Advocate Stephen Juma Ndeda of the High Court was arraigned at the Chief Magistrate’s Court in Kahawa, facing serious charges of forgery, uttering false documents, and money laundering.
This case stems from a detailed investigation by the Directorate of Criminal
(DCI) into suspicious activities linked to Ndeda’s law firm, Ndeda & Company Advocates, which reportedly handled a massive transaction of USD 52,490,000 (approximately Ksh 6.8 billion) in June 2023.
The money was transferred under the guise of a land sale but raised red flags due to irregularities in the transfer and the involvement of foreign entities.
The funds, initially thought to be part of a legitimate land sale involving a 50-acre parcel of land in Kajiado County, were wired by a company registered in Bulgaria, named Algans Eood, instead of the expected buyer, Alguns Limited.
The sale agreement stipulated a price of Ksh 60 million, with an initial deposit of Ksh 5 million to be paid within 90 days.
However, the vast amount transferred and the discrepancy in the entities raised suspicions of money laundering and potential arms smuggling.
Ndeda’s role in this alleged fraud became clear when investigators discovered that his firm was acting on behalf of both the vendor, Andrew Immanuel Simiyu, and the purchaser, Alguns Limited.
According to the DCI, Ndeda had purportedly forged the sale agreement, presenting it as a genuine document signed by Simiyu.
However, forensic analysis of the documents and further investigation into the transactions revealed irregularities that suggested fraudulent intent.
The case grew more complex as the DCI discovered that the funds sent to Ndeda’s law firm were wired from a Bulgarian entity suspected of involvement in illegal arms trading.
This raised the possibility that the funds were part of a larger international money laundering operation, using the land transaction as a cover to legitimize the movement of illicit money.
The money was immediately flagged by Ndeda’s bank due to non-compliance with anti-money laundering policies and was reversed to the sender.
In court, Ndeda pleaded not guilty to all charges, maintaining his innocence.
He was released on bail, with terms set at Ksh 1 million bond or cash bail of Ksh 200,000.
The prosecution, however, argued that the severity of the charges required a thorough investigation to determine the full extent of Ndeda’s involvement in the scheme, as well as any possible links to other international criminal activities.
The case against Ndeda not only highlights the growing issue of money laundering in Kenya but also shines a spotlight on how professionals, including lawyers, may be used to facilitate these illegal transactions.
The DCI is also looking into other transactions handled by Ndeda’s law firm to ascertain whether this is an isolated incident or part of a broader pattern of financial crime.
The case has attracted quite public attention, given the large sums involved and the potential international dimension of the fraud.
It also raises concerns about the integrity of Kenya’s legal and financial systems and their vulnerability to exploitation by criminal networks.
With the involvement of foreign entities and the large sums of money in question, this case could have far-reaching implications, not only for Ndeda but for the broader legal community in Kenya.
The courts will determine whether the evidence presented by the prosecution is sufficient to convict Ndeda, or if he can successfully defend himself against these serious charges.
Either way, this case shows the importance of robust financial oversight and the need for legal professionals to adhere strictly to ethical standards to avoid becoming embroiled in criminal activities.
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