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Kenyan court freezes $48.6m suspected to have been laundered by Nigerians

Published

2 years ago

April 8, 2022

A high court in Kenya has ordered the immediate freezing of bank accounts where the sum of $48.6 million was deposited on the suspicion that the amount was the proceed from laundered money in a fraud scheme perpetrated by some Kenyans and Nigerians allegedly backed by some powerful politicians.

According to Kenya’s Assets Recovery Agency (KARA), the millions were transferred from multiple offshore accounts, including Nigeria, into the accounts of three Kenyan companies, Remix Capital Ltd, OIT Africa Ltd and Avalon Offshore Logistics Ltd.

The amount, a total of Sh5.6 billion ($48.6 million) is currently frozen in two Kenyan banks including Equity Bank and UBA Kenya Ltd, after being flagged by the KARA.

The Agency noted that suspicions were raised when the directors of the companies who were Nigerian and Kenyan nationals, refused to explain the sources of the millions, leading to discrete investigation into the funds.

The Assets Recovery Agency has, however, petitioned that the is money should be forfeited to the Kenyan government.

“The pattern of transaction in the accounts in issue and the activities of respondents depict money laundering activities and this court ought to issue the orders sought,” the petition by the Assets Recovery Agency said.

A report by a local media privy to the discovery of the money said they were allegedly “laundered by two Kenyans and two Nigerians who are believed to have been used as fronts by some powerful Kenyan politicians.”

“The Assets Recovery Agency was tipped off after the millions were transferred from multiple offshore accounts (including Nigeria) into the accounts of these three Kenyan companies, Remix Capital Ltd, OIT Africa Ltd and Avalon Offshore Logistics Ltd.

“The agency received information on a suspected case of money laundering schemes and acquisition of proceeds of crime involving multiple money transactions conducted through the bank accounts of the respondents in US dollars and Kenya shillings mainly from foreign jurisdiction whose source has no legitimate explanation.

“Consequently, the agency obtained a court order to freeze the accounts in which the millions were deposited. The six accounts will remain frozen until the agency’s petition to have the money forfeited to the Kenyan Government is determined,” the media reported.

As further punishment, the two banks involved, Equity Bank and UBA Kenya, could face penalties from the Central Bank of Kenya for facilitating the ‘illegal’ transactions in line with Kenya’s anti-money laundering laws which require banks to report suspicious transactions to the appropriate authorities.

Related Topics:Featured fraud Kenya Money Laundering

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Nigeria has received $10.9 billion multi-sector investments from AfDB— Official

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

Nigeria has received $10.9 billion from the African Development Bank (AfDB), comprising $4.9 billion in public and private sector initiatives.

AfDB Director-General of the West Africa Region, Lamin Barrow, said the bank’s Nigeria funding approvals total $10.9 billion since it started operations.

Barrow made the revelation at the Second Interactive Session and Workshop on Developing Bankable Business Proposals/Business Plans for Youths in Agriculture in Abuja on Monday.

It was part of the bank’s 60th anniversary celebrations with stakeholders. Nigeria is the AfDB’s largest shareholder, and the bank’s relationship with it has grown, Barrow said.

The AfDB invests in Nigeria’s energy, power, transport, water, and sanitation infrastructure.

“Over the last 60 years, the Bank has grown into a trusted partner and the continent’s premier development financial institution.

“Our cooperation with Nigeria has expanded over the years, especially considering that Nigeria is the largest shareholder.

“Since it started operations in the country, cumulative financing approvals have reached 10.9 billion dollars and our portfolio currently stands at 4.9 billion dollars supporting projects in the public and private sectors,” he said.

After taking office eight years ago, AfDB President Dr Akinwumi Adesina prioritized the High 5—Power, Feed, Industrialize, Integrate, and Improve Africa’s quality of life—Barrow added. He said these were accelerators for achieving the SDGs and Agenda 2063 ambitions. The projects and programs supported during this time have reportedly affected over 400 million individuals.

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Analysts expect Egypt’s economy to rise 4.0% in 2024/25

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

A recent study that sampled seventeen economists by Reuters has predicted slower economic growth for Egypt in April after a $8 billion IMF accord in March.

The median projection for GDP growth in the fiscal year starting July 1 was 4%, down from 4.35% in April and 4.15% in January.

The poll predicted the GDP grew 2.9% in the fiscal year ending June 30. This is below their April and January predictions of 3% and 3.5%. Poll: 2025/26 growth should rise to 4.99%.

After the IMF agreement, Capital Economics’ James Swanston predicted slower growth due to tighter fiscal and monetary policies and a weaker pound.

“The overall net impact is that economic growth will be weaker this fiscal year, but there are reasons to be more optimistic on GDP growth from FY2025/26 onward,” Swanston said.

Egyptian tourism and Suez Canal revenue have slowed due to the Gaza crisis, which has cut Egypt’s foreign revenue by more than half.

Egypt’s planning ministry predicted 4.2% growth in 2024/25 on June 2. Analysts expect the Egyptian pound to fall to 49.50 per dollar by June 2025 and 52.50 by June 2026.

Before dropping it in March 2024, the central bank kept the pound at 30.85 per dollar. It’s roughly 48.40 per dollar.

The survey forecast 20.5% headline inflation in 2024/25 and 12.05% in 2025/26. In June, inflation dropped to 27.5% from a record high of 38.0% in September, exceeding the central bank’s objective of 5%-9%.

The analysts expect the central bank’s overnight lending rate to drop to 21.25% by June 2025 and 15.25% by June 2026.

Foreign money shortages have slowed the Egyptian economy. However, a $24 billion real estate transaction with the UAE in late February, a significant currency devaluation, and a $8 billion IMF accord in early March have mitigated that.