How Joshua Kulei Helped Loot Kenya

Following is an exert from The Kroll Report.
Here is a condensed version

Modus Operandi

It has been reported that over the years, Kulei has represented ex-President Moi in over 50 companies operating in Kenya, across all sectors of the economy.

The local companies in which Kulei has presided as director could not have generated enough dividends to account for liquid cash and assets that he is believed to control. Going by the dividend payout and based on the profits declared for tax purpose, his actual wealth does not relate in anyway to his source of income.

Kulei is a very wealthy person in his own right. About three years ago, Kulei encountered serious problems with the Moi's when Gideon kept convincing his father that Kulei may have more money than him as a result of using ex-President Moi's name. It is understood that this was during the time that Kulei contemplated leaving Kenya to live in London.

Kulei was warned after December 2003 by the DPP that the Moi brothers had a contract out have him killed[1]. According to client information, he was nearly arrested in relation to the Kenya Pipeline fraud.

Kulei has now relinquished all of the assets held under his name on behalf of the Moi family, with the exception of ex-President Moi's flower business, the Trans-National Bank and NAS.

Business Links

Kulei's business links are detailed below. The table illustrates ownership of businesses where:

1. Kulei's ownership has been confirmed by sources

2. Kulei's ownership has been refuted by sources

3. Client material indicates Kulei has a shareholding interest

4. Client material indicates Kulei is a nominee director

NAME OF COMPANY	OWNERSHIP STRUCTURE
Ownership of the following companies has been confirmed by Msamaha:
Trade World Kenya	Kulei 100%
CFC Kenya	Kulei 12.5%
CMC Holdings	Kulei 15 — 20% & client material indicates
Hotel Intercontinental Nairobi[2]	Kulei 19%
Sian Roses[3]	Kulei 40%, Moi 60%
Ngata Flower Farm	Kulei 50%, Moi 50%
Equator Flowers, Eldoret	Kulei 50%
Bamburi Cement	Kulei 14% & client material indicates Kulei also nominee director
KTN (owned by Standard Newspapers)	Moi, Gideon, Kulei
National Milling Company	Kulei, Biwott and six others
Kenya Aerotech Ltd	Moi, Kulei nominee director and ten others
Regent Management	Not Known
Siginon Freight	Gideon 12.5%, Kulei 12.5%, 75% Kabarak High School & client material indicates Kulei nominee director
National Milling Corporation	Seven shareholders including Moi and Kulei
Msamaha alleges that the following companies are owned by those detailed and NOT Kulei:
Stoney Athi River	George Saitoti
Heritage All Insurance Company[4]	CFC Bank
NIC Bank	owned by the Ndegwa Family
Trans-National Bank[5]	Moi, Biwott, Nyachae, Kangwana, Gideon and five others
A Laikipia Ranch	100% Moi
An Eldoret Farm	100% Moi
A Rift Valley Dairy farm	100% Moi
The Kabarak Farm	Given by Moi to University of Kabarak
The Mau Farm	Given to the AIC (Church) by Moi
The Cherangani Farm	Now owned by the government
The Kilgoris Farm	Leased by Moi
American Life Insuaracne Company[6]	Trans-National Bank, Moi, Biwott, Kulei
Kobil and Kenol Petroleum[7]	Moi 50%, Biwott 50%
Nairobi Airport Services	Owned by Moi, Mungai and Ndegwa
Rai Plywood of Eldoret	Moi 6%, 94% Rai family
Safaricom Kenya	Biwott, Charles Field Marsham and Gideon 40%, the Post Office 60%
Africa Cargo Handling	Since sold to Kenya Airways
Kenchic Limited[8]	Moi, Charles Njonjo, P. K. Kani, J Kiereini
Morris and Company	Kulei used to be a director but left in 1992
Capital Project Transport	Boinett 50%, Phillip Murgor 50%
MDI Consultancy	Miles Donnelly
Anhalt Road Apartment	Miles Donnelly
A Dairy farm in the UK	Msamaha refutes ownership
Hotels in the UK	Msamaha refutes ownership
Firestone Africa	No Comment[9]
Kenya Commercial Bank	No Comment
Kamsons Limited	No Comment[10]
DT Dobie Car Distributors	No Comment[11]
The Paper House Ltd	Kulei became director at AGM
Rift Valley Agencies
Gambit Holdings Ltd
Great Rift Transporters
Client Material indicates Sovereign Group owned by Sovereign Holdings Ltd.
Sovereign Group (owned by Sovereign Holdings Ltd, UK)[12]	Kulei, William Smb, N. R. Pavitt, Secretary Grace J. Kipyator

Member Associations

Client material indicates that Kulei sits on the board of governors for the following schools and universities:

· Member, Board of Governors:Sacho High School

· Moi High School Kabarak

· Sunshine Secondary School

· Moi Educational Centre

· Kabarak University Council

· Client material indicates that Kulei is a trustee of the following:

· Sunshine Educational Trust

· Client material indicates that Kulei is member of the management board of the following:

· The Moi Africa Institute, Kabarnet Gardens, Nairobi

Properties

United Kingdom

It has been reported that Kulei holds serious investments in London, including a palatial residence in up market London, where his children have always attended school[13]. Further sources confirm that Kulei has two properties in Surrey, the larger of which is owned by ex-President Moi, one of which is the Cobhams property below detailed in the report dated 1 December 2003[14].

19 Eaton Park, Cobham. Surrey KT11 2JF[15]

Kulei took out a loan from HSBC in October 1997 for the amount of £1.63 million. The funds were used for the purchase of the property located in Cobham, Surrey, under the name of Broadlands Overseas S.A ("Broadlands").

In December 2002, Broadlands took out a loan of £1.1 million to refinance the Cobham property. During the same month, Broadlands took out a loan to refinance the property located at Lowdnes Square. The full address is Flat 11, No 49 Lowdnes Square.

Source enquiries have estimated that the total mortgage on the Cobham property is about £1.4 million. According to Msamaha the property is valued at around £4.5 million.

Flat 11, No 49 Lowdnes Square, London

Source enquiries have estimated that the total mortgage on the Lowndes Square property is about £1.4 million. According to Msamaha the property is valued at £2 million.

Kenya

Courtyard Property Investment Ltd[16]

It has been reported that Kulei took out a loan in January 2001 for the amount of £650 000 from Hoares Bank to purchase property in Nairobi under the company name of Courtyard Property Investment Ltd.

Regent Management[17]

It has been reported that Kulei had huge real estate holdings believed to be about 200 houses in all.

Lavington House

Client material indicates that Kulei owns the property Lavington House. Further enquiries to establish the address are required.

Karen Residence

Client material indicates that Kulei owns a residence in Karen. Further enquiries to establish the address are required.

Nakuru Residence

Client material indicates that Kulei owns a residence in Nakuru, Further enquiries to establish the address are required.

USA

Source enquiries reveal that Kulei owns seve^ral unidentified properties in the USA[18].

South Africa

Source enquiries reveal that Kulei has property interests in South Africa[19].

Finance

UBP, Geneva & Trans-National Bank, Kenya

Gabriel Moussa Katri, one of the biggest money launderers in Geneva, masterminded the flow of an estimated USS200 million through Trans-National Bank in Kenya to off shore accounts in various jurisdictions on behalf of ex-President Sani Abacha, and it is estimated that at least twice as much on behalf of the Mois.

Katri devised an elaborate system. Rather than send corrupt money straight to banks overseas, he would use local banks in Kenya, such as Trans-National Bank, owned by the Mois, Biwott and Kulei, to send vast sums through Nostro accounts – the bank's forex accounts overseas – and then several months/years later would send the money on and split it between several banks such as UBP.

At Trans-National Bank, Katri worked with Ashok Gohil, Kulei's right hand, who was in charge of forex operations, and who apparently died in 2001. They set up companies in Kenya, such as Ashar Ltd and Chen, with Moi's lawyer, Matula Kilonzo, as the company director. Further enquiries are continuing.

When these vast sums arrived at UBP into the accounts of companies created by Katri, such as Allied Network Ltd, they would go unquestioned. According to banking laws, Nostro accounts belonging to legitimate banks do not require due diligence, unless there are questions raised by the bank in the originating country. Katri himself was never a signatory to these accounts as the companies were in the names of small-scale lawyers and businessmen.

One lawyer, in particular called Phillip Meyer, who was debarred and then reinstated seems to have been used by Katri. Swiss lawyers be^lieve it would be impossible to freeze Katri's assets.

It is thought that Katri might have used wealthy business associates to hide corrupt money, by sending large sums to their bank accounts, only to recycle it back from a different account belonging to the same associate, and dispersing it to several other accounts belonging to Katri companies. This way it became difficult to follow the paper trail, and gave an air of legitimacy to the money.

It is alleged that one of the reasons why Katri used UBP is that he was a shareholder until 2000, when the looted millions belonging to Abacha hit the press. At this time Edgar Pinccotto, the head of UBP, who has been known to engage in questionable business practices, fell out with Katri and forced him to resign. Katri's name was becoming too dangerous for the reputation of the bank. It became clear that Katri introduced 90 percent of the corrupt Nigerian money to UBP, as a shareholder of the bank and a string-puller from within.

Katri would use his position to go direct to portfolio managers to push questionable money through. When necessary either Edgar Pinccotto or his son Guy would intervene and prevent due diligence investigations. Katri presided over multiple accounts at UBP and other Swiss banks for the Abacha's, and it is thought for the Moi's too. Katri then lost his Financial Intermediary License in 2001, when an investigation, conducted by the Federal Authorities of Switzerland, looked into his connection to money laundered through Kenya by Kulei. Katri's finance companies, GK Finance et Commerce and Societe Genevoise d'Investissements Forreiers are still active but their operations have been closed down and the documents have been cleared.

Katri has gone underground since 2001, when a Swiss investigation was launched into his dealings in Kenya. It is understood that he lives in Monte Carlo. Katri has also been connected to the Halliburton scandal in Nigeria through Jeffrey Tessler who he helped to set up an account at UBP five years ago. Tessler, an unscrupulous lawyer from North London, was getting commissions somehow connected to the brides paid out by Halliburton, and new evidence implies he is still receiving commissions.

Although Katri is no longer dealing directly with UBP there is a strong possibility that he continues to maintain contacts within the bank given that his clients still hold accounts therein. It is unlikely they would use another financial advisor on such sensitive matters.

Katri's favourite other banks are the following: Banque Patrimoines Prives, Bahamas; Banque Privee Edmond de Rothschild; Discount Bank & Trust Company "The Recanti Bane.

Loan Balances in Kenya

Kulei has the following loans balances in Kenya[20]:

Name of Bank	Account Number	Loan Amount
Msamaha alleges that Kulei has the following loan balances:
Middle East Bank	200739027	KSh 25 849 496
Middle East Bank	200739035	KSh 19 899 262
Middle East Bank	200739043	KSh 29 999 826
Middle East Bank	200739051	KSh 29 757 775
Middle East Bank	200739078	KSh 19 999 210
I & m Bank	Unknown	KSh 150 Million
Trans-National Bank	Unknown	Ksh 27 million
OTHERS
Middle East Bank	Savings and Loans	Ksh 45 million
Middle East Bank	Local House Morgage	Ksh 1 Million

Business Associates

Terer Kulei

It is understood that in New York, Kulei's younger brother Terer - the only brother – manages several properties which Kulei owns in the USA. Within New York, Kulei is believed to maintain very healthy bank accounts, fashioned in the names of himself, for wife and that of his younger brother[21].

In London and New York, Kulei retains the services of top-notch stockbrokers who trade in stocks on his behalf. Terer lives with his family in the USA for the most part of the year, occasionally returning to Nairobi where he is mostly seen in Kulei's Trans-National House offices.

Pankaj Somaia

According to Source A, Kulei's bagman was Pankaj Somaia. Somaia was poised to buy the Avis dealership in Nairobi. Similarly, before the deal went through Somaia received a call informing him that Mrs DT Dobie and Moi wanted to buy the share.

Ketan Somaia

According to Source A, Equatorial Bank was controlled by Ketan Somaia, the cousin of Pankaj Somaia. A lot of the former president's money was deposited in this bank. Ezekiel Oyugi, the permanent secretary in the office of the president and Biwott, also used it. Somaia was Oyugi's bagman. Source A believes that when Oyugi died Somaia held on to his money at the Equatorial Bank.

Oyugi was in charge of procurements, including weapons systems for the Kenyan military. Ketan Somaia was the middleman who enriched himself through arms sales. According to Source A the register of Crown Agents in the UK should be examined to prove this connection.

Josiah Kiplagat

According to Source A, Josiah Kiplagat and separately Kulei arranged about seven or eight private meetings between ex-President Moi and Alnoor Kassam. During each occasion Kassam was advised to bring a briefcase stuffed with KSh2 to 4 million and to leave it behind after the meeting. This was considered payment for access to the president.

Alnoor Kassam

Alnoor Kassam was posed to buy a 25 percent holding of Nairobi's Intercontinental Hotel, held by Kulei. Kassam agreed the deal with Alec Furrer, a Lebanese businessman who was area manager for Intercontinental Hotels. Shortly before the deal was go to through, Kassam received a call to say that Kulei had called on behalf of the then president to inform them that Moi wanted the share. Moi and Kulei paid US$12 million for their share.

Mr Turn

Mr Turn, connected to Kenya Seed Company, is an associate of Kulei, and believed to be close to ex-President Moi.

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[1] Msamaha

[2] Source A recalls Kulei owning 25% of the Intercontinental Hotel in Nairobi

[3] According to Source B floricultural enterprises serve as moneylaundering conduit.

[4] Client material suggests Kulei was nominee director on behalf of Moi

[5] Sourcce Enquiries and client material suggest Kulei has a shareholding interest

[6] Cliente material suggest Kulei nominee director and shareholding in association with Moi

[7] Contradicting Msamaha’s later claiming that Biwott has a 100% ownership of Kobil

[8] Client material suggests Kulei was nominee director on behalf of Moi

[9] Although it is alleged that it belongs to Merali

[10] Although it is alleged that it belongs to Deepak KAmani

[11] See Appendix for further detail relating to Sovereign Group

[12] Laundryman

[13] Laundryman

[14] Source B

[15] Source enquiries conducted with Msamaha

[16] Source enquiries conducted with Msamaha

[17] Source enquiries conducted with Source A

[18] Source enquiries conducted with the Laundryman

[19] Source enquiries conducted with Source B

[20] Msamaha

[21] Laundryman"