The High Court has declined to withdraw a suit filed by the Assets Recovery Agency in which it had accused Nigerian fintech giant Flutterwave of card fraud and international money laundering.
Anti-corruption High Court Judge Nixon Sifuna said the proceedings shall be terminated only upon an affidavit sworn by the chief executive officer of the agency.
The Agency had filed a notice to withdraw the suit early this year but the Judge said no reason was given as to why the matter was being withdrawn.
The Agency filed matters against flutterwave pavement technology limited, Hupesi Solutions and Aduru technology limited (respondents).
At stake was Sh231 million which the Agency said was proceeds of crime.
Investigations revealed bank accounts where the monies were held were used as conduits for money laundering in the guise of providing merchant services.
These monies were frozen pending the determination of the matter.
But when the suit came up for hearing in May this year, the agency told the court they had filed a notice withdrawing the suit.
“In perusing the notice, I found that it did not give any reason for the withdrawal and neither did it allude to there having been negotiations or a settlement,” said the Judge.
“Public agencies such as ARA being sustained by public funds and resources must be accountable to the Kenyan public. They should be transparent,” he added
The matter has been proceeding in camera so that it does not damage their client's businesses.
“The investigator Isaac Nakitare had said there was evidence that the millions in the bank accounts and mpesa paybill accounts of the respondents are proceeds of crime as well as money laundering…but come the day of the hearing, the court was told there is no evidence at all,”
“What about the volumes of documents that accompanied the suit at the time of foiling? What about the evidence that the said corporal Nakitare stated on oath that he had collected”? the Judge posed,
The Judge in declining to withdraw the case said the proceedings shall be terminated only upon an affidavit sworn by the chief executive officer of the agency is presented in court.
“The current notorious trend of prosecutorial and recovery institutions filing cases in court, and suddenly withdrawing them midstream, betrays and erodes the public trust that Kenyans should have in them,” he said
The matter will be mentioned on July 27 to confirm if the affidavit has been filed
