Fresh twist in Kiwipay billions at Ecobank

 

The fight for billions of shillings held by Singapore’s Kiwipay in Nairobi-based Ecobank accounts has taken a twist as another group of foreign companies seeks a fresh freeze order over payment of $5.81 million (Sh898 million).

Futuregate Labs Ltd (Cyprus), A&M Le Mont Venture Ltd (Cyprus), Airwallet Payments (Singapore) and Goldenpay DMCC say in court papers that they hired Kiwipay as an online payments service provider.

The firms claim that Kiwipay collected the Sh898 million from thousands of their clients, but has declined to transfer the funds to them.

The four firms filed an application for freeze orders on December 19, barely hours after High Court judge Alfred Mabeya had granted Kiwipay access to its Ecobank accounts.

The judge also ruled that Kiwipay’s French CEO Gregory Schmidt has authority to transact any amount on the accounts, after finding that there were Board resolutions to that effect.

Futuregate Labs, A&M Le Mont Venture, Airwallet Payments and Goldenpay had initially filed an application for freeze orders in June.

But Justice Mabeya held that there were already freeze orders in place following three other cases filed against Kiwipay by Slovakian firm Avistia SRO Ltd, Laos national Monthida Rashi and three Kenyans – Stephen Maina Njenga, Felix Rantuu Lekishe and Solomon Joseph Maina.

On December 19, Justice Mabeya dismissed all the three cases against Kiwipay.

Futuregate Labs, A&M Le Mont Venture, Airwallet Payments and Goldenpay have sued Kiwipay Kenya, Kiwipay Singapore, Kiwipay UAE, Mr Schmidt, Maxime Roseburger, Djibril Cisse and Ecobank Kenya.

Lawyer Levi Munyeri for the applicants argues in court papers that failure to freeze the accounts could see Kiwipay transfer all funds before his clients’ case is determined.

He adds that Justice Mabeya had given an assurance that he would not lift freeze orders issued in the other three cases against Kiwipay, until he has determined the application by Futuregate Labs, A&M Le Mont Venture, Airwallet Payments and Goldenpay.

“The court categorically undertook that it will not grant a judgment in HCCOMM/484/2022 that may lift the freezing orders until the application dated June 27, 2023 is heard and determined. In fact, the court on that day again declined to give interim orders freezing the same bank accounts on the basis that similar orders subsist in HCCOMM/484/2022,” Mr Munyeri says in court papers.

“In utter shock, on December 19, 2023, the court proceeded to render judgment in HCCOMM/484/2022 and lifted all interim orders preserving funds in the said bank accounts. Unless the honourable court revisits the orders sought in the Notice of Motion dated June 27, 2023 seeking to preserve the funds in the said accounts, the applicants (Futuregate Labs, A&M Le Mont Venture, Airwallet Payments and Goldenpay) will suffer grave injustice,” Mr Munyeri adds in his affidavit.

By BRIAN WASUNA