The High Court has frozen three bank accounts belonging to two Congolese holding Sh294 million.
Justice Esther Maina preserved the accounts held at Stanbic Bank after the Assets Recovery Agency told the court there is evidence demonstrating the funds held by Group Elykia Limited, Jean-Paul Musangu and Venan Mabiala and a KDE Mercedes-Benz are proceeds of crime. The two are directors of Group Elykia.
The agency argued that the suspects’ bank accounts were used as conduits of money laundering in an effort to conceal, disguise the nature, source and movement of the illicit funds.
Court documents show Musangu and Mabiala used Group Elykia (respondents) as a conduit of deceit and money laundering under the pretense of supplying wood and timber obtained from DRC to foreign jurisdiction although they have not supplied any.
“Investigations by the agency established that the respondents have no existence of business premises contrary to their alleged dealings in timber or wood business. They have not tendered any reasonable evidence to show they are engaged in any legitimate business,” the agency said.
Justice Maina also preserved the sale of a Mercedes Benz in the name of Car Warehouse Limited and owned by Musangu and directed the latter to surrender the original logbooks of the motor vehicle.
Also issued was an order directing the National Transport and Safety Authority director general to register a caveat against the record of the vehicle.
Court documents say an analysis of the bank statement of Group Elykia account number held at Stanbic Bank Limited established the Sh204 million was a culmination of suspicious funds received or transferred from foreign jurisdiction in a complex money laundering scheme.
An analysis of another account number in the name of Car Warehouse Limited established that on November 16 this year, it received Sh39,737,600 from Group Elykia Limited.
The money was wired by Musangu from the account of Group Elykia for the purchase of two motor vehicles being Mercedes-Benz and Bentley Bentayga.
The Mercedes-Benz was imported into the country by Car Warehouse, and delivered to Musangu, while the Bentley is yet to be imported.
“Jean-Paul [Musangu] and Venan Mabiala have used Group Elykia as a conduit of deceit and money laundering under the pretence of supplying wood and timber obtained from DRC to foreign jurisdiction although they have not supplied any,” Justice Maina said.
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