South Sudan warlords investing illicit cash in Kenya – report

NAIROBI – The Kenya Illicit Finance Risks and Assessment report describes how politicians in South Sudan bought luxury real estate in Kenya, set up joint ventures with Kenyan partners, and used local banks to transfer money from one country to another.

It was compiled by The Sentry, a US investigative and political organization that pursues dirty money in connection with African war criminals and transnational war profiteers and aims to exclude them from the international financial system.

The report says that warlords in South Sudan fueled the conflict in their country and accumulated wealth in Nairobi.

In one case, the family of a South Sudanese general who paid $ 1.5 million in cash for his involvement in mass violence against civilians for property in Nairobi.

The property is listed under the name of one of his wives.

Million dollars

“The Sentry has Thu Received documents showing millions of dollars are questionable Payments linked to senior South Sudanese officials have been processed through Kenyan banks, “the report said.

“In one case, bought one South Sudanese Politically Exposed Person (PEP) a luxury home with a US dollar account. in the Ugandan branch of the Kenyan bank. It happened during a period of intense fighting involving a non-state militia funded and supported by the PEP office. ”

In September, an anti-corruption court in Nairobi overturned a lock order on two bank accounts, one of them Denominated in dollars, belongs to South Sudan’s Cabinet Minister Elia Lomuro. They were frozen in June on allegations of money laundering and incitement to violence.

The decision came after the Assets Recovery Authority (ARA) informed the court that it was satisfied with the minister’s statement that the money from his salary and rental income.

The accounts contained $ 13.42 million and ARA had attempted to confiscate them.

A supporting affidavit from an ARA investigator showed that the dollar account received $ 351,317.81 credit, of which $ 351,293.52 was withdrawn between September 2017 and January 2020.

“On December 24, 2019, the respondent instructed the bank to close his dollar account and transfer the money to his local account. ” affidavit was added.

Sentry said he had identified property owned by a senior military official linked to violent land grabbing, ethnic conflict and corruption scandals. The group also cites another official who bought a luxury house in Nairobi that was not worth its modest salary.

The report also notes that members of several senior South Sudanese government officials live in a certain area upscale neighborhoods in Nairobi and their children attend local private schools.

In 2016, South Sudan’s President Salva Kiir confirmed the trend, saying that some government officials have “bought apartments, bought very nice houses and villas. They are hiding it in Kenya and refusing to reveal it. ”

In September 2018, President Kiir and opposition leader Riek Machar agreed on a revived peace agreement that saw the formation of a unity government by May 12 the following year.

Local militias

The deadline has been extended twice, with the US linking the two to the continuation of the conflict in the country by organizing local militias to launch attacks on opposition forces and overseeing training of tribal militias to consolidate their power.

“Sentry coverage has identified Kenya as the largest foreign investor in South Sudan’s banking sector. South Sudan relied heavily on Kenya for financial services during the war, and this close relationship has continued as Kenya acts as a key export partner for South Sudan, “the report reads.

It was not Prevents the revenue from crime and corruption through the Kenyan banking system are a serious risk factor and could jeopardize the financial system and the country’s access to global finance.

The government must combat these illegal financial flows in order to keep Kenya considered With its Vision 2030, Kenya is a financial center in Africa, says Sentry Senior Advisor Denisse Rudich.

“On the way to its Vision 2030 and the establishment of the Nairobi International Financial Center, Kenya can now take a real leadership role in the fight against illegal funding, promoting transparency and integrity as it grows as a regional financial center by enforcing its laws and regulations The fight against money laundering and terrorist financing improved, “she said.

The report urges Kenya to continue fighting not only domestic but also foreign corruption.

“Kenya’s banking presence in these Regions is a positive step towards financial inclusion in these countries, but enhanced due diligence is key to managing correspondent banking relationships while avoiding large-scale risk mitigation, “adds the report.

Justyna Gudzowska, director of illicit finance at The Sentry, noted that by introducing much-needed reforms, Kenya “can show the world that it is not open to businesses that want to launder the proceeds of foreign corruption, including its neighbors in South Sudan.”