Judge freezes bank accounts over fake Lapsset payments

A judge sitting in Malindi has frozen the bank accounts of eight people following claims that they were irregularly compensated for land earmarked for the Sh1.5 trillion Lamu Port project.

The eight were among the 154 people who received a total of Sh860 million from the government as compensation for the land earmarked for a second port and the South Sudan-Ethiopia transport corridor, also known as the Lapsset project.

The irregular beneficiaries, who took home Sh100 million, include a senior Kenya Ports Authority official, the wife of a senior administrator in the government and four relatives of a senior Lamu County official.

The Nation could not immediately establish the identities of the rest.

The Ethics and Anti-Corruption Commission is contemplating to ask the court to freeze the accounts of more beneficiaries, with sources indicating that senior State officials, several Lamu politicians and local businessmen are among those targeted.

FREEZE ORDERS

The commission secured the High Court orders to freeze the bank accounts of the eight claimants last week.

Sitting in Malindi, Justice Said Chitembwe, issued the order prohibiting the claimants, their agents or servants from transferring the money from their accounts. He also directed that the accounts be frozen for six months.

By that time, the EACC is expected to have concluded its investigations.

The orders issued during an ex-parte hearing were made against Mr Mahmoud Hassan Ali, who received Sh6.1 million for 1.659 hectares of land in the Kililana area, near the port, Ms Samia Mohamed Abdu (Sh5.7 million for 1.5459 hectares of land), Ms Mariam Athman Hassan,(Sh13.1 for 3.559 hectares of land) and Ms Kalathum Mohamed Ahmed (Sh30.4 million for 8.194 hectares of land).

Another person, Mr Mohamed Abdereheman, who is married to Ms Kalathum, but who was not in the list of those compensated had his bank account frozen after money was transferred from Ms Kalathum’s bank account to his. 

SHARED EQUALLY

Ms Mariam’s second bank account, which she jointly holds with Mr Mohamed Sizi Famao, was also frozen with Sh24 million they had jointly received as compensation for 12.94 hectares of land.

The court also froze Ms Fauzi Mohammed Famau’s bank account in which Sh39.5 million had been deposited. The money was to have been shared equally with another person for 10.646 hectares of land.

Mr Mohammed Bwanamkuu Ali’s ABC Lamu branch bank account with Sh24,941,038.50  as compensation for 6.729 hectares was also frozen.

EACC was also granted authority to search each of the eight accounts during the six months freezing period as part of its investigations.

“The applicant is mandated to investigate any matter raising suspicion of conduct constituting corruption and economic crime,” read the court document.

EACC investigators said that the respondents received the payments from the Kenya Ports Authority through the National Lands Commission while pretending to be Project Affected Persons.

The commission further stated that it had received information that the eight “did not own any land around the Lapsset project area hence any payment in respect thereof is illegal.”

“Pending the conclusion of investigations, there is urgent need to preserve the said funds by freezing or prohibiting the transfer or withdrawal of funds or other dealings with the funds in question that may render these investigations and this application nugatory,” the commission had told the court.