High Court freezes Sh5.6 billion accounts of two Nigerians, two Kenyans

The High Court has frozen Sh5.6 billion held in six accounts belonging to two Nigerians and two Kenyans over alleged money laundering.

This is 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.

Among the accounts which were frozen were Equity Bank and UBA Bank who could also find themselves in trouble following revelations that the suspicious money started flowing into the accounts in 2020.

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

According to the State agency, the four directors of the firms, the two Nigerians and two Kenyans, snubbed repeated summons to explain the source of the money.

ARA 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 a powerful politician.

Court documents states 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.

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.

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.

It has also been revealed 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.

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.

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.

She directed the ARA to serve the directors with the petition within seven days.

Kenya appears to have taken a step back in the fight of money laundering after last year it lifted the threshold of reporting cash transactions above Sh1 million.

The US State Department said in its annual International Narcotics Control Strategy Report (INCSR) released last month that Kenya has no individual reporting requirement in place for large cash transactions, although banks must report to the Financial Reporting Centre (FRC).

“Kenya’s proximity to Somalia makes it an attractive destination for funds from unregulated Somali sectors, including the khat and charcoal trades,” the report notes.

The report pointed out that goods reported at points of entry as transiting Kenya were not subject to customs duties, but authorities acknowledged many such goods were sold in Kenya.

“Trade is often used to offset transactions in regional Hawala networks (informal value transfer system based on the performance and honour of a huge network of money brokers).”

It noted that to demand bank records or seize an account, police must obtain a court order by presenting evidence linking the deposits to a criminal violation.