The High Court in Nairobi has frozen over Sh 400 Million belonging to Flutterwaves Payment Technology Limited, Hupesi Solutions and Adguru Technology Limited.
Anti-corruption judge Grace Nzioka prohibited Flutterwaves Payment Technology Ltd, Hupesi Solutions and Adguru Technology Limited, its agent or representative from transacting, withdrawing, transferring, using and any other dealings in respect to the Sh 110,133,177 held at United Bank of Africa (UBA).
Justice Nzioka also prohibited Flutterwaves Payment Technology Ltd from transacting, withdrawing, transferring or using any other dealings in respect to USD 556,622.30 (Appr. Sh 70 Million) held at UBA Bank and another Sh 29 million held at Access Bank.
“A preservation order be and is hereby issued prohibiting 1st respondent ( Flutterwaves Payment Technology Ltd) or his agents or representative from transacting,withdrawing,transferring ,using any other dealings in respect to Sh 29,123,339.25 held in account at Access Bank,” the judge ruled.
Flutterwaves Payment Technology Ltd has also been prohibited from withdrawing or transferring Sh 68,082,256 held in the utility account and Sh 112,001,403 held in the working account held in 10 Safaricom paybill accounts.
The 2nd respondent, Hupesi Solutions, its agent or representative have also been prohibited from withdrawing or transferring Sh 14,5622,020.20 held in 10 safaricom paybill accounts.
The Asset Recovery Agency filed an application seeking to freeze the money on suspicion it was proceeds of crime.
Money Laundering
Investigating officer Corporal Isaack Nakitare told the court that investigations revealed that the bank accounts were used as conduits for money laundering in the guise of providing merchant services.
“We received information that there were suspicious funds transferred in the said companies’ bank accounts, which were suspected to be proceeds of crime,” the investigator said.
The court heard that Flutterwaves Ltd account held at UBA bank and a closing balance of Sh 110,182,608.99 when the agency obtained the warrant to investigate.
According to the investigator, an analysis revealed that the bank account received Sh 246,307,037 from 7th December 2017 to 7th July 2022 as credits.
“The agency conducted investigations into the alleged suspicious funds and established that the respondents’ bank accounts received funds whose source is suspected to be money laundering and card frauds,” Nakitare added.
He further added that his investigations revealed that the bank account had received total credits of USD 35,233,028. He further stated that at the time of obtaining freezing orders, the bank account had a balance of USD 556 803.
The above were mostly card transactions, some of which with repeated card transaction code, an indication of card fraud.
The court also heard that there were several chargeback and refund/reversal transactions amounting to USD 1,020,302.41.
“These were 1424 transactions out of a total of 1796 debit transactions which demonstrates a case of card fraud,” the investigator stated.
The case will be mentioned on 21st November 2022 for further orders.
