With the help of a law firm in Nairobi, Ndakwe managed to open two offshore firms, Sun Jopkins SA and Penkinson SA, which would hide the ownership of 11 other law firms the law firm started for him when he scolded more Kenyans as chairman of Clip Investment Sacco Limited.
Ndakwe was a small fish in the sea of pyramid systems that have flourished in Kenya since 2006 and drowned with almost 8 billion shreds. To this day, the victims have yet to see justice.
While Ndakwe got away with his booty, former Kenya Power and Lighting Company executive Samuel Gichuru and former Treasury Secretary Chris Okemo weren’t so lucky with accounts nearly 450 million shn were exposed as criminal income in Jersey.
Gichuru and Okemo, who are still fighting extradition in Kenyan courts, had transferred the money allegedly bribes from tenders in the energy sector Accounts.
Opening offshore accounts is a multi-billion dollar business, and Gichuru and Okemo were supported by Deloitte & Touche, a Jersey accounting firm, in 1986 to help realize their ambitions.
Read: Worry that wealthy Kenyans hide their riches in tax havens
Ndakwe, in turn, was introduced to Mossack Fonseka, a company founded in 1977 by the in Deuts chland-born Jürgen Mossack and a. A man from Panama named Ramón Fonseca, who had become famous for starting bogus companies in Panama through its offices in 44 countries, was founded.
When the Panama Papers were discovered, it turned out that Mossack Fonseka had a long list of shy customers, including Rami Makhlouf – the richest and most powerful businessman in Syria believed to be President Bashar al-Assad’s “Bagman” as well as employees of Muammar Gaddafi and Robert Mugabe.
Others are an Israeli Billionaire and business oligarch named Lázaro Báez.
According to a report by the task force on pyramid plans presented to parliament, Ndakwe is also said to have bought land in Runda – LR 14970/15, 14970/14, 14970/7 and 14970/6 – worth 200 million Shutter and transferred the land to Pakinstar Limited, which is owned by these new companies in Panama, Sun Jopskin SA and Pentinkson SA.
If someone is the owner this He was checking land he ended up in a briefcase company in Panama with pseudo-directors usually hired to protect the real owners.
This is because a local client can secretly appoint foreign directors as ps eudo- Owner of the company and he secretly gets letters to keep the bank accounts on behalf of the company.
Panama is extremely attractive to those who want to move money anonymously because of its lax financial laws that have made it for many years . It has also been used to evade corporate taxes.
The reason companies love Panama – or other offshore jurisdictions – is because it did not require full beneficial ownership information disclosure.
While this made the system vulnerable to abuse, it also made it attractive.
While there were legitimate reasons to run mailbox companies, sometimes as special purpose vehicles, they were also used for money laundering.
Studies by the World Bank have previously shown that around 70 percent of anonymous mailbox companies were involved in large-scale corruption.
Lately attempts have been made to lift the lid on the mailbox companies and foundations that are under of the global efforts to combat money laundering and tax evasion abroad.
In Kenya, government officials require the approval of the Ethics and Anti-Corruption Commission (EACC) to ban foreign banks accounts.
Last year, an EACC audit found that 191 officers were working on foreign accounts.
But these were mainly foreign ministry embassy officials.
During EACC Chief Executive Twalib Mbarak wrote to Foreign Minister Macharia Kamau with a letter dated September 20, 2020, the number of civil servants’ accounts is still unknown – and remains hidden.
Either close them or face the law.
So far nobody seems to have been prosecuted. This followed a revelation that Kenyans held nearly Sh51 billion in HSBC’s 463 private bank accounts overseas.
While not all offshore companies are used to hide loot, others were for business convenience and Open company for protection.
With more and more papers pertaining to offshore accounts, it now seems that the hiding place is getting tight.
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