The Kenya Revenue Authority (KRA) is demanding Sh3 billion from Kiwipay Kenya Ltd, a payment solution firm whose funds were frozen last year over claims of card fraud syndicate.
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.
