Law firms linked to frozen Ksh2.3B cash in money laundering case
By Bernice.Mbugua, April 20, 2023
Several law firms are now at the center of a dispute involving a foreign investor and three Kenyans who lay claim to Ksh2.3 billion held at Ecobank that had initially been frozen over money laundering claims.
Monthida Rashi from Laos, Southeast Asian country, says she is the main shareholder and Director of Kiwipay Kenya Ltd which owns the said monies, and accused several law firms of exaggerated and fabricated claims on legal fees and other consultancy fees amounting Ksh500 million
In a new suit, the foreign investor claims the law firms of Rene Hans Advocates, LLP acting for the three Kenyans who are former directors of the company, and Wambugu & Muriuki Advocates purporting to represent the company of recording consent without the approval of the directors.
According to her, the three Kenyans; Maina Stephen Njenga, Felix Lantuu Rekishe and Solomon Joseph Maina resigned from the company, and therefore the purported consent reinstating them back to the company was unlawful.
Rashi through lawyer Wilfred Nyamu Mati claims she has been frustrated by various court orders as an investor and several law firms have obtained the orders for exorbitant payments.
She indicates that the Company stalled its operation in 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 Directors of Kiwipay Kenya 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 been removed from the list of Directors,” claimed Rashi in court documents.
She claims that USD 930,000 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.
It is her case that the said lawyers represent the interests of parties other than Kiwipay Kenya Limited where she is a director and Shareholder.
She wants the court to order the law firms to refund the Sh500 million paid to them and the consent orders reinstating the three Kenyans as directors in the company to be suspended pending the hearing of the suit.
She also wants the 10 suits filed relating to the company to be consolidated and heard by one Judge.
Justice Josephine Mongare of the Commercial Division directed the files to be placed before Justice Alfred Mabeya for directions.