The anti-corruption court in Nairobi has extended orders freezing the accounts of two private international air charter companies linked to city businessman Chris Obure over allegations of money laundering involving $129,000 (KSh18.9 million).
However, Chief Magistrate Eunice Nyutu also allowed the airlines to challenge the freezing orders obtained by the Assets Recovery Agency (ARA) on 1 September.
At the same time, Ms Nyutu gave the ARA three days to respond to the issues raised by Cullinan Private Jet Corp Limited and GLO- Jet International Limited, registered in the United States of America (USA), in their bid to have the freezing orders lifted.
Mr Obure, who is also charged with the murder of businessman Kelvin Omwenga, represents the two US-based aviation companies.
The court gave the ARA 21 days to conduct a thorough investigation into the alleged illegal financial transactions of the airlines.
The frozen accounts of the private jet companies are held at I&M Bank Limited and Ecobank Limited.
The magistrate also allowed the ARA to investigate the accounts of Ajeetkumar C Shah at I & M Bank.
Nyutu compelled the Obure companies, along with Shah, to provide investigators with all relevant account opening documents, account statements from inception to date, as well as cheque / cash deposit and withdrawal slips, bank RTGS / SWIT transfers for the same period, and any other documents that may assist in the ongoing investigation.
Applying for the freezing orders, the ARA, through Ared Musalia, a police officer, said on 25 August 2023, the agency received intelligence reports that the holders of the bank accounts were handling funds suspected to be proceeds of crime.
“The holders of the said bank accounts are being investigated for money laundering offences contrary to Section 3 read with Section 16 of the Proceeds of Crime and Money Laundering Act,” Musalia told Nyutu.
Aggrieved by the court orders, the airlines, through lawyer Cynthia Ogema, have challenged the ARA’s move to freeze their accounts, saying the orders were obtained irregularly, thereby crippling their operations.
“The ex-parte orders issued herein have adversely affected their businesses, thereby forcing the International Board of Directors to convene an emergency meeting in Fort Lauderdale, Broward County, Miami, United States of America.
Ogema has stated that the two airlines are highly respected conglomerates with strong international links and reputations in the international community, providing private cargo and passenger air charter services and real estate investments under the Meriton brand, a multi-billion dollar Australian company founded in 1963.
Ogema also states that the court orders have sparked discussions to seek approval for the immediate closure of the two airlines’ operations in Kenya and their relocation to Johannesburg, South Africa – a move that will cost the country revenue and job losses.
In an affidavit filed in court by GLO Jet International Limited CEO Geoffrey Somoni Birundu wants the orders set aside, claiming the company provides exclusive private air charter services to niche and affluent foreign and local clients.
The company in Kenya, Birundu says, is a subsidiary of GLO- Jet International limited, based in Orlando, Florida in the US, which forms a large network of a global conglomerate operating in at least 47 countries around the world.
He adds that the company does huge business with an annual turnover of billions of dollars.
The multinational’s local office, located in the upmarket Meriton Senteu Plaza on Nairobi’s Galana Lenana Road, houses offices, a fleet of luxury cars and a signed memorandum of understanding with Penial Air to provide luxury aircraft for its clients.In seeking to have the orders lifted, Birundu says the frozen accounts are used by the companies to receive money from the parent company in the US, payments from clients and also to make payments and/or transfers for staff salaries, service providers, payment of goods, allowances for pilots and crew and payment of critical utility bills.On 14 August 2023, Birundu says an invoice for $55 632 was issued to Cullinan Private Jet Corp for some business.And on 23 August 2023, another $50,000 was transferred to the Cillinan Dollar Account and a third transfer of $24,000 was received from the USA to settle a debt from a previous commitment.Birundu has stated that they are running a legitimate business and have complied with all laws, including banking, anti-money laundering, proceeds of crime and anti-terrorist financing laws.
Birundu is seeking protection from the courts against harmful decisions such as those taken by the ARA.Ms Nyuttu ordered all parties to file written submissions and evidence within three days.She said a decision on whether or not to set aside the orders would be made on 13 September 2023.
