Rwanda tax body queries giant Kenyan firm Fusion Capital over tax evasion

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By Robert Mugabe

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Kigali-Rwanda-Kenya’s large equity company, Fusion Capital, is in hot waters in Rwanda, over police investigations into allegations millions of dollars of tax could have been swindled through another company in which Equity holds 46 percent shares.

This follows “fake invoices” received by Rwanda Revenue from Fusion Capital indicating the purchase of expensive machines for the Rusororo Aggregate firm, in which Fusion Capital claims 46 percent shares.

Fusion Capital had initially invested approximately Rwf1.5 billion ($2.3 million) for a 46.5 per cent stake, but is now suspected of falsely recording a loss worth Rwf1.2 billion ($1.6 million), effectively evading paying tax.

“Concerning if the receipts we received the second time from Rusororo Aggregates Ltd are genuine we wish to inform you that Rwanda Revenue Authority has no authority to confirm their originality. And that Rusororo Aggregates Ltd submitted to us false receipt copies that we later submitted to the CID,” Richard Tusabe, the Commissioner General of RRA said in a letter of 25/11/2015.

Our investigative reports later discovered that CID has summoned Fusion Capital’s Rwanda representative, Kajuju Kageenu on January 11, 2016, but our sources confirm that she did not go to the CID offices, and his since left the country by time of publishing this article.

The troubles for Fusion began after one of the shareholders of Rusororo, Abas Gahigana, a Rwandan businessman alerted RRA the tax authority after suspecting that company money was being misused by the other shareholders.

The other shareholders are Fusion with 46.5 percent and another businessman Joseph Mukama.

Abas alleges that after Fusion had sent money worth Rwf1.5 billion to the Rusororo bank account – half of it for buying shares and the other half for investment – Mukama and Kajuju systematically laundered the money and tried to cover their tracks by faking receipts.

It is upon this that RRA reported the case to CID.

However, Kajuju admitted to wrongdoing but did not accept that it was done intentionally.

“In the course of carrying out a review of our tax affairs, we noted that some of the invoices had been wrongly declared, which could have resulted in under-declaration of Customs duties,” noted a letter signed by Fusion Capital’s representative in Rwanda and company investment director, Kajuju Kageenu, which we have seen.

Rusororo has existed since 2010 and was started by Abas Gahiganan, who owns the concession plot which has a mineral value of Rwf27 billion.

He and his fellow investor Mukama, who are now at loggerheads, registered the company with Rwanda Development Board with equal shares at 50 percent each.

However, Gahigana claims that he has “not received a single coin” from selling to Fusion Capital”.

Because of his row with both Mukama and Fusion, his remaining shares are also on sale “without his consent”.

Attempts to reach Mukama for comment and Fusion Capital representatives in Rwanda were futile by press time.

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