The fight for Sh2.3 billion previously frozen in Ecobank accounts over suspicions of credit card fraud, has taken a new turn after a Frenchman filed a petition terming three Kenyans who have staked a claim to the cash strangers to a company that operates the accounts.
The funds were unfrozen by the anti-corruption court early last week after the Asset Recovery Authority (ARA) withdrew its case only for the Kenyans -- Stephen Maina Njenga, Felix Rantu Lekishe and Solomon Joseph Maina -- to file a different petition claiming they are directors and shareholders of KiwiPay Kenya Ltd and that the money should be released to them.
High Court judge David Majanja on Monday ruled that no one should operate or access the accounts after Gregory Schmidt, the Frenchman, filed another petition arguing the Kenyans resigned as directors of KiwiPay Kenya and that the money belongs to the parent company, KiwiPay PTE, which is based in Singapore.
“There shall be no further dealings by any party in the company’s bank accounts at Ecobank, Muthangari branch pending the hearing and determination of the application or until further orders of the court,” Justice Majanja said.
The judge also directed all cases filed by the different parties to be heard together and asked all the petitioners to file their replies and submissions within seven days.
The case will be mentioned on December 2 for further directions.
In his petition, Mr Schmidt alleged the three Kenyans are strangers who should not have filed the case in the first place, because they have no authority to do so. He further accused the Kenyans of having obtained the orders to access the accounts using falsehoods. The three, he said, resigned as directors and shareholders of KiwiPay Kenya in April and gave him authority to handle the account.
Mr Schmidt asked the court to unfreeze the account so that he could pay workers and fund the daily operations of the company.
“That petitioners effectively became strangers to the company, once they signed letters and affidavits of resignation as directors and deed relinquishing their shareholding,” Mr Schmidt said.
The Frenchman holds that the transfer of their shares to him by the Kenyans was done without duress and witnessed by another shareholder from Laos, Monthida Rashi.
Mr Njenga first obtained an order for status quo regarding the directorship of KiwiPay Kenya in September as the case before the anti-corruption court was pending but there were indications that ARA would withdraw the application for seizure of the billions over suspicion that the owners were involved in money laundering scheme.
He went back to court last month and the court allowed him to access the company’s accounts. Mr Schmidt stepped in and filed his petition accusing his former partners of securing the court order through misrepresentation of facts.
The parent company reportedly deals in digital payment services such as QR Code solutions for retail shops, hotels and restaurants, and enables foreign e-wallet solutions such as Alipay, SamsungPay, ApplePay, and WeChatPay.
The High Court froze the billions in June following a petition by ARA on suspicions that the company was involved in card fraud.
Mr Schmidt said the shareholding of KiwiPay Kenya as at June 8, 2020 were- KiwiPay PTE (the mother company) 51 percent, Ms Rashi 20 percent, and Mr Njenga, Mr Lekishe, Mr Maina and Robert Lemerketo 7.5 percent each.
The shares for KiwiPay Kenya were held by Mr Lemerketo, Mr Schmidt said. He further revealed that on August 9, 2021, Ms Rashi and Mr Njenga allegedly signed a board resolution giving him full access to the bank accounts of KiwiPay Kenya.
Mr Lemerketo allegedly transferred all his shares to KiwiPay PTE in May, making the company registered in Singapore, the biggest owner with 23,000 shares out of 40,000 shares in the Kenyan company.
Mr Njenga in an affidavit accused Mr Schmidt, who is also the chief executive officer of the parent company, of transacting in the three bank accounts yet they are the only signatories.
