African Spirits Limited directors could be arrested and remanded if the company fails to settle a Sh20 million cash bail over Sh41 billion tax evasion allegations.
The company requested an extra 14 days to settle the bail after a Kiambu lower court ordered the freezing of the company’s accounts for 90 days.
Appearing at a Milimani court, the company represented by Peter Njenga asked the court to consider giving it lenient bail terms.
Through their defence, African Spirits submitted that the directors of the company are the same directors of a co-accused company, Wow Beverages Limited required to also deposit Sh20 million bail.
But the prosecution informed the court that in an application Wow Beverages had said that it was a separate legal person from African Spirits.
“The directors of the two companies accused of tax evasion cannot be deemed the same. Additionally, there is no material evidence placed in court that the directors are the same,” the prosecution said.
According to the DCI, the frozen company’s accounts are currently under investigations for money laundering and other offences.
The cash was therefore referred to as ‘suspect money that cannot be used in court’.
Last week, Peter Njenga was released on a Sh11 million cash bail on the same tax evasion allegations.
It is also alleged that Njenga is a director at Wow Beverages and he could be arrested and remanded if it does not settle the Sh20 million bail by today (Thursday).
Africa Spirits Company has been under lock and key since January 31.
This week, billionaire Humphrey Kariuki, who is also facing Sh41 billion tax evasion-related charges was freed on Sh11 million bail.
The bail was issued despite the prosecution’s application to have him detained pending verification of his Kenyan and European Union passports to determine whether he should be released on bail.
The charges preferred against him and Africa Spirits in one file include forgery, money laundering and tax evasion.
In another file, they are accused alongside others with being in possession of uncustomed goods. The goods are 80 drums of ethanol each of 250 litres.
The company and their co-accused are charged with being in possession of counterfeit excise duty stamps and possession of excisable goods affixed with counterfeit excise stamps.
The case will be mentioned on September 2.
