Justice Eric Ogola. PHOTO | PAUL WAWERU
By BRIAN WASUNA, bwasuna@ke.nationmedia.com
In Summary
- Justice Ogola cited “personal reasons” for his disqualification and has ordered that the case be heard by another judge.
- In the suit filed by Ogola & Mujera Advocates, the firm seeks to regain access to its three bank accounts held at I&M Bank.
High Court judge Eric Ogola has recused himself from a
suit filed by a law firm against I&M Bank for freezing its accounts
over suspicion that it was laundering funds stolen from the National
Youth Service (NYS).
The judge on Monday opted out of the suit filed by Ogola
& Mujera Advocates - the law firm accused of helping controversial
businessman Ben Gethi to launder proceeds of a Sh791 million theft -
seeking to regain access to its three bank accounts held at I&M’s
2nd Ngong Avenue branch.
Justice Ogola cited “personal reasons” for his disqualification and has ordered that the case be heard by another judge.
The judge barred media from covering proceedings of
the case on Monday, ordering that the suit be heard in camera. He
however did not specify reasons for the move.
I&M Bank last month unfroze the accounts held by Ogola & Mujera Advocates in its 2nd Ngong Avenue Branch.
Ogola & Mujera sued I&M for freezing its
accounts, arguing that there was no court order compelling it to do so
at the time Patrick Ogola, a partner at the law firm, instructed it to
transfer Sh27 million to Hong Kong for a clothes purchase deal.
“By irregularly and without any known legal basis
refusing to effect the transfer and dishonouring transactions or cheques
duly issued by Ogola & Mujera Advocates, I&M Bank has chosen of
its own volition to freeze the plaintiff’s accounts and has prevented
the plaintiff from effecting lawful transfers,” the law firm argues.
The bank has however agreed to have the accounts
unfrozen as the suit progresses, on condition that the law firm does not
interfere with a disputed Sh26.9 million deposit that attracted the
block.
Money laundering
Investigators have accused Ogola & Mujera Advocates of helping Mr Gethi launder Sh585 million allegedly stolen from the NYS.
Other law firms cited by investigators in the
alleged laundering include Glinnis Kigera & Company, Martin Muthomi
Gitonga & Company and Waweru Kihara Company Advocates.
Investigators from the Banking Fraud Investigation
Unit (BFIU) hold that Mr Gethi used the law firm as a proxy in acquiring
assets, which include a state-of-the-art Range Rover and several
parcels of land, as part of a scheme to launder the funds he allegedly
stole from the NYS.
The controversial businessman allegedly used one of
his acquaintances - John Kago - to wire funds to Ogola & Mujera,
which then bought property registered to his mother and sister
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