Businessman in dock for causing 954.5m/- loss to TRA

DAR ES SALAAM: BUSINESSMAN Frank Kagale was arraigned before the Kinondoni Resident Magistrates Court at the Integrated Justice Centre Kinondoni in Dar es Salaam on Tuesday, facing seven economic sabotage charges, resulting in a loss of over 954.5m/- to the Tanzania Revenue Authority (TRA).

The 28-year-old had his Economic Crime Case read in court by Senior State Attorney John Mrema, assisted by Emmanuel Medalakini, before the court’s Principal Resident Magistrate, Iz-Haq Kuppa.

However, before his charges were read, the prosecution recommended the substitution of the charge sheet, by adding the three other accused to join in the trial. They are Electronic Fiscal Device Machine (EFD) technicians, Awadhi Mhavilea and Ally Mseya, together with Huga Auto Garage-Kijitonyama Supervisor, Salma Ndauka.

According to the prosecution, on diverse dates between May 13 and July 20, last year, within Dar es Salaam Region, with malicious intent, the accused used blocked and out of use EFD machines to produced fake EFD receipts uploaded in the system of the TRA, to enable other tax payers to claim reimbursement of the valueadded tax (VAT) of over 954m/- from the TRA’s Commissioner General as revenue.

In the second count, it is alleged that, on the aforementioned date and place, the accused jointly and together issued fake EFD receipts from the blocked EFDs to defraud the Commissioner General to reimburse other tax payers value-added tax (VAT) amounting to over 954m/-.

The court also heard that, in the third count, the second accused (Mhavile) was allegedly found in possession of 22 EFD machines reasonably suspected to have been stolen or unlawfully obtained on July 8th, last year, within the city.

In the fourth count, the fourth accused (Ndauka), on July 19th last year, at the Sinza, Kinondoni district, Dar es Salaam, he is alleged to have been found in possession of 10 EFD Machines devices reasonably suspected to have been stolen or otherwise unlawfully obtained.

Moreover, the prosecution claimed that it is alleged that on July 8, last year, within the Lumumba area of Dar es Salaam, the accused, with intent to defraud, made false EFD receipts purporting to show that they were genuine issued by TRA, while knowing that doing that was against the law.

Further prosecuting, Mrema claimed that all the accused alleged that on diverse dates between May 13 and July 20, last year, within the same location, their willful acts caused TRA to suffer a pecuniary loss of over 954.5m/-.

In the seven counts of money laundering, Mrema claimed that, on diverse dates between May 13 and July last year within the same location, the accused jointly allegedly acquired the property, namely over 954.5m/- from the TRA, while at the time of receipt of the said money they knew that it was the proceeds of a predicate forgery offence.

However, the senior state attorney told the court that investigations into the case are incomplete and asked the court to set another date for its mention. Magistrate Kuppa adjourned the case until February 7th, this year, when it will come up for another mention.

The accused was sent back to remand prison because the charge of money laundering, they are facing has no bail.

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