NAIROBI Kenya, May 18 -Chief Registrar of the Judiciary Anne Amadi has been accused of conspiring to defraud a Dubai-based firm more than Sh100 million in a fake gold scandal.
Justice David Majanja on Thursday May 18 froze Amadi’s personal bank accounts together with those of her son and two others pending the hearing of the suit filed by the Dubai-based company that deals in gold.
Amadi and her son, Brian Ochieng Amadi, are accused alongside four others of illegally obtaining USD742,206 from Dubai-based Bruton Gold Trading LLC.
They had promised to sell them 1500kg of gold bars in 2021.
The firm claims that one Edward Taylor introduced its directors to one Daniel Kang’ara Ndegwa, alias Dan Muriithi. Ndegwa claimed to be representing an entity called Universal Global Logistics Limited (UGL), which purported to be in the gold export business.
The two companies then signed agreement stating that Taylor was to deliver gold for export (in Kenya) which Ndegwa would then export to Dubai for sale.
The export was to be at Bruton’s cost and the arrangement was that the Dubai company would be reimbursed its total costs for export and be paid commission of 10 per cent of the market value of the gold at the point and time of sale.
The Dubai-based company then entered into a transaction with it, after being represented by Amadi’s law firm, Amadi and Associates Advocates.
The Dubai-based company paid USD592,970 through a bank transfer to Amadi’s law firm, which her son runs. The company also made payments totaling USD149,236.48 to Ndegwa’s account for his accommodation and other transaction costs on the understanding that the money would be recouped at the close of the transaction.
According to the company, Taylor sent them documents meant to mislead them into believing that a genuine transaction was taking place.
It was however later discovered that the documents were fake.
“There was even a tracking number provided which seemed to show that the consignment of gold had left Kenya yet when the plaintiff sought confirmation from its customs agent in Dubai, it was informed that there was no such shipment that arrived aboard Kenya Airways Flight 304,” reads one of the documents filed in court.
The two men failed to ship the gold as agreed even after receiving the money paid directly to them through Amadi’s law firm, prompting the company to report the matter to the police.
The probe revealed that Amadi opened the bank account into which the money was deposited after she had joined the Judiciary.
“They withdrew the cash without adequate supporting documentation as required by the Proceeds of Crime and Anti-Money Laundering Act No.9 of 2009 of the Laws of the Republic of Kenya,” argued the company in court documents.
Later on May 10, 2022, Amadi’s firm wrote a letter to the company’s advocates in which they forwarded two cheques of USD9,000
“The payment was characterized as a commitment towards resolution of the matter,” they claimed in court documents.
The Dubai firm also claims that Amadi, in telephone conversations, with its lawyers made proposals to clear the sum in six months, a proposal which was rejected as no security for performance on their part was forthcoming.
The matter will be mentioned on May 23.
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