Banker entangled in British NGO’s bid to unfreeze account

A British charity organisation suspended for sharing sensitive security information with foreign governments wants a Barclays Bank branch manager jailed for allegedly defying court orders that unfroze one of its accounts with the lender.

International NGO Safety Organisation (INSO) has claimed in court that the Barclays Bank Muthaiga branch manager has refused to let the charity access funds in its account despite furnishing the lender with a copy of court orders issued by Justice George Odunga in June.

Barclays Bank is yet to respond to the suit.

Barclays froze INSO’s account in June following orders from the NGO Co-ordination Board, which suspended its licence for sharing sensitive information on Kenya’s security with security organs under the European Union, the UK and Swiss governments.

The NGOs regulator holds that the move could pose a national security threat to Kenya. The NGO Co-ordination Board also claimed that some of INSO’s foreign workers are operating in Kenya without permits.

Justice Odunga temporarily suspended a freeze on three bank accounts INSO held at Barclays and Standard Chartered Bank after the British charity sued to challenge its suspension from Kenya.

INSO country manager Marcos Ferreiro holds that the organisation’s operations are at a standstill as it is unable to access funds needed for its operations.

“Despite being served with the order, the manager of Barclays Bank Muthaiga branch has wilfully refused to comply with the court order and has continued freezing INSO’s bank accounts held with it, in effect paralysing and putting INSO out of business. There is no subsequent order of the court nor is there an appeal lodged by Barclays Bank Muthaiga branch,” Mr Ferreiro says.

READ: British charity fights closure for sharing security information

The NGO Co-ordination Board in fresh filings, however, says Mr Ferreiro’s affidavits should be dismissed as the regulator’s records do not list him as INSO country manager.

The regulator adds that INSO’s registration documents show that its objective is to provide relief and development of people in need who are victims of natural disasters, insecurity and crisis” hence the charity organisation has no business issuing security information and alerts to foreign governments.

INSO, in letters to the regulator that have been filed in court, admits to sending security alerts to its partners, but says it thought the government has always been aware of the agency’s “transparent” activities.

The board says it has also violated other rules, including the operation of an illegal bank account with Standard Chartered Bank for funding its Somalia arm.

But the British agency maintains that INSO-Somalia is not a full-fledged NGO, but just a refugee project it is running in the crisis hit nation.