The anti-corruption court in Nairobi has extended orders freezing the accounts of two air charter service companies over allegations of money laundering.
Chief Magistrate Eunice Nyutu granted the Assets Recovery Agency (ARA) 21 days to carry out in-depth investigations into the alleged illegal financial transactions involving US-registered Cullinan Private Jet Corp Limited and GLO- Jet International Limited.
However, Ms Nyutu allowed the two companies to challenge the freeze orders obtained by the ARA on September 1, 2023. She also granted the ARA three days to respond to the issues raised by the companies associated with businessman Chris Obure.
Mr Obure, who is also charged with murdering businessman Kelvin Omwenga, is the representative of the two companies.
The magistrate allowed the ARA to investigate the accounts held by Ajeetkumar C Shah at a local bank.
The companies together with Mr Obure and Mr Shah were ordered to supply the investigators with account and transaction documents covering the same period and any other documents which may assist in the ongoing probe.
Applying for the freeze orders, the ARA said that on August 25, 2023, the agency received intelligence reports that the holders of the bank accounts transacted funds suspected to be proceeds of crime.
"The holders of the bank accounts in question are being investigated for the offences of money laundering contrary to Section 3 as read with Section 16 of Proceeds of Crime and Money Laundering Act, " the ARA said.
The companies, through lawyer Cynthia Ogema, have challenged the move by the ARA to freeze its accounts, arguing orders were obtained irregularly thereby crippling their businesses.
"The ex-parte orders issued herein has negatively affected their business, thereby forcing the international board of directors to call for an urgent meeting at Fort Lauderdale, Broward county, Miami, United States of America," the lawyer said.
The two firms, he argued, are highly revered conglomerates with strong international links and have a high reputation in the international community as they provide private cargo and passenger air charter services, as well as property investment under the Meriton Brand.
The court orders reportedly sparked discussion over the two air companies shutting down operations in Kenya and relocating to Johannesburg, South Africa — a move that will cost the country revenue and loss of jobs.
In an affidavit filed in court by GLO-Jet International CEO Geoffrey Somoni Birundu wants the orders vacated claiming that the company is providing exclusive private air charter services to niche and affluent foreign and local clients.
The Company in Kenya, Birundu says is subsidiary of GLO- Jet International limited which is based in Orlando Florida in the USA, which constitutes a large network of global conglomerates operating in at least 47 countries across the world.
He adds the company is moving huge business with a turnover of billions of dollars annually.
The local branch of the multi-national company which is based at the up-market Meriton Senteu Plaza located along Galana lenana road in Nairobi hosts offices, a fleet of luxury cars and a signed memorandum of understanding with Penial Air to supply luxury aircraft for its clients.
Seeking to have the orders lifted, Birundu says that the frozen accounts are used by the firms to receive money from the mother company in the USA, payments from clients and also to make payments and or transfers for staff salaries, service providers, payments of goods, allowances for pilots and crew plus paying for critical utility bills.
On August 14, 2023, Birundu says an invoice of $55,632 was issued to Cullinan Private Jet Corp for some business.
And on August 23, 2023, another $50,000 was wired to the Cillinan Dollar Account and a third tranch of $24,000 was received from the USA to settle a debt from a previous obligation.
Birundu has stated that they are engaged in legitimate business and have complied with all the laws including banking, anti-money laundering, laws relating to proceeds of crime and anti-terrorism funding.
Birundu is urging court protection from harmful decisions such as the one taken by ARA.
Ms Nyutu directed all the parties to file written submissions and evidence within three days.
She said that a ruling on whether to lift the orders or not will be delivered on September 13, 2023.
