Battles over the more than Sh2 billion that was initially frozen over money laundering scandals at Eco bank have intensified as feuding owners of the firm at the centre of the row seek control of bank accounts.
Cases have been filed before the High Court as shareholders and directors of Kiwipay Kenya Limited fight on.
Justice Dorah Chepkwony has directed the warring parties to file their submissions as she considers who among three Kenyans, a woman from Laos and a French passport holder, should run the bank accounts.
The warring parties include Gregory Schmidt, and Monthida Rashi from Laos against three Kenyans Stephen Maina Njenga, Felix Rantu Lekishe and Solomon Joseph Maina and several law firms eyeing part of the money.
“The ex-parte order dated January 6, 2023, has the effect of granting access to the fifth defendant (KiwiPay Kenya) accounts to the plaintiff (Ms Rashi) and rogue individuals to the detriment of the second defendant (KiwiPay PTE) which is the majority shareholder,” lawyer Kiprotich Kiprop argued.
The accounts were unfrozen last September after the Assets Recovery Agency (ARA) dropped a case that sought to forfeit the billions to State, over money laundering allegations.
But Mr Schmidt went back to court where he argued that Njenga had obtained a court order for the status quo to be maintained regarding the management of KiwiPay Kenya Ltd, since they had already resigned as directors.
He told the court that the parent company KiwiPay PTE, registered in Singapore, has the controlling shares in the Kenyan company.
KiwiPay PTE has a 51% stake of the Kenyan company, Ms Rashi 20%, while the Kenyans held 7.5% each but they later resigned as directors.
Ms Rashi later went to court where he accused Eco bank of illegally releasing the money and obtained an order stopping the lender from releasing more funds.
Another firm identified as Avistia SRO Ltd also joined the battle and accused Ecobank of allowing the withdrawal of $13,473,110 (Sh1.7 billion) from its three accounts without its authority.
Ms Rashi is a director with Paygram Company Ltd and claims that money held in accounts owned by her company were debited into accounts of other entities including Kiwipay PTE and Kiwipay Kenya Ltd without her consent and knowledge.
She obtained the order on January 6 but Schmidt rushed back to court where he argued that order issued by Justice Chepkwony conflicted with an earlier order issued by Justice David Majanja.
But lawyer Kiprop argues that Ms Rashi is no longer a director of KiwiPay Kenya after a resolution for her removal was approved last November.
He wants the order lifted because it is exposing the bank accounts to unwarranted access, without the consent of his client.
Mr Ngure on his part wants the court to extend the order until the impasse on directorship is solved, adding that there is no proof that he resigned as a director of KiwiPay Kenya Ltd.
