• Italian said to have lost Sh119.8 million at Riverside Drive thinking he was buying genuine gold
• 14 suspects were arrested in house where businessman was allegedly defrauded
Businessman Paul Kobia and 13 of his employees who were arrested on Wednesday on allegations of dealing in fake gold have been released by a Nairobi court.
His co-accused include Simon Wainaina, Paul Gichuhi, Benjamin Mutisya, Patrick Mweu, Samson Kibet, Faith Kioko, Joyce Wenani, Miriam Nyambura, Consolata Thirindi, James Masai, Doreen Kathambi, Tanya Yvone Goes and Gabriel Murage.
The 14 were arraigned on Thursday morning as police sought to detain them for two weeks.
However, in her ruling, magistrate Sinkyian Tobiko ordered them to report to the DCI on Monday while they await police to complete investigations.
Tobiko said the application by the prosecution was very vague and there was no compelling reason for the court to grant the orders.
The court ruled there was no evidence that the suspects are a flight risk because they are all Kenyan.
The state had asked the court to allow police to detain them for 14 days to enable them to complete investigations.
Police are investigating the 14 suspects' involvement in obtaining money by false pretences.
The court heard that between October 7, 2018, and April 25, Italian Antonio Cianci, a director of Iron and Steel DMCC in Dubai– a company that deals in buying and selling of gold–came to Kenya and was lured to a house situated along Riverside Drive where it was alleged that pure gold was available for sale.
“During the transaction, the complainant lost Sh119.8 million after he was duped that the items he was buying were a genuine gold,” the court heard.
The prosecution said DCI officers raided the house along Riverside Drive and arrested the 14 suspects in the house where the foreigner was defrauded. Several exhibits which were recovered are still being analysed.
They said investigations reveal that Kobia dealt with the complainant during the transaction with the assistance of his team and another who is still at large.
Kobia has been linked to many more fraudulent activities relating to fake gold and there are many more complainants from foreign countries who have come up with allegations of being victims of the scam.
The state argued releasing Kobia and his co-suspects would jeopardise investigations owing to the seriousness of the case and the fact that they are likely to interfere with the investigation since other suspects are still at large.
The court heard that the investigation is complex, diverse and we are looking at a transnational organised crime where some of his alleged accomplices could be in the neighbouring countries.
Defence lawyer Henry Kurauka strongly opposed the application by the state arguing that they had not been given any reason for the arrest, further adding that the application had no merit.
Kurauka also stated that no person has registered a complaint with the DCI either in Kenya or in Dubai.
He said Kobia’s home was raided on Wednesday without any search warrant as required by the law and is, therefore, illegal.
Edited by R.Wamochie