The High Court of Kenya has frozen the bank accounts of South Sudan’s Cabinet Affairs Minister, Dr. Martin Elia Lomuro, for suspected money laundering, Kenya’s The Star newspaper reported Monday.
Justice James Wakiaga issued the orders freezing Martin Elia Lomuro's bank accounts containing Sh13.42 million (US $ 124,547) following a case filed by Kenya’s Asset Recovery Agency (ARA).
In a case filed by the senior state counsel, Stephen Githinji, on behalf of the ARA director, the agency said Lomuro's account at the bank made several suspicious transactions pointing to money laundering.
“There are reasonable grounds to believe that the funds held by the respondent in the specified bank account are direct benefits, profits and or proceeds of crime obtained from a complex money-laundering scheme and are liable to be forfeited to the state under the Proceeds of Crime and Anti-Money Laundering Act, 2009,” the application reads in part.
In December 2019, the US, through the Treasury’s office of foreign assets control (OFAC) sanctioned Lomuro and his then-defense counterpart Gen. Kuol Manyang Juuk for allegations of fanning violence in the country for their enrichment.
“The United States stands by the people of South Sudan who continue to suffer under this political instability that has led to thousands of deaths. The South Sudanese deserve leaders who are committed to laying the groundwork for a successful, peaceful political transition,” read the statement by OFAC.
According to a supporting affidavit sworn by Isaac Nakitare, an investigative officer attached to the agency, Lomuro operated two bank accounts at the bank – one of them a dollar only account.
The dollar account received US $351, 317.81 as credit out of which US $351, 293.52 was debited for the period September 2017-January 2020, Nakitare said in the affidavit.
It adds, “On December 24, 2019, the respondent instructed the bank to close down his dollar account and send the funds to his local account.”
Further, a preliminary analysis of the bank statement for the dollar established that a total of US $460,896.20 was transferred to Lomuro’s local currency account.
Several transactions were made in the account between January 4, 2018, and January 2, 2020, to the tune of Sh46.20 million (US $ 428770).
Nakitare stated in the affidavit that Lomuro made suspicious cash transfers to a bank account held in the name of a Ms. Rejah Kedi Ladu Kenyi, an indication that they worked jointly in the suspected money-laundering racket.
The probe also revealed that Lomuro’s account had been credited with Sh122.78 million out of which, Sh109.36 was debited.
This left a balance of Sh13.42 million (US $124,547) which the agency sought to be preserved. The amount is declared as salary.
“The preliminary analysis of the bank statement held in the name of the respondent does not demonstrate a consistent source of funds which could reasonably be said to be salary,” the officer noted.
The investigation further revealed that Rejab’s accounts received Sh42.322 million (US $ 392,779)
Out of the amount, Sh39.68 million (US $367,703) was received from various sources on diverse dates between September 14, 2017, and December 29, 2020.
“That investigation has established that Ms. Rejah Kedi Ladu Kenyi Martin Elias Lomuro received a total of Sh49.43 million (US $458,747) as forex reversal. Of this amount, Sh46.20 million (US $428,770) was from his USSD account,” it says.
The investigative office concluded, “That there are reasonable grounds to believe that the bank accounts of the respondent were used as conduits of illicit financial flows and money laundering".
When contacted for comment on the matter, Minister Elia Lomuro said, “Well, you probably know that I have a family in Nairobi (Kenya), with my wife Rejah Keji Ladu with four children. So, as a responsible father, I have to have a (bank) account there and that account is from my legitimate sources of money.”
He said he learned of the freezing of his accounts unofficially.
“A certain institution called Kenya Asset Recovery Agency obtained a court ruling to freeze my account. I don’t know the reasons, and as I speak now nobody has informed me, neither the bank nor the agency itself,” DRF. Lomuro said. “So, we have a situation whereby a certain agency calling itself the Kenya Asset Recovery Agency opens a case against me, does not inform me, takes me to court in my absence without informing me, and makes a ruling in my absence. So I am yet to find out what the hell is going on.”
Asked what action he will take, Dr. Lomuro rubbished the freezing of his bank account as a political witch-hunt and took a swipe at the government of the United States of America for instigating it.
“Let me be honest with you. This is a political case. You remember in December 2019, we were sanctioned, me and Gen. Kuol Manyang Juk, by the Americans, not the United Nations. They were accusing us of prolonging the war so we benefit from the war. You have to be stupid to say this kind of thing, but nevertheless they tried to push sanctions against us through the UN and they did not have enough evidence so the UN rejected them. And they decided to impose American sanctions.”
The cabinet minister also took a swipe at the Kenyan government and fingered it for implementing American sanctions and being double-faced.
“The Kenyan Asset Recovery Agency is using those sanctions, so they are implementing the American sanctions. So, that means the government of Kenya, although it is a member of IGAD and the East African Community (EAC) and has strong bilateral relations with South Sudan and publicly states that it is against sanctions on South Sudan, technically speaking, the behavior of this agency, which is like our anti-corruption agency here, means Kenya is underground implementing sanctions against South Sudan,” a cavalier Dr. Lomuro lashed.
He said he has raised the matter to the ministry of foreign affairs and taken it very high up.
He admitted to having an account in Kenya and said he transferred some money to his family in December last year for the purchase of Christmas gifts.
“I have an account with the Co-operative Bank of South Sudan and the Co-operative Bank of Kenya to support my family in Kenya legitimately. What this so-called court should have done is give me the opportunity to defend myself,” a livid Dr. Lomuro said. “It means that this court is politically infiltrated. There are people hired by the Americans in this court and this so-called Kenya Asset Recovery Agency.”
“On the 23 December 2020, I made a family transfer for the purchase of Christmas gifts. This was blocked by Western Union because of these American sanctions. That transfer is the one that the ASA is using to support its intention to implement US sanctions. That is fine and they are entitled as a government of Kenya,” Dr. Lomuro added. “If they wish to support sanctions, they must come clean. But if they accuse me of money laundering, then they have to prove it. If you accuse somebody of money laundering, it means he has obtained money illegally and transferred this money to his account somewhere else in an illegal manner. This means, Martin Elia Lomuro, the minister of cabinet affairs, has stolen money from the government of South Sudan from the ministry of cabinet affairs, carried this money, and took it to Kenya. That is what laundering is.”
He scolded South Sudanese who are jubilating and celebrating over his woes and said they have little brains.
“I do not understand those South Sudanese who are celebrating out there. Their country is being targeted and because of their little brains, they think targeting a minister is something that they celebrate,” Lomuro said. “I have assets in the Republic of South Sudan, I have worked for years abroad and in South Sudan, and I would be naïve if I did not have a bank account and if I did not have money to support my family. I am not. I want somebody to go out there that I have stolen or laundered money. That is what I want.”
Asked about his next course of action, Minister Lomuro said, “I am going to take measures straight away. From today, I will engage”.