Notorious drug baron's multi-million assets to be forfeited to state

Yusuf Ahmed Swaleh, a notorious drug trafficker, before Mombasa Law Courts on April 16, 2019. [File, Standard] The High Court has ordered the forfeiture of multi-million-shillings assets linked to the late Yusuf Ahmed Swaleh, a notorious drug trafficker once nicknamed "Candy Rain". Swaleh, widely believed to have inherited the Akasha drug empire at the Kenyan Coast, amassed illicit fortune through years of involvement in international drug trafficking. Among the properties the court has ordered to be forfeited to the government are more than Sh2 million held in three accounts and four parcels of land in Kilifi County. The court's decision was delivered by Justice Patrick Otieno, who concluded that the assets were proceeds of crime, acquired through illegal drug trade. Justice Otieno's ruling emphasized the failure of Swaleh's family members to provide credible explanations for the wealth they accumulated by purchasing several assets in Kilifi County. Swaleh's mother, Jauria Yusuf Ahmed, and his wife, Asmar Abdalla Mohamed, were unable to justify the origin of their substantial assets, leading the court to conclude that their properties were procured through illicit means. "The evidence availed by ARA establishes on a balance of probabilities that Swaleh's mother, Yusuf, and wife, Abdalla, received unexplained sources of money in a manner that raises reasonable suspicion that the funds were proceeds of crime. The prima facie proof was due for rebuttal, but the Respondents failed to do so," Justice Otieno ruled. This decision stems from a case filed by the Asset Recovery Agency (ARA) seeking the forfeiture of various assets, including bank accounts, properties, and parcels of land linked to Swaleh's relatives. The assets were alleged to be proceeds of drug trafficking, an activity Swaleh had been involved in for years. Swaleh's vast criminal network was said to have operated under the radar for an extended period, involving complex money laundering schemes, including suspicious transactions in both bank accounts and M-Pesa mobile money accounts. Evidence tendered in court by ARA investigating officer Kipkurui Serem shows how the investigation into Swaleh's operations uncovered a web of illicit transactions that involved the transfer of drug money through various accounts, designed to conceal the true nature of the funds. The ARA's investigation also revealed that Swaleh and his family had used criminal proceeds to acquire large parcels of land and property. These assets were often registered under the names of relatives, including his mother, wife, and child, to conceal their ownership. Importantly, no legitimate income sources or tax records were found to explain the wealth of Swaleh's family, prompting the court to take decisive action. "The investigations, however, established that none of the Respondents had any known means of income, as none had ever filed any tax returns. Hence, the identified assets are deemed proceeds of crime," the agency said. The agency stated that its probe was triggered by the arrest and arraignment of Swaleh and his wife, Abdalla, at Shanzu Law Court over allegations of trafficking drugs worth Sh 110,292,000, recovered from the house of one of the mules, Nuru Murshid Mahfudh. ARA also revealed that its investigations established that the Swaleh and his family ran a syndicate where mules were assigned to transport and deliver drugs. The ARA's case was bolstered by significant evidence, including the seizure of 201.10 grams of heroin valued at Sh 603,300, recovered from a vehicle and residence linked to Swaleh. Suspicious cash deposits and transfers in the names of Swaleh's relatives further implicated them in money laundering activities. "Subsequent investigations revealed that income from the illicit trade in narcotics was disguised and funneled into the accounts of Swaleh's mother and wife," Officer Kipkurui testified in court. The agency maintained that there were reasonable grounds to believe that the traced property was unlawfully acquired from the illicit trade in narcotic drugs and that the bank accounts of Swaleh, his mother, wife, and child were used as conduits for money laundering. "The bank and M-Pesa documents and statements were analyzed, revealing suspicious, large transactions involving over 100 individuals and various M-Pesa agents," ARA informed the judge. The agency further pointed out that cash deposits below the reporting thresholds were used as a tactic to avoid suspicion in accounts operated by Swaleh's mother, wife, and child an apparent strategy to launder the proceeds of crime. "The use of cash withdrawals and transfers from and into these accounts was a method of concealing the sources and destinations of funds, often in sums less than Sh 1,000,000, to evade legal and financial regulations." The agency also noted that Swaleh, a well-established drug trafficker in Mombasa, used M-Pesa and bank accounts registered in the names of relatives and associates to launder his illicit money and channel it into the financial system by breaking up large sums into smaller deposits. The investigations further revealed that Swaleh's mother and wife had acquired four huge properties from the proceeds of narcotics trafficking, with these assets registered in the names of relatives as proxies to conceal the true sources of funds. Commissions revealed that between 2014 and 2016, when Swaleh was aged 20 to 23, his accounts transacted huge sums of money reasonably believed to be proceeds of heroin trafficking. Evidence availed in court showed that his wife, Abdalla, opened an account at DTB Bank at the age of 19 and declared herself a car dealer. The account later received suspicious deposits totaling Sh3,015,000 in January 2014. "It was observed that despite declaring herself a car dealer and transacting over Sh 3 million in one month, Abdalla never filed any tax returns between 2015 and 2022," the court heard. The agency argued that this pattern was consistent with a proxy used by a kingpin to receive illicit earnings, launder the money, and acquire assets. In defense, Swaleh's mother, Yusuf, claimed that one of the properties she owned in Mombasa had been inherited and later sold for Sh 1.8 million. In an affidavit filed in court, Yusuf provided a sale agreement dated September 5, 2022, to validate the funds in her account. She also revealed that Swaleh was her son and that she had always been a businesswoman selling water and chicken. "The property known as Mombasa/Likoni/2028 was my inheritance, which I sold for Sh 1,809,000, with the purchase price paid in two installments of Sh 780,000," Swaleh's mother informed the judge. She argued that the money preserved in her account was not proceeds of crime but legitimately earned from the sale of her inheritance. However, the court dismissed her explanation, determining that the proceeds from the alleged sale were mixed with illicit drug money, making the funds subject to forfeiture. "There was no proof of any business registration, invoices, books of accounts, or records. Even if there had been a sale, the proceeds were commingled with proceeds of crime and thus subject to forfeiture." Swaleh's wife, on the other hand, declined to file a response to the allegations regarding her unexplained assets. Justice Otieno noted that despite several opportunities to provide evidence of legitimate income, neither Yusuf Ahmed nor Abdalla could sufficiently account for their wealth. The court found that the absence of credible documentation and the failure to explain the origins of their wealth rendered their assets vulnerable to forfeiture under the Proceeds of Crime and Anti-Money Laundering Act. Judge Otieno however ordered the Sh 2,039,542 held in the accounts of Swaleh mother's two accounts and his wife Abdalla, and the four landed properties in kilifi county be surrendered to the government for being proceeds of crime. The court also issued an order directing Mombasa Chief Land Registrar to transfer the four land parcels belonging to Swaleh's family to ARA on behalf of the state.

Notorious drug baron's multi-million assets to be forfeited to state

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