Economy

Woman in drugs charge loses six vehicles, cash

mumbi

Justice Mumbi Ngugi. FILE PHOTO | NMG

A businesswoman facing charges of dealing in narcotic drugs Monday lost six vehicles, among them five minibuses, after the High Court ruled that they were proceeds of crime.

Rose Monyani Musanda also lost a total of Sh1.78 million which were held in two banks. Although two vehicles had been registered in the names of Thomas Odhiambo Konduti and Margaret Wambui Mugo, Justice Mumbi Ngugi ruled that all the vehicles belonged to Ms Musanda and the two were just her proxies to conceal her illegal business.

The judge dismissed the sale agreements and purported transfers to Mr Odhiambo and Ms Wambui saying it was an attempt to conceal their ownership.

“Taking all the facts placed before me in this matter, I am satisfied that the applicant (Assets Recovery Agency) has established on a balance of probabilities, that the assets and funds subject of the application do not have a lawful basis,” the judge said.

Evidence presented in court showed that the three made deposits of between Sh13,000 and Sh43,000 daily with ARA arguing that the proceeds were from drug business, mixed with the legitimate daily proceeds from the matatus.

ARA through Mohammed Adow said Ms Musanda constantly changing her businesses an indication of her effort and intentions to conceal the benefits of illegal trade. And despite claiming to be a matatu owner and dealer in second hand clothing, they filed nil or failed to file their tax returns.

Ms Mugo said her bus was engaged in public transport business and not money laundering or drug business as alleged. The bus, she said was registered under Latema Travellers Sacco.

Ms Musanda said the 33-seater matatus were acquired from loans at Sidian and Equity banks and had no connection with alleged illegal trade in narcotic drugs.

She together with her daughter and son in-law were charged before a court in Jomo Kenyatta International Airport (JKIA) with trading in narcotic drugs.

Mr Adow told the court that there is a thread of evidence showing that she was trading in narcotic drugs and suspicious deposits were made into the accounts and she subsequently acquired the vehicles.

But the woman said she bought her first vehicle after selling a plot in Kakamega and inheriting Sh500,000 from her late husband.

Mr Adow, however said her accounts statements established massive cash deposits to her accounts in tranches of below Sh1 million to evade the reporting threshold as per Central Bank of Kenya (CBK) prudential guidelines.

During the arrest, a search was conducted at her residence and total of 796.66 grams of heroin were recovered from her Kinoo house. Also found were cannabis sativa (bhang).

“However, despite being the owner of at least six bus coaches and a vendor of a second hand clothes, she has not placed before the court any documents that can establish the earnings from her businesses,” the Judge said.