State Links Sh123M Held By Law Firm To Fraud

Assets Recovery Agency (ARA) wants Sh123 million suspected to be proceeds of crime and being held by the law firm of Mose and Company, forfeited to the state.

In application filed before High Court Anti-Corruption Division, ARA said millions held at Sidian Bank in dollars and Kenya shilling, are proceeds of crime.

The $949,463.41 equivalent to Sh.122,528,253.06 and Sh2,469,558 were deposited in the bank accounts for purposes of exporting a rare metal.

“There are reasonable grounds and evidence demonstrating that the funds held by Mose and company in the specified bank account are direct or indirect benefits, profits and/or proceeds of crime obtained from a complex money laundering scheme and are liable to be preserved pending filing, hearing and determination of intended forfeiture,” court heard.

ARA told the court that investigations established Mose and Company, acting as an escrow agent, had entered into a sale & purchase contract with Sanjola Company limited for the supply of 84 metric tons Tantalite Niobium Ore worth USD 1,000,000 in favour of Yingcheng (Shenzen) International Trade Company Limited but did not delivered as per the contract hence acquired the said funds through deceit and money laundering in the pretense of selling Tantalite Niobium Ore to the above company.

“It is in the public interest that the orders sought are granted and the funds be forfeited,” ARA told the court.

The agency investigating officer Benard Gitonga told the High Court that investigations further established that Mose and Company client account received the said USD 1,000,000 being classified as payment for the supply 84 metric tons of raw Tantalite Niobium Ore.

Investigations also established that Mose and company did not deliver the said Tantalite Niobium Ore as per the contract but utilized parts of the funds for purposes other than as contracted.

The agency told the court that investigations conducted revealed a complex fraud and money laundering schemes conducted by Mose and Company, its directors and associates rendering the above funds proceeds of crime liable for preservation and forfeiture.

“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 told the court.

According to anti-money laundering agency, investigations have established that Mose and company executed a complex scheme of money laundering designed to conceal, disguise the nature, source, disposition and movement of the funds, established to be proceeds of crime.

“There are reasonable grounds and evidence demonstrating that the funds held by the Respondent 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 to be forfeited to the Applicant(Assets Recovery Agency,” court heard.

Gitonga added that the fund was acquired in disguised and concealed money laundering schemes executed in an effort to conceal the nature, source, location, destination, disposition and movement of the illegitimate acquisition of the funds contrary to the provisions of the Proceeds of Crime and Anti-Money Laundering Act.

“Investigations conducted by the Agency revealed complex fraud and money laundering schemes conducted by the Mose and company, its directors and associates rendering the funds proceeds of crime liable for preservation and forfeiture,” Gitonga told the court.

Court heard that investigations have established that Mose and company executed a complex scheme of money laundering designed to conceal, disguise the nature, source, disposition and movement of the illegitimate acquisition and utilization of the funds.