A Chinese Contractor Hongyou Huang, alias Yellow at Milimani law Court’s on Thursday September 8,2016.

A Chinese Contractor who won a Sh55 billion tender to make a Green Field Terminal at JKIA has been charged with tax evasion.

The controversial tender was cancelled.

Hongyou Huang, alias Yellow, who is the vice President of China National Aero-Technology International Engineering Corporation, appeared before Milimani chief magistrate Daniel Ogembo and denied the charges.

The prosecutor says that between May and June 2014, the accused jointly with others not before court, failed to pay taxes amounting to more than Sh66 million being the company manager.

His other three companies, the prosecutor adds were liable to pay income tax but failed to file tax returns with the Kenya Revenue Authority between 2013 and 2014.

The accused also faces another count of failing to appear before KRA on May 4, this year despite having been duly notified to do so.

The prosecution asked the court to enhance Hongyou’s Sh50,000 bond terms, saying the charges he is facing are serious and carries a fine of double the amount of tax evaded or imprisonment of 10 years.
He was also described as a flight risk.

Through lawyer Ian Maina, the Chinese dismissed claims that he is a flight risk, saying his abode is known to police, adding that he has lived in Kenya for more than 22 years. The magistrate, however, granted the prosecution application and reviewed Hongyou’s bond terms to Sh5 million with a Kenyan surety of a similar amount or a Sh1 million cash bail.

CM Ogembo further directed the accused to deposit his passport with the court.

Hongyou was arrested in June over tax evasion claims after his company was embroiled in controversy over the cancelled Green Field terminal project and before the launch of the new terminal 1A and E at the Jomo Kenyatta International Airport.

The Chinese firm won the contract to design and build the facility at the airport but the contract was cancelled in March.

President Uhuru Kenyatta said the infrastructure put up by the accused company after the international arrivals terminal was destroyed by fire in August 2013 was sufficient to meet the needs of passengers who transit through Nairobi.

Proceedings resume November 22.