BY SAM ALFAN.
The main shareholder of Kiwipay Kenya ltd whose money has been frozen last year over claims of money laundering now wants a refund of over Sh500 millions disbursed to several lawyers through court orders.
Monthida Rashi says in the latest petition that several law firms have filed consents and obtained orders for payments of legal fees and consultancy charges, without resolution from the company.
She pleaded with the High Court for all matters touching on the billions being held at Ecobank be consolidated and heard by one judge.
Consequently, Justice Josephine Mongare directed the files be placed before Justice Alfred Mabeya for directions.
“That Court be pleased to issue such directions as are capable of safeguarding the funds of the company held in three Bank account Numbers in Ecobank Kenya Limited, Muthangari Branch Nairobi from wastage, mismanagement or misappropriation,” Rashi said in court papers.
She told the court she has been frustrated by various court orders as an investor and several law firms have obtained the orders for exorbitant payments.
The foreign investor revealed that USD 930,000.00 was paid to G.M. Gamma Advocates LLP, which was acting for Eco Bank limited, USD 400,000.00 was paid to Wambugu & Muriuki Advocates on November 21 and USD 2.502.675 paid to Rene & Hans Advocates LLP on 27 March, 2023.
“The court be pleased to suspend the orders issued by the Court in HCCOM NO. E454 of 2022 Avistia S.R.O Limited Versus Kiwipa PTE Limited and 3 others on 17th November, 2022 with effect of freezing USD 13,473,900 from Kiwipay Kenya ltd account held at Ecobank Kenya Limited pending the hearing and determination of this application,” she said.
The company further wants US Dollars 4,989,549.00 be released it from account held at Ecobank Kenya limited to offset pending bills including taxes against the Company.
The company urged the court to suspends all other monetary transactions sanctioned by court vide orders obtained by the aforesaid firms of advocates relating to the Kiwipay Kenya ltd.
“Unless the matter here is certified as urgent and the same heard expeditiously the applicant herein is going to incur unjustified loss of money or capital,”Kiwipay Kenya ltd told the court.
She said Kiwipay Kenya ltd has been served with a notice by the Kenya Revenue Authority and is likely to be penalized for not meeting its statutory obligations.
It further said that it has received information and notice that a consent was recorded by advocates purportedly with its instructions to reinstate former directors who had resigned from the company, with the effect of reinstating their mandate to operate the company’s bank accounts.
“Monies have been applied from the applicant’s bank account pursuant to the Consent Order aforesaid to pay lawyers for the Defendant Bank millions of shillings as legal fees devoid of the company’s obligations or resolutions,” added the company.
She adds that the Directors of Kiwipay Kenya ltd did not at any given time give any instructions to Wambugu & Muriuki Advocates to record any consents by which the former directors were to operate bank accounts belonging to the company yet they had already removed from the list of Directors.
The Company its operations stalled since November, 2022 as its funds in the account were frozen and the Debts of the Company including taxes have accumulated and their debts now stand at USD 4,989,549.00. 7.
“The Company stands to be penalized or lose business as a consequence of indebtedness and inability to meet its financial obligations whilst funds are held on the basis of the Order procured through fraud, misrepresentation and III motive and that the Kenya Revenue Authority has made a demand of over Sh. 3 Billion,” says company shareholder Rashi.
She also dismissed claims by Kiwipay PTE Ltd saying it is a foreign company that only holds share in the company and it therefore cannot offer the operations of the company or pledge credit on its account without proof of its involvement or sanction.
The agreement annexed by which by which Avistia Limited purports to hold as the basis for freezing the Kiwipay’s account is not executed by any of the directors of Kiwipay (K) Ltd or Kiwipay (PTE) K. Ltd and therefore there is no basis for such orders which were obtained by pure misrepresentation
