BLOW TO ISIOLO BUSINESSMAN AS COURT DECLINE TO UNFREEZE ACCOUNTS OVER CLAIMS OF MONEY LAUNDERING.

0
228
Milimani Law Courts home of high court Anti-Corruption Division Nairobi./PHOTO BY S.A.N.

BY SAM ALFAN.

Anti-Corruption High Court has dismissed application challenging orders freezing accounts of Isiolo Businessman over the suspicion of money laundering from inflated tender awarded by Isiolo County Government amount to almost 80 million.

Justice John Onyiego sitting in Nairobi ruled that the commission established reasonable basis of issuance of the orders freezing accounts of Dennis Njau Kimani.

“I have not found fault with the basis for applying for the impugned orders or for the issuance of the orders. I found no merit in the application and is hereby dismissed”, ruled Onyiego.

Earlier High Court in Meru had frozen accounts of Hitmax Limited and Fusha Trade Credit associated with Dennis Njau Kimani for six months over allegations of corruption.

The two companies are being investigated over irregularities in the procurement of construction works for two oxygen production plant at Isiolo County government hospital.

Ethics and Anti-Corruption Commission said investigations into the tender in question is No’s. ICG/018/2018 and ICG/019/2018 has established that the tenders were awarded to Hitmax Company Limited at an inflated cost of Sh79,853,738 million and entire procurement process was tainted with illegality.

The court issued orders prohibiting the withdrawal or transfer of Sh2.5 million held at Kenya Commercial Bank limited operated and held by Fusha Trade Credit Company ltd, for a period of six months.

The commission had earlier filed application seeking to block transfer of Sh10.5 million from account held and operated by Dennis Njau Kimani at Consolidated Bank. The commission intends to file a case seeking the recovery or protection of public money.

According to court documents, Isiolo County Government had already paid Hitmax Co. Ltd Sh79,853,738 through Hitmax Co. Ltd bank account held at Cooperative bank on July 2, 2018.

The documents reveal that Njau was a director of Hitmax Company and a signatory of the company’s bank account at Co-operative bank and he was also Fusha Trade Credit Company ltd director and a signatory of account held at KCB.

It is alleged that on July 12, 2018 Njau transferred Sh15.2 million from Hitmax Co ltd account to his personal account at Co-operative bank. He further withdrew Sh3 million in cash from the said company’s account and thereafter, between July 16 and 18, 2018 he transferred Sh13 million from his personal account at Co-operative bank to his personal account at Consolidated bank.

The commission alleged that between July 18, 2018 and May 6,2019 Njau had transferred total of Sh10.5 million from his personal fixed deposit account at consolidated bank and on May 6, 2019 he transferred Sh2.5 million from his personal bank account at consolidated bank to the Fusha Trade Credit co. Ltd.

EACC said the actions of Njau clearly point towards a case of attempted money laundering of illicit funds obtained from the Isiolo County Government.

However Njau and Fusha Credit argued that the money in the said bank accounts are proceeds of legal and legitimate business through public procurement and other legitimate businesses.

He said and there is no tangible evidence of corrupt conduct that has been established to warrant the orders granted to the agency.

They also argued the commission did not accord them an opportunity to explain the monies in the said accounts or any other matter connected with any issues raised in the suit.

They further argued that the commission did not disclose the pre-conditions for the freezing orders the accounts and denied the tenders were awarded to them corruptly and were inflated.

 

They told the court that the tender awarded were for the construction and installation of oxygen production plants at Isiolo and Garba Tula sub-county hospital were to be completed in 2018 and second face 2019.

Njau and Fusha have filed the application before Milimani High Court Anti-Corruption division challenging the issuance of the orders to freeze the accounts.

LEAVE A REPLY