Kenya Insights

Tag: money laundering

  • How Somali Businessman Used Tecno Mobile Company To Launder Sh28 Million Fraud Cash

    How Somali Businessman Used Tecno Mobile Company To Launder Sh28 Million Fraud Cash

    NAIROBI, February 19, 2026 — On the morning of February 3, 2026, a single wire transfer sliced through the financial architecture of what investigators now believe is one of Nairobi’s most brazen gold fraud operations.

    In less time than it takes to negotiate a handshake deal at a Westlands coffee shop, USD 217,900 — the life savings of an American businessman and the fruit of a meticulously orchestrated con — left the account of a Nairobi law firm, passed through the hands of a Somali-Kenyan mobile phone trader, and vanished into the vaults of a Chinese telecommunications giant in Hong Kong.

    The speed was surgical. The trail, investigators say, was designed to look like a legitimate business transaction.

    But scratch beneath the surface, and what emerges is a story that implicates a regional electronics distributor, a rogue lawyer already wanted in two previous fraud cases, a shadowy forex bureau tucked along Standard Street, and a Chinese handset brand that has, separately, been the subject of a damning tax evasion scandal in Kenya.

    This is the story of how Sh28 million in stolen investor funds allegedly moved through the supply chain of Tecno Mobile Limited to disappear from Kenyan shores.

    The Bait: Gold That Never Existed

    The scheme began, as these operations so often do, with a promise of gold. John Sodipo, an American businessman, and his Russian associate, Gershonov Oleg, were drawn into an elaborate agreement for the purchase and chartered export of 495 kilograms of gold destined for Dubai.

    The arrangement was presented with the trappings of legitimacy: legal representatives, escrow accounts, logistics companies, and the kind of paperwork that is designed to reassure rather than to inform.

    Oleg had first visited Kenya in September 2025 on a separate gold transaction that also came to nothing.

    During that visit, he made contact with Willis Onyango Wasonga, a Nairobi dealer known in shadier circles by the street name Marcus, who would later emerge as the central player in the con that followed.

    When Wasonga and Sodipo eventually struck what appeared to be a deal, Sodipo deposited the agreed chartering fees into a purported escrow account managed by advocate Michael Otieno Owano of MOAC Advocates, a Nairobi law firm. Oleg flew back to Kenya specifically to oversee the shipment. No gold arrived. No gold existed.

    Wasonga was arrested and arraigned before the Milimani Law Courts on February 16, 2026, facing charges of conspiracy to defraud, obtaining money by false pretences, and three separate counts under the Proceeds of Crime and Anti-Money Laundering Act.

    He pleaded not guilty and was released on a Ksh 1 million bond, a figure critics describe as a bargain price for a man accused of masterminding a multi-million shilling international con. His case returns for mention on March 3, 2026.

    The Conduit: A Phone Trader and a Hong Kong Account

    What gives this case its particular complexity is the second arrest, made days after Wasonga’s arraignment, of Mohammed Noor Muhyadhin Mohammed, a Somali-Kenyan businessman and the sole proprietor of Mohazcom Trading, a registered Kenyan enterprise dealing in mobile handsets.

    Mohamed Noor, appeared before the Milimani Law Courts where he faced multiple counts, including conspiracy to defraud and handling proceeds of crime.
    Mohamed Noor, appeared before the Milimani Law Courts where he faced multiple counts, including conspiracy to defraud and handling proceeds of crime.

    Mohammed sources his phones primarily from Tecno Mobile Limited, one of the most recognisable handset brands in East and Central Africa, manufactured by the Chinese conglomerate Transsion Holdings.

    On February 3, 2026, USD 217,900 was transferred in a swift transaction from MOAC Advocates’ account at the National Bank of Kenya directly into Mohammed’s company account at the same institution.

    The money had barely settled before it was on the move again. Within the same banking day, Mohammed wired the entire amount overseas, to accounts held by Tecno Mobile Limited at Citibank in Hong Kong, purportedly to finance a fresh consignment of mobile phones. That consignment has not arrived. Investigators say they have found no evidence it was ever ordered.

    Mohammed was picked up by detectives from the Operations Support Unit and is currently in custody awaiting arraignment.

    The Directorate of Criminal Investigations says his case is a textbook example of trade-based money laundering, in which the proceeds of crime are disguised as legitimate commercial payments for goods and services. In this instance, investigators allege, the goods were a fiction.

    The Paper Shield: Fabricated Debt Agreements and a Forex Bureau

    Those orchestrating the scheme anticipated scrutiny. MOAC Advocates produced a debt settlement agreement allegedly signed by Mohammed and a second suspect who remains at large, a document designed to make the transfer of funds look like the resolution of a pre-existing commercial obligation.

    Investigators have dismissed the agreement as what they describe as a smokescreen, a paper shield crafted to sanitise what was, in their view, a straightforward act of money laundering.

    Deeper investigation has also drawn attention to a forex bureau operating along Standard Street in the heart of Nairobi’s central business district. Mohammed, detectives say, has maintained a decade-long business relationship with this bureau and its proprietor, who is believed to have routinely facilitated substantial cross-border transfers, including the transaction now at the centre of the case.

    The bureau, investigators allege, played a central role in the layering and concealment of criminal proceeds, the classic second stage of organised money laundering in which the origin of illicit funds is obscured through a sequence of complex financial movements.

    The Rogue Lawyer: Three Cases, Three Sets of Victims, One Man Still Free

    Over everything in this case looms the figure of Michael Otieno Owano, an advocate of the High Court of Kenya and the man behind MOAC Advocates. The Law Society of Kenya binds its members to a code of professional ethics that occupies the furthest possible distance from the allegations now swirling around Owano.

    Police mugshot of Michael Otieno Owano
    Police mugshot of Michael Otieno Owano

    Yet investigators describe him not as a professional servant of the law but as the alleged operational linchpin of a criminal enterprise that has systematically targeted foreign investors.

    This is not Owano’s first encounter with the law as a suspect.

    In November 2024, he was arrested in connection with a Ksh 182 million fake tender scheme that targeted Underground Pipeline Rehabilitation Company, an American firm.

    The syndicate behind that operation presented the company with fictitious government tenders bearing the names of the Kenya Civil Aviation Authority and the Kenya Meteorological Department.

    Owano’s firm received USD 90,000 in purported legal fees while the victim was manoeuvred into paying over USD 1.6 million for contracts that did not exist. He was released on bail while the Director of Public Prosecutions reviewed the case. That review, as of press time, has yet to produce a concluded prosecution.

    August 2025 brought a second arrest. This time, Owano was implicated in a Sh79.9 million fake gold scheme targeting a Canadian investor, in which a proforma invoice for USD 318,400 was issued by a company called EAI Logistics, with the funds wired directly into his firm’s account.

    The victim was separately pressured into sending USDT 300,000 in cryptocurrency. No gold was delivered. In that case, Owano was connected to Francis Talla Ouafo, a Cameroonian national identified as the alleged mastermind. He was released again.

    Now Owano is wanted in connection with this third case. He has not been apprehended as of press time.

    Three fraud investigations, three sets of foreign victims, a fugitive status, and a licence to practise law that, as of last check, has not been suspended. The DCI says its detectives are closing in on him by the hour. Sources indicate three additional suspects remain at large.

    Tecno in the Dock: A Brand Shadowed by Its Own Scandals

    The involvement of Tecno Mobile in this case, even as a passive recipient of funds at its Hong Kong banking accounts, arrives at a particularly sensitive moment for the Chinese-owned brand.

    Manufactured by Transsion Holdings, Tecno has built its regional empire on the promise of affordable smartphones for the African mass market.

    Its handsets are among the most widely distributed in Kenya, sold through a network of distributors, retailers, and kiosks stretching to every corner of the country.

    It is precisely that ubiquity and the veneer of mainstream commercial respectability that, investigators suggest, made the Tecno supply chain an attractive vehicle through which to move criminal proceeds.

    Tecno’s own conduct in Kenya has not been without controversy.

    In May 2024, the Kenya Revenue Authority conducted a dramatic raid on Tecno Transsion Electronics’ Nairobi offices at Cardinal Otunga Plaza, seizing documents and cash in multiple foreign currencies.

    Whistleblowers inside the company had raised alarms about non-remittance of Pay As You Earn tax deductions, undisclosed salary payments, unreported supplier transactions, and what they characterised as a pattern of deliberate financial mismanagement. Employees reported that their salaries were regularly deducted for taxes that never reached the government.

    The investigation that followed the raid stalled in circumstances that generated their own controversy.

    In January 2025, credible sources alleged that KRA Commissioner General Humphrey Wattanga received a bribe of Ksh 100 million from Tecno officials to suppress a damning investigative report and halt further probes. The sources alleged that the total amount of taxes Tecno had evaded in Kenya stood at more than Ksh 400 billion, a figure that, if accurate, would dwarf the value of the company’s visible operations in the country.

    KRA and Tecno denied the allegations. No official charges have been filed. The KRA probe, critics say, has effectively been buried.

    Tecno has not been charged with any offence in connection with the gold scam. Investigators have not alleged that the company’s head office in Hong Kong had knowledge that the funds deposited into its Citibank account represented the proceeds of fraud.

    The Directorate of Criminal Investigations has framed its case around Mohammed and his alleged role in routing the money, not around any culpability on the part of the handset manufacturer.

    Nevertheless, the reputational association is damaging: a brand already under a cloud of tax evasion allegations in Kenya now finds its name attached, however tangentially, to an international money laundering investigation.

    The Gold Economy: A Shadow Country Within a Country

    To understand the scale of the environment in which these crimes flourish, one need only consider a single number. Nairobi’s gold underworld is estimated to be worth USD 28 billion annually, a figure that exceeds Kenya’s entire national budget.

    Gold bars.
    Gold bars.

    The United Nations and international investigative agencies have documented massive discrepancies between what Kenya officially declares as gold exports and what the United Arab Emirates alone reports importing from Kenya, a gap that points to a shadow economy of staggering proportions running beneath the surface of the country’s legitimate commercial life.

    The DCI Director-General has himself described the gold fraud problem as the work of a huge cartel involving Kenyans, Congolese, Liberians, Nigerians, and Ghanaians, operating with considerable sophistication.

    The upmarket Kilimani residential area of Nairobi has been specifically identified as a hub from which these syndicates operate.

    Foreign investors who fly into Nairobi expecting to conclude gold deals, often referred by intermediaries who seem credible and well-connected, find themselves processed through an assembly line of fake legal arrangements, fraudulent logistics companies, and crooked advocates before the telephone lines go silent and the money is gone.

    What distinguishes the current investigation is the degree of institutional infrastructure allegedly assembled to conceal the crime.

    A licensed advocate. A registered trading company with genuine supplier relationships. A long-established forex bureau. A banking relationship at one of Kenya’s largest state-owned financial institutions. And, at the end of the pipeline, the Hong Kong accounts of a brand that millions of Kenyans carry in their pockets every day.

    If investigators are correct, the machinery of financial crime in this case was so thoroughly embedded in legitimate commercial structures that it was, until it was not, effectively invisible.

    The Reckoning

    John Sodipo did not travel to Kenya to be robbed. He came because he was made to believe, convincingly, by people who presented the full apparatus of legal and commercial credibility, that he was entering a sound business arrangement.

    The money he lost, USD 217,900, was transferred into what he had every reason to believe was a legitimately managed escrow account overseen by a qualified Kenyan advocate. The advocate is now a fugitive.

    The damage extends beyond a single investor’s loss. Every transaction of this kind sends a signal to boardrooms in New York, Toronto, Moscow, and beyond that Kenya’s licensed professionals, its registered companies, and its regulated financial institutions can be instruments of calculated theft.

    Foreign direct investment, which Kenya urgently needs to fund its development agenda, is not attracted by assurances; it is attracted by demonstrated reliability of the institutions that are supposed to underpin commercial trust.

    Mohammed Noor Muhyadhin Mohammed now awaits arraignment in a Nairobi magistrate’s court.

    Willis Onyango Wasonga returns to court on March 3. Michael Otieno Owano is being hunted. Three additional suspects remain at large. And somewhere in this city, the syndicate that investigators describe as far larger than the two men so far arraigned continues to exist.

    The gold was never real.

    The mechanisms used to steal for it were very real indeed. Whether the institutions responsible for Kenya’s legal, financial, and regulatory integrity can move fast enough to match the sophistication of those who exploit them remains the question that this case, and too many cases like it, forces Kenya to answer.

  • State Links EIS Afrika Group to Complex Criminal Syndicate in Multi-Million Shilling Money Laundering Scheme

    State Links EIS Afrika Group to Complex Criminal Syndicate in Multi-Million Shilling Money Laundering Scheme

    Kenya’s Asset Recovery Agency (ARA) has launched a high-profile legal battle to seize Sh35 million allegedly tied to the EIS Afrika Group Ltd, unraveling a web of deceit that links the company to a sophisticated money laundering syndicate.

    Court documents reveal shocking details of forged communications, phantom contracts, and a brazen attempt to exploit Kenya’s financial systems to legitimize illicit funds.

    ARA’s Case: Funds “Clearly Proceeds of Crime

    In a hearing before Justice Lucy Njuguna, the ARA argued that EIS Afrika Group, purportedly operated by foreign nationals, failed to account for the origins of Sh35 million held in Kenyan accounts. The agency asserts the funds were laundered through a maze of transactions designed to obscure their criminal origins.

    “The evidence overwhelmingly shows these funds were illegitimately acquired,” the ARA stated, citing Section 92(1) of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA).

    Under the law, the court can order forfeiture if assets are deemed proceeds of crime on a “balance of probabilities”—a threshold the ARA claims to have met.

    Key to the case is EIS Afrika’s inability to rebut the allegations. Investigators highlighted the group’s reliance on a fabricated World Bank contract to justify the funds, a claim dismantled by digital forensics.

    The Phantom World Bank Connection

    Central to EIS Afrika’s defense was an alleged contract with the World Bank’s Burundi branch, supported by an email address—[email protected]—provided by the group’s director, Nduwimana Aimable.

    However, the Communications Authority of Kenya (CAK) exposed the ruse.

    The director of the EIS Afrika Nduwimana Aimable.

    A CAK report dated May 7, 2024, revealed the email had no identifiable owner and was accessed repeatedly from Nairobi’s Parklands and Nairobi River areas—far from the World Bank’s official channels. Though the address was linked to Google services, its digital footprint pointed to local manipulation.

    “This email is a hoax crafted to mislead the court and disguise the funds’ origin,” said ARA investigator Alfred Musalia. He emphasized that EIS Afrika produced no authentic World Bank documents, calling the group’s narrative “a tapestry of lies.”

    Kenya as a Laundering Hub

    The ARA’s filings accuse EIS Afrika of exploiting Kenya’s financial infrastructure to “invest” laundered assets, a tactic increasingly common among transnational syndicates. While the group’s operations beyond Kenya remain under scrutiny, investigators suspect broader networks.

    “Such schemes rarely operate in isolation,” said financial crime analyst Wanjiku Mwangi. “Fake contracts and spoofed emails are hallmarks of syndicates that span borders, leveraging weak regulatory gaps.” Though direct links to other crimes are yet unproven, the ARA’s findings suggest EIS Afrika’s Kenyan activities may be a node in a larger criminal ecosystem.

    Legal Precedent and Regional Implications

    If forfeiture is granted, the case could set a benchmark for prosecuting complex money laundering networks in East Africa. The ARA’s reliance on digital evidence—such as geolocated email access—highlights evolving tactics to combat financial crime.

    Justice Njuguna’s impending ruling is being closely watched. A victory for the ARA would signal Kenya’s tightening grip on illicit flows, while a setback could embolden syndicates.

    A Syndicate Unmasked

    The EIS Afrika case lays bare the audacity of modern financial criminals—and the vulnerabilities they exploit. As authorities piece together the group’s operations, questions linger: Who orchestrated the fake World Bank scheme? Are other institutions implicated?

    For now, the Sh35 million remains frozen, a symbol of Kenya’s resolve to dismantle shadowy syndicates. But as Musalia warned, “This is just one thread in a much larger web.”

  • South Sudan Threatens To Shutdown Stanbic Bank In Sh722M Row With Airline

    South Sudan Threatens To Shutdown Stanbic Bank In Sh722M Row With Airline

    South Sudan’s banking regulator has threatened to suspend Stanbic Bank’s licence within 14 days in an escalation of a Sh722 million dispute pitting the lender and an airline.

    In his letter to the lender, Bank of South Sudan (BOSS) Governor John Ohisa directed Stanbic Bank South Sudan to immediately cooperate with the country’s investigative bodies concerning the dispute between it and Air Afrik.

    He also directed Stanbic to re-register its subsidiary as a stand-alone unit in compliance with the country’s laws and discussions.

    The governor said BOSS would crack the whip if the lender did not heed the directives.

    “As the regulator, we hereby direct Stanbic Bank South Sudan to immediately co-operate with the Financial Intelligence Unit (FIU), the Anti-Corruption Security Division, and all relevant investigative and legal authorities by ensuring full disclosure and documentation relating to the allegations and recording of statements by required personnel from your bank,” said Ohisa.

    “Failure to comply with these directives will result in immediate and decisive action within two weeks of receipt of this letter, including the suspension of Stanbic Bank South Sudan’s banking licence.”

    The lender in its reply said it is complying fully with the security agencies. However, the bank’s head of Brand and Marketing Lilian Onyach said the dispute between it and Air Afrik was a civil one and ought not to be criminalised.

    “It is our view that the matter is civil and should be treated as such in any jurisdiction which calls for the requisite judicial process aligned to a civil dispute. Stanbic Bank is committed to complying with South Sudan laws, regulations and guidelines of BOSS and looks forward to the amicable conclusion of our discussions,” said Onyach.

    On re-registering the subsidiary as a stand-alone entity, Onyach said they were in discussions with BOSS to resolve the issue. Nevertheless, she maintained that the bank is vouching for the maintenance of the current arrangement.

    “Regarding the conversion of the branch into a subsidiary, we confirm we are engaging with the regulator with a view of eliciting an amicable resolution,” she noted.

    While we have expressed our preference to maintain our current branch structure, we are committed to a mutually beneficial agreement on the matter. We have committed to provide a comprehensive update to the Bank of South Sudan by January 31, 2025.”

    The dispute revolves around BOSS, Air Afrik and Stanbic. It has resulted in multiple cases, with the lender’s chief executive Joshua Oigara obtaining orders barring Kenyan authorities from either questioning or arresting him over the dispute.

    High Court

    There is also a separate battle between Stanbic and Air Afrik at the Court of Appeal.

    Stanbic moved to the Court of Appeal, arguing that a High Court ruling had made it impossible for it to tell its side of the story.

    According to the lender’s lawyer Kamau Karori, the orders by Justice Nixon Sifuna meant that it had to get the approval of Air Afrik to file its witness statement. According to him, this was unheard of. Air Afrik argued that the bank intended to delay the case by filing an appeal. According to the firm, the High Court had already heard at least five witnesses. Air Afrik alleged that Stanbic had not adduced evidence to show that it would be prejudiced by the orders issued in the lower court.

    In the case, Afrik said it offers airline carriage and chartered flight services in South Sudan and the East African region. Its main route is Nairobi Juba.

    It claimed that in 2014, the South Sudan government inked a deal to lease several aircraft for a year but with a likelihood of being extended for five years. According to the firm, the total cost for the deal was around Sh2 billion.

    The court heard that the agreement was renewed and the South Sudan government committed to pay a 35 per cent deposit for the same. That was at least Sh722 million.

    The firm said it maintained its account with Stanbic Bank in Juba and the Salva Kiir government wired the money on February 8, 2016.

    Afrik said the lender reversed the money on May 27, 2016, on a claim that the money had been paid in error.

    The South Sudan firm stated that Stanbic first wired back Sh600 million and then debited close to Sh100 million from its account stating that he had mistakenly withdrawn the money.

    Afrik in its case said it lost money plus the business. Meanwhile, Stanbic decried harassment by South Sudan authorities over the dispute. The bank said it had received a summons from the South Sudan prosecution attorney, which it claimed was a similar intimidatory tactic employed by the Kenyan counterparts.

    The lawyer said the investigative body is probing a false complaint which had already been previously investigated and the bank cleared. He asserted that Air Afrik had filed a complaint with the Central Bank of Kenya over the same issue.

    Still, he said, the regulator threw it out after finding that the bank had done nothing wrong by debiting amounts it had erroneously wired to the firm.

    At the same time, he argued that Air Afrik filed a separate case before the commercial court and was handled by Prof Sifuna. Kamau said Oigara he wasn’t working with Stanbic at the time the transaction is alleged to have happened.

    According to Stanbic’s legal officer Janet Wanjohi, the row stemmed from a transaction in 2016.

    Wanjohi explained that Air Afrik was Stanbic’s customer and it operated a business account in Juba, South Sudan in its South Sudan branch.

    She narrated that on February 5, 2016, Stanbic received a credit advice note from South Sudan’s banking regulator advising it that its clearing and settlement account had been credited with $7.2 million (Sh770 million) for Air Afrik.

    The officer said that three days later, Stanbic credited the aviation company’s account with the money after deducting its commission.

    Subsequently, Wanjohi said, Air Afrik withdrew at least Sh101 million from the account.
    However, she explained that Stanbic realised that BOSS had not remitted the money it had instructed it to wire Air Afrik.

    The court heard that the lender opted to freeze any further withdrawals and it notified the aviation company that the money in the account would be reversed.

  • Court Allows State To Recover Sh18M From Chris Obure In Money Laundering Case

    Court Allows State To Recover Sh18M From Chris Obure In Money Laundering Case

    The High Court has given the greenlight for recovery of over Sh18 million from two private jet leasing firms, linked to businessman Chris Obure.

    The Assets Recovery Agency will recover the monies from Cullinan Private Jets Corp and Glo Jet International Limited, following suspicions of their involvement in a complex international money laundering syndicate.

    In a judgment delivered by Justice Patrick Otieno at the Milimani High Court Anti-Corruption Division, it was declared that the sums of money held in various accounts belonging to the two firms, subsidiaries of United States-registered companies, were derived from illegal activities and should be forfeited to the state as proceeds of crime.

    The decision follows investigations that uncovered a money laundering syndicate involving the firms, which are subsidiaries of US-based private air charter companies.

    These funds, amounting to USD 54,257.85 and Sh696,070.70 in the account of Cullinan Private Jets Corp at I&M Bank, as well as USD 24,712.61 and Sh1,134,691.33 in the account of Glo Jet International Limited at Ecobank, were ordered forfeited to the government.

    “These sums are and are hereby forfeited to the state,” Justice Otieno ruled.

    The court ordered the two banks to transmit the forfeited amounts to ARA within seven days, once served with the formal court order.

    The case stems from a complaint filed by Rondell Fletcher, a California-based businessman, who alleged he was defrauded by the two firms after he made substantial payments of USD 412,000 for cargo and passenger charter services that were never provided.

    Fletcher claimed that in August 2023, he paid USD 412,746.55 to the firms, expecting the charter services to transport goods from Nairobi to Dubai.

    However, the flight was never booked, and the money was allegedly diverted for other purposes, raising suspicions of money laundering.

    “I was led to believe I was engaging in a legitimate business transaction, but after I made the payments, nothing happened,” Fletcher said during the case proceedings.

    “The services were never provided, and no aircraft was shown to me.”

    Alfred Musalia, the investigator handling the case, testified that the complex ownership structure of the firms and the flow of funds raised significant concerns of money laundering.

    “The movement of money and the intricate shareholding between the companies made it clear that the funds were not being used for legitimate business purposes,” Musalia explained in court.

    In his defense, businessman Obure, who represents the firms locally, argued that the funds were received in the ordinary course of business and were part of a legitimate transaction.

    Through their lawyers, the firms explained that Fletcher had initially inquired about the services and had made the payments for a cargo and passenger flight.

    “On August 1, 2023, we received an inquiry from Fletcher for cargo and passenger charter services. He paid the agreed amount, and we sent the necessary funds to cater for the flight preparations,”

    “The funds were received as part of a legitimate business agreement.” the private jet firms lawyer told the court.

    “We were prepared to carry out the agreed service, but unforeseen circumstances prevented the flight from taking place.”

    However, the court was not satisfied with this defense.

    Justice Otieno pointed out that the firms failed to produce any tangible evidence that they had the required facilities, including a licensed jet, to carry out the services they had promised as claimed.

    “There was no evidence of an aircraft being available for Fletcher’s use, nor any documentation showing that the firms were authorized to offer such services in Kenya.

    “It was crucial for the respondents to demonstrate that they had the necessary facilities and licenses to carry out the agreed business,” Justice Otieno said.

    “They failed to provide convincing proof that they were operating legally, and the funds were diverted to unrelated purposes.”

    The court emphasized that the onus was on the firms to prove that the funds were obtained legally.

    “As such, the funds must be forfeited to the state to deter criminal activities and protect the interests of the public.

  • Russian Mafias Artur and Vadim Mildov: A Shadowy Tale of Deportation, Media Manipulation, and Alleged Crime in Kenya

    Russian Mafias Artur and Vadim Mildov: A Shadowy Tale of Deportation, Media Manipulation, and Alleged Crime in Kenya

    In a covert operation spanning from Dubai to Nairobi, Russian brothers Artur and Vadim Mildov are allegedly investing heavily in a reputation management campaign aimed at scrubbing their controversial history from Kenyan media archives.

    Despite their ongoing legal battles to return to Kenya, where they were deported in 2020 amid allegations of drug trafficking, money laundering, and ties to a murder case, the brothers are now focusing on sanitizing their public image.

    The Deportation Order

    In January 2020, then-Interior Cabinet Secretary Dr. Fred Matiang’i issued deportation orders against Artur and Vadim Mildov, citing their presence as “contrary to national interests.” The order stated, “Artur Mildov, who is not a citizen of Kenya and whose presence in the country is contrary to national interests, be removed to Russia.” Vadim was ordered to remain in police custody pending his deportation.

    Artur Mildov.

    While the official reasons for their expulsion were not detailed, investigations reveal a trail of suspicious activities, including links to an international drug trafficking ring and the 1999 murder of fellow Russian Victor Gontcharenko.

    A History of Controversy

    Artur Mildov first arrived in Kenya in the mid-1990s alongside a group of Russians, including Andrei Kourtasov and Andrea Petrov. The group quickly established themselves in Nairobi’s affluent Muthaiga neighborhood, registering companies such as Vim Invest Ltd, Laken Ltd, and Femga.

    While the exact nature of their businesses remains unclear, their lavish lifestyle and operation of an exclusive strip club raised eyebrows.

    The turning point came in 1999, when Gontcharenko, a close associate of Artur, was reported missing. Artur initially claimed Gontcharenko had traveled to Tanzania for business, but his body was later discovered in a Nairobi dam.

    The murder investigation uncovered a drug trafficking ring allegedly run by Artur, leading to the deportation of several Russians, including Artur, Petrov, and Andrea Kountr.

    Despite being deported, Artur managed to return to Kenya around 2008, joined by his younger brother Vadim. The duo reportedly established another drug trafficking operation from a house on James Gichuru Road. They also acquired stakes in Nairobi’s upmarket Pavement Club and Café through their company, De Lart Investments.

    However, their return to Kenya was short-lived. By 2020, they were back on a deportation list, this time explicitly linked to illegal gambling, drug trafficking, and money laundering, although specific reasons were not disclosed in the official documents.

    They were linked to 1Xbet.

    Kenya Insights has learnt that the betting firm is not authorized for gambling in Russia by the Russian Federal tax service, as with many other countries.

    Following an investigation by a UK publication  The Sunday Times in 2019, 1xbet license was promptly rescinded by the UK gambling commission (UKGS) after revelations of involvement in promoting a pornography hub, bets on children sports and adverting on illegal website.

    None of this sounds like something you want to be affiliated with your brand. 1xBet is a betting site registered in Cyprus, which is well-known as a money-laundering location for organized crime in Russia. While sure, that could be a coincidence, but considering the previous investigation into 1xBet, it doesn’t sound like it is. After that Times investigation, the betting site is no longer allowed to operate in Britain. In Kenya they were accused of engaging in large scale tax evasion and money laundering as well.

    As the 1xbet retains its reputation as one of the world’s most controversial betting firms, awareness was raised in 2020 of an ongoing scam involving embezzlement and unlawful practice, highlighting attention through diplomatic channels.

    The three owners Karshkov, Semiokhin and Kazorin are in the list of UK wanted criminals.

    The trio is defendants in a criminal case with penalty of imprisonment and a number of their estates in Russia with a total value of 1.5 billion ruble (ksh 2, 286,508,500.00) were seized.

    The Media Clean-Up Operation

    Now operating from Dubai, the Mildovs have reportedly engaged one of the largest PR firms to manage their tarnished image. Sources indicate that substantial sums, up to Sh1 million, have been offered to editors of major Kenyan media outlets to delete or de-index negative stories from search engines like Google. This move is seen as an attempt to clear the path for a multibillion-dollar business deal for their company, De Lart Capital Holding, which faces scrutiny due to their past.

    “The clean-up has been somewhat successful but at a cost,” a source from one of the media houses revealed.

    An editor was sacked following an internal probe that discovered a story about the Mildovs was no longer indexed by Google, despite still being available on the site. This strategic removal from search engine results effectively hides their criminal allegations from new business associates or casual researchers.

    This media manipulation has been remarkably successful. A simple Google search for Artur or Vadim Mildov now yields almost no trace of their controversial past. Their photos have been scrubbed from the internet, leaving only a single inactive X (formerly Twitter) account linked to Vadim.

    Legal Battles and Unanswered Questions

    The Mildovs are currently fighting their deportation in Kenyan courts, claiming they were never given reasons for their expulsion. In court documents, Vadim insists that they were issued Kenyan alien identity cards and work permits in 2017, allowing them to operate Midlands Logistics Ltd, a transportation services company.

    However, this claim contradicts their earlier involvement with Pavement Club, which dates back to 2008. Kenyan immigration laws prohibit foreigners from engaging in business without proper permits, raising questions about the legality of their activities during this period.

    A Pattern of Evasion

    The Mildovs’ story is one of evasion and reinvention. From their alleged drug trafficking operations in Muthaiga to their current efforts to whitewash their reputation, the brothers have consistently managed to stay one step ahead of the law. Their ties to companies registered in Cyprus and the British Virgin Islands further complicate efforts to hold them accountable.

    As the Mildovs continue their legal battle and media clean-up campaign, questions remain about the extent of their influence and the true nature of their business dealings.

    NB: Kenya Insights previously ran an expansive story on the dirty path of the two brothers and can be accessed HERE.

    Disclaimer: This article is based on multiple sources, including court documents and insider information, but all allegations against the Mildovs remain under legal scrutiny. The effectiveness of their PR efforts and the outcome of their legal battles continue to unfold, shaping the narrative around these elusive figures.

  • Court Links Businessman’s Wealth To Money Laundering

    Court Links Businessman’s Wealth To Money Laundering

    Businessman Anthony Kepha Odiero has lost millions and two luxury cars to the State after the High Court declared them as proceeds of crime.

    Justice Patrick Otieno declared the $270,888.00 held at National Bank, a Range Rover and Mercedes Benz E250 belonging to the businessman as proceeds and ordered him to forfeit them to the State.

    “A declaration that the sum of USD 270,888.47, out of the sums held in account number 02006230139300, at National Bank of Kenya Limited, in the name of Anthony Kepha Odiero is a A declaration that the sum of USD 270,888.47 held in account number ** at National Bank of Kenya belonging to Anthony Kepha Odiero is proceed of crime and the funds are hereby forfeited to the Government,” declared Judge Patrick Otieno.

    The court further directed National Bank to transfer the money to an account held at KCB belonging to Asset Recovery Agency (ARA).

    The court declared the two motor vehicles- a range Rover and Mercedes Benz as proceeds of crime and he should forfeit them to the government.

    The Judge Otieno directed Director General, National Transport and Safety Authority to effect the transfer of the vehicles to ARA.

    “The seller and the consideration for the motor vehicle was not proved by Odiero. The court finds that no satisfactory explanation has been offered with regard to the motor vehicles with the consequence that the prima-facie case proved by the proved by the Asset Recovery Agency on a balance of preponderance has not been controverted,” ruled the judge.

    The judge said having failed to explain the source of funds used to purchase motor vehicles, it was his finding that they were proceeds of crime.

    “From that analysis it is established that most of the deposits were in cash. There was no remittance into the account, save for that from Otieno Odongo and Partners, identified to have come from any of the entities the respondent has demonstrated business connection with. There was however a transfers from Straight Business Agency for which the respondent never explained what undertaking he had with that entity,” he added.

    Judge said Odiero failed to explain the source of the cash deposits.

    He added that most of his business partners and transactions which Odiero alleged to have been paid in cash are not located in Kenya.

    “It has thus intrigued the court if the respondent travelled to European and Asian countries to collect the payments in cash and then travelled back to Kenya just to make the cash deposits!? if that was the case, did he make any declarations for the huge amounts of money in accordance with Section 12 and Second Schedule, Conveyance Of Money Instruments To Or From Kenya!? In the opinion of the court, even if that was the case, it would still be a suspect transaction designed to defeat the reporting requirements and thus a suspicious conduct,” he said.

    During the hearing ARA maintained that the businessman failed to satisfactorily explain the source of his millions, which were frozen last year

    Investigating officer Mohammed Godana said Odiero was involved in a classic case of money laundering and the acquisition of his assets was a ploy to disguise, conceal and hide the source of the funds.

    “The reasonable grounds to believe that the funds held in the Odiero’s bank accounts and motor vehicles are proceeds of crime liable for forfeiture to the Asset Recovery Agency,” Godana told the court while replying to Odiero replying affidavit.

    The agency further dismissed an alleged agreement between Odiero and an Italian Onori Glovanna Grazia.

    Odiero had opposed the petition arguing that ARA obtained the order freezing his money and cars based on mere speculations.

    Odiero revealed that he is the director General East and Central Africa region of Transpacific Africa chamber of commerce and industry and a sole signatory of a premium bank account at National Bank.

  • Court Paves Way To Probe Tatu City For Money Laundering

    Court Paves Way To Probe Tatu City For Money Laundering

    The Directorate of Criminal Investigations (DCI) has once again secured court approval to access crucial documents from the entities behind Tatu City in an ongoing investigation into allegations of money laundering and tax evasion.

    In a recent ruling, Principal Magistrate Gideon Kiage at Kahawa Law Courts dismissed a challenge by Tatu City Ltd and Kofinaf Company Ltd aimed at nullifying an earlier court order. This order had permitted the DCI to seize documents pertinent to their investigation back in August.

    The two companies had argued that they were denied their right to fair action when the court issued orders allowing the seizure of the documents in August, following an application by the DCI.

    In a separate, but related ruling, the magistrate has allowed the DCI to also seize some documents from Lutta & Company Advocates which relate to various transactions involving the Tatu City project.

    Tatu City Ltd and Kofinaf Company Ltd filed an application arguing that the documents sought from the law firm are protected by advocate-client privilege.

    Magistrate Kiage held that the cited privilege does not act as a shield against criminal activities, hence investigators can be granted access to documents if there is suspicion that they could aid in prosecution.

    Tatu City Ltd and Kofinaf Company Ltd argued that orders seeking warrants should only be issued after hearing from both sides and only after authorities have notified the subject of the ongoing investigation.

    But Magistrate Kiage in his ruling held that notifying a subject of the investigation before applying for warrants in courts opens the risk of jeopardizing evidence.

    The magistrate added that Tatu City’s case was an attempt to reopen the August application by the DCI, which initially gave way for detectives to investigate 10 companies behind the multibillion-shilling project.

    The magistrate added that an affidavit from the investigating authority is sufficient, and courts can issue the warrants and orders if the filed documents convince them that a crime may have been committed.

    “In the case of Okiya Omtatah & 2 others vs Attorney General & 4 others (2018) e-klr, it was observed that to give notice to the person to be investigated can easily jeopardize the incriminating evidence. The threshold for an application of this nature is met where the magistrate is persuaded that a crime may have been committed. I find in the end that the application herein is an attempt to re-litigate the application dated 6th August 2024 which by law is canvassed ex-parte,” Mr Kiage ruled.

    Sale agreements between related firms that dealt in the land, valuation reports for the properties, receipts, tax-related documents, loan paperwork and company ownership records were the subject of the application.

    Land transactions

    In the second application, Mr Kiage said that the documents the DCI is to seize from Lutta & Company Advocates are only the ones listed in court, and which relate to specific land transactions within Tatu City.

    From Lutta & Company Advocates, the DCI can now carry away certified copies of a sale agreement between Kofinaf Company Limited and Jomo Kenyatta University of Agriculture and Technology (JKUAT), a sale agreement between MJS Mansion Mauritius and Wanachuo Investment Limited and Dexamide Properties Ltd, in respect share purchase and a parcel registered as LR No.10877.

    Tatu City has sought to appeal both rulings at the High Court.

    Court papers have given a sneak peek into the DCI’s probe, which shows that it was also looking into possible illegal dilution of shares – irregular addition of shares intended to reduce existing shareholders’ percentage – and asset stripping.

    The DCI is also looking into possible forgery of documents.

    Detectives believe that directors of Tatu City Ltd and Kofinaf Company Ltd have been colluding with Lands ministry officials to undervalue land to lower tax liability during the sale.

    The proceeds of land sales, the DCI told the court, were transferred to offshore bank accounts as part of the alleged tax evasion scheme. The transfer of funds was allegedly aided by some law firms, which have not been expressly named in Magistrate Kiage’s rulings.

    The sale proceeds are allegedly shipped to offshore bank accounts, with Mauritius and Bermuda being some of the preferred destinations.

    After directors of Meteor Properties Ltd, Gunga Properties Ltd, Jojoja Properties Ltd and Purple Saturn Properties Ltd snubbed the DCI summons, detectives filed an application before the Kahawa Law Courts Chief Magistrate, seeking authority to cart away dozens of documents.

    Tatu City and Kofinaf said in their application that the DCI does not have legal authority to investigate tax evasion, an argument that the court dismissed.

    The DCI’s economic and commercial crimes unit has been investigating Tatu City Ltd, Kofinaf Company Ltd, Green Seal Properties, Zefus Properties, Meteor Properties, Gunga Properties, Zefus Properties, Splendor Investments, Jojoja Properties, Purple Saturn Properties and Daykio Plantations over the alleged money laundering and tax evasion scheme.

    The DCI in response to the applications filed evidence that the companies were not only informed of the investigations through summons but that former directors of Green Seal Properties and Zefus Properties tagged their lawyers along for recording of statements at Mazingira Complex in May.

    By the time the companies were being served with the court orders in August, Green Seal Properties and Zefus Properties Ltd had overhauled their boards and directed that any communication from the DCI be directed to their advocates, Anjarwalla & Khana.

  • US, UK Freezes Pattni’s Assets Over Links To Gold Smuggling And Money Laundering

    US, UK Freezes Pattni’s Assets Over Links To Gold Smuggling And Money Laundering

    The United Kingdom has announced sanctions against Kenyan businessman Kamlesh Pattni for money laundering through gold exports from Southern Africa.

    Sanctions have also been imposed on Pattni’s wife and brother-in-law Mukesh Mansukhlal Vaya for their involvement in Russian money laundering activities via the United Arab Emirates.

    Pattni is accused of orchestrating illicit activities through bribery, deploying loyal associates to conceal ownership, and creating a web of businesses to disguise the origins of illegal transactions.

    “Kamlesh Pattni is an involved person within the meaning of the Global Anti-Corruption Sanctions Regulations 2021 on the basis of the following ground: Pattni is or has been involved in being responsible for or engaging in serious corruption. Specifically, Pattni has been responsible for and engaging in serious corruption, namely bribery, in support of his illicit gold trading enterprises,” the UK government states on its sanctions list.

    During public inquests, former President Daniel Arap Moi was mentioned as one of the powerful politicians who facilitated payments in billions to Goldenberg International and its subsidiaries. Mr Pattni was charged but later acquitted.

    A statement from the UK government noted that the sanctions aim to disrupt and deter the illicit gold trade by freezing the assets of Pattni and his associates, who were implicated in the Goldenberg corruption scandal in the 1990s.

    The UK government emphasized that illicit gold trade undermines legitimate markets, fueling corruption, eroding the rule of law, and entrenching human rights abuses such as child labor.

    Mr Pattni allegedly used Suzan General Trading to claim incentives from the Zimbabwe government, under a programme intended to boost mineral exports.

    In its claim documents, the dossier shows, Suzan General allegedly inflated the amount of gold it exported from Zimbabwe.

    The move will see Washington DC seize all assets owned in the US by Mr Pattni, and all individuals and companies on the sanctions list.

    Under US law, people holding any assets on their behalf in the US are required to surrender them to the Office of Foreign Assets Control (OFAC).

    “As a result of today’s action, all property and interests in property of these targets that are in the United States or in the possession or control of US persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked,” the statement from the US Treasury reads in part.

    “OFAC’s regulations generally prohibit all dealings by US persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.”

    Individuals sanctioned by the US alongside Mr Pattni and his brother-in-law Mr Vaya, nephew Mishaal Hitesh Pattni, suspected right-hand man Sanjay Keshavji Vaya, Raj Vaya Sanjay, Rahul Sood, David Paul Crosby and Dmytro Abakumov.

    The companies sanctioned are Rubini Investments (British Virgin Islands), Manurama Ltd (Kenya), Samaria Holdings Ltd (UK), Suzan General Trading (PVT) Ltd, Skorus Investments (PVT) Ltd (Zimbabwe), Mirdk Fyuels 0500, Royal Sona 0500, Sakhara Petroleum 0500, Supreme Ef Iks 0500 (Kyrgyzstan), Fiza Gold and Bullion Trading LLC, Golden Luxury Jewellery Trading LLC, Marwa Investments Ltd, Memories Golden Jewellery LLC, Precious Bullion DMCC, Rubini Investment Group Ltd, Ruhmeer Diamonds DMCC, Samaria Holdings Ltd, Sun Multinational DMCC, Sun Star Travel & Tourism LLC and Suzan General Trading JLT (UAE).

    In a statement marking International Anti-Corruption Day, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) condemned the network, alleging it deprived Zimbabwe’s citizens of the benefits of their natural resources while enriching corrupt officials and criminal enterprises.

    “Across the globe, when corrupt actors like Pattni exploit gaps in governance to benefit themselves and their cronies, communities suffer and public trust is eroded,” said Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence.

    He added, “Corruption respects no borders, and its consequences are felt worldwide. As we observe International Anti-Corruption Day, the United States reaffirms its commitment to using all available tools to hold such individuals accountable.”

    The action, coordinated with the Federal Bureau of Investigation (FBI) and the United Kingdom, underscores a global crackdown on corruption and illicit financial networks.

    Additionally, the UK stated that Russia uses the illicit gold trade to launder money and evade sanctions, thereby supporting President Vladimir Putin’s war efforts.

    The UK also sanctioned Belgian gold trader Alain Goetz, who oversees gold refineries and companies across Africa.

    Goetz is accused of smuggling gold mined in the Democratic Republic of the Congo (DRC) by armed groups implicated in severe human rights violations.

    His sanctions fall under the Democratic Republic of the Congo (Sanctions) (EU Exit) Regulations 2019.

    Additionally, Anto Joseph, CEO of several gold trading companies, including Paloma Precious, was sanctioned under the Russia (Sanctions) (EU Exit) Regulations 2019.

    The UK alleges that Paloma Precious has purchased over $300 million worth of Russian gold, indirectly financing the Russian government and its war in Ukraine.

    “Paloma Precious’ transactions have contributed to revenue streams that could fund Russia’s war efforts,” the statement read.

    UK Foreign Secretary David Lammy emphasized the threat posed by corruption to national and international security.

    “It[corruption] enables the activities of dictators, smugglers and organised criminals around the world, making our streets less safe and our borders less secure,” Lammy said.

    Lammy also referenced the recent ouster of Syria’s Bashar al-Assad, claiming his regime had been sustained by proceeds from the illegal Captagon drug trade.

    The UK government pledged to intensify efforts to combat corruption. Lammy announced additional funding for the National Crime Agency’s International Corruption Unit and welcomed Baroness Hodge as the UK’s Anti-Corruption Champion.

    The UK described illicit gold trade as a threat to legitimate commerce, fueling corruption, undermining the rule of law, and perpetuating human rights abuses like child labor.

    The government also accused Russia of leveraging illicit gold to evade sanctions and fund President Vladimir Putin’s war in Ukraine.

    To address these challenges, the UK announced plans to develop a comprehensive anti-corruption strategy by 2025.

    The initiative will involve collaboration across government, law enforcement, private sector, civil society, and academia to create a unified national response.

    The sanctions follow Operation Destabilize, a major investigation by the National Crime Agency (NCA) that exposed Russian money laundering networks linked to organized crime globally.

  • Tatu City Wars: Inside Story Of Tax Evasion, Money Laundering Probes

    Tatu City Wars: Inside Story Of Tax Evasion, Money Laundering Probes

    • Investigations by law enforcement agencies and bitter parting of ways with a former CEO have all triggered court cases.
    • In other instances, Tatu-City affiliated companies are allegedly incorporated offshore to shield them from taxes.

    On May 16 directors of Green Seal Properties Ltd and Zefus Properties Ltd recorded statements with the Directorate of Criminal Investigations (DCI), following summons related to tax evasion and money laundering allegations probes.

    The DCI’s economic and commercial crimes unit has for months been investigating Green Seal Properties, Zefus Properties and several other companies associated with the Tatu City project for alleged money laundering and tax evasion.

    Court papers filed by firms under the Tatu City umbrella, and the DCI, have shone a spotlight into several happenings around the multibillion-shilling project, which has been plagued by several allegations made in different legal battles.

    Tatu City is fighting many a battle as shareholder wars, investigations by law enforcement agencies, disputed taxes, fallouts with some of its own clients, exchanges with Kiambu County and bitter parting of ways with a former CEO have all triggered court cases.

    By the time Green Seal Properties and Zefus Properties were summoned in May, officers from two elite units of the DCI – economic and commercial crimes, and transnational organised crime – had interacted with the Tatu City investigation file.

    The transnational organised crime unit is now in charge of the probe, as the DCI initiates mutual legal assistance from Mauritius and Bermuda, in the hope that owners of the Tatu City project left behind breadcrumbs which can be used as evidence in potential prosecutions.

    In its court filings, the DCI states that it intends to also prosecute some officials of the Lands ministry and Kenya Revenue Authority for abetting the alleged tax evasion and money laundering scheme.

    In May, detectives sought to hear from directors of the two companies on land transfers involving related entities under the Tatu City project as they put together a file that will be sent to the Director of Public Prosecutions once the investigation is completed.

    In the course of their fact-finding mission, detectives believed they had stumbled into instances of document forgery and misrepresentation of facts, all part of the alleged scheme to launder money and dodge the taxman’s dues.

    A month later, directors of Meteor Properties Ltd, Gunga Properties Ltd, Jojoja Properties Ltd and Purple Saturn Properties Ltd also received DCI summons. Their directors snubbed the summons.

    The six companies cited by the DCI are all related to the Tatu City project, and are special purpose vehicles that were incorporated as part of the mixed-use development which sits on 5,000 acres in Ruiru, Kiambu County.

    On Friday, an officer close to the investigation confirmed that the DCI has filed a new application at the Chief Magistrate’s Court, this time seeking access to bank accounts operated by companies under the Tatu City project and their officials.

    Detectives want permission to obtain documents related to account opening information, signatories, bank balances, statements showing flow into and out of the accounts and other details they believe may aid the investigation.

    The Tatu City project has made some gains since its backers hit the ground in 2008 through real estate firm Rendeavour, most notably being accorded special economic zone status in 2017.

    Over the years, nearly 60 companies cutting across the corporate sector, real estate, manufacturing, hospitality and other industries have invested in the project either through land purchases or setting up premises within Tatu City.

    The DCI’s working theory is that in particular instances, a Tatu City affiliate acquires land from a related company at a pittance of the market value, lowering its tax liability.

    In other instances, Tatu-City affiliated companies are allegedly incorporated offshore to shield them from taxes arising from land purchases.

    “Information and details of the documents believed to be in the custody of the respondents herein are crucial documents that will be used as exhibits to investigate the alleged offences of forgery, illegal dilution of shares, asset stripping, money laundering and tax evasion from proceeds of sale of these parcels of land,” DCI investigator Julius Mateh says in his affidavit.

    The sale proceeds are allegedly shipped to offshore bank accounts, with Mauritius and Bermuda being some of the preferred destinations.

    After directors of Meteor Properties Ltd, Gunga Properties Ltd, Jojoja Properties Ltd and Purple Saturn Properties Ltd snubbed the DCI summons, detectives filed an application before the Kahawa Law Courts Chief Magistrate, seeking authority to cart away dozens of documents.

    Proxies to hold shares

    Sale agreements between related firms that dealt in land, valuation reports for the properties, receipts, tax-related documents, loan paperwork and company ownership records were the subject of the application.

    The DCI also sought to be supplied by Lutta & Company Advocates, and carry away as exhibits, certified copies of the agreement of sale between Kofinaf Company Limited and Jomo Kenyatta University of Agriculture and technology (JKUAT), sale agreement between MJS Mansion Mauritius and Wanachuo Investment Limited and Dexamide Properties Ltd, in respect share purchase and a parcel registered as LR No.10877.

    The DCI argued that Galba Mining Limited was incorporated by Kofinaf Company Ltd, one of the main Tatu City affiliates, and became the majority shareholder in Purple Saturn, thus holding its shares as a proxy of Kofinaf Company Limited.

    The DCI affidavit alleges that this arrangement was well known to Nahashon Nyagah who, together with former Kofinaf and Tatu City Ltd CEO Lucas Omariba allegedly undertook to procure proxies to hold shares in trust for Galba Mining Limited.

    A principal magistrate granted the orders sought by the DCI on August 9.

    By the time the companies were being served with the court orders, Green Seal Properties and Zefus Properties Ltd had overhauled their boards, and directed that any communication from the DCI be directed to their advocates, Anjarwalla & Khana.

    A week later, 10 companies under the Tatu City roof, and a law firm filed an application before the same court, seeking to quash the orders granting the DCI access to the volumes of documents.

    Meteor Properties, Gunga Properties, Green Seal Properties, Zefus Properties, Splendor Investments, Jojoja Properties, Kofinaf Company Ltd, Tatu City Ltd, Purple Saturn Ltd, Daykio Plantations and Lutta & Company Advocates claimed that the orders had been sought through underhand tactics.

    The 11 applicants claimed that they were not aware of the investigations and that the DCI did not serve them with the court orders allowing detectives to cart documents away from their offices.

    The DCI has responded to the application, filing evidence that the companies were not only informed of the investigations through summons, but that former directors of Green Seal Properties and Zefus Properties tagged their lawyers along for recording of statements at Mazingira Complex in May.

    The DCI added that it served the Chief Magistrate’s order on the companies.

    The Chief Magistrate’s Court is yet to determine the application by the Tatu City firms.

    It is the second time that companies under the Tatu City umbrella are trying to wriggle out of tax evasion and money laundering investigations through the courts.

    In April, 2022 High Court judge Esther Maina dismissed a case by Tatu City Ltd and Kofinaf Ltd seeking to block a similar probe by the Ethics and Anti-Corruption Commission (EACC).

    The EACC in 2017 initiated an investigation, as it believed that the Tatu City project was being used to facilitate a form of money laundering called loan back scheme.

    In that scheme, EACC’s probe indicated that some of the Tatu City affiliates had acquired loans from other related companies to conduct the land transactions.

    The loans and land purchases, the EACC investigation found, seemed to be paper transactions, intended to make the companies look like they were doing legitimate business, a pattern often seen in money laundering schemes.

    The EACC investigation is still ongoing.

    Kofinaf Company Ltd, one of the Tatu City owners, is currently battling a Sh656.7 million tax claim from the KRA at the High Court.
    The disputed taxes are in relation to income tax from land dealings in Tatu City for the years 2014 and 2015.

    Kofinaf in 2016 filed its tax returns, which included capital gains on land it had sold. The company then wrote to the KRA claiming that it had erroneously included capital gains tax in its books for five pieces of land sold.

    In those transactions, Kofinaf had sold land to other Tatu City affiliates – Noir Properties, Gunga Properties, Purple Saturn Properties and Jojoja Properties.

    Kofinaf insisted that the land transfers had been done in 2013, two years before capital gains tax came into effect.

    But the KRA in response rejected the claim on July 10, 2017, holding that there was no documentation filed to support Kofinaf’s request to amend its tax returns and remove the capital gains references.

    Dismissed the appeal

    This opened the door for a Sh487 million claim, which was still rising on account of interest and penalties.

    Kofinaf filed an objection to the tax claim. Other tax demands and payment reminders were issued to Kofinaf as the objection was pending. The company objected to the further demands.

    On May 2, 2023 the Commissioner for Domestic Taxes rejected Kofinaf’s request to amend the 2014-2014 tax returns. The amount had now grown to Sh564.8 million.

    Kofinaf objected again, and the KRA rejected again.

    Kofinaf challenged the decision at the Tax Appeals Tribunal in August, 2023. The tribunal in April, 2024 dismissed the appeal.
    Kofinaf has now filed an appeal against that decision at the High Court, with the amount ballooning to Sh656.7 million.

    That includes Sh297.18 million as the principal tax amount, Sh285.3 million in interest and Sh74.3 million in penalties.
    The Commissioner for Domestic Taxes dismissed the objection on July 14, 2023.

    During a National Assembly investigation into the tax evasion allegations, it was claimed that Tatu City affiliate companies were cooking books to lower their dues to Caesar.

    In one instance Stephen Mwagiru, one of the local shareholders that fell out with foreign shareholders, claimed that a piece of land was sold to Jomo Kenyatta University of Agriculture and Technology for Sh842 million.

    But Tatu City allegedly declared Sh235 million as the sale price in its books of accounts, effectively lowering tax liability.
    A parcel sold to Splendor Investments, allegedly worth Sh2 billion, had its sale price logged in as Sh559 million.

    Mr Mwagiru claimed that the Tatu City project had facilitated tax evasion to the tune of Sh1.5 billion.

    Nahashon Nyagah, another local shareholder, who is also engaged in court battles with his foreign counterparts told that Parliamentary committee that the tax dodged stood at Sh6.5 billion.

    Tatu City maintained that the allegations were bogus, and that Mr Nyagah and Mr Mwagiru were bent on frustrating the multibillion-shilling project.

    The Parliamentary petition seeking sanctions against Tatu City and its affiliates was dismissed.

    Mr Nyagah is among the local partners who have been engaged in court battles with foreign nationals who are also directors in Tatu City and its affiliate companies, since 2015.

    Mr Nyagah, Mr Mwagiru and Bidco Group chairman Vimal Shah were among local partners in the Tatu City project. Mr Nyagah and Mr Shah were minority shareholders.

    Mr Shah and Mr Nyagah sued their foreign counterparts Stephen Jennings (New Zealand), Frances Holliday (UK), Hans Jochum Horn (Norway), Frank Mosier (US) and Christopher Barron (New Zealand) in 2015 to block their removal from the project and its operations.

    They also sued two local partners, Pius Mbugua Ngugi and Anthony Njoroge, who were on the other side of the fence.

    A series of allegations and counter allegations have since been made in that and other cases pitting the two sides. The cases are still pending determination at the High Court in Nairobi.

    Mr Nyagah’s camp claims that the foreign shareholders are engaging in tax evasion and money laundering. The foreign shareholders claim that their local partners intended to defraud Tatu City of large land parcels worth billions.

    The foreign shareholders have countersued, accusing even lawyers and associates of Mr Nyagah and Mr Shah of aiding fraud against Tatu City and its affiliate companies.

    Lucas Omariba, who was Tatu City CEO when the ownership battles begun, is now one of the respondents in the countersuits.
    He was sacked in 2015 for alleged insubordination and making negative comments against Tatu City directors.

    His termination letter did not indicate the reasons for sacking, which saw Mr Omariba bag a Sh27.5 million windfall for wrongful dismissal after suing Tatu City.

    Tatu City ecosystem

    Tatu City filed a counterclaim against Mr Omariba, which was dismissed, accusing him of sharing confidential information with third parties after being sacked. Mr Omariba was ordered to either return a Tatu City-issued mobile phone and laptop or pay the company half the purchase price of the two devices.

    Justice Onesmus Makau’s 2021 judgment came as another Tatu City friend turned into a foe.

    Former Kiambu governor William Kabogo sued four companies under the Tatu City umbrella in 2021, seeking to enforce a sale agreement for 100 acres valued at Sh3.4 billion.

    Mr Kabogo sued alongside Gilulu Investments Ltd and Acres and Homes Ltd, seeking to stop Tatu City from terminating the deal, which had seen him pay a Sh348 million deposit in 2016 when still serving as governor.

    The politician described Stephen Jennings as the controlling mind of the Tatu City ecosystem, as Chris Barron plays an executive function in the project.

    Mr Kabogo claimed that Mr Jennings and Mr Barron requested him to incorporate a company in another country and use it to purchase the land by making payments to a Bermuda-registered Tatu City affiliate called West African Real Estate Holdings.

    The former governor said in court papers that he rejected the move to avoid trouble with the KRA over possible tax evasion.

    His Acres and Homes paid the deposit. Fundamental Property Ltd, another Tatu City affiliate, issued a termination notice to Mr Kabogo’s former advocate Mary Chege, who then transmitted the document to her client.

    Despite being listed by a defendant by Mr Kabogo, Ms Chege is registered as an official of Gilulu Investments, one of the plaintiffs.
    Gilulu Investments is registered in Seychelles.

    In response to the suit, the Tatu City affiliates filed objections seeking to have the matter referred to arbitration in line with the sale agreement.

    Ms Chege filed an objection to being listed in the suit, and later attempted to switch advocates representing Gilulu Investments.  She had intended to have Gilulu Investments switch sides and support the Tatu City affiliates. The suit is still pending final determination.

    When asked about some of the allegations made by investigative authorities, which are serious and transnational in nature, particularly in regards to asset stripping, forgery and tax evasion, Preston Mendenhall, Group COO Country Head, Kenya Rendeavour came out guns blazing; “Your questions resemble the narrative they regularly peddle to journalists about Tatu City. It’s quite old material actually, covered ad nauseum by NMG for years … with no proof whatsoever.”

    With the Kabogo suit still ongoing, Tatu City has been entangled in fights with some of its clients.

    Justice Grace Kemei on October 6 allowed Home Bridge Ltd to proceed with its construction of 652 apartments in Tatu City, after lifting a stop order initially issued against the developer.

    Tatu City sued Home Bridge in 2023 at the Thika High Court, through Ahmednasir Abdullahi Advocates, arguing that Home Bridge did not get building approvals from Tatu City before embarking on the development project.

    Justice Kemei lifted the stop order after Home Bridge argued through Iseme, Kamau & Maema Advocates that it sought approvals from the Lands ministry and Kiambu County only following frustration from Tatu City that culminated in an allegedly exorbitant fee demand.

    Tatu City had demanded Sh46 million before issuing approvals, while the two government institutions charged Sh7 million.

    Home Bridge Ltd filed evidence that Tatu City was copied in the applications for the approvals, and ensuing feedback from the Lands ministry and Kiambu County.

    On account of that evidence, Justice Kemei said Tatu City could not claim that Home Bridge Ltd commenced construction without the necessary building approvals.

    “The court finds that the defendant (Home Bridge Ltd) commenced construction after seeking and obtaining approval from the minister. The claim therefore that the defendant was developing the unit without approved plans is untenable. It is not disputed that the plaintiff (Tatu City) was involved in the process of approval undertaken by the Director (of Physical Planning, Ministry of Lands),” Justice Kemei said in her ruling.

    Tatu City has filed a notice of appeal to challenge Justice Kemei’s ruling, even as the HIgh Court case is yet to get a final determination.

    The firm insists that its approvals were a priority, and that construction could not start before Tatu City’s green light.

    Home Bridge borrowed Sh2 billion from a local bank for its project and the stop order risked piling idle fees – penalties for construction delays caused by the contracting party – levied by different contractors it hired for the project.

    Tax evasion and money laundering

    Just six months earlier, Home Bridge scored another court victory against Tatu City.

    In that case, Tatu City Ltd and Tatu Connect SEZ Ltd sued Home Bridge at the Chief Magistrate’s court in Ruiru, seeking Sh10 million in service charge.

    Tatu City claimed that Home Bridge had defaulted on service charge since 2016, and that the amounts due had grown to Sh10 million, inclusive of penalties.

    Home Bridge in its defence argued that service charge was to be levied by a property owners association, which had not been made operational when it was slapped with the Sh10 million demand.

    The real estate firm also raised issue with some items in the billing, and questioned the process used in determining the amount of service charge to be paid by occupants in Tatu City, especially because there was no documented formula.

    An audit report of the service charge levied was conducted, but not availed to Home Bridge.

    A meeting requested by Home Bridge failed to resolve the standoff, and Tatu City sued.

    Chief Magistrate Joseph Were dismissed Tatu City’s case.

    The magistrate in his judgment found that the property owners association had not been made operational, and cast doubt on Tatu City’s authority to assess and levy the service charge.

    The magistrate added that if assessment of service charge was to be done, then property owners should have been involved in the process.

    Mr Mendenhall fell short of explaining how the cases that border shareholder wars, the tax evasion and money laundering investigations by EACC and DCI, the labour court matters, the cases against some clients; and the allegations made in them have affected the uptake of the project in terms of attracting blue chip firms and land sales, and instead chose to intimidate and stalk the journalist with unveiled threats.

    He rubbished our queries, instead choosing to malign NMG’s commercial department; “…If things are so dire at Tatu City, why does the NMG marketing department flood us with requests for commercial partnerships? Might that be because Tatu City is successful?”

  • Nigerian Airline CEO Faces New US Charge In $20M Fraud Case

    Nigerian Airline CEO Faces New US Charge In $20M Fraud Case

    US authorities charged the owner of Nigeria’s largest airline with obstruction of justice in a $20 million fraud case.

    The charge updates an indictment from five years ago in which he and an alleged accomplice were charged with bank fraud and money laundering.

    The US Department of Justice said Allen Onyema, founder and chief executive of Air Peace, faces the new charge of obstruction “for submitting false documents” to the US government. Onyema, 61, allegedly submitted the documents in a bid to end the investigation that led to the bank fraud and money laundering charges, the DOJ announced on Friday.

    Onyema is charged alongside Air Peace’s finance chief, Ejiroghene Eghagha. The DOJ, in its 2019 bank fraud and money laundering indictment, alleged that both officials moved “more than $20 million” from Nigeria through US bank accounts in a scheme involving false documents based on the purchase of airplanes from a company allegedly based in the US state of Georgia.

    The obstruction charges against the pair are for “additional crimes of fraud,” Ryan K. Buchanan, the US Attorney for the Northern District of Georgia, said last week.

    Air Peace, in a statement on Sunday, said both executives, who have not been arrested since the first indictment, “remain innocent and these are mere allegations.” The company said Onyema has “consistently cooperated” with the investigation process and is confident both executives will be “exonerated.”

    Air Peace operates the largest volume of daily domestic flights in Nigeria. Onyema founded the airline in 2013. The company flies to and from Nigeria and some West African capital cities. It began direct flights between London’s Gatwick airport and Lagos in March. A previously active route between Lagos and Dubai has yet to resume following a two-year hiatus over visa-related disagreements between Nigeria and the United Arab Emirates.

    Know More

    The DOJ formulated indictments against Onyema based on the businessman’s alleged activities dating back to 2010, the year he is said to have started frequent visits to Atlanta. He is said to have opened “several personal and business bank accounts” that received over $44.9 million between 2010 and 2018.

    The original bank fraud and money laundering charges related to how Onyema allegedly used his accounts from 2016.

    By presenting letters of credit supposedly needed to fund the purchase of five Boeing 737 passenger planes for Air Peace, Onyema and Eghagha allegedly caused banks to transfer more than $20 million into the CEO’s Atlanta-based bank accounts.

    But a variety of documents used to support those letters of credit — including appraisals to prove that Air Peace was buying the planes from a Georgia-based business called Springfield Aviation Company — were fake, the DOJ claims.

    Onyema owned Springfield Aviation, the company owned no aircraft, and the appraisals came from a company that did not exist, the DOJ said. He then “allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts,” according to the 2019 indictment.

    The updated indictment this October comes from actions the DOJ says Onyema and Eghagha took after learning of the investigation leading up to the bank fraud indictment in November 2019.

    In October of that year, the CEO directed his lawyers to present a Springfield Aviation contract backdated to 2016 to the US government, in a bid to unfreeze his accounts and “derail the investigation.” The document had actually been drawn-up in May 2019 by a Springfield manager and left undated, on the orders of the two accused Air Peace executives, the DOJ said.

  • The Shadowy Path of South Sudan’s Martin Elia Lomuro: A Tale of Corruption and Controversy

    The Shadowy Path of South Sudan’s Martin Elia Lomuro: A Tale of Corruption and Controversy

    Martin Elia Lomuro, the National Minister of Cabinet Affairs in South Sudan, has a long history marred by corruption allegations, financial mismanagement, and shady dealings.

    Despite his denials and attempts to portray himself as a victim of misinformation, Lomuro’s track record tells a different story—systemic corruption and exploitation of his high-ranking position for personal gain.

    Martin Elia Lomuro

    Allegations of a Massive UAE Loan

    In late 2023, reports emerged that the South Sudanese government had secured a USD 12.9 billion loan from a company linked to the Abu Dhabi ruling family.

    This deal, allegedly negotiated on the sidelines of the COP28 Climate Change Summit in Dubai, was purportedly signed by South Sudan’s former Finance Minister, Dr. Bak Barnaba Chol.

    Oyet Nathaniel Peirino, the First Deputy Speaker of the Transitional National Legislative Assembly (TNLA), voiced concerns over the legitimacy and transparency of this loan.

    He questioned why such a substantial amount was borrowed without parliamentary approval, highlighting the potential for severe economic repercussions.

    In response, Dr. Martin Elia Lomuro dismissed the reports as mere “social media allegations,” claiming no knowledge of such a loan and denying the existence of any related documents.

    Lomuro’s evasive answers and outright denial only fueled suspicions of underhanded dealings.

    Mismanagement of Peace Funds

    In January 2024, Lomuro faced intense scrutiny from the TNLA’s Finance Committee regarding the misappropriation of USD 10 million designated for peace agreement institutions.

    The Cabinet Affairs Ministry’s secretariat account mysteriously received funds meant for the National Constitutional Review Commission and the National Human Rights Council.

    Lomuro’s ministry allegedly diverted the funds to unspecified “special projects,” violating South Sudan’s financial regulations.

    This unauthorized diversion of funds raised significant concerns about Lomuro’s financial management and integrity.

    The Crisis Committee Scandal

    Lomuro has been involved in corrupt practices since at least 2016. He was implicated in a scandal with the Crisis Management Committee (CMC).

    The government established the CMC to manage the aftermath of the 2013 conflict in South Sudan and to aid in the country’s recovery.

    Confidential documents revealed that of the SSP 447 million disbursed to the CMC, only SSP 84 million could be accounted for.

    Over SSP 360 million remained untraceable, raising questions about their misuse.

    Lomuro and several other ministers and officials benefited from these funds, blatantly disregarding the Public Financial Management and Accountability Act of 2012.

    Money Laundering Charges in Kenya

    In 2021, Lomuro faced money laundering charges in Kenya, where the Anti-Corruption and Economic Crimes Court froze his bank accounts containing USD 124,000 due to suspicious transactions.

    Authorities eventually cleared Lomuro of these charges.

    However, the case further tarnished his reputation. It also highlighted the international dimensions of his financial improprieties.

    The Denial and Reality

    Lomuro’s consistent denial of any wrongdoing and his attempts to attribute allegations to social media misinformation reflect a pattern of evasion and deflection.

    He has repeatedly dismissed credible reports and concerns raised by parliamentary officials as unfounded rumors.

    For instance, when questioned about the alleged USD 12.9 billion loan, Lomuro claimed ignorance and dismissed the matter as baseless.

    His assertion that social media information is unreliable and illegal is an attempt to undermine legitimate concerns and avoid accountability.

    Similarly, regarding the misuse of peace funds, Lomuro justified the reduction in allocated amounts by citing financial challenges.

    However, his failure to follow proper procedures and unauthorized diversion of funds indicate deliberate mismanagement.

    The Bigger Picture

    Lomuro’s actions are symptomatic of a broader culture of corruption and lack of transparency within South Sudan’s government.

    He maintained his position despite numerous allegations. This points to a systemic issue. Accountability is often bypassed.

    The implications of Lomuro’s corrupt practices are far-reaching.

    Mismanagement of funds meant for peace and development undermines efforts to stabilize South Sudan and rebuild its institutions.

    The diversion of critical resources for personal gain exacerbates the country’s economic challenges and hampers progress.

    His involvement in international financial scandals, such as the money laundering case in Kenya, highlights the global reach of his corrupt activities.

    It underscores the need for international cooperation in holding corrupt officials accountable and preventing the misuse of financial systems.

    Conclusion

    Martin Elia Lomuro served as South Sudan’s National Minister of Cabinet Affairs. His tenure is riddled with corruption allegations.

    Financial mismanagement and shady dealings marked his time in office. The international community, along with South Sudan’s own institutions, must take a firm stand against such corruption.

     

  • How Uganda Got Delisted From The FATF Grey List

    How Uganda Got Delisted From The FATF Grey List

    Uganda has been delisted from Financial Action Task Force (FATF) Grey List after four years of implementing reforms needed to combat illicit financial flows.

    The East African Community (EAC) member state was placed on the list in February 2020 due to strategic deficiencies in Anti-Money Laundering and Countering Financing Terrorism (AML/CFT) measures.

    According to Uganda’s Financial Intelligence Authority (FIA), Uganda has implemented a series of rigorous reforms and demonstrated substantial progress in aligning its AML/CFT framework with International standards.

    “Uganda’s exit from the FATF Grey List is a testament to our unwavering commitment to fostering a transparent and secure financial environment. It reflects the concerted efforts of our Government and Regulatory Authorities to strengthen our AML/CFT framework and safeguard our financial system from illicit financial activities,’ said Samuel Wandera, FIA Executive Director.

    Among key reforms the country has undertaken during the four years period include adoption of the Countering of Proliferation Financing Strategy which has helped in enhancing the use of Mutual Legal Assistance and maintaining comprehensive statistics.

    Uganda also developed and implemented a risk-based supervision of the financial and Designated Non Financial Business and Professionals (DNFBP) sectors, ensured that Law Enforcement Agencies and Judicial authorities apply the ML offence consistent with the identified risks as well as establishing procedures to trace and seize proceeds of crime.

    Wandera said the country also sought regional collaboration with other anti-money laundering organizations with the aim of combating illicit financial inflows.

    “Government of Uganda has been actively working to strengthen the effectiveness of its Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) regime to implement the action plan agreed to, with the FATF which comprised of 22 Action items,” he added.

    The exit from FATF Grey List now means Uganda can now enhance its attractiveness to investors and facilitate greater access to International Financial Markets.

    Kenya last week landed on the list with National Treasury saying the country has been compliant in some areas though facing challenges in others.

    In a bid to seal loopholes exploited by criminals engaged in illicit financial flows, Treasury said key achievement has bee the enactment of AML/CFT Amendment Act 2022 which has helped address key legal and compliance deficiencies.

    “The National Treasury is actively engaged in this process and anticipates minimal effects on the country’s financial stability and the cost of conducting business in Kenya,” said Prof. Njuguna Ndung’u, National Treasury Cabinet Secretary.

  • Car Dealer Kairo Offers Sh1M To Anyone With The Proof That He’s Involved In Money Laundering After Being Accused Of Selling Written Off Cars

    Car Dealer Kairo Offers Sh1M To Anyone With The Proof That He’s Involved In Money Laundering After Being Accused Of Selling Written Off Cars

    Popular car dealer Joseph Kairu Wanjiru alias Kairo, has found himself in the middle of accusations that he’s involved in money laundering claims that he has outrightly denied and dating those questioning his wealth to provide proof t has t he’s involved in dirty business.

    All this stems from earlier allegations that the successful car dealer was selling previously written off cars from the United Kingdom to his clients, claims that he equally denied.

    Mr. Kairu is now offering Sh1 million to anyone with solid evidence to expose him.

    “If you have evidence linking Khalif Kairo to money laundering, criminal activity or wash wash. Give it to Cyprian Nyakundi. If he proves I am in wash wash or money laundering. I will pay him Kes 1 Million akileta solid receipts backed by Facts,” Kairo wrote on Twitter.

    It all started when Nyakundi, a Kenyan whistleblower blogger had reported on his social media account about the accusation from X users who had claimed the dealer was trading previously written off cars.

    Screenshot.
    Screenshot.

    Mr. Kairo in his defense said it was a mere mistake in posting and said his delivery and services are uncompressed and unbeatable in the market.

    Screenshot.

    While rubbishing off the claims and defending his brand from his records, he offered Sh1 million to any of his previous customers who found out the car had been tampered with and faced difficulties, “I will offer Kes 1,000,000 o any customer who can come forward and say he/she imported a car from @kai_and_karo akapata ni accident car ama iko major defect.” He wrote on X.

    On money laundering allegations flying in X, Mr Kairu who trades under Kai & Karo, addressed the whistleblower blogger saying his track record is clean and that he has not only been able to sell hundreds of cars but that he doesn’t have a single criminal record that has enabled him to traverse the world without being flagged anywhere. “Cyprian,
    I have sold 100s of cars na sina criminal case ata moja,naingianga US venye nataka na sijakuwa flagged mahali popote by any police agency on earth.”

    In reply, Mr. Nyakundi asserted records showing the extent of car yards involvements in money laundering, “Mr. Kairo, on car yards doing money laundering, NIS reports, parliamentary reports etc have confirmed that 85% of car yards in Nairobi are serious washers. The burden of proof lies on you, not us. This is from NYS scandal to looting of parastatals. Are you in the 15% clean?” He paused.

    Again a confident Mr. Kairo dismissed Nyakundi calling upon those with evidence to go ahead and release the dossier, “”If you have evidence linking Khalif Kairo to money laundering, criminal activity or wash wash. Give it to @C_NyaKundiH. If he proves I am in wash wash or money laundering. I will pay him Kes 1 Million akileta solid receipts backed by Facts,” Kairo wrote on X.

    Hussain Jarrar

    Elsewhere, a Pakistani national, Hussain Jarrar who had been hiding and evading justice in Kenya, has finally been deported.

    Jarrar, 49, had been illegally residing in Kenya for two years with no action taken, until he was picked up from his Lavington residence and bundled onto a KQ flight 310 from Nairobi to Dubai a week ago.

    He was scheduled to land in Dubai and then be shipped to Karachi, according to officials familiar with the situation.

    Immigration officials indicated that the move followed an order by Interior Cabinet Secretary Kithure Kindiki, after confirming that Jarrar was an illegal immigrant who had been enjoying protection from certain corrupt government officials.

    Thr haunted businessman now risks losing his fortune to the state should Assets and Recovery Authority prove that they are proceeds of crime.

    Jarrar’s work permit had expired in November 2022, and he possessed a forged Kenyan ID, known to authorities but overlooked.

    The last interaction he had with immigration officials was in July last year when they summoned him over his status.

    He appeared before officials who later released him on a Sh100,000 cash bail, promising to summon him the following day for further processing.

    Jarrar was under investigation, along with others, over claims of organized crime.

    Jarrar, 48, who arrived in the country in 2006 and was later employed as a sales motor vehicle agent is now suddenly a billionaire.

    The Pakistani is also being probed for forgery after it emerged he had obtained a Kenyan identity card fraudulently.

    “Previously, Jarrar was a director at Al- Husnain Motors Limited and obtained three of his previous work permits from February 18, 2006 to February 2, 2013. Later the directors of Al-Husnain Motors split and hence the establishment of Al-Shujah Motors Limited by Jarrar,” said part of a letter by one of the State agencies probing the matter, dated May 19, 2022.

    Officials say despite being a foreigner, Jarrar declared that he is Kenyan in one of the companies, Silver Dash Limited, which he runs with his two children.

    He had then unsuccessfully applied for renewal of his work permit as a foreigner. The application for renewal was rejected.

    Jarrar’s work permit expired last year in November 2022 and he had since then been operating from his hideout in the city using proxies to fix his deals, officials said.

    He’s said to be the owner of the multi-million-shiling mall Al-Shujah Mall, in Kilimani adjacent to Yaya Centre and has also bought two prime parcels of land in the same area.

    Among the agencies that had been pursuing him include the Directorate of Criminal Investigations (DCI), the Financial Reporting Centre (FRC), the Immigration Department and the National Intelligence Service (NIS). “He was employed as a sales official at Al-Husnain Motors in the city where he earned Sh70,000 up to 2013. He couldn’t explain how he made the billions he is splashing around,” said an official aware of the probe.

    In another letter dated May 2022, the agency says Jarrar was a director at Al-Shujah Motors Limited which was established in 2012 and started operations of selling second-hand vehicles in January 2013. In June 2016, he made an application as a permanent resident through lawful status which was pending for five years, according to the correspondence.

    In June 2021, he applied for his citizenship by lawful residence when it was established he had an adverse notice due to his suspicious involvement with Iranians.

  • Court Declines Request To Suspend Orders Freezing Funds Linked To US Linked Jet Leasing Firms

    Court Declines Request To Suspend Orders Freezing Funds Linked To US Linked Jet Leasing Firms

    Proprietors of two exclusive private jet companies have suffered a major blow after failing to convince a judge to suspend orders freezing its bank accounts, which were restricted over claims of money laundering.

    High Court Judge Esther Maina dismissed the application by the owners of the two firms linked to US based companies for lack of merit.

    Cullinan Private Jet Corp, an alleged subsidiary of a company registered in Miami and Glo-Jet International limited, a subsidiary of a company registered in the state of Florida, wanted the order freezing its bank accounts in Kenya lifted.

    “The Notice of Motion dated 28th September 2023 is hereby dismissed for lack of merits,” ruled justice Maina of the anti-corruption Division of the High Court.

    In her ruling, the judge found that the two executive private jet companies failed to prove that the preservation orders was making it difficult to meet its expenses.

    The Judge dismissed arguments by the two private jet companies that a preservation order may not be varied or rescinded if there is a forfeiture application which is yet to be determined.

    The judge added that a preservation order is valid for 90 days from the date of its gazettement unless a forfeiture application is filed in which case the preservation persists until the forfeiture application is heard and determined.

    “In my considered view an intended but yet to be filed forfeiture application cannot be a bar to an application for variation or setting aside of a preservation order and this issue must therefore be answered in the negative,” ruled the judge.

    In her 31 page ruling , Judge Maina observed that the two companies annexed copies of cheques drawn to third parties which they claimed were dishonoured as a result of the freeze and demand letters from third parties threatening to sue for not meeting their financial obligations.

    The firms had also alleged that some of their staff have handed in their resignation letters due to non-payment of their salaries and the companies were undergoing financial hardship which was threatening to cripple their operations.

    “The question would then be whether inability to pay salaries and debts due to financial hardship falls within the definition of “reasonable living expenses” as envisaged in Section 89 (1) (a) (i) of the POCAMLA,” the judge said.

    “It is therefore clear to me that the living expenses envisaged in Section 89 (1) are the personal living expenses of the applicant a natural person, but not of a company. The deponents of the affidavits of the companies do not allude to any hardship suffered by themselves, or by the other directors of the two companies, personally,” noted the judge.

    The judge added that the only claim is that the preservation order has exposed the companies’ operations to grave danger to the extent that the parent company has threatened to relocate to other countries.

    “Even then no evidence was tendered that the cheques annexed to the affidavit were presented to the banks and were in fact dishonoured. There is also no evidence from any of the company’s creditors that indeed they are owed money by the two companies,” observed the judge.

    The judge further stated that a dishonoured cheque would definitely have remarks to that effect from the bank to which it is presented and in this case there are no remarks to that effect.

    Cheques, the judge noted, are generated internally and the mere fact of their having been drawn is not evidence that they were not honoured.

    The judge further added that the preservation orders are in respect to four bank accounts and the two companies have not disclosed whether their companies run other accounts and there is no proof that their business operations have come to a halt since the preservation orders which affect only the four accounts needless to say were issued.

    Justice Maina added that the companies have also not demonstrated that their suppliers and employees were being paid from the four accounts that are affected by the preservation order.

    Moreover, the two private jet companies claim to be subsidiaries of global multi-billion dollar companies with operations in 47 countries in different parts of the world and which have financial muscle to support the Kenyan entities, added the judge.

    “This in itself contradicts the allegation that the Respondents are likely to meet their financial obligations because of the preservation order. Indeed, they assert that should their assets in the preserved accounts be forfeited their parent company is capable of sustaining them,” said the judge.

    The two companies sotught to lift the order obtained by Asset Recovery Agency freezing its accounts pending forfeiture proceedings.

    The bank accounts included four dollar and Kenya shilling accounts belonging to Cullinan Private jets Corp limited and Glo-jet International ltd.

    The judge prohibited the operators or their agents or representatives from transacting, withdrawing, transferring, using and any other dealing with the money in the bank accounts.

    The Bank accounts includes USD 54, 257.85 , Sh 696,070.70 held in Account Number 01904057366250 registered in the name of Cullinan Private Jets Corp Limited held at I & M Bank and USD 24,712.61 held in Account Number 6658001882 in the name of Glo Jet International Limited and Sh.1,134,691.33 held in Account number 6658001881 in the of Glo Jet International Limited held at Ecobank Limited.

    ARA told the court on 25th August 2023 the Agency received information that the above accounts are holding funds suspected to be proceeds of criminal activities and money laundering

    Subsequently the Agency opened an Inquiry file to investigate the legitimacy, source and destination of the funds for the purpose of ascertaining whether the same was acquired from or is a profits or benefits of proceeds of crime or intended for the commission of crime.

    According to ARA court documents, financial investigations conducted by the Agency revealed complex fraud and money laundering schemes conducted by the Cullinan Private Jets Corp Ltd and Glo-jet International ltd their directors and associates rendering the above funds proceeds of crime liable for preservation and forfeiture.

    The said bank accounts received suspicious huge cash deposits from various suspicious sources and investigations established that there are reasonable grounds to believe that the funds in issue are obtained through illegitimate means.

    “The investigations have revealed that the cash deposits were unlawfully acquired hence proceeds of crime pursuant to the Provisions of Proceeds of Crime and Anti-Money Laundering Act and investigations further established that the funds were obtained from various suspicious sources and spent/dispersed through suspicious activities and transactions in a classical money laundering schemes,” Agency told the court.

    ARA further adds that the transactions in the present application arose from the same facts and money laundering schemes in which the Respondents, their agents and associates are the planner and beneficiary.

  • Court Freezes Sh63M Of Virtual Financials International Over Links To Fraud

    Court Freezes Sh63M Of Virtual Financials International Over Links To Fraud

    The High Court has allowed an application by a state agency to freeze bank accounts linked to a payments solution firm over claims of money laundering.

    Justice Nixon Sifuna froze the accounts belonging to Virtual Financials International limited, holding over Sh63 million after he was informed that the money could be proceeds of crime.

    The money was in two bank accounts, with one holding $16,661.75 and Sh 60,789,500.05 held at Equity Bank under Virtual Financials International limited.

    The Judge ordered the account to remain frozen for three months pending an application for forfeiture of the funds to the state.

    This after Asset Recovery Agency approached the court under certificate of urgency seeking to freeze the two Bank accounts containing money arguing that investigations revealed that the funds were linked to proceeds of crime.

    “There are no High Court orders currently preserving the funds in issue and there is imminent danger the Respondent shall dispose, transfer, withdraw and dissipate the said funds unless this Honourable Court issues preservation orders as prayed in this application,” ARA told the court while seeking orders to freeze the accounts.

    The Agency says in documents filed before Anti-Corruption court that they were tipped on 10th of May that the two Bank accounts were holding money suspected to be proceeds of criminal activities and money laundering.

    Financial investigations were conducted by the agency later revealed complex fraud and money laundering schemes conducted by Virtual Financials International ltd , it’s directors and associates rendering the said funds proceeds of crime liable for preservation and forfeiture.

    “The said Bank accounts received suspicious huge cash deposits from various suspicious sources and investigations established that there are reasonable grounds to believe that the funds in the issue are obtained through illegitimate means,” ARA told Anti-Corruption court judge.

    The court was informed that the investigations further established that Virtual Financials International ltd was involved in a complex scheme of money laundering designed to conceal, disguise the nature, source of disposition and movement of the illicit funds.

    The agency Investigating officer Isaac Nakitare told the judge that there were reasonable grounds to believe that the virtual’s bank accounts were used as conduits of money laundering contrary to Sections 3, 4 and 7 as read together with Section 16 of Proceeds of Crime and Anti- Money Laundering Act in an effort to conceal and disguise the nature, source, disposition or movement of the illicit funds.

    “My investigations established that there are reasonable grounds to believe that the funds in issue are proceed of from illegitimate activities and the same be preserved pending filing and determination of the intended forfeiture application,” the officer told the Anti-Corruption court.

    Investigator told the court that it was in the public interest that the orders sought are granted and the suspect funds be preserved.

  • Heritage Flower Ltd Director Shailesh Kumar Rai Charged With Sh107 Million Fraud

    Heritage Flower Ltd Director Shailesh Kumar Rai Charged With Sh107 Million Fraud

    The director of Heritage Flowers Limited Shailesh Kumar Rai has been charged with stealing Sh107 from the company.

    Rai is accused of committing the offence between September 2021 and August 2022.

    According to the charge sheet, Rai is said to have stolen Sh10, 520, 919.00, Euros 368,416.71 and USD 348,166.94 which came to his possession by virtue of his employment.

    Rai, his wife Ranjeeta Pandey Rai, Isaac Ikua Kihara, and Chris Oyunge Ontita were also charged with conspiring to defraud Heritage Flowers Limited company Sh117,718,596.

    The couple and Rosalia Blooms Limited faced another charge of money laundering where they were accused of engaging in a transaction to conceal Sh107 million at Diamond Trust Bank (DTB) knowing very well the money was proceeds of crime.

    The charge read: “Between 21 September 2021and August 2022, at Diamond Trust Bank in Nairobi County within Republic of Kenya, jointly with intent to unlawfully dispose monies stolen from Heritage Flowers Limited, jointly engaged in a transaction to conceal an amount of Euro368,416.71 and USD 348,166.94, whilst having reasons to believe the said monies were proceeds of crime.”

    Charge sheet.

    The accused are also charged with other counts of forging different documents at different times including Minutes of the Operation Meeting management team, commission agreement, a loan agreement between Rosalia Blooms Ltd and Kumar, Minutes of Virtual Meeting and a trust deed purporting each to be genuine and signed.

    The four appeared before Milimani Senior Principal Magistrate Gilbert Shikwe where they denied the charges. A warrant of arrest was issued against Pandey who did not appear in court.

    The three suspects were ordered detained at Muthaiga police station until Monday July 31 when the court will rule on their bail application.

    Rai has worked in the flower industry for almost 30 years. He dove into a new adventure and they bought a 60 ha land plot in Rumuruti, where they built 12ha of greenhouses and named the farm Heritage Flowers Ltd in 2019.

  • Revealed: How Money Laundering Is Done Through Vehicle Dealerships And Car Yards In Kenya

    Revealed: How Money Laundering Is Done Through Vehicle Dealerships And Car Yards In Kenya

    You might be wondering why in the last 12 years there’s been an explosion of car dealerships and car yards on populous roads in Nairobi. This explosion came in tandem with the wanton looting of public funds as well as other criminal activities.
    Why luxury vehicles?
    A 2019 report on money laundering, criminals are attracted to a lifestyle of consumptive wealth. That’s why they drive flashy cars, wear bling, buying expensive botties at the club… you get the drift.

    Typically the cars will be bought in cash.

    This is why they’re fond of taking frequent physical trips because it’s quite hard to wire large sums of money without raising suspicion with central banks. You have to physically deliver the money to conduit banks/intermediaries who process the payments.

    Trips are crucial to move cash especially to jurisdictions where they’re not strict for you to declare the amount of money you’re carrying.
    For instance the UAE barely places restrictions on how much a traveler can carry into their countries. They say the max is $30,000 but they rarely enforce that. So you could get in with a whole lot more.

    So how does it work?

    You buy the cars with the illegal cash and as soon as it docks the port it is classified as a legitimate asset with no concern for the source of funds of the owner.

    Most times these cars are being bought for “individuals” but under company names. Just convoluted paperwork to obscure true ownership and make it harder to seize as an asset.

    A lot of dealers accept cash. By accepting cash payments it’s hard to scrutinize the source of wealth that the “buyer” has. You steal your X amount. Schedule a few trips to UAE or other jurisdictions, deposit the money directly into the “sellers” account, then wait for them to ship your cars.

    The aviation industry is a key conduit in laundry because with the use of private jets and helicopters, you avoid a lot of the scrutiny that comes from trying to fly coach.i
    Vehicle dealerships worldwide are subject to very little scrutiny. They’re not like banks that have to keep meticulous records and be subject to anti money laundering regulations which are brutal. If you have tried to run a microfinance or finance related business you know how stringent those laws are.

    Some times these dealerships are just selling cars to each other so as to create clean banking records

    Eg. ABCG motors buys a car at 10m using stolen funds and then sells the car to DEFG motors for 20m. Both dealerships are owned by the same criminal entity or individual.

    Other times they’re “selling” cars without actually selling them.

    Claim you have a car in stock and that so and so bought it however the person never actually collected the car but they deposited 10m with your dealership as the sale amount. This is done to cover up payments for like drug deals or other criminal activities.

    So ABCD motors will record a sale of a vehicle and bank the amount. They are not really strict on how the person who bought the “10m” car can afford it. Banking “car sale” proceeds looks normal on paper but what actually happened is the “buyer” of the car was paying for drugs or something else.
    These dealerships will go as far as creating “financing firms” to help their clients “finance” to get the cars. Then use the financing companies as an added layer of money laundering and client protection.
    Not all vehicle dealerships do this but many many many of them in Kenya are run to hide the proceeds of crime and the money stolen from government
    Have you never wondered when you see these fancy cars on the road, where those people are getting the funds to acquire such assets in the middle of such hard economic conditions?
    And this isn’t just happening in Kenya. In the UK, the 2017 McMenamy report discovered that the Spanish Kinahan cartel set up entire networks of garages that sold cars acquired through criminal proceeds to launder drug money.
    The Central Bank of Kenya (CBK) needs to be more serious in cracking down on money laundering through dealerships.
  • Scandal Ridden Flutterwave Banking On Ruto’s Presidency To Recover Frozen Millions In Kenya, Whistleblower Claims

    Scandal Ridden Flutterwave Banking On Ruto’s Presidency To Recover Frozen Millions In Kenya, Whistleblower Claims

    David Hundeyin a Nigerian based investigative journalist who blew the whistle on the fintech firm Flutterwave exposing the rot in its management that eventually saw the CEO Olugbenga “GB “Agboola resign, has now sensationally claimed that the embattled firm which is currently in bad books with the Kenyan investigative authorities, is waiting with baited breath for ascension of William Ruto to power.

    One of the allegations against the CEO was his involvement with his previous employer, Access Bank, while working on Flutterwave in its early days. According to the report, Agboola didn’t let his previous employers know he was working on the startup and accused the CEO of taking advantage of his position and resources to build Flutterwave.

    On insider trading accusations, the report said Agboola created an investment vehicle that cashed in on share prices sold below the company’s valuation to employees who had stock options, especially before a fundraising round.

    The newsletter also disclosed several emails accusing Agboola and CCO Ifeoluwa Orioke of having sexual relations with several female employees and harassing some.

    Accounts frozen in Kenya

    In the heights of the circus, the Kenyan authorities discovered illegal activities in the firm’s business in Kenya and has since frozen their bank accounts twice and withholding hundreds of millions.

    In August, High Court had frozen another Sh400.6 million in three bank accounts and 19 Safaricom M-Pesa paybill numbers  belonging to Nigerian start-up Flutterwave linked to card fraud and money laundering.

    The millions held in two accounts at UBA Bank, one account at Access Bank and 19 M-Pesa paybills were frozen after the Assets Recovery Agency (ARA) applied to block the transfer or withdrawal, pending the filing of a petition to have the money forfeited to the government.

    The amounts frozen include Sh110 million in UBA account, another US $ 556,622 (Sh66.7 million), Sh29.1 million in Access Bank and Sh68 million, Sh112 million and Sh14.5 million in a total of 19 Safaricom Paybill numbers.

    Justice Grace Nzioka barred the companies from withdrawing, transferring or dealing with the money, pending ARA’s probe.

    “A preservation order be and is hereby issued prohibiting 1st respondent or his agents or representative from transacting, withdrawing, transferring, using any other dealings in respect to the money held in the account,” ruled  Justice Nzioka.

    The agency said in court filings that the bank accounts received millions of shillings whose source is suspected to be money laundering and card fraud.

    The freezing order comes barely two months after more than Sh6.2 billion spread in 62 bank accounts belonging to the Flutterwave and four Kenyans were also seized on similar grounds.

    The transactions in the earlier case were done using cards issued by the same bank, at the same point, on the same day, raising suspicion of card fraud.

    In the latest case, ARA said debits amounting to Sh136 million, which included chargebacks, reversals and refunds are an indication of card fraud.

    Another account was used to convert dollars into shillings, in a scheme of layering and intermingling.

    Hundeyin had predicted that the cases would disappear as soon as Ruto clinches power and claimed that his son-in-law had links to Flutterwave.

    In a quick turn of events, the cases appears to have been withdrawn according to a 7/9/2022 court order by high court and much to the predictions of the whistleblower.

    Flutterwave Payments Technology ltd is owned by Nigerians Olugbenga Agboola, Adeleke Christopher, Iynoluwa Samuel and Flutterwave Inc which is registered in the United States with an office on 1323 Columbus Avenue, San Francisco.

    A Kenyan– David Mouko Elizaphan Omaanya– is also a director but has zero shares. The Nigerian firm was founded in 2018 by Olugbenga Agboola and Iyinoluwa Aboyeji.

  • Names Behind Sh5.6B Money Laundering By Equity And UBA Bank Linked To DP Ruto

    Names Behind Sh5.6B Money Laundering By Equity And UBA Bank Linked To DP Ruto

    UBA and Equity Banks are currently embroiled in a legal tussle with Assets Recovery Agency (ARA) over Sh5.6B frozen in the two banks suspected to being proceeds of crime and a dark world money laundering scheme.

    According to reports, the money is alleged to be linked to Deputy President William Ruto and in play are two Kenyans and two Nigerian nationals named in several money laundering schemes before.

    The billions in the accounts in Equity Bank  and UBA Bank were frozen by the High Court after the Assets Recovery Agency (ARA) applied to block the transfer or withdrawal, pending the filing of a petition to have the money forfeited to the government.

    The money was wired into the country from multiple countries, including Nigeria, to three companies identified as OIT Africa Ltd, Avalon Offshore Logistics Ltd and RemiX Capital Ltd.

    The ARA says the four directors of the firms—the two Nigerians and two Kenyans—shrugged off repeated summons to explain the source of the billions.

    The State agency believes the two Kenyans, including one who graduated from a local public university in 2018, are fronts of the Nigerians who are suspected to have the backing of Ruto.

    Equity Bank and UBA Bank (account number 5501030010886) could also find themselves in trouble following revelations that the suspicious billions started flowing into the accounts in 2020.

    OIT Africa had Sh4.8 billion in two Equity accounts and one in UBA. Avalon Offshore Logistics had Sh43.5 million in two Equity accounts, while Remix Capital had Sh765 million in one UBA account.

    A search at the registrar of companies revealed that Avalon Offshore is owned by Nigerians Jeffrey Nnaoma Michaels and Uduma Okoro Christopher Kalu. The company was registered in November 2020 and has its address in Westlands.

    Both Kalu and Nnaoma are listed as directors of the company, with Kalu holding 1,600 ordinary shares while the rest are owned by his partner.

    An online search reveals that Nnaoma is listed as a director of several companies registered in Nigeria, including a forex bureau.

    The post office number of the two Nigerians was linked to several firms that operate from the 13th floor of the prestigious Delta Corner office block in Westlands.

    OIT Africa is owned by Vionnah Akoth Odongo and Kenneth Odongo Raminya, with 500 shares each and the company was registered on July 14, 2017.

    OIT Africa informed the registrar of companies that it operates from 680 Plaza, the building that hosts the 680 Hotel.

    The mobile number is registered under the name of a different person, who denied knowledge of OIT Africa and Ms Odongo and Mr Raminya.

    There is no record of any company by the name Remix Capital Limited in the Business Registration Service online portal, an indication that the firm could be non-existent.

    Court documents state that transactions involving the Sh5.6 billion were conducted through suspicious transfers and withdrawals meant to hide the source.

    The ARA says that it suspects that the money could be proceeds of crime because the transactions were conducted suspiciously through six bank accounts in Equity and UBA.

    The agency says there is imminent danger that the funds might be transferred or withdrawn unless the court issues an order preserving the money.

    Documents filed by the companies earlier seeking to stop the investigations state that they are an online remittance platform, which allows individuals from abroad to send money to their loved ones in Nigeria and Kenya.

    The case was later withdrawn after they failed to block the probe.

    The agency moved to court in March, seeking to investigate the three companies suspecting that they were involved in money laundering.

    Justice Esther Maina barred the companies and their agents from withdrawing or transferring the money, pending the hearing of a petition by the ARA.

    UBA Chief Executive Officer (CEO) is Chike Isiuwe, a Nigerian. The bank board chairman is Alphan Njeru.

    United Bank of Africa Kenya CEO Chike Isiuwe at the lender’s offices on February 1, 2022. (UBA) Kenya CEOChike Isiuwe at the lender’s offices on February 1, 2022.

    Apart from Isiuwe, top bank managers in hot soup are Mary Mulili, Evah Wahogo (Chief Operating Officer), John Oganda (Head of compliance), Debra Ogada(Country Head legal and company secretary) and Geoffrey Kimani (Head risk management).

    The investigations by chain implicates the entire management and detectives will comb through the files of many. The international money laundering syndicate, it has emerged that the bank deposits started in 2020.

    In November 2020, Deputy President William Ruto met with a controversial man on the run alongside former Nigerian vice-president Atiku Abubakar during his highly guarded trip to the emirate of Dubai.

    The DP met Abubakar alongside one Timi Frank.

    Mr Frank, a high-flying but controversial political activist, is wanted in Nigeria on various accusations of character assassination.

    Nigeria’s Federal Inland Revenue Service in 2019 announced that it was suing him over a series of fraud allegations he made against the agency, while the current Nigerian vice-president Yemi Osinbajo last year announced that he was suing Mr Frank for defaming him by making corruption allegations against him.

    Before his travel to Dubai, Mr Frank had visited Nairobi where he met with DP Ruto and organized the meeting with Abubakar. It is this meeting that intelligence sources suspect a money laundering scheme was crafted.

    Mr Frank is a close associate of Mr Atiku, a fabulously wealthy former Nigerian vice-president who has been described by his former boss, President Olusegun Obasanjo, as “not trustworthy” and other not very kind terms.

    Mr Abubakar is a wealthy Nigerian with vast investments in oil, but President Obasanjo, in his 2014 biography My Watch, described him in unsavoury terms.

    “What I did not know, which came out glaringly later, was his parental background, which was somewhat shadowy, his propensity to corruption, his tendency to disloyalty, his inability to say and stick to the truth all the time, a propensity for poor judgment, his belief and reliance on marabouts (religious teachers), his lack of transparency, his trust in money to buy his way out on all issues, and his readiness to sacrifice morality, integrity, propriety, truth and national interest for self and selfish interest.”

    Mr Atiku publicly fell out with President Obasanjo and even decamped from then ruling People’s Democratic Party to the Action Congress of Nigeria, but lost the 2007 presidential election, which was won by the now-deceased Umaru Yar’Adua.

    Abubakar had promised to fund the ‘Hustler Nation’ campaigns.

    Both Dr Ruto and Mr Atiku have political aspirations. Dr Ruto will be taking a stab at the presidency in 2022, while Mr Abubakar is the candidate for the People’s Democratic Party (PDP) in the Nigerian presidential race a year later, in 2023.

    In February, the High Court ordered the freezing of Sh227 million that was recovered from a man associated with Deputy President William Ruto’s United Democratic Alliance (UDA).

    Monies in US dollars were intercepted from one Andrew Kipkemboi at the Jomo Kenyatta International Airport cargo shipping point as he arrived in the country from Bujumbura, Burundi, last Thursday.

    The DP’s office distanced itself from the man who is said to be eyeing the Chesumei parliamentary seat in Nandi County on a UDA ticket. Sources however claim that the money was linked to the DP.

    UDA party office also denied knowledge of the man, insisting the party is yet to go through the list of all individuals who have declared interest for parliamentary seats on its ticket.

    According to a local newspaper, investigations further want to unravel the period the UBA bank has been engaged in clearing billions of shillings in the height of 2022 elections. It is claimed that the bank has been used by powerful politicians to launder billions of shillings.

    The paper further claims that a senior sitting on CBK board with connections to a senior state official who has since fallen out with the high powers, was commanded to cushion the bank from any troubles given his position at CBK.

    Ms Viola Achola who’s in her 20s and the listed as the director of Oit Africa Limited, the firm under probe, she’s claimed to be close to the wife of mentioned CBK board member.

    Kenya Insights reached out to the bank on the above mentioned claims but they didn’t comment citing court orders.

    Equity Bank

    In August last year, Equity Bank found itself in similar circumstances that UBA is in today following claims that they were part of an alleged Sh15B money laundering scheme.

    The state’s intelligence had intercepted and arrested a Turkish businessman Harun Aydin from flying out of the country to Uganda where he was to establish a vaccine making plant. According to intelligence at the time, Aydin was supposedly being used by the Deputy President William Ruto to cycle through a money laundering scheme.

    The DP didn’t distance himself from his relationship with the flagged businessman.

    Speaking during an interview with a local radio station yesterday, Ruto claimed he had helped Aydin to acquire a Sh15 billion loan from Equity Bank to set up a vaccine processing factory in Uganda, which he and three other businessmen alongside his close allies were scheduled to commission on Monday.

    “I helped him on one phone call. He said the benefits Ugandans will get are the same that Kenyans will get.”

    Many questioned as to how simple it is for Equity to dish out Sh15B as a loan merely from a phone call and to foreigners whose past are questionable.

    Claim by Ruto that he secured the loan of such magnitude by simply placing a call has elicited reactions from Kenyans who’ve been victims of banks collapsing in insider, fraudulent loans.

    Aydin was deported to Turkey following negotiations between the two states. The controversial businessman had been linked to terror activities before.

    Nigeria

    A Nigerian court in November last year, had charged regulatory bodies to withdraw the licences of the banks including UBA fir aiding aiding fraud which benefitted from the proceeds of illegal transactions.

    Justice Okon Abang of the Federal High Court, Abuja berated The United Bank for Africa, UBA, and Fidelity Bank Plc for aiding fraud, while handing down judgement in a case of N2billion fraud involving a former chairperson of the defunct Pension Reform Task Team, PRTT, Abdulrasheed Maina noted that UBA and Fidelity Bank Plc which were used by Maina as “conduit” to defraud pensioners ought to have been charged alongside Maina. He stated that, “UBA and Fidelity Bank provided the channels with which the convict Mr Maina used in defrauding the federal government.”

    The Judge said the banks abdicated their responsibilities by failing to carry out due diligence to establish the true identities of persons in whose names Mr Maina opened and operated the fictitious bank accounts.

    In the instance UBA Kenya, did they conduct a due diligence on the flagged account/client? It must be noted that like an ocean, there’s always a ripple effect.

    According to an American investigative body, The Sentry, weak financial institutions has made it possible for Kenya to become an epicenter of money laundering. Banks, real estate firms have been singled out. KCB has been on the receiving end for allegedly aiding the money laundering from the bloodshed South Sudan.

    Locally, numerous banks have been found guilty of engaging in the illicit activity. However, the Vice has never stopped simply because the banks are treated to a slow motion slap on then wrist with paltry fines that can’t shake a leaf. If CBK grew bigger balls and slapped heavy fines, hold individual rogue managers responsible sending them to jail, and ultimately denying such fraud banks licenses, maybe they’d listen but until then, more money laundering headlines will keep hitting your headlines.

    Money laundering, according to authorities, seeks to hide the source of money believed to have been obtained illegally, by passing it through channels including commercial transactions and other forms of investment.

    According to the Financial Reporting Centre, such schemes seek to hide and legalise the funds without catching the attention of authorities and also making sure all connections of the funds to criminal activities is removed.

    Finally, the “cleansed” money returns to the owner in an indirect way, and is used for legitimate purposes.

    According to the United Nations Office on Drugs and Crime (UNODC) about Sh200 trillion is laundered globally every year.

    Banks and agencies tasked with fighting the flow of illicit cash must step up their efforts to protect the country from criminal elements.

  • State Seek To Freeze Sh5B From UBA Kenya Linked ToMoney Laundering

    State Seek To Freeze Sh5B From UBA Kenya Linked ToMoney Laundering

    United Bank of Africa(UBA) Kenya is in trouble following accusations made by the Assets Recovery Agency that the bank hold Sh5B that they deem was acquired illegally through unethical banking practices, money laundering.

    In a Miscellaneous Criminal Application No E015/2022 filed on March 10, the agency had sought from the Milimani Anti-Corruption Court to investigate the bank for the offense of money laundering.

    The court issued the orders which now puts the bank in full probe.

    By allowing the authority to conduct its investigations, the court wants the bank to restrict for at least 45 days account number 5501030010886 under the name Oit Africa Limited held at the same bank from doing any transactions to allow the investigating officer Issac Nakitare to access and obtain information on that account.

    ARA seeks the bank’s corporation to retrieve crucial for the investigations including information on when the account was opened, bank statements since the account was opened, cheques/cash deposits and withdraws and bank RTGS/swifts transfers and other relevant info that would aid the probe.

    ARA is also seeking to compel UBA managers to authorise and give the investigating officer electrically produced evidence to be used in court.

    The officer said there was compelling ground for the suspicion of the account being used in money laundering.

    Nakitare swears in the affidavit that on March 4, 2022, ARA received information that the said bank account had transacted and holding funds suspected to be proceeds of crime and the agency opened an Inquiry file No 14 of 2022 to investigate and inquire into activities in this account for the offences of money laundering leading to proceeds of crime.

    The money in question is suspected to be over Sh5B.

    The investigating officer also noted in his sworn affidavit that the bank account is being investigated for several other offenses, including money laundering and crime proceeds.

    According to the affidavit seen by Kenya Insights, it is necessary to enable him complete the investigations aimed at instituting ARA and Forfeiture Proceedings.

    The officer believes his work will help to collate confirmatory evidence regarding the financial flow as of the allegations.

    The officer also held fears that the funds held in the flagged account may be withdrawn, transferred, spent or dissipated rendering the application and intended recovery of proceeds of crime nugatory.

    UBA Kenya CEO,Chike Isiuwe.

    Chike Isiuwe was appointed in August last year appointed the chief executive, replacing Kehinde Omirinde who had been serving as acting CEO of the bank, which began operations in Kenya in 2009. It is a subsidiary of UBA Plc.

    Isiuwe joined the UBA-Kenya from UBA Group in Nigeria, where he was the deputy general manager – Corporate Banking Directorate.

    The investigations by chain implicates the entire management and detectives will comb through the files of many.

    According to a local newspaper, investigations further want to unravel the period the bank has been engaged in clearing billions of shillings in the height of 2022 elections.

    The paper further claims that a senior sitting on CBK board with connections to a senior state official who has since fallen out with the high powers, was commanded to cushion the bank from any troubles given his position at CBK.

    A Ms Viola Achola who’s in her 20s is reportedly listed as the director of Oit Africa Limited, the firm under probe, she’s claimed to be close to the wife of mentioned CBK board member.

    Kenya Insights reached out to the bank on the above mentioned claims but they didn’t comment citing court orders.

    KEMSA

    Elsewhere, It is not unusual not unusual for the big boys to use proxies in executing their missions. One of the most prominent cases in the recent cases is that of Ms Zubeda Nyamlondo, a proxy director of Aszure Commercial Services a company implicated in a Sh347M scandalous tender to supply facemasks to the Kenya Medical Supplies Authority (Kemsa).

    Ms Zubeda Nyamlondo.

    Nyamlondo who was casually dressed in a jungle green dress, a red marvin hat and a matching face mask when she appeared before the Public Investment Committee (PIC) took the committee in circles, at times contradicting herself and prompting members of the watchdog to conclude she could be a proxy to some powerful individuals.

    Equity Bank

    In August last year, Equity Bank found itself in similar circumstances that UBA is in today following claims that they were part of an alleged Sh15B money laundering scheme.

    The state’s intelligence had intercepted and arrested a Turkish businessman Harun Aydin from flying out of the country to Uganda where he was to establish a vaccine making plant. According to intelligence at the time, Aydin was supposedly being used by the Deputy President William Ruto to cycle through a money laundering scheme.

    The DP didn’t distance himself from his relationship with the flagged businessman.

    Speaking during an interview with a local radio station yesterday, Ruto claimed he had helped Aydin to acquire a Sh15 billion loan from Equity Bank to set up a vaccine processing factory in Uganda, which he and three other businessmen alongside his close allies were scheduled to commission on Monday.

    “I helped him on one phone call. He said the benefits Ugandans will get are the same that Kenyans will get.”

    Many questioned as to how simple it is for Equity to dish out Sh15B as a loan merely from a phone call and to foreigners whose past are questionable.

    Claim by Ruto that he secured the loan of such magnitude by simply placing a call has elicited reactions from Kenyans who’ve been victims of banks collapsing in insider, fraudulent loans.

    Aydin was deported to Turkey following negotiations between the two states. The controversial businessman had been linked to terror activities before.

    Nigeria

    A Nigerian court in November last year, had charged regulatory bodies to withdraw the licences of the banks including UBA fir aiding aiding fraud which benefitted from the proceeds of illegal transactions.

    Justice Okon Abang of the Federal High Court, Abuja berated The United Bank for Africa, UBA, and Fidelity Bank Plc for aiding fraud, while handing down judgement in a case of N2billion fraud involving a former chairperson of the defunct Pension Reform Task Team, PRTT, Abdulrasheed Maina noted that UBA and Fidelity Bank Plc which were used by Maina as “conduit” to defraud pensioners ought to have been charged alongside Maina. He stated that, “UBA and Fidelity Bank provided the channels with which the convict Mr Maina used in defrauding the federal government.”

    The Judge said the banks abdicated their responsibilities by failing to carry out due diligence to establish the true identities of persons in whose names Mr Maina opened and operated the fictitious bank accounts.

    In the instance UBA Kenya, did they conduct a due diligence on the flagged account/client? It must be noted that like an ocean, there’s always a ripple effect.

    According to an American investigative body, The Sentry, weak financial institutions has made it possible for Kenya to become an epicenter of money laundering. Banks, real estate firms have been singled out. KCB has been on the receiving end for allegedly aiding the money laundering from the bloodshed South Sudan.

    Locally, numerous banks have been found guilty of engaging in the illicit activity. However, the Vice has never stopped simply because the banks are treated to a slow motion slap on then wrist with paltry fines that can’t shake a leaf. If CBK grew bigger balls and slapped heavy fines, hold individual rogue managers responsible sending them to jail, and ultimately denying such fraud banks licenses, maybe they’d listen but until then, more money laundering headlines will keep hitting your headlines.

    Money laundering, according to authorities, seeks to hide the source of money believed to have been obtained illegally, by passing it through channels including commercial transactions and other forms of investment.

    According to the Financial Reporting Centre, such schemes seek to hide and legalise the funds without catching the attention of authorities and also making sure all connections of the funds to criminal activities is removed.

    Finally, the “cleansed” money returns to the owner in an indirect way, and is used for legitimate purposes.

    According to the United Nations Office on Drugs and Crime (UNODC) about Sh200 trillion is laundered globally every year.