The High Court has frozen about Sh43.5 million belonging to a businessman after the funds were suspected to have been siphoned from the Mandera County government.
Justice Daniel Ogembo issued the orders following an application by the Assets Recovery Agency (ARA) that suspected the funds were wired back by companies being investigated by the agency for receiving fraudulent payments from the County government.
An analysis by the ARA showed that two of the accounts held at Equity Bank’s Mandera branch, belonging to Ali Abdi Ibrahim, received a total of Sh124.75 million from the various companies under investigations.
The High Court has frozen about Sh43.5 million belonging to a businessman after the funds were suspected to have been siphoned from the Mandera County government.
Justice Daniel Ogembo issued the orders following an application by the Assets Recovery Agency (ARA) that suspected the funds were wired back by companies being investigated by the agency for receiving fraudulent payments from the County government.
An analysis by the ARA showed that two of the accounts held at Equity Bank’s Mandera branch, belonging to Ali Abdi Ibrahim, received a total of Sh124.75 million from the various companies under investigations.
The funds were later withdrawn or transferred to other accounts in suspected money laundering.
Between 2014 and 2020, Mr Ibrahim allegedly made suspicious cash withdrawals and transfers in split transactions to evade the reporting threshold.
Justice Ogembo granted the orders stopping the withdrawal or transfer of the funds in the two accounts, pending the hearing of the case. One of the accounts holds Sh39.6 million while the other has Sh3.8 million.
“The bank accounts received suspicious huge cash deposits in Kenyan shillings and the funds are suspected to be stolen and/or fraudulently acquired from Mandera County government by the respondent, his agents or representatives and deceitfully deposited and transferred from the above accounts,” reads an affidavit by Mr Fredrick Musyoki
The officer said investigations revealed that the cash deposits were unlawfully acquired hence proceeds of crime or that there are reasonable grounds to believe that the accounts are used as conduits of money laundering.
The officer had on March 20 obtained an order from a magistrate to investigate the two accounts.
Mr Musyoki said he later discovered that the payments were made by about seven companies being investigated for receiving funds from Mandera County government.
Investigations showed that between August 14, 2018 and January 2020, some Sh75.4 million were deposited in one of the accounts.
The funds were from Bami Investments Ltd, a company under investigation.
Another payment of Sh23.9 million was made by Kurte Supplies & General Construction Company Ltd, another company being investigated.
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