DCI clears 4 Nigerian remittance companies accused of fraud

DCI clears 4 Nigerian remittance companies accused of fraud

After the High Court lifted the freeze order on Ksh.5.6 billion linked to four Nigerian firms, Oit Africa Ltd, Avalon Offshore Logistics Ltd, Multigate Ltd and Remx Capital Ltd, the four companies claim to have lost an estimated Ksh.23 billion in turnover.

The loss is said to have been incurred for the 6 months that the companies were out of business, with their reputation going down the drain as well.

In court documents seen Citizen TV, the firm’s lawyers state that for the 6 months that they were out of business no valid cause was found that led to their bank accounts being frozen and that the accusations of money laundering levelled against them were all politically motivated.

On March 4, 2022, the Assets Recovery Agency (ARA) received information that accounts held by 4 firms in Equity Bank and UBA bank had transacted funds and are holding monies suspected to be proceeds of crime. 

The assets recovery agency was granted freeze orders by the court on the firms' accounts held in the two banks for 45 days while conducting investigations. 

Fast forward to the 9th of September and the freeze orders on the accounts were lifted after the Directorate of Criminal Investigations wrote to the firms stating that they have concluded their investigations and found no wrongdoing by the firms.

According to the court documents seen by Citizen TV two of the firms , OIT Africa Limited and RemX capital were alleged to be involved in a card fraud scheme and money laundering which could not be established.

The directors of the companies claim they were extorted by high-ranking government officials and threatened that their operating licences will be permanently suspended.

According to the directors, this was as a result of their political alignment in the just concluded presidential elections which they say they had no interest in. 

The company shareholders say that they have suffered irreversible reputational damage as their business operates primarily on trust and over Ksh.23 billion in turnover over the six-month period that they were shut down.

They anticipate that it will take them more than one year to get to the operating levels they were before the allegations were levelled against them.

The company’s shareholders say that the turn of events in relation to their operations in the country is discouraging and could lead to a reduction in the number of fin techs who come to set up shop in the country as Kenya is considered to be the African equivalent of silicon Valley.

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