Kenyan High Court Freeze Korapay, Kandon Accounts
A Kenyan high court has frozen the accounts of two Nigerian fintech companies on allegations of money laundering. This action comes after another high court in Kenya had frozen the accounts of one of the continent’s biggest fintech companies, and also Nigerian-owned, Flutterwave, last week.
The presiding Justice, Lady Esther Maina, had issued the orders, separating one suite from the other. The suit was filed against Korapay Technologies Limited and Kandon Technologies limited by the Asset Recovery Agency, ARA, the same agency filled the suit against Flutter wave, seeing its account frozen.
ARA had claimed Korapay and Kandon were being used by fraudsters to launder monies into Kenya, of which there was no traceable source.
The suit was first filled against Korapay Technologies limited, where the court froze about twenty-nine million, five hundred thousand Kenyan Shillings (Ksh29.5 million) , which is an equivalent of two hundred and forty-nine thousand United States Dollars ($249), in the company’s accounts.
The second suit was against Kandon Technologies Limited, where the court also froze about fifteen million Kenyan Shillings in both of its UBA accounts.
According to reports by The Standard, Justice Maina stated the following in quotes while making her ruling.“The court issues preservation orders prohibiting the respondents or their agents from withdrawing or transferring the money in the stated accounts for six months to allow Asset Recovery Agency complete investigations in the allegations of money laundering.”
ARA had allegedly claimed that both companies were in the act of using its said services as a tool to perpetuate illegal acts of moving huge sums of money whose source cannot be ascertained.
According to ARA in the quote, “investigations revealed that their account had transacted Sh5.5 billion in seven months and by the time we got intelligence information that they were engaged in money laundering, they had transferred the funds to other jurisdictions with only Sh15 million remaining,”.
In reports, the accused organization, Kandon Tech Ltd is Nigerian-owned, whose principals are, Ayowole Oluwaseun Ayodele, and Pauline Okoro, who owes 800 and 200 shares respectively.
In its reports, ARA alleged the companies were actually inactive, yet incorporated in Kenya. it stated that the purpose of these companies was to take advantage of the nation’s tolerant financial system to launder funds without roots.
Korapay Technologies LTD, also Nigerian-owned, with its principals as Dickson Chukwuma Nsofor, and Gideon Oghenetega Oriwiroro, had allegedly received millions of shillings through their accounts after which they transferred it to different individuals.
The ARA claimed that the present accused organizations are linked to other firms (Nigerian-owned) and a businessman (a Kenyan)whose accounts were also frozen last week over international laundering allegations.
The Standard in its reports stated, “ARA, in its application, claimed that Flutterwave Ltd, Elivalat Fintech Ltd, Hupesi Solutions, Boxtrip Travels and Tours, Bagtrip Travels Ltd, Cruz Ride Auto Ltd, and businessman Simon Karanja were the entities behind the alleged money laundering scheme involving Sh6.2 billion”.