offences of tax evasion and money laundering,” the judge said.
The commission began the investigations accusing Tatu City of undervaluing property that is later transferred to related firms to allow payment of lower stamp duty-tax equivalent to 2 percent of land transfer value.
The judiciary has remained a key support in the fight against corruption especially by supporting anti-graft agencies and this is evident that the collaboration of these key players in the fight against corruption will pay off in due course.