The High Court has extended orders the freezing of seven accounts associated with one of the suspects facing charges in the loss of Sh468 million at the National Youth Service.
Justice Hedwig Ong’undi ruled that was in the interest of justice that the orders for preservation of the funds issued in the accounts belonging to James Thuita Nderitu and some of the companies associated with him.
“That preservation orders prohibiting the respondents and or their agents or representative from transacting, withdrawing, transferring using and any other a dealing in respect of funds held in the seven accounts held in several banks accounts,”ruled ruled the Judge.
The accounts are held in several banks and registered in his names and those of his companies including Flagstone Merchants, Firstling Supplies limited, Excella Supplies ltd, Flagstone Co. ltd and Interscope Tech & Services.
Assets Recovery Agency through an affidavit filed in court by Sergent Fredrick Musyoki says that the suspect’s accounts received funds fraudulently from the NYS and associates and split in several transactions.
The money, which were also received through their business entities and associates were further transferred into accounts held by family members and associates.
In the application, ARA said that Flagstone Merchants, for example, received Sh195.1 million from NYS on March 21, 2017 while Firstling Supplies ltd received more than Sh795 million between July 4 and 13, 2017 from NYS.
The Agency wants the Sh32 million held in the seven accounts remain frozen, pending the hearing and determination of a petition for the money to be forfeited to the government.
The investigator said in an affidavit that the banks accounts are suspected to have been used for money laundering purposes.
“That the respondents received funds fraudulently from NYS and associates split in several transactions and they believe that the respondents accounts were used as conduits of money laundering,” reads the court documents.
Those listed in the case as interested parties are Thuita, Flagstone Merchats Ltd, First supplies , Excella Supplies Ltd, Betty Martha Wajewa Omondi, Interscope Tech and Services, Ellywyn Supplies.
The Agency had obtained order on September 7 freezing the accounts of the said companies, suspecting that they are proceeds of crime for a period of 90 days. The said orders were lapsing on Friday and ARA was forced to rush to court fearing that the funds might be withdrawn.
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