The Court of Appeal has ordered a former Mp to pay pay-TV operator MultiChoice Kenya Sh153 million in damages after defrauding the company over ten years ago
The former Kandara MP, Maina Kamau, defrauded the South African firm, which owns DStv, the money through his clearing and forwarding company, Mainkam Limited.
The money was supposed to be taxes payable to the Kenya Revenue Authority (KRA) for satellite dishes and decoders that were imported in 2009 when Kenya was preparing for the television digital migration. however, Kamau’s logistics firm did not remit the taxes.
As a result of the non-remittance, that was unearthed by a KRA audit on its financial books, DSTV was forced to pay the money.
MultiChoice then moved to court in 2012 and on September 24, 2019 Justice William Tuiyot issued an order compelling Mainkam to refund the amount together with interest, a ruling that did not sit well with Mainkam leading to an appeal as well as an application to stop execution of the judgment by the logistics company.
“It is plainly obvious to us that the respondent (DSTV) has been deprived of the use of their Sh153,457,809 for a considerable period through the acts of the applicants (Mainkam) thus exposing their business to incur losses,” ruled the bench comprising of justices Mohammed Warsame, Gatembu Kairu and Jamila Mohammed.
The Court ruled tht Mainkam should pay the pay TV the dues which were “a significant amount of money which could have been put to good use to ensure the respondent continues to run effectively”.
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