More details have emerged after the Kenya Revenue Authority (KRA) raided Mombasa billionaire businessman Mohamed Jaffer’s business premises in October 2020.
In October last year, KRA raided One Petroleum Limited, Africa Gas and Oil Company Limited, One Gas Ltd and Grain Bulk Handling Limited, all owned or linked to Mr Jaffer.
According to court documents prepared after the raid, the businessman through his companies owes KRA at least Ksh68 million in tax revenues.
“The preliminary analysis of the recoveries made pointed at African Gas and Oil Ltd as an importer of LPG, and a reseller of the same to the various purchasers including One Petroleum. KRA avers that preliminary finding of the analysis of the Ex Parte Applicant revealed massive under declaration or omission of sales occasioning the respondent a revenue loss of Ksh68 million,” KRA said through its lawyers.
KRA has already withdrawn the compliance certificates for all the companies associated with Jaffer.
The certificates were however reinstated by court on grounds that they were cancelled through via email without notice or offering the billionaire a chance to defend himself.
The companies are co-wned by Mutjaba Mohamed Jaffer, Ali Abbas Jaffer and Mohamed Husein Jafer.
One of the companies, Grain Bulk, controls 98 percent of all grain imports at the Mombasa port serving Kenya, Uganda, DRC and the World Food Programme, according to a report by the Parliamentary Finance Committee issued in November 2020.
In 2015Jaffer was involved in another Ksh180 million tax tussle with the KRA alleged to have been undeclared tax.
At that time, he was being investigated over big deposits amounting to hundreds of millions, whose tax was never paid.
KRA said a perusal of the income tax returns for January 1, 2007 to July 27, 2011 indicated that monies banked in Mr Jaffer’s accounts from the proceeds of sale of grain were not declared for tax purposes. The taxman however lost the case.
It is reported that Jaffer earned Ksh300 million in business and another Ksh31.9 million in 2009 where he was entitled to pay the taxman an Ksh90 million.
He said that his only source of income was from his employment as the managing director for African Gas and Oil Company.
Mohammed Jaffer is a close ally of ODM leader Raila Odinga, and is said to have severally funded his campaigns.