Kiwipay's $19.4 million was frozen last year over suspicion that the firm was involved in an international card fraud syndicate.
Embattled payment solution firm,Kiwipay, whose funds were frozen last year over claims of card fraud syndicate is facing more trouble with the Kenya Revenue Authority(KRA) demanding Sh.3 billion intaxes.
The company says in documents filed in court that the taxman is demanding the principal amount plus penalties adding that Kiwipay Kenya Ltd was sinking into debt yet it cannot access its funds, which remained frozen by court orders obtained by various parties.
The $19.4 million (about Sh2.6 billion) was frozen last year over suspicion that the firm was involved in an international card fraud syndicate, the Assets Recovery Agency (ARA) then withdrew the case against the firm but several parties obtained court orders for the money to remain frozen.
“That Ecobank has whilst the orders are subsisting paid money to other parties and consequently some of the liabilities that have accrued as debts to the applicant, including statutory outgoings and taxes which have fallen due and attract penalties,” the firm said in documents filed in court.
Ms Monthida Rashi from Laos, who says she is a shareholder and director of the firm, claims that Kiwipay Kenya Ltd cannot meet its financial obligations because of freezing orders.
“That as the suit herein continues to await determination, the company continues to go deeper into debt,” Ms Rashi said in a sworn statement.
The firm says it offers digital payment services such as QR Code solutions for retail shops, hotels and restaurants by enabling foreign e-wallet solutions.
Several people including Ms Rashi, three Kenyans and Gregory Schmidt from Singapore have been fighting for the control of $19.4 million since the assets recovery agency withdrew a petition for the funds to be forfeited to the government.
Ms Rashi says Kiwipay PTE Ltd, which belongs to Mr Schmidt and claims to own majority shares in the Kenyan subsidiary, is a foreign firm that cannot offer the operations of the local firm.
She wants the court to direct Ecobank to release the money and more than Sh500 million paid to several law firms, using court orders, refunded.
“That it is important that all these matters are consolidated and heard by the same court as all transactions sanctioned by lawyers are suspended so as to protect the applicant (Kiwipay Kenya) and its directors from being defrauded,” Ms Rashi said.
Recent News
MCA IN TROUBLE FOR ASSAULTING FEMALE COP
NATIONAL
By KELVIN OBIRI | 1 month agoTOUGH TIMES AHEAD FOR NAIROBI RESIDENTS WITH THE ONSET OF WATER RATIONING
COUNTIES
By KELVIN OBIRI | 1 month agoONGOING DOCTORS STRIKE IS POLITICAL,CLAIMS GOVERNMENT SPOKESMAN
NATIONAL
By CAROL NDETI | 1 month agoMP RUBBISHES GACHAGUA'S APOLOGY TO MAMA NGINA,TERMING IT OPPORTUNISTIC
POLITICS
By EVANS MUTAI | 1 month agoFEARS OVER RESURGENCE OF COVID 19 AFTER A SPIKE IN FLU CASES
NATIONAL
By CAROL NDETI | 1 month agoNTSA OFFICERS TO RESUME MANNING ROADS FOLLOWING MURKOMEN'S DIRECTIVE
NATIONAL
By KELVIN OBIRI | 2 months agoPARLIAMENT HANDS RUTO A FREE HAND IN HIRING OF CAS
NATIONAL
By EVANS MUTAI | 2 months agoGOVERNOR SNUBS REGION OVER ALLEGED 'THREATS TO HER LIFE'
COUNTIES
By CAROL NDETI | 2 months agoPOLICE DEFY COURT ORDER FOR EVICTION OF UHURU KIN FROM PRIME LAND
NATIONAL
By KELVIN OBIRI | 2 months agoKENYA'S POLICE MISSION TO HAITI STILL ON,RUTO INSISTS
NATIONAL
By EVANS MUTAI | 2 months agoRWANDA'S KAGAME ENDORSES RAILA FOR AU TOP JOB
AROUND AFRICA
By KELVIN OBIRI | 2 months agoFORMER LEGISLATOR PLEADS GUILTY TO SHOP LIFTING
INTERNATIONAL
By OUR CORRESPONDENT | 2 months agoPOLICE RESCUE FAKE CURRENCY FRAUDSTER FROM MOB VIOLENCE
COUNTIES
By CAROL NDETI | 2 months agoU.S DISPATCHES MARINES TO HAITI EMBASSY TO EVACUTE STAFF IN OVERNIGHT OPERATION
INTERNATIONAL
By OUR CORRESPONDENT | 2 months agoTHOUSANDS STARE AT JOB LOSES AS GOVERNMENT CANCELS LICENCES FOR SEVERAL LIQUOR FIRMS
NATIONAL
By KENNEDY MUNGAI | 2 months agoKENYA DEFENDS SELF IN SH.300 BILLION RAILWAY COURT DISPUTE WITH UGANDA
NATIONAL
By KENNEDY MUNGAI | 2 months agoDOCTORS TO STAGE NATIONWIDE STRIKE NEXT WEEK
NATIONAL
By EVANS MUTAI | 2 months agoGOVERNMENT BORROWING ESCALATES WITH A SH.227 BILLION DEBT IN FOUR MONTHS
BUSINESS
By KENNEDY MUNGAI | 2 months agoFORMER MP ANNOUNCES BID TO REPLACE RAILA AS OPPOSITION CHIEF
POLITICS
By EVANS MUTAI | 2 months agoDCI OFFICER AMONG TWO PEOPLE STABBED TO DEATH IN KISUMU
NATIONAL
By KELVIN OBIRI | 2 months agoMAN DIES AFTER SHOOTING SELF AT A NAIROBI HOSPITAL
COUNTIES
By EVANS MUTAI | 2 months agoRUTO CRAFTS PLAN TO WIN BACK 'DISAPPOINTED HUSTLERS'
POLITICS
By KELVIN OBIRI | 2 months agoGOVERNMENT TO ROLL OUT MAISHA NUMBER AFTER COURT LIFTS ORDERS
NATIONAL
By KELVIN OBIRI | 2 months agoCOOKING GAS PRICE SHOOTS DESPITE TAX REMOVAL
BUSINESS
By KENNEDY MUNGAI | 3 months agoKINDIKI RATED AS THE MOST ACTIVE CS
NATIONAL
By CAROL NDETI | 3 months agoRAILA PUSHES FOR HEFTY COMPENSATION OF EMBAKASI GAS EXPLOSION VICTIMS
NATIONAL
By KELVIN OBIRI | 3 months agoFACTS ABOUT THE TALLEST STATUE IN THE WORLD
INTERNATIONAL
By OUR CORRESPONDENT | 3 months agoEND OF THE ROAD FOR OIL SCAM FUGITIVE AS UK DEPORTS HIM TO KENYA TO FACE CHARGES
NATIONAL
By KELVIN OBIRI | 3 months agoFORMER PAKISTAN PRIME MINISTER JAILED FOR TEN YEARS
INTERNATIONAL
By OUR CORRESPONDENT | 3 months agoIRAN EXECUTES FOUR MEN OVER ALLEGED LINKS WITH ISRAEL
INTERNATIONAL
By OUR CORRESPONDENT | 3 months agoAdvertisements