Chinese businessman arrested over fraud

The proprietor of Teng Fei Communication Ltd, a Chinese company, only identified as Zhang, was on Wednesday held by the police for allegedly forging invoices with intent to defraud Rwanda Revenue Authority (RRA) millions of francs. According to RRA, Zhang allegedly presented forged invoices claiming to have bought various goods, including building materials from SOGESC and ARISE Enterprises worth Rwf 53,8487,750 million so as to claim the corresponding Value Added Tax (VAT) worth Rwf 8,214,216 million for the said transactions.

The proprietor of Teng Fei Communication Ltd, a Chinese company, only identified as Zhang, was on Wednesday
held by the police for allegedly forging invoices with intent to defraud Rwanda Revenue Authority (RRA)
millions of francs.

According to RRA, Zhang allegedly presented forged invoices claiming to have bought various goods,
including building materials from SOGESC and ARISE Enterprises worth Rwf 53,8487,750 million so as to claim
the corresponding Value Added Tax (VAT) worth Rwf 8,214,216 million for the said transactions.

However, according to RRA, upon close scrutiny, it was discovered that Zhang’s transactions were not
genuine and was instead trying to claim VAT for goods he never purchased.

He was arrested after the companies that, Zhang claims to have dealt with, vehemently denied having sold
their goods to his company.

“We have never dealt with them; we don’t even know the company,” Antoine Butera from Arise Enterprise LTD
said. 


Patrice Ntakirutimana, the proprietor of SOGESC LTD also denied having sold goods to the company.

“In all those receipts, Zhang allegedly says we sold construction materials to them, but we do not deal in
construction materials,” Ntakirutimana explained.

Zhang declined to comment saying he was waiting for his lawyer to respond to the allegations.

ivan.mugisha@newtimes.co.rw

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