NAIROBI, Kenya
Two Nigerians suspected to enjoy the backing of a powerful Kenyan politician and two Kenyans have been linked to Sh5.6 billion frozen in six bank accounts over alleged money laundering.
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
a powerful politician.
We cannot name the politician
in this story for legal reasons.
Equity Bank and UBA Bank could
also find themselves in trouble following revelations that the suspicious
billions started flowing into the accounts in 2020.
Kenyan banks are expected to alert the Financial Reporting Centre (FRC) of suspicious transactions under anti-money laundering laws, including reporting large transactions and undertaking due diligence on customers.
The Director of Public
Prosecutions (ODPP) and the Central Bank of Kenya (CBK) fined five top banks —
Standard Chartered Kenya , Equity, Diamond Trust, Co-operative
Bank and KCB Group — Sh777 million for failing to report
suspicious transactions in connection with the theft of funds at the National
Youth Service (NYS).
The NYS scam saw dozens of
senior government officials and businesspeople charged in May 2018 with various
crimes.
The assets recovery unit says
the probe on transactions involving the Sh5.6 billion started in February.
“The agency received
information on a suspected case of money laundering schemes and acquisition of
proceeds of crime involving multiple money transactions conducting through the
bank accounts of the Respondents in US dollars and Kenya shillings mainly from
foreign jurisdiction whose source has no legitimate explanation,” the petition
states.
“The pattern of transaction in
the accounts in issue and the activities of Respondents depict money laundering
activities and this court ought to issue the orders sought.”
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.
She directed the ARA to serve
the directors with the petition within seven days.
The Director of Public
Prosecutions and CBK fined five top banks — Standard Chartered Kenya, Equity,
Diamond Trust, Co-operative Bank and KCB Group — Sh777 million for failing to
report suspicious transactions in connection with the theft of funds at the
National Youth Service.
The charges related to the
theft of billions of shillings from the NYS in a scam that saw dozens of senior
government officials and businesspeople charged in May 2018 with various
crimes. – Business Daily
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