The Assets Recovery Agency wants Mose & Company Advocates to surrender Sh124 million in fraud probe.
The Assets Recovery Agency (ARA) wants a law firm compelled to forfeit Sh124 million to the State after receiving the cash from a Chinese company that got useless sand instead of the promised rare metal, Tantalite Niobium Ore.
The state agency said Mose & Company Advocates allegedly received the money on behalf of a Chinese company, Yingcheng (Shenzen) International Trade Company Ltd, for the purchase of the rare metal.
According to ARA, the millions in two bank accounts at Sidian Bank in the name of Mose & Company Advocates, are proceeds of crime and should be forfeited to the state.
“There are reasonable grounds to believe that the respondent’s (Mose & Company) 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,” ARA said in the application.
Evidence tabled in court state that the law firm was acting as an escrow agent for a contract entered into by Sanjola Company Ltd and the Chinese firm, for the supply of 84 metric tonnes of Tantalite Niobium Ore worth $1 million (about Sh129 million).
Goods not delivered
The parties entered into the contract on November 9, 2023, and the law firm allegedly received the money but the rare metal was not delivered and shipped to Guangzhou in China as agreed.
Tantalite ore, which was to be sourced from the Democratic Republic of Congo (DRC), is used to extract tantalum, a rare metal with many industrial applications and used is used in electronics, medical devices, and aerospace, among other uses.
The State agency said it received information in September last year that the bank accounts were holding funds suspected to be proceeds of criminal activities and money laundering.
ARA launched investigations which revealed that the funds were unlawfully acquired, hence proceeds of crime.
The state agency opened an inquiry to investigate the legitimacy, source and destination of the funds, to ascertain whether they were proceeds of crime or intended for the commission of crime.
ARA said an analysis of the account statements established that the two bank accounts are holding funds that were obtained illegitimately and established to be proceeds of crime.
On September 24, last year, ARA obtained court orders freezing the bank accounts, pending the conclusion of investigations.
“That the investigations have revealed that the funds in issue were unlawfully acquired, hence proceeds of crime pursuant to the provisions of Proceeds of Crime and Anti-Money Laundering Act,” ARA said.
The agency further revealed that at the conclusion of investigations, one of the directors of the Sanjola Company Ltd was charged with allegedly obtaining money by false pretence from the importer.
“There are reasonable grounds and evidence demonstrating that the funds held by the respondent (Mose & Company) in the specified bank account are direct or indirect benefits, profits or proceeds of crime obtained from a complex money laundering scheme and are liable for forfeiture,” ARA added.
According to the agency, it was in public interest that the orders sought are granted as the funds were acquired through deceit and money laundering in the pretense of selling tantalite niobium ore.
