Dirty Money Stashed in Foreign Accounts

Benjamin Muindi

3 June 2011

Nairobi — More than KSh700 billion proceeds of crime, drugs and money laundering has been stashed in foreign accounts by Kenyans, Transparency International said on Friday.

The anti-graft body therefore wants the government to operationalise the Proceeds of Crime and Money Laundering Act.

Addressing a media conference on Friday, TI-Kenya executive director Samuel Kimeu said emerging incidents of corruption, human and drug trafficking provide a case for the speedy implementation of the Act.

Others are piracy and terrorism activities.

“To date, the requisite structures aimed at facilitating the identification, tracing, freezing, seizure, confiscation and repatriation of such proceeds are yet to be established,” he said.

Pro-active

Mr Kimeu noted that foreign governments as the United States and United Kingdom had shown a pro-active role towards this end than Kenya.

“This shows that the government does not have the capacity or the willingness to pursue the matter,” he said, noting that politically and economically powerful individuals had acted as stumbling blocks.

He pointed out the cases of Nambale MP Chris Okemo and former Kenya Power and Lighting Company managing director Samuel Gichuru as cases in point.

The UK has already issued warrants of arrests for the now so-called Jersey duo because of money laundering cases in that country.

And on Thursday, the US slapped economic sanctions against two Kenyans, among them Kilome MP John Harun Mwau, over drug trafficking.

“It is therefore worrying that the government is dragging its feet in putting to effect a law that will boost the war against corruption, drug and human trafficking and piracy.”

He added: “The continued delay in the implementation of the law permits corrupt individuals, drug traffickers, among others, to benefit from these illegal activities.”

Structures

TI asked the Ministry of Finance to expedite the setting up of the structures that will lead to the operationalisation of the Act.

The law provides for the setting up of a Financial Reporting Centre that will assist Kenya in the identification of the proceeds of such crimes.

So far, only Central Bank of Kenya has tasked one of its department to pursue some provisions of the legislation.

“For Kenya to fully combat these crimes, the institutions and processes provided for must be established,” Mr Kimeu said.

“Finance ministry must swiftly devise and unveil a coordinated action plan to facilitate the implementation of this law.

Integration

Meanwhile, East Africa Community deputy secretary general Beatrice Kiraso, cautioned that the regional integration efforts will be seriously undermined if crimes like drugs and human-trafficking, terrorism and piracy are not addressed appropriately and timely.

She said collective approach was required among partner states to tackle these crimes which have been on the increase lately.

The EAC official said such crime deter investors and even harm the very safety of the citizens themselves and their related developmental activities.

“These crimes need to be addressed urgently or else our desire of making East Africa an attractive investment destination will only remain a pipe-dream,” she said when addressing the opening session of a two-day meeting of the Heads of Criminal Investigations and Registrars of Motor Vehicles in Kampala, Uganda.

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