The High Court judge Justice Daniel Ogembo has frozen the bank accounts of Mubadala Merchants Limited, First Cargo Logistics Limited, First Line Capital Limited and one Doumbe Malonga Eddy Michel held in Standard Chartered Bank and Cooperative Bank for allegedly involving in laundering Sh167 million from an entity in Amsterdam.
The companies were also stopped from transacting, withdrawing or dealing in any manner in respect to the funds.
Their accounts were frozen after the Assets Recovery Agency told the court that there are reasonable grounds and evidence demonstrating that the funds and proceeds of crime obtained from a complex money-laundering scheme are liable to be forfeited.
Documents indicate that Sh36.7 million was held in a Co-operative Bank account in the name of Mubadala, Sh1.1 million in Standard Chartered in the name of First Cargo Logistics Limited and $32.3 held at Standard Chartered in the name of First Cargo Logistics Limited.
Also frozen was Sh823,392 held in Standard Chartered in the name of First Line Capital Limited, Sh5.3 million held at Standard Chartered Bank in the name of Doumbe Malonga and $60.8 at Standard Chartered also in the name of Doumbe.
The agency told the court that the companies and Doumbe used agreements supported with falsified custom declaration forms purportedly from Kenya Revenue Authority to support the transfer of funds into their accounts.
According to court documents, ARA was able to establish that one Elvis Ouma Muga is the sole director and shareholder of Mubadala Merchants Limited.
His company received Sh37 million from Ochieng’ Opiyo and Company Advocates early this year with the narrative that the money was meant to undertake the business of yearly sale and supply of 1,065 metric tonnes of timber, mvule and mahogany, for a period of two years.
Funds were being received in the account of the law firm then disbursed to the said companies.
“But in the company’s account opening documents it is declared that the nature of business is electronics and stationery and general supplies,” said ARA.
In addition, on February 1 this year, Doumbe received Sh15 million into his account held at Standard Chartered Bank directly from First Cargo Logistics out of which the agency seeks to hold Sh5.3 million.
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