S$140 million held by convicted Indonesian palm oil tycoon's son to remain seized despite CPIB lapses: Court

Nairobi, Kenya – The Court of Appeal has rejected the Assets Recovery Agency's (ARA) attempt to seize $274,369 (approximately Sh36 million) from an I&M Bank account linked to EIS Afrika Group Limited. The three-judge panel upheld a previous High Court ruling that ARA did not provide enough proof that the funds were the proceeds of crime.

The case originated in March 2024 when EIS Afrika received a $350,000 wire transfer, raising suspicions of money laundering. ARA froze the account and sought to forfeit the remaining sum under the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA). EIS Afrika, which has a subsidiary in Burundi, explained that the money was part of a $5.03 million World Bank-funded contract for a Kavimvira Border Post project.

The company provided documentation to show how the funds were used for procuring vehicles and equipment from Dubai due to Burundi's strict foreign exchange and importation restrictions. EIS Afrika presented these documents as evidence of the funds' legitimate source and use. However, ARA's appeal was dismissed by the Court of Appeal, which stated that the agency failed to prove, beyond reasonable doubt, that the funds were indeed proceeds of crime.

The court emphasized that mere suspicion, large transactions, or unusual international movements of money are not sufficient to establish criminal origins of funds. ARA's lawyer admitted to an error in their affidavit regarding claims of substantial cash withdrawals. The appellate court also criticized ARA's reliance on unverified information, including an unauthenticated email address and a cyber-forensic report.

Additionally, the court noted that ARA did not independently verify EIS Afrika's claims with the World Bank or the Burundi Embassy.