The High Court has dismissed an application filed by over 2,000 Nigerians seeking to protect their millions, which was part of the Sh6.6 billion frozen last year in a case involving Africa-focused payments giant Flutterwave.
Justice Esther Maina rejected the application by Mr Morris Ebitimi Joseph on behalf of 2,468 Nigerian investors, saying there is no reason to grant the application, after Assets Recovery Agency (ARA) signalled its intention to withdraw the case against financial technology firm, Flutterwave Payment Technology Ltd.
The West Africans wanted Sh1.44 billion (US $12,040,208) separated from the Sh6.6 billion frozen in July last year, expressing fears that they might lose their money.
The funds were held in 62 bank accounts at Guaranty Trust Bank (GTB), Equity, EcoBank and UBA Bank and also 19 Safaricom paybill numbers.
“I have carefully considered the application and my finding is that it has no merit. The ARA has intimated its intention to withdraw the petition,” the judge said.
The judge said the apprehension by the Nigerians that they will lose their money cannot stand in view of the decision by ARA to withdraw the case. “The court sees no reason to grant the application sought,” she said.
The Nigerians claimed that they invested the money through a sports betting platform that was used by Flutterwave to process the payments.
“That I believe that with the issuance of an order compelling Guaranty Trust Bank, Equity Bank and Ecobank to deposit the sums excluded in the bank account of our advocates, justice shall be served to the 2,468 interested parties who were swindled of their hard-earned money through the scheme,” he said.
The ARA obtained orders freezing Sh5.17 billion in 29 accounts at GTB, Equity and Eco Bank in Kenya shillings, US dollars, Euros and Sterling pounds.
The court also froze Sh467.1 million belonging to Boxtrip Travels and Tours and Sh436 million in Bagtrip Travels Ltd accounts.
Other accounts frozen include Elivalat Fintech Ltd (Sh1.16 million), Hupesi Solutions (Sh1.6 million), and Cruz Ride Auto Ltd (Sh2.4 million).
The agency, however, signalled its intention to withdraw the case saying investigations revealed that the money was not linked to money laundering. Despite the intention to withdraw the case, several applications have been filed before the court, delaying the process.
The Nigerian says they invested in sports betting through a platform known as 86 football technology. It was also known as 86FB, 86Z and 86W and the merchants were duly registered by the Corporate Affairs Commission of Nigeria.
The investors, he said, made deposits in the investment scheme with a promise of better returns.
They wanted the court to issue an order directing Access bank, Safaricom and United Bank of Africa to deposit the excluded amount in the account of his lawyers under the supervision of the Central Bank of Kenya.
“If this is not done at the earliest, there is a high probability that issues may get convoluted, leading to the issuance of orders that sit adversely with the applicant/intended interested party’s case. This can only be averted through the expeditious determination of this application,” he said.
