Kenya Freezes Sh6.2 Billion Linked To Nigerian Start-up, Flutterwave
High Court has frozen more than Sh6.2 billion spread in 62 bank
accounts belonging to Nigerian start-up Flutterwave and four Kenyans on
fears they are proceeds of card fraud and money laundering.
The
billions in Guaranty Trust Bank (GTB), Equity, EcoBank, KCB and
Co-operative Bank accounts were frozen after the Assets Recovery Agency
(ARA) applied to block the transfer or withdrawal, pending the filing of
a petition to have the money forfeited to the government.
The
agency said in court filings that their investigations revealed the cash
was wired in the guise of payments for goods and services.
“That
the 1st Respondent’s bank accounts received billions in a suspected
scheme of money laundering and the same deposited in different bank
accounts in an attempt to conceal or disguise the nature, source,
location, disposition or movement of the said funds,” said ARA.
“The
transactions were done using cards issued by the same bank, at the same
point, on the same day, raising suspicion of card fraud.”
According
to the investigators, Flutterwave accounts had Sh5.17 billion in 29
accounts at GTB, Equity and Eco Bank in Kenya shillings, US dollars,
Euros and Sterling pounds.
Flutterwave says on its website
that it provides payment technology for merchants, and processes
payments on the Web, mobiles, ATM, and point of sale worldwide.
The
High Court has also frozen Sh467.1 million belonging to Boxtrip Travels
and Tours and Sh436 million in Bagtrip Travels Ltd accounts.
The
other accounts include Elivalat Fintech Ltd (Sh1.16 million), Hupesi
Solutions (Sh1.6 million), Cruz Ride Auto Ltd (Sh2.4 million).
An account under Simon Karanja Ngige, who is listed as a director of Cruz Ride Auto Ltd, has Sh14 million.
ARA reckons that funds
were wired to local bank accounts owned by Flutterwave from multiple
countries then wired to the six companies. The agency is questioning the
source of cash sent to Flutterwave.
Court filings show
that Flutterwave Payments Technology ltd is owned by Nigerians Olugbenga
Agboola, Adeleke Christopher, Iynoluwa Samuel and Flutterwave Inc which
is registered in the United States with an office on 1323 Columbus
Avenue, San Francisco.
A Kenyan-- David Mouko Elizaphan
Omaanya-- is also a director but has zero shares. The Nigerian firm was
founded in 2018 by Olugbenga Agboola and Iyinoluwa Aboyeji.
The
court heard that Flutterwave received Sh12.4 billion between November
2020 and this year in a single account at Equity Bank, reflecting the
outsized billions handled by the start-up.
The funds from the
Equity account were later transferred to Rem X Ltd, which is owned by
Nehikhare Eghosasere and Demuren Olufemi Olukunmi.
Rem X Ltd is at the centre of a separate money-laundering suit, which saw the court freeze Sh5.6 billion in accounts in April.
ARA
says Boxtrip Travel and Tours, registered by Enyioma Olufemi Madubuike,
a Nigerian, received Sh467.1 million in dollars from Flutterwave
Payments technology ltd in two days on April 27, and 28 this year.
ARA
said there was no explanation or supporting documents provided to
support the transactions and, therefore, believes the accounts were used
as conduits for moving illicit cash.
“Further investigations
established that there are reasonable grounds to believe that the funds
are proceeds of crime obtained from illegitimate sources by the
respondent which require to be preserved pending the filing and hearing
of an intended forfeiture application,” the agency submitted.
Bagtrip
Travels ltd owned by Tofunmi Taiwo Soyemi received Sh436 million from
Flutterwave and Rainbow technology Solutions between April 28 and May 6.
The
agency says Elivalat Fintech Ltd whose directors are Jackson Mwangi
Kamenju, a Kenyan, Palliser ltd and Tiwari Simon Adrian received Sh320.8
million in dollars between November 4, 2020, and April 14, this year.
At the time of the freezing order, the account had a balance Sh1.16
million.
Edguru Technology Ltd received Sh14.1 billion from
Flutterwave Payments but only Sh99.8 million has been frozen. Its
directors, according to ARA, are Adeze Chinenye, a Nigerian and Caroline
Wanjiku Muchina, a Kenyan.
An online payment solutions company
identified as Hupesi Solutions owned by Kenyan Festus Mumo Mutuku
received a total of Sh143.3 million.
From the amount, Sh54.4 million was transferred to Flutterwave Payments, while Sh45.6 million was transferred to GC Natural PL.
The
account only has Sh1.6 million and the State agency says transactions
were made in tranches of below Sh1 million to beat the CBK reporting
threshold.
Cruz Ride Auto Ltd, registered as a car dealer,
received Sh2.4 million on June 6 from Flutterwave Payments Technology
Ltd and no explanation was given for the transaction which was later
transferred to Mr Ngige.
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