A Nigerian start-up company is set to lose Sh192 million after failing to defend a case filed against them by the Asset Recovery Agency over allegations of money laundering.
Justice Esther Maina entered a default judgement against Rainbow Techemploy Africa Limited and allowed ARA to seize the money after the company failed to show up to prove their money was not proceeds of crime.
“The court hereby grants a default judgement against Rainbow Techemploy Africa Limited and orders that the money is forfeited to the government as prayed by the Asset Recovery Agency,” ruled Maina.
A default judgement is a decision given by the court in favour of the complainant or petitioner when the other party sued fails to appear in court or take action by responding to the allegations raised.
The court had frozen the company’s account at Guaranty Trust Bank in July last year following an application by ARA and gave them a chance to respond to the suit but they have failed to take any action for eight months.
ARA suspected the company was involved in international money laundering schemes after transferring Sh192 million into its account in Kenya without declaring the source.
“We received information on a suspected case of money laundering schemes and acquisition of proceeds of crime involving multiple money transactions through the company’s bank accounts from foreign jurisdiction whose source could not legitimately be established,” the agency said.