~
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[
I
[
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r
-
r
I
!
EXECUTIVE
SU
l
\I
i
\
'
IARY
I
NTER
I
l
\
'
1
REPOR1~
AN INTERI
l
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REPORT
ill
'
TIlE TASK FORCE
INYESTIGATI:\G
ECO~O;\IIC
CIU
l
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'
CHARTEIUIOUSE
i
l
A~K AND RELATED
CO
l
\lPA
1
'ILES
'
r
Th
e
K
c
n
y
a
Anti-
C
orrupti
o
n
C
o
mmi
ss
ion
b
ac
k
e
d
by off
i
ce
r
s
fr
o
m th
e
K
enya
Rc
v
enuc
Auth
o
rit
y
a
n
d
the B
a
nking
Fraud
In
v
c
st
i
ga
ti
o
n
D
e
p
a
rt
men
t
mad
e
a
s
urpri
s
e
raid to th
e
follm
v
ing
f
ou
r
es
ta
b
li
s
hll
lc
ll
tS.
1) Charterhouse
Bank
2) Tu
s
k
e
r
Mattre
sses
3)
Cr
c
ati vc Inn
o
v
a
t
io
ns
Lim it
e
d
4)
WE
Tilley (Muthaiga)
Ltd
r
Fr
o
m the Chart
c
rhou
s
c
Bank,
a
c
c
o
unt
records
f
o
r th
e
f
o
ll
owi
n
g
co
mp
a
ni
es
a
nd
per
so
n
s
were c
o
ll
e
ct
e
d:
J
)
Tu
s
k
e
r
M attrc
sscs
2
)
Cr
e
at
i
ve
Inn
o
vati
o
n
s
3)
WE Till
ey
(Muth
a
i
g
a)
Ltd
4
)
S
aile
s
h
Pra
j
apati
5
) D
S
h
a
h
G)
P
ao
l
o S
att
a
nino
;
.:
.
Fo
r the
co
n
ve
nicn
ce
o
f
o
p
c
rat
i
n
g
within the p
e
riod within
whi
c
h th
e K
en
y
a
A
nti
-
Corr
u
ptio
n
Com
mi
ss
i
o
n
can
I
cgn
ll
y
i
n
ve
s
ti
ga
t
c,
the
Ta
s
k
F
o
r
c
e
d
ec
id
e
d
to
i
n
i
t
ially
scr
ut
in
i
ze
the
r
eco
rd
s
o
f t
he
fir
s
t t
h
r
ee co
mpan
ies
s
t
ar
tin
g
fr
o
m
2
n
J
1\
l
ay
2003 to da
t
e wi
th
a view to est:
.
tblishing
any i
l
lc
i
dence
of V
AT
a
n
d
I
ncome T
a
x
e\
'
a
S
l
o
n
.
;
.-
The fol
l
ow
i
ng
f
i
ndings
ha
v
e b
ee
n ma
d
e f
o
llowi
n
g
t
he sc
r
utiny
o
f
the c
o
mpan
y
'
s
r
e
cord
s
\
'
i
s
-:'t
-
vis (he bank re
c
or
ds
,
f
I
, !
1
. C
R
EA
TI
V
E
I
NN
O
VA
TIO
NS
LTD
:
r
We
h
ave
di
sco
ve
r
ed
two u
n
d
i
sclose
d
Bank accoun
t
s o
f
C
r
eative
I
nnov
a
tio
n
s wi
th
d
e
p
os
i
ts
t
o
ta
l
i
ng
to K
sh
s. 262
,
1
0
5,659
w
i
t
h
in
t
he pe
r
io
d ]
anuary 1999
t
o
O
c
t
o
be
r
2
00
4
.
)
.-
Comp
u
t
ed
V
AT
evas
i
o
ns
p
lu
s
penal
t
ies
fo
r
t
he
period
a
m
o
u
n
t
to Kshs.
20
2,4
9
1,4
98
f
o
r th
at per
i
od.
,
.
Th
e co
rr
espo
n
d
in
g
VA
T
a
nd A
dd
i
tio
n
al
Ta
x liabi
l
i
ty
[
o
r th
e period M
a
y 2
0
0
3 t
o
O
c
t
o
b
e
r
200
4
is
K
shs.
44,
83
9
,
4
92.
2.
\
V E T
I
LLE
Y
(MU
THAI
GA
) LTD
N
e
xt
COUI
'
SC
o
f acti
o
n
I
'
!
"
\
>
-
Compil
e
a ca
s
e
fil
e
and
re
c
omm
e
n
d
char
ges
o
n
th
e
D
irec
t
o
r
s
o
f Cr
eative
I
n
n
ova
ti
o
ns
[
o
r f
a
il
u
re
t
o pa
y
VAT and Additi
o
n
a
l
T
ax
in t
he
t
unc o
f
Ks
h
s
.
44,839
,
492
t
o
th
e
K
e
n
y
a
Re
ve
n
u
e
Auth
o
r
i
t
y
i
n t
h
e
p
e
r
i
o
d
fr
o
m
Marc
h
200
3 t
o
O
c
t
o
b
e
r
200
4
r
T
h
e
Ken
ya
Re
ve
n
u
e
A
ut
h
o
r
i
t
y
t
o
r
ecove
r
fr
o
m Cre
a
ti
ve
In
novat
i
ons
L
td
th
e
a
m
o
u
n
t
s
owed
i
n
V
AT
a
nd Add
i
ti
o
n
a
l
Ta
x
.
l
I
,
'
r
W E T
ill
ey
M
uth
a
i
g
a
L
t
d
I
S
a
fi
s
h pr
ocess
in
g
and
e
x
p
o
rt
c
o
mp
a
n
y
w
ith
s
i
s
t
e
r
com
p
a
n
ies
T
a
n
za
n
ia.
I
(
I
I
.
r:
T
h
e
Ke
n
ya
n
c
om
pa
n
y
h
a
nd
l
es
a
l
l
t
h
e
e
x
p
o
r
t
s
o
n
b
e
half
o
f th
e
Tan
za
n
ian
com
p
anies
a
nd
receives
p
ay
m
e
n
ts
o
n th
e
ir b
e
hal
f
.
r
Total
sa
l
es
fo
r
the
p
erio
d
May
2003
t
o Octo
b
e
r
200
-
1
a
m
oun
t
ed
t
o K
s
h
s.
5,230,2
0
6,
7
9
1
.
25
while
t
he
t
o
ta
l
deposits
into
th
e
ir
off
i
c
i
a
l
ba
n
k
a
cc
o
unts am
o
unt
t
o
K
s
hs
,
5,030,611,4
7
6
.00.
:,
...
All
o
wing
f
o
r exch
a
nge
rate
gains (losses
)
it
s
eems
t
he dep
os
i
ts
in t
h
eir
o
f
f
i
c
ial
bank a
ccou
nts
c
ompe
n
sate
for
t
h
e sales p
r
o
cee
d
s o
f the thre
e s
i
st
er
com
pani
e
s
.
3
~f
~
_
s
,
f
'
[
.
;
.
..
But th
e com
p
any
on
l
y dec
l
ares
the sales procee
d
s
of
t
he Ke
n
ya
n
op
e
rati
o
ns
t
o the
K
cny
an
Tax Authorit
y.
:
r
N
o
eviden
c
e
h
owever
I
S
s
e
en
of remitt
an
ce
s
to the Tanzania
n
c
o
mpanies
to
a
c
count
f
or th
e
ir e
xports
.
r
T
h
e
r
e
is evid
e
nce
t
h
a
t th
e
c
o
mpan
y
trades
heavily
I
I
1
f
o
r
ei
g
n
cur
re
n
cy
with a
numb
e
r
o
fFor
e
x
Bur
e
aus.
Next course
of ac
t
ion
'.
r
...
•
~
\
r
:
r
'
"
.
r
:
,
r
:
Co
nt
ac
t
t
h
e
T
a
n
za
ni
a
n
Reve
nu
e
Au
th
o
rit
y
to
f
ind ou
t
w
h
ethe
r
t
hc Tanzanian
s
i
s
t
e
r
co
m
pa
ni
e
s
d
ec
l
a
r
e
th
e
ir export
ea
r
n
i
ngs
in T
a
n
za
n
ia .
If th
e a
m
ou
nt
s
a
r
c
n
o
t
br
oug
ht
to ch
arge
in Tan
zan
i
a
,
th
e
n th
e re
l
evan
t
Kenyan
t
ax wi
ll b
e assesse
d
o
n th
e
b
a
l
a
n
ce
n
o
t d
ec
l
a
r
ed
in K
e
n
ya
.
Es
t
ab
l
is
h
the impli
ca
t
io
n
s
o
f
t
ra
din
g
in
fo
r
e
i
g
n
cu
rr
e
n
cy,
as
s
ess
the
i
nc
o
m
e
ea
rn
ed, de
t
e
rmin
e
th
e
ta
x
imp
l
i
c
ati
o
n
s
an
d r
eco
mm
e
n
d
appro
pr
iate
a
c
tion
.
Pr
e
p
a
r
e
a case f
il
e
and r
eco
mm
e
nd
cha
r
ges on
th
e Direc
t
ors
fo
r
failing to declare
i
n
co
m
e
a
n
d
p
ay
t
axes
t
o t
h
e Ke
n
ya
R
eve
n
ue
Au
th
or
i
ty.
3
.
TUSKl
~
R MATTRE
S
SES
LTD
L
(
[
C
.
\
..
r
Going
b
y
banked
sales
and
V A
T
dec
l
ared
accou
nt
,
we
ob
s
erve
that
t
he
s
upermarket
has und
e
r
dec
l
ared
t
hei
r
sa
l
es by Kshs
.
9)
1
,6
1
9,287
b
e
twe
e
n
J lily
1999 to June 2004 which would a
tt
rac
t
a VAT
l
evy o
f
approximately
160,998,230
in prin
c
ipal
amount
alone
.
,
..
Th
e co
rre
s
p
o
nding
figure [or period unde
r r
ev
i
ew
i
.
e. J
u
ly 2003 to June 2
0
04
w
e
find an und
e
r
-
declarati
o
n
of Ksh
s.
5
9
,39
7
,968,
w
hi
ch would a
t
tra
c
t a VAT lev
y
o
f
appr
ox
im
a
t
e
l
y
K
s
h
s
.
9
,50
3
,
G
7
4 in
p
rin
c
ipal
am
o
un
t
alone.
;
,
-
B
e
t
w
e
e
n
July 20
0
2
and
Jun
e 200
4
,
ti
le
c
o
mpany
al
so
un
de
r
s
tat
e
d
t
he
ir p
u
r
c
ha
ses
b
y
K
s
h
s
. 4
37
,
679
,
9
3
7,
whic
h
w
o
ul
d
attr
a
c
t
K
s
hs
. 7
5,S
0
8
,
414
in
pr
i
nc
ipal
VA
T
lev)'
.
-
f
'
r
The c
o
rr
es
ponding
fi
g
ure f
o
r Jul
y
20
0
3 t
o
June 2
00
4 i
s
K
sh
s
.
14
8,
6
98,66
2,
w
h
i
ch
wo
uld attr
ac
t the V
AT levy of Kshs
.
23,791,78
5
i
n p
r
i
ncip
al
sum.
r:
Th
e
a
b
o
v
e fi
gurcs can
o
nly bc c
o
nfirmed
af
t
e
r
:
o
Cr
ossc
h
ecking
witl
:
the sales account
i
n the co
mp
uter
.
o
Cr
oss
ch
eck sales
t
o other s
up
e
rm
arkets
i
n the
ch
ain
o
A
na
l
yz
in
g
s
t
ock records
o
Ve
r
ifying
t
he
i
npu
t
ta
x
Next course
of
action
l
.
·~
)
;
-
Acccss
the computer
data and verify the figures quoted ab
o
ve.
;
Y
Establi
s
h
the final taxab
l
e amount and a
s
sess tax
.
>
-
J
•
I.
)
..-
\
.
.
,
r
:
)
..-
Obtain
Bank
account
records
of the numer
o
us
fix
e
d d
e
po
s
it,
c
a
ll d
e
po
s
its
and
current
account
dep
os
its
of the company
and the Dir
e
ct
o
rs
h
e
ld at
C
h
a
rt
c
rh
o
u
sc
Bank and Bare la
y
s Bank and investigate
if any of the
su
p
e
rmark
e
t
sa
l
e
s pr
o
c
e
eds
are banked dir
e
ctly into th
os
e a
c
counts
r
Prepare
a ca
s
e fi Ie and recommend
charg
e
s
on the Dir
e
ct
o
r
s
of Tu
s
ker Mattre
ss
e
s
f
o
r failin
g
to d
e
clare income and
pay
taxes due to the K
e
n
y
a Re
v
enu
e
A
uthorit
y.
Ken
y
a Revenue
Authorit
y
to commence
recovery
of the ta
x
e
s
due
.
4.
~(ARIUKI
l\lUIGUA
& CO. (CLIENTS
ACCOUNT)
Chartcrh
o
u
s
c
Bank declined
to provide
any documents
on this account
citing a
hi
g
h
co
urt
o
rd
e
r barrin
g
an
y
b
o
dy
from invc
s
tigating
it
.
La
t
er
th
c
bank f
o
r
w
ard
e
d
a c
o
p
y o
f
a
n
o
th
e
r
hi
g
h
Cal
iri
o
rd
e
r barin
g
th
e
K
e
n
ya
A
n
t
i
-Co
rrup
t
i
o
n
Co
mm
issio
n
fr
o
m in
ves
t.
g
atin
g
t
he a
ccou
nt
.
r
:
Thi
s la
t
e
r l
I
i
g
l
: Co
ur
t orde
r h
as
n
o
t
bee
n
se
rv
e
d
o
n th
e
C
om
m
issio
n
as
at
t
h
e
t
ime
of making
t
h
i
s
r
e
p
or
t
.
)
..-
I
t
is believed
that the account
i
s
o
p
e
ra
t
e
d
by
big businesse
s
in
t
own tha
t d
eposit
s
al
e
s pr
o
ceed
s
i
nto the acc
ount
and h
o
p
e
(
0
hide
t
he
m
using the cloak of cli
e
nt
'
s
C
O
i
l
fid
c
n t
i
~
l
!
it
y
und
e
r
t
h
e ad
vee
ales
ac t
.
5
N
ex
t co
urse
of a
c
tion
>
-
Awai
t
service
of
t
he orde
r t
o determine
the next co
u
rse
o
f a
c
ti
o
n
.
5
.
D
S
H
Al
l
ACCOUN
T
>
-
B
e
t
wee
n
5
th
May 2
00
3 and
yd
N
o
vemb
e
r
2
00
4
, the ac
co
un
t
r
e
ce
i
ved a tota
l
o
f
K
s
h
s
.
601%8
1
7
1
.33
in de
p
osi
t
s
.
)
;
.-
Som
e
o
f th
e
d
e
p
osi
t
s
h
a
v
e
bee
n
c
s
t
ab l
i
s
h
e
d
as cas
h
t
ran
s
f
e
rs
fr
o
m
s
un
dry
cr
e
dit
o
r
s.
;
-
T
h
e e
qu
iva
l
e
nt
i
s
th
en
t
a
k
e
n
o
ut a
s Idd
i
ssue
d b
y o
rd
e
r
o
f
M
r
.
D
Sha
h
f
"
[
N
e
xt course
of action
)
.-
Tr
ac
e th
e fdds
a
nd tr
y to es
t
ablish
th
e be
n
e
fi
c
i
a
r
i
e
s
of
t
he tra
n
s
fers
.
/
'"
Es
t
a
bli
s
h
t
h
e
r
ea
l
sou
r
ce o
f fund
s a
nd d
e
t
e
n
ni
n
c
w
h
e
th
er
i
t
i
s a para
l
l
e
l
accoun
t
t
o
hid
e sa
l
es
pr
oceeds
f
or com
p
a
ni
es
.
r
As
s
ess
th
e i
n
fo
rm
a
ti
on
an
d r
eco
mm
en
d
a
p
p
r
o
pri
a
t
e
ac
ti
o
n.
[
J
{
:.
-
r
,
\
-
r:
r
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r
G
.
SA
ILE
S
II
PRAJAPATTI
ACCOUT
No account
ope
n
ing
doc
u
me
n
ts
avai
l
e
d
.
Th
ey we
r
e a
l
l
e
ged
l
y
bur
nt
in a go
c
d
ow
n
fi r
eo
K
s
ll
S. 55
5,
6
1
8,
102.
2
5
d
e
p
os
i
t
ed
be
tween 2
n
d
Ma
y
2
00
3 and 2
nd
Augu
s
t
2
00
4
Mos
t d
e
p
osi
t
s
fr
o
m
Na
ku
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natt h
oldi
n
gs
and
t
ran
s
f
er
s
from
s
undr
y c
r
e
dit
o
r
s.
In
o
n
e
i
ns
t
a
n
c
e
an
eq
u
iv
al
e
n
t
o
f th
e
a
mo
unt
tran
s
f
e
r
red
fr
o
m S
u
n
d
r
y C
r
e
dit
o
r
s
i
s
t
ake
n
out
t
hro
u
gh
I
di
l
's by o
r
de
r
ofvarious
p
e
r
so
n
s
6
-1
-
'
-----.
:
....-
-
------
-
---
-
-
-
--
::
---
-
Ne
xt
co
ur
s
e
o
f acti
o
n
r
Tr
a
ce the Idds
t
o e
st
a
b
l
is
h
t
he
ir b
e
neficiar
i
es
r
Trace the sour
c
e
of funds and establis
h
w
h
e
th
e
r
is a s
c
hem
e
t
o
hid
e s
a
l
es pr
o
ceeds
to evad
e
tax
.
f
I
I
L
·
'
r
'
r
D
e
t
e
rmine
the ext
e
nt
o
f
lia
bi
lit
y
and rec
o
mm
e
nd
a
p
propr
ia
te
ac
tion
.
7.
P
AOLO SAT
TA
N
I
I
\O
ACC
O
Ul
\
TS
a)
CA 0
1
-6
000
6 Approx
K
s
hs. 52 M
i
l
l
ion
in d
e
p
o
s
its
.
b)
CA 0
1
- 800145 Approx 4
0
,
8
0
8
,2
98
in d
e
posits
.
c)
CA 0
1
-
700
1
54
App
r
ox
7
1
2,200 in deposits.
r
No a
c
count
ope
n
ing
docume
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ts
.
,
.
Acco
un
ts
h
e
l
d i
n
fo
r
eign
curre
n
cy
.
;,
..
W
i
thd
r
awals
mo
s
t
ly by Te
l
egraphic
tr
ansfer
s
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(
Ne
xt c
o
ur
s
e
o
f a
c
t
io
n
"
.
r
E
s
tabli
s
h
t
he purpo
s
e
of the funds
t
ransferred
i
n
t
o his accounts
;
,
.
Establish
the tax implicatio
n
s
on
t
he activities
of
t
hese accoun
t
s.
/"
A
sses
s
appropriate
tax
;
;
-
Char
g
e
tho
s
e
re
s
pon
s
ible
[or
t
ax evas
i
on with
the
o
ffen
c
e
of c
o
mmitting
an
eC
O
nOl1lIC c
r
ime
;
,
.
Pur
s
u
e
the destination
of ti
l
e funds transferred
out of t
i
le a
c
count
b
y
t
e
l
eg
r
a
ph ar
,
e
s
tabli
s
h
wh
e
ther
an
y
laws have b
e
en con
t
rave
n
e
d
.
CO
N
CL
U
SION
Th
e
-
firs
t ph
a
s
e
o
f thi
s
exe
rci
se
f
o
c
u
se
d
o
n
t
h
e
fir
s
t three
co
mpani
es
wit
h
t
h
e
ann
o
f
inve
s
tigatin
g
a
l
legatio
n
s
o
f
VA
T
a
n
d
I
ncome
T
:
-
Ix
ev
a
sion
s
.
Th
e
t
h
r
ee
ar
e
:
i)
Creat
i
ve
I
n
n
ova
t
ion
s
ji)
\
V E Ti
l
l
ey
(
J
\lu
th:l
iga)
L
td
ii
i)
T
u
sker :-
'
l
at
tr
ess
cs
'7
I
-
v
The se
c
ond
p
hJ
SC of
t
hc i
nves
t
igations
will focu
s
o
n the
r
e
m
a
i
ning
f
ou
r e
nt
i
ties
w
i
t
h
t
h
c
a
i
m of unra
vel
in
g
t
h
c
net
work
of s
e
cret
ba
n
k accounts
w
i
t
h the
a
t
t
end
ant
tax ev
as
io
ns,
i
l
l
e
g
a
l
mo
n
ey
tra
nsfe
rs
and viol
a
tion
o
f banking
r
u
l
e
s
by
b
i
g b
us
i
nesses.
T
hi
s
se
cond
p
h
a
se
s
h
ou
ld
s
ta
rt a
s s
o
o
n
as th
e
fi
r
s
t
phase is c
o
ns
i
derably
con
cl
ude
d
.
Pr
e
p
a
r
e
d
b
y:
IIE
:
\RY
;
\I
l
\
l\YITIIIA
30
TII
N
OVE
I
\
IB
E
R
200
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t
I
.'
1
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.
.
'
.
.••
L
,
\
I
l
~
.
r
I
'
OT
II
E
R
ENT
I
T
I
ES
Bank
a
cco
un
t
d
e
t
ails
we
r
e
so
u
gh
t
f
o
r
t
he
f
o
l
low
ing
enti
t
ies
and
bel
o
w
are
t
he
o
b
s
e
r
va
t
i
o
ns
fro
m t
he inform
ation
obtained
from
Char
t
crhousc
Bank
K
A
RI
U
KI
M
U
IG
U
A
&
CO
. (C
L
IE~TS
ACC
O
U
~TS)
C
h
ar
t
er
h
ouse
;\
l
a
n
ag
i
ng
D
irector
d
e
c
l
in
e
d
t
o
d
i
ndgc
any inf
or
mat
io
n
or d
o
c
u
ments
w
i
t
h
r
eg
ard
t
o
th
is account
ci
t
ing
a High Co
u
rt
ord
e
r
,
wh
i
c
h
h
e claimed,
bar
r
e
d h
i
m fron
:
di
sc
l
osi
n
g
an
y
inf
o
rm
a
ti
o
n
w
i
t
h
regar
d
to
t
he above
na
m
e
d
accounts
,
I
-
I
e cou
l
d o
n
ly
pr
o
du
c
e
a c
o
urt
o
r
de
r
ba
r
ring
ce
r
tai
n
r
es
p
onde
n
ts
fr
om a
c
cess
in
g
t
he
i
nf
o
rm
ati
o
n
wit
h
r
eg
ard
t
o
that ban
k
a
cco
unt
o
f
w
hi
c
h th
e
Ken
y
a An
t
i-C
o
rr
u
pti
o
n
Com
mi
ss
i
o
n
o
r
i
t
s agc
nt
wa
s
n
o
t
a
m
o
n
g
them
f
.
.
H
o
w
cv
er,
a
cco
rdin
g
t
o
d
oc
um
e
nt
s
a
v
ail
e
d
from
o
th
e
r
so
u
rce
s
w
ithin the ta
sk f
o
rc
e, o
n
e
of
th
e acco
unt
s,
CA 0
1
- 000563
r
e
cei
ve
d
d
e
p
os
it
s
a
m
ou
nt
ing
t
o Ks
h
s. 380
,
5
4
8,898
s
tartin
g
f
r
o
m
8
i
h
M
a
r
c
h
200
4 t
o
l
S
I
S
e
ptem
be
r
200
4
.
I
n
f
o
rm
a
ti
o
n
f
r
o
m t
he
s
a
m
e sou
r
ce
a
l
so
-
in
d
i
c
at
e
d
that the bank
ac
t
s o
n un
s
i
g
ned
in
s
tru
c
ti
o
n
s
su
pp
ose
dl
y
fr
om
Kar
iu
ki
f\
lui
g
ua
,
rai
si
n
g
th
e
p
oss
ibilit
y
th
a
t
t
h
e
in
s
tructi
o
n
s
ar
c
pr
e
p
a
r
ed
wi
t
h
in th
e
b
an
k
.
It i
s a
l
so
be
l
ieve
d
t
h
at th
e
a
cco
unt
i
s ac
tua
l
l
y
o
p
e
r
a
t
e
d
b
y so
m
e
o
f t
he
bi
g
b
us
i
nesses
in t
ow
n but
s
hi
e
ld
ed
by
th
e c
l
o
ak
o
f
c
li
e
nts
'
c
o
nfid
e
nti
a
lit
y.
L
a
t
es
t
devel
o
pments
r:
The bank
forwa
r
de
d
a
co
p
y o
f
a
n
o
th
e
r
hi
g
h
co
urt
o
rd
e
r b
a
rin
g
th
e
K
e
n
y
a A
nti
-
Corruption
Co
mmi
ssio
n
fr
o
m
i
nv
cs
t
iga
t
i
n
g
th
e a
cc
o
unt
.
>
Thi
s
later Hig
h
Co
urt
o
rd
e
r
h
a
s
n
o
t
bee
n
se
r
ve
d
o
n th
e Co
mm
issio
n
as a
t t
he
t
i
m
c
o
fJ
1
lakin
g
thi
s
r
e
p
o
rt
.
r
I
t i
s
beli
e
ved
that t
h
e a
c
c
o
unt
is operat
e
d
by big
b
usinesses
in t
ow
n t
hat d
e
posit
s
al
es procee
d
s
into th
e
a
ccou
n
t
and h
o
p
e
to hid
e
t
h
e
m
u
s
ing
t
he c
l
o
ak
o
f clien
t
's
co
nf
i
d
entia
lit
y
u
n
d
e
r the
advoc
at
es
a
c
t
.
Next c
o
u
rse
of actio
n
r
Awai: service of
t
he o
r
der
t
o determ
ine
thc ncx: c
ou
r
se o
fa
c
ti
o
l
l.
8
_
..
J
' .
I
Offence
likely
to he disclosed
Fail
ure
t
o
pay
t
axes b
y
t
h
e c
o
m
panies
us
in
g t
h
i
s acc
ou
nt
as
p
ara
lle
l
accou
n
ts
c
o
ntrary to
s
e
ct
io
n
4
5
(
1
)
(d) o
f t
he Anti-
Corru
p
ti
o
n
and Eco
n
om
ics
A
c
t of2
00
3
D SIL\H
ACCOCNT
I
,
.
L
'
~
Th
is
<lCCO
Ul
1
th
as
r
ec
e
i
ved
a
total
o
f
Ksh
s.
GOl,%8,1
7
1
.
33
i
n dep
o
sits
f
o
r
t
h
e pe
r
io
d
s
tartin
g
fr
0111
5
l
h
May 200
3 t
o 3
rJ
Novembe
r
200
4 m
ostly i
n
huge
c
as
h d
eposits
.
It
is
also
r
e
ilc
e
t
s
h
u
ge
ca
s
h
w
i
th
d
rawals
.
I
t
is be
li
e
v
e
d
t
ha
t t
he
r
elate
d
compan
i
es
use this accoun
t
as
a
sec
r
e
t p
a
ral
le
l
accoun
t
t
h
r
ough
wh
i
c
h
to hide sa
l
e
s pr
oceeds.
Th
e acco
u
n
t
o
pe
nin
g
d
oc
um
c
nt
s
c
o
uld n
o
t r
eve
al th
e ow
n
e
r
.
Additional
findings
r
So
m
e
o
f
th
e
d
e
p
os
it
s
h
ave
b
ee
n
es
t
ab
li
s
h
e
d
as cas
h
t
ransfe
r
s
from su
ndr
y
cr
e
dit
o
r
s.
r:
T
he
e
qui
v
al
e
nt
i
s
then tak
e
n
o
ut a
s
fdd i
ss
u
e
d
by o
r
de
r
o
f
1\
'
1r
.
D Shah
Next course
of action
I
..
(
"
'
;
-
Co
ll
ec
t
d
ebi
t
an
d
c
r
edi
t v
ouc
h
e
r
s
eff
e
ctin
g
e
nt
r
ie
s
into thi
s
a
c
c
o
unt
a
n
d est
abl
is
h
th
e so
ur
ce o
f th
e
fund
s
'
r
In
t
e
r
view
C
h
arte
rh
ouse
b
a
n
k o
ffi
c
i
a
l
s
and tr
y
t
o
trace th
e ow
n
e
r
o
f th
e
a
cco
unt
;
.
If a case
is es
t
a
bli
s
h
e
d
o
f
VA
T
a
nd Inc
o
me
Ta
x
e
v
a
s
ion
,
th
e
n
c
h
arg
e
t
h
e
com
p
ani
e
s
their dir
e
c
t
o
r
s
wit
h
co
mmittin
g
an
e
c
o
n
o
mic
cr
i
me
,
.
Tra
c
e the fdJ'
s
and try to e
s
tab
li
s
h
the
b
e
n
efic
i
aries
o
f t
he
tr
a
n
sfe
r
s
.
r
E
s
tabli
s
h
the
r
ea
l
so
ur
ce of
f
unds and dete
rm
ine
w
h
e
th
e
r
it i
s
a p
a
r
alle
l
a
c
c
o
u
nt t
o
h
id
e s
al
es
pr
o
c
ee
d
s
f
o
r c
o
mpani
e
s
.
»
:
As
s
e
ss
th
e i
n
fo
rmat
io
n
a
nd r
eco
mm
e
n
d
ap
p
r
op
riate
a
c
t
i
o
n
.
9
~
..
[
Offences
likely
to be disclosed
Ta
x evasio
n
co
ntr
ary
t
o secti
o
n
4
5
(
I
) (d) o
f
the An
ti-C
o
r
r
uption
and Ec
o
nomi
c
s
Crim
e
s
A
c
t
0
[2
00
3
I
SAILESII
I'RAJAPATI
ACCOUNT
CA 01 - 0
00148
Th
e b
ank cl
ai
m
ed
tha
t
a
c
c
o
unt-
o
p
e
n
in
g
d
o
cum
e
nts
in re
s
pect
to this a
cc
ount
w
e
re bu
r
n
t
dow
n
i
n a fi
re,
H
oweve
r
,
b
e
t
wee
n
2
"
d
1\
'
1
:
1y2
00
3
an
d
2
nJ
Aug
u
s
t
2
0
0
4
the
a
c
coun
t
r
e
c
eiv
e
d
Kshs.
551,518,102.25
in t
he
f
o
rm
o
f
h
u
ge
ca
s
h
de
p
osits
,
an
d
ch
e
ques
f
r
o
m
N
ak
u
mm
at
t
H
o
ldin
gs.
The a
cco
u
n
t
al
s
o
r
ef
l
ects
cas
h
w
i
t
h
d
ra
wa
l
s
in
a
n
usual
l
y
h
uge amoun
t
s
.
It is
b
e
lie
ve
d
th
a
t thi
s
i
s a
c
cou
nt
is
a
l
s
o u
se
d b
y
big b
us
in
ess
i
n t
ow
n l
i
k
e to hide sa
l
es
pro
cee
d
s
.
Ie
I
Additional
findings
r
.
Mo
s
t d
e
p
os
it
s
fro
m
Na
kum
a
tt
h
o
l
d
in
gs a
nd tr
ans
f
er
s
fr
o
m
s
u
n
d
r
y
c
r
edi
t
ors
.
:
r
.
1
1
1
on
e in
s
tan
ce
a
n
e
qui
va
l
ent
o
f th
e a
m
ou
nt
tr
a
n
s
f
e
rr
c
d
f
r
o
m
S
u
ndry
C
r
e
d
ito
r
s
i
s
tak
e
n out thr
o
u
g
h
fJJ
's
b
y o
rd
e
r
o
f
va
ri
o
u
s
p
e
r
so
n
s
Ne
xt course
of action
r
Co
ll
ec
t
d
e
bit
a
nd
c
r
e
dit v
o
uch
e
rs
eff
e
ctin
g
cntr
i
es into thi
s accou
nt
a
nd
e
s
t
ab
l
is
h
t
he so
u
rc
e
o
f
the fu
nd
s
;
;
.
Trace
t
he
Id
c
l'
s to es
t
ab
li
s
h
t
hei
r
be
n
ef
i
c
i
a
r
ie
s
r
Int
e
r
vi
e
w
C
h
ar
l
c
rh
o
u
se
b
ank of
fi
cia
l
s a
nd tr
y
t
o
tr
ace
th
e
O
W
1
1e
r
of
th
e ac
co
unt
r
If a ca
s
e
is e
s
t
ab
l
is
h
e
d
of VA
T
a
nd
In
co
me
Ta
x
e
va
s
i
o
n,
t
h
e
n
c
h
a
r
ge t
h
e
co
mpanies
th
e
ir dire
c
t
o
r
s
wit
h
co
mmitt
i
n
g
a
n
eco
n
o
m
ic
crim
e
.
P
AOL
O
SAT
L\
N
I
NO
ACC
O
UN
T
S
Iv
!
1
'
.
P
ao
l
o
Sa
tl
ani
n
o
operates
t
hr
ee
foreig
n
a
c
c
o
u
nt
s
wi
th
Chart
cr
h
ousc
Ba
n
k.
H
owe\'c\'c
r
,
t
h
e ba
n
k open
i
ng dOc
l
lIllents contains
t
he na
m
e o
f
Capr
i
c
o
rn
S
RL
T
he
ban
k
off
i
c
i
al
s
claime
d
t
ha
t
those
are
t
he docum
en
t
s
f
o
r
t
he
a
ccoun
t
.
Th
e
ba
nk opening
docllI
l
lents
arc
al1
acc
o
unt opening
J{J!1l1a
n
d
two lette
r
s s
igne
d b
y
P
aolo
Sat
tunino
one as
10
1
1
-
l
-
'
--------------
---
--
,
-
•
hirn
sc
l
f
a
nd the
o
t
he
r
as t
h
e Ma
n
ag
in
g
Di
rec
t
o
r
o
f
Cap
ri
c
o
rn
SR
L
.
T
he let
t
e
r
s a
u
t
h
o
ri
ze
t
he b
a
n
k to
a
c
t o
n
1
2 -
Ma
il
in
s
t
r
u
c
ti
o
n
s
fr
o
m the wri
t
e
r
.
The three a
c
count
s
ar
c:
-
1.
ACCO
U
~T
1
'
(0. CA
0
1 -
60
0
06
A
US
DOLLAR
ACCOU~T
[
i
I
.
A
sc
ruti
ny
o
f th
e
ban
k
stat
e
m
e
nt
r
e
v
ealed
that
the
abov
e
a
c
c
o
un
t
r
e
ceived
US
D
657,65
1
.
2
(
th
e eq
u
ivalent
of Ks
h
s,
52
mil
l
ion
)
be
t
ween
1
51
Ap
ri
l
2
00
4
and 3
rJ
No
v
e
m
be
r
200
4
b
y
w~
y o
f t
ran
s
f
e
r
m
o
s
tl
y
fr01
11 Cr
e
at
i
ve
Inn
o
va
t
i
o
ns
and K
i
ng
s
way
.
T
elegraphic
tran
s
f
e
r
o
f f
o
r
eig
n
e
x
c
h
a
nge
ta
k
e
s
ou
t
a
n
eq
ui
vale
nt
am
o
unt
t
o recipients
l
ike
s
eve
r
a
l
re
c
ipi
e
n
t
s
lik
e
Tra
dc
x
.
S
t
e
p
s
t
o he
un
de
rt
aken
?
E
s
tabl i
s
h the purp
os
e
o
f th
e
funds tran
s
f
e
rr
e
d
i
n
t
o
hi
s acc
o
unt
'
r
E
s
tabli
s
h
th
e
ta
x
impli
c
ati
o
n
s
o
n th
e ac
ti
v
i
t
i
es
o
f t
h
i
s acco
unt
.
r
l\
SS
CS
S
a
ppr
o
pr
ia
t
e
l
ax
)
....
Char
g
e
th
ose
r
es
p
o
n
s
i
bl
e
[
o
r t
ax
ev
a
s
i
o
n
\V
it11
t
h
e o
ff
e
n
ce
o
f
C0
I1
1
11
1
i
l
t
i
n
g
a
n
c
co
n
o
nuc
c
nrn
c
r
:
Pur
s
ue
th
e
d
e
s
t
i
nati
o
n
o
f th
e
funds tr
a
n
s
f
e
rr
e
d
o
ut
o
f th
e
a
cco
unt
by
t
e
l
eg
r
ap
h and
es
tabli
s
h
w
h
e
th
e
r
an
y laws
h
a
ve b
ee
n c
o
ntra
v
e
n
ed
.
2.
ACCO
U
NT
NO. C
1
\ 01 - 800
1
45
EU
R
O
ACCOUNT
(
T
h
is
a
cc
o
unt
r
ece
i
ve
d
a
t
o
tal
o
f
E
ur
o
s
392,3
8
7
.
4
9
(
the equival
e
nt
of K
s
h
s
,
40,
808,29
8
)
in
the
s
h
or
t p
e
r
io
d
be
t
ween
1
s
t
A
pri
l
200
4
a
nd
2
2
n
J
O
c
t
o
b
e
r
20
0
4.
Sim
i
l
a
rl
y
,
th
e
d
e
p
os
it
s
were
by way
of
tr
a
n
s
f
e
r
s
f
r
o
m Cr
ea
ti
v
e
Inn
o
v
a
ti
o
ns
and D Shah
acco
unts
,
D
e
bits in the
accoun
t
a by wa
y
o
f t
e
l
eg
raph
ic
tr
a
n
s
f
e
r
s
t
o fo
r
e
i
g
n de
s
tin
a
ti
o
n
s
.
S
t
e
p
s
to h
e
undertak
e
n
r
Es
t
a
bli
s
h
t
he p
u
r
po
s
e
o
f
t
h
e
f
unds
t
ransf
e
r
r
e
d
i
nt
o
h
i
s
a
c
c
o
unt
»
:
E
s
tabli
s
h
th
e
ta
x
impli
c
ati
o
n
s
o
n
th
e ac
t
i
v
i
t
i
es
o
f thi
s
a
c
co
u
nt
.
r
:
l
\
s
sess
ap
p
ropria
t
e
tax
r
C
h
a
r
ge
t
ho
s
e
r
e
s
p
onsib
l
e
f
o
r t
ax
ev
a
sio
n
w
i
th
t
h
e o
ff
e
n
ce
of co
m
m
i
t
tin
g
a
n
I
1
.
e
c
o
n
o
m
i
c
crrmc
~_
..
,
----.
:
....--
_-----------
f
J
Offc
n
c os
l
ike
l
y
to be disc
l
osed
Ta
x evas
i
on
co
ntrar
y
t
o sec
ti
o
n 4
5 (
1
) (d) o
f t
he An
ti
-Co
rr
u
pti
o
n
an
d
E
co
n
o
mi
cs
Crim
e
s
Ac
t
o
f
2003
1
r
SA
I
LES
II
PRAJAPATI
ACCO
UN
T
CA 01 - 000148
The bank cl
a
im
e
d
th
a
t
ac
c
o
u
n
t
-o
p
ening
document
s
in r
espec
t
t
o
th
i
s a
ccoun
t
we
r
e bu
r
n
t
do
w
n in a fire
.
H
o
wever,
b
e
tw
ee
n
2
/
l
d
1\
1
:
1
1'
2
003
a
n
d 2
n
d
Augu
s
t
2
00
4
the
a
ccoun
:
r
eceiv
ed
Kshs
.
551,5
1
8,102.25
in th
e
f
o
rm
of hu
g
e
c
as
h
d
e
po
s
its,
and
c
h
e
q
u
es
fr
o
m
Nak
umm
a
u
Holding
s
.
The account
al
s
o reflect
s
ca
s
h withdrawal
s
in an u
s
uall
y
hu
g
e
a
m
o
u
n
t
s.
It is
believed
that this
is account
is al
s
o u
s
ed b
y
big busine
s
s
in t
ow
n like to hid
e s
al
e
s
proce
e
d
s.
Addi
t
iona
l
f
indings
r
Mo
s
t depo
s
its
Ir
o
rn
Nakumau
holdin
g
s and tran
s
fers
fr
o
m
s
undr
y
cr
e
dit
o
r
s.
:,
:
..
1
1
1
o
ne in
s
tance
an equival
e
nt
of the amount
transf
e
rred
from
S
undr
y
C
re
dit
o
rs i
s
taken out throu
g
h
fJd's by ord
e
r of various per
so
n
s
Next cour
-
se of action
>
C
o
ll
e
ct
debit and credit vou
c
hers
effecting
entries into this ac
c
ount
and e
s
tabli
s
h
th
e s
our
c
e
o
f th
e
fund
s
:
r
T
ra
c
e th
e
fdd
s
t
o es
t
a
bli
s
h
th
e
ir b
e
neficiaries
r
In
t
e
r
v
i
ew
C
h
a
rt
c
rh
o
u
s
.
,
b
a
nk offici
a
l
s
and try to trace the oWl
~e
r
o
f the
acco
unt
r
I
f
a
ca
se
is
es
t
a
bli
s
h
e
d
of VAT
and
In
c
ome
Tax
evasi
o
n,
th
e
n
c
har
g
e th
e
co
mp
a
n
ies
th
ei
r dir
ec
t
o
r
s
with c
o
mmittin
g
an ec
o
n
o
mic
crime
.
PAOLO
SA
T
'
L\
N
INO
ACCOUNTS
Mr
.
Paolo
Sat
t
anino
operates
th
r
ee
fo
r
eig
n
accou
nt
s
w
ith
C
h~
l
r
ter
h
ou
sc
B
ank
.
H
owcvcv
c
-
the bank op
e
ning d
o
cuments
c
o
ntains
t
he name o
f Ca
p
ri
cor
n
S
RL
The
b
ank
official
s
claim
e
d
that
th
os
e
arc the d
oc
u
ments
f
o
r the accoun
t
.
T
he hank
o
pening
d
oc
uments
JI
'C
<In a
cco
unt
o
p
e
ni
n
g
f
o
rm
and t
wo lette
rs s
ign
e
d
by Pa
o
lo Sattun
i
n
o
, one as
10
'r
P
u
r
s
u
e
t
h
e
d
es
t
i
nati
o
n
of
t
he funds transf
e
r
r
c
d
ou
t
o
f th
e acco
u
n
t b
y
t
elegrap
h and
c
s
tah
li
s
h
wh
et
h
e
r
an
y
l
a
ws hav
e
been
c
o
ntravened
Off
e
nce
lik
e
l
y
t
o
b
e
di
scl
o
sed
1
.
Fai
l
ure
to p
J
.
y
tax
es contrary
to sectio
n
45
(
1 )
(d) o
f
the An
ti-C
o
rr
uptio
n
a
nd
E
cono
mi
cs
A
c
t
o
f
20
0
3
.
2
.
f
u
nd
s
tr
a
n
s
f
e
r
t
o sec
r
et de
s
tination.
Prepared
by:
H
ENR
Y
1
\1
l
\1\VITHIA
12
11
1
N
OVEMB
E
R
200
-
t
f
"
I
/
.
.
f
C
I
·
r
I
I
12