Top management of the motor dealer franchise CMC Holdings Limited are being investigated over suspicion of aiding laundering of colossal amounts of money fleeced at the National Youth Service (NYS) where at least Sh9 billion was lost.
Assets Recovery Agency (ARA) has written to CMC demanding details on the circumstances surrounding the processing, purchase and release of unregistered plant engines making it difficult to establish the owner.
In the letter dated June 11, detectives attached to ARA demanded answers from CMC management on how three New Holland TTD 490 tractors, three harrows and three ploughs were sold out unregistered.
The three engine numbers of the tractors in question are; 8045.45 723-205981DT, 8045.45 723-210097DT and 8045.45 723-205923DT respectively.
The tractors have an average market value of around Sh4 million each while the ploughs and harrows has a street value of Sh500,000 each totaling to more than Sh15 million.
“The agency received information regarding several companies and individuals suspected to have defrauded NYS. The fraudsters used the proceeds to buy property…The purpose of this letter is therefore, to request you to accord the officers from the agency the necessary support to undertake the investigations,” the letter read in part. By yesterday, the new CMC managing director Noel Mabumer, a Belgian had not responded to the investigation request.
Noel was appointed in March alongside chief finance officer Alexander Courtois, a French national. Well placed sources privy to the investigations intimated that top CMC managers and directors are likely to be grilled if the required information is not provided.
The sleuths demanded to be furnished with the particulars of the buyer, statement of the salesmen, registration numbers of the tractors, cost of tractor and mode of payment and the bank account number of the purchaser.
Interestingly, our investigations show only about Sh4 million was paid through bank and another unknown amount suspected to have been paid in cash.
ARA is mandated under Section 53 of the Proceeds of Crime and Anti Money laundering Act to identify, trace freeze, seize and recover proceeds of crime.