Shocking Revelations as Court Papers Show MozzartBet Channelled Laundered Sh300m to Maintain Software as Controversies Continue

MozzartBet, a betting company, is now embroiled in a new storm after its case linking it to money laundering and fraud was adjourned to a further date.

A review of court papers reveals shocking details that may have led to it losing its appeal in a Sh300 million money laundering scheme. Additionally, another petition was filed in court linking its bosses to money laundering and fraud. The case is yet to go for a hearing.

As our investigative reporters examine court papers, chilling revelations have emerged.

Earlier this year, the betting firm returned to court to fight the Kenyan State over the seizure of Sh302 million ($2.6 million) that was declared to have been acquired through alleged crime. However, it lost its appeal in September this year. A three-judge bench confirmed that its case was null and void and dismissed the appeal. The bench ordered the betting firm to forfeit the cash to the state after it gave an unconvincing defence in court.

“The millions are meant to buy software that is meant to upgrade the betting firm. We had already paid Sh256 million ($2.2 million), which was part of the amount that was seized and forfeited to the State,” the defence read in part.

While delivering the judgement before the firm appealed, Justice Esther Maina ruled in April that the money was held in three bank accounts as part of an alleged money-laundering scheme supported by payments through M-Pesa. Maina declared that the money had to be forfeited to the government as a result.

The Assets Recovery Agency (ARA) launched a petition indicating that the money was not generated from gambling under MozzartBet.

The agency said that the unclear source and movement of the cash through a web of accounts, including to MozzartBet and its shareholders, point to a money-laundering scheme. In brief, the agency said that MozzartBet was hiding behind betting activities to conduct money laundering business in Kenya.

MozzartBet quickly appealed the decision to counter the petition.

The ARA also moved to the Court of Appeal and dismissed MozzartBet’s claim that it paid the money to acquire software from Kimaco Connections.

According to the court papers, Mr. Peter Kiilu, the owner of Kimaco Connections, allegedly wired Sh242 million ($2.1 million) to Open Skies Management Services. Open Skies Management Services is owned by Zimbabwean Emmanuel Charumbira, a shareholder of MozzartBet.

More to follow…