A piece of land sold to the Jomo Kenyatta University of Agriculture and Technology (Jkuat) by the directors of Tatu City company was under-declared by a whopping 400 per cent, documents provided to Parliament by a former director have revealed.
Tatu City former director Stephen Mwagiru was last week ordered to provide documents in Parliament to support allegations that the company declared false figures to the taxman hence causing loss of revenue.
When he appeared before the Lands committee of the National Assembly last week, Mwagiru had claimed that foreign counterparts are repatriating billions of shillings from the sale of land in Kenya to offshore accounts in Mauritius.
Yesterday, Mwagiru swore a second affidavit to demonstrate that Tatu City Limited and Kofinaf Co. Limited “are involved in massive stamp duty and income tax fraud.”
In the document, he says Jkuat purchased land at a cost of Sh842.4 million but Tatu City foreign directors declared the land as valued at Sh235 million.
Another buyer, Splendor Investments bought two parcels of land whose combined value was Sh2 billion but it was declared as Sh559 million at the Lands ministry.
According to the documents Splendor Investments, bought from Tatu City plot number 11486 for Sh1.19 billion but Tatu City declared Sh340 million as its real value. It also purchased plot LR No. 11428 at a cost of Sh884 million but the valuation declared by Tatu City was Sh219 million.
Mwagiru further explained that he had provided the necessary information to demonstrate to the committee that Tatu City and Kofinaf were involved in Stamp Duty and Income Tax fraud.
“I have enclosed three authentic Sale and Purchase Agreements for the following parcels of land showing the real selling price. The declared selling price is in land titles that I am once again providing to this committee,” said Mwagiru.
Lands committee chairperson Kitui South MP Rachael Nyamai directed Mwagiru to provide documents to back his claims that Tatu City foreign counterparts were engaged in tax evasion through understating of property values sold by the company.
In the document, Mwagiru gave to the committee a summary on land sales from the companies’ board circulated by Josphat Kinyua, a former vice president of Renaissance indicating progress on the sales especially in relation to the buyers, selling price, deposit paid and balances due.