A businessman has lost control of his wealth valued at Ksh44 million in the latest battle in court over allegations of getting into questionable deals with a county government.
Through a verdict delivered on Wednesday, March 2, the government has been granted orders to seize all his assets as the case proceeds.
The ruling delivered by High Court Judge Esther Maina established that the businessman reportedly failed to account for the source of his wealth yet evidence linked his assets to a fraud scheme under investigation.
The order granted to the government to seize the assets follows an analysis done by the Assets Recovery Agency (ARA) which indicated that the tycoon allegedly received a total of Ksh124,750,000 from various companies, which were being investigated. The funds were later withdrawn or transferred to other accounts in a scheme of money laundering.
The businessman had argued in court that he amassed his wealth from different deals and contracts secured from the county government and others through loans secured in various financial institutions.
“He has not given an iota of evidence to prove that either himself, his companies or the companies that paid the money into his accounts did legitimate business with the County Government which paid them the money,” the judge stated in part of his judgement.
The ruling further detailed that his evidence of earning from a subcontracting deal was inconsistent but also contradictory because there was no credible explanation as to why he benefitted from money paid to one of the companies by the county government.
The evidence tabled in court further revealed a series of cash wired to his different bank accounts including Ksh75.4 million which he reportedly received from in August 2018.
The submitted documents further alleged that he received another Ksh23.9 million opening his accounts for audit by the tax authorities.
The businessman denied all the allegations levelled against him insisting that he made his money through running legitimate business ventures.
He also pleaded with the judge to unfreeze his assets explaining that it is the only source of income he has to sustain his family.
However, the judge turned down his plea setting the stage for a further court battle in a bid to regain control of his wealth.
This comes as the government intensifies war to weed out money laundering in the country while at the same time encouraging a tax compliance culture in the country.
