Rusororo Aggregate Ltd, has reportedly shut down, following tax evasion charges and ownership wrangles that have cost the company its operations.

Documents seen by Rwanda Today show that the company’s assets, including vehicles, compressors and excavators, were seized and are set to be auctioned by Rwanda Revenue Authority (RRA) after failing to pay taxes worth Rwf128 million.

Its offices in Kigali are also closed and the stone crushing site in Kabuga has not operated for close to three months now.

Rusororo’s managing director, Joseph Mukama, who has now resigned from his position —was also sentenced to five years in prison by the Gasabo Intermediate Court on charges of forging tax documents on July 22.

He however appealed the decision and the high court will review his case next week.

The closure of the quarry, co-owned by Kenyan multimillion-dollar equity firm Fusion Capital with a 46.5 per cent stake valued at Rwf1.5 billion ($2.3 million) and two Rwandan businessmen, Abbas Gahigana and Joseph Mukama, has dealt a blow to construction sector.

READ: Kenyan PE fund buys into Rusororo quarry

In a phone interview, Mr Mukama declined to comment on the current state of the company, saying that he had resigned from his position of managing director.

“I remain with my shares in the company but I resigned from my position. I cannot comment about the company position now,” he said.

Mr Gahigana admitted to being shocked by the company’s demise, blaming Mr Mukama for “grossly mismanaging” the company.

“I had earlier reported to the police and to tax authorities about what was going on at the quarry. It is a large investment that has been mismanaged through greed and unprofessionalism. I have spoken to Fusion Capital officials and sought for arbitration from local authorities and I pray that this ends well,” Mr Gahigana said.

“The company was grossly mismanaged and the investment funds were misappropriated. I am however hopeful that those culpable will face justice and the company will resume operations again,” he added

Earlier in April 2015, Mr Gahigana filed a criminal complaint with the CID, which culminated in the arrest of his business partner Mr Mukama and subsequently, his conviction on forging documents.

In 2013, Fusion Capital indicated that Rusororo Aggregate had deposits valued at Sh3.6 billion, which prompted the equity firm to buy a 46 per cent stake.

Fusion Capital representative in Rwanda, Aline Benihirwe, was not available for comment by press time.

Central bank statistics indicate that quarrying in Rwanda has been on a slump, whereby the sector recorded a 9 per cent growth last year.