Zuku group founder seeks to block rival owners in KRA case

Wananchi Group founder Richard Bell during a past interview. FILE PHOTO | NMG 

By GALGALLO FAYO

More by this Author

Summary

• Richard Bell has asked High Court Judge Roselyne Aburili to suspend her decision allowing his rivals to participate in the case, pending determination of the appeal against the decision.
• Justice Aburili last month allowed Wananchi Nominees Limited, International Consulting Limited (formerly known as ISP Kenya Limited) and East Coast Telecoms Limited to be enjoined in the suit to help the taxman prove his case against Mr Bell.

Businessman Richard Bell, a founder of Internet and pay-TV service provider Zuku, has made a fresh application seeking to stop his rival shareholders from participating in a Sh3.4 billion tax evasion suit pitting him against the Kenya Revenue Authority (KRA).

Mr Bell has asked High Court Judge Roselyne Aburili to suspend her decision allowing his rivals to participate in the case, pending determination of the appeal against the decision.

Justice Aburili last month allowed Wananchi Nominees Limited, International Consulting Limited (formerly known as ISP Kenya Limited) and East Coast Telecoms Limited to be enjoined in the suit to help the taxman prove his case against Mr Bell.

The three applicants told the court they had information that KRA did not have with regard to Mr Bell’s responsibility as the representative of offshore companies that are subject to the suit, a position that makes him directly answerable on the suspected tax avoidance.

Mr Bell moved to court seeking to reverse KRA’s decision requiring him to take responsibility for a Sh3.4 billion tax fraud case against the offshore companies.

“I…verily believe that the court erred in finding that the 2nd, 3rd, and 4th respondents had sufficient interests so as to be enjoined as parties in the proceedings,” says Mr Bell in his supporting affidavit dated March 15.

READ: Zuku rivals back KRA in Sh3.4bn taxation case

Mr Bell therefore requests the ruling to be suspended arguing that his appeal has a high chance of success.

Justice Aburili directed the case to be mentioned on April 10 for further directions.

The rival shareholders agreed to withhold their submission to the substantive case until that date.

The judge had in her ruling said that the rival shareholders had indicated that they had information that could help the court if they were enjoined in the case.

KRA wants Mr Bell to be held responsible for the taxation of Wananchi Satellite and Wananchi Programming, both based in Mauritius, but whose operations the taxman claims are in Nairobi.

The rival shareholders are locked in a vicious boardroom war with Mr Bell that begun with the announcement of plans to sell Wananchi Business Services — the unit that deals in corporate data services.