ARROR, KIMWARER DAMS

Trader linked to dams scandal contests frozen account

She denies knowledge of the fraud money, saying she only supplied business cards and notebooks to CMC di Ravenna

In Summary

• Money paid to the contracted company was paid out to eight companies including hers, their accounts were frozen in March. 

• Businesswoman wants the court to uplift the orders as 'she operates from that account and it's affecting her business'. 

It's alleged money was illegally spent on the virtually nonexistent Kimwarer and Arror dams.
CHANGING HANDS: It's alleged money was illegally spent on the virtually nonexistent Kimwarer and Arror dams.
Image: COURTESY

A businesswoman working for the troubled Italian company CMC Di Ravenna has challenged an order freezing her Equity Bank account over the Arror and Kimwarer dams scandal. 

Shelmith Njeri Mwangi operates Fast Service Solutions. Her company was among seven others whose bank accounts were frozen by the court in March.

Njeri worked for diverse clients including CMC Di Ravenna Kenya branch for which she used to print business cards and notebooks.

 

On March 1, the Assets Recovery Agency satisfied the court that the money in Njeri's account could be proceeds of crime. It obtained orders against her company alongside Young traders, Red Court Boma Hotel, Medsec Cable Limited, Conart Limited, Spring Valley Fuel and Service Centre Limited.

It also obtained orders to freeze the accounts of Crystals Line Construction Limited and Oriental General Stores Limited.

The businesswoman wants the court to lift the orders.  

“I was shocked to learn my account was frozen due to fraud money by CMC Di Ravenna and I had no information as I only supplied business cards and notes pads.  The agency did not even serve me,” she says. 

According to the court documents, the agency on February 26 received information from the Directorate of Criminal Investigations that they were investigating a case involving embezzlement of public monies allocated to the construction of Arror and Kimwarer multi-purpose dams.

It’s alleged that billions of shillings facilitated on paper by the National Treasury and Kerio Valley Development Authority meant for the construction were diverted and fraudulently deposited into the company’s eight bank accounts.

The funds were allegedly initially paid to the contracted company, CMC di Ravena-Itenera's account held at Barclays bank, which later transferred and distributed them to several local company accounts including Njeri's. 

 

The agency subsequently opened an inquiry file to investigate and inquire into the activities of those accounts.

But Njeri says her equity account has been frozen illegally for an unknown reason and her business has been affected.

“I operate my business with the Equity account legally and I have no information of fraud money as I only supplied business cards,” her affidavit reads.

Her application was certified as urgent by Judge Mumbi Ngugi. it will be heard on Thursday next week. 

Edited by R.Wamochie