The High Court has lifted orders freezing Sh5.6 billion transferred from multiple offshore accounts into the bank accounts of three Kenyan and Nigerian companies suspected to be part of an international money laundering syndicate.
Justice Esther Maina discharged the freeze orders issued on April 5 and also allowed the Asset Recovery Agency (ARA) to withdraw the suit. The amounts stashed in six accounts at Equity Bank and United Bank of Africa (UBA) had been temporarily frozen following a forfeiture suit filed by ARA on suspicion that they were proceeds of crime.
The companies, Avalon Offshore Logistics Ltd, OIT Africa Ltd and RemX Capital Ltd, were said to enjoy the backing of a powerful Kenyan politician and two other Kenyans.
OIT Africa had Sh4.8 billion in two accounts at Equity Bank and one in UBA while Avalon had Sh43.5 million in two accounts at Equity. RemX Capital had Sh765 million in one account at UBA. The amounts were in US dollar and Euros.
Authorities had said that the companies’ accounts received credits from suspicious sources between October and November 2020 and that they conducted hurried withdrawals and transfers before the investigators obtained the preservation orders.
ARA stated that the three companies had moved over Sh25 billion into the country from foreign countries between October and November 2020. The nature and purpose of the funds remained unknown.
Documents filed by the companies earlier seeking to stop the investigations stated that they are an online remittance platform, that allows individuals abroad to send money to their loved ones in Nigeria and Kenya.
The money had been wired into Kenya from multiple foreign companies owned by three Nigerian businessmen – Mr Olubunmi Akinyemiju, Olufemi Olukunmi Demuren and Eghosasere Nehikhare – who have investments in the financial technology sector.
They had been named in investigations by ARA and reports by European agencies that were monitoring the trail of another Sh25 billion money laundering scheme.
A network of six firms – OIT Africa, Avalon Offshore Logistics, RemX Capital Ltd, RemX Ltd, RemX Investment Partners and Multigate Ltd – moved Sh25.6 billion from Nigeria to Kenya before wiring some of the funds to countries in Europe and Asia.
While asking the court to freeze the bank accounts, ARA said it had received information on February 11 on a suspected case of money laundering. It said that an analysis of the three companies’ bank accounts established that they all conducted suspicious transactions that depicted classic money laundering.
A search at the Registrar of Companies at the time revealed that RemX directors were John Kisilu Kamusina and Evalyne Wawira Gachoki. Avalon directors were Nigerians Jeffrey Nnaoma Michaels and Uduma Okoro Christopher Kalu. OIT Africa directors were Vionnah Akoth Odongo and Kenneth Odongo Raminya.
