Court Of Appeal Upholds Ruling Against MozzartBet in Sh256M Money Laundering Case

The Court of Appeal has rejected MozzartBet Kenya Limited’s bid to recover Sh256 million, upholding a previous ruling that the funds were proceeds of crime in a high-profile money laundering case.

In a 37-page judgment, appellate judges Francis Tuiyott, Fred Ochieng, and Aggrey Muchelule dismissed the betting firm’s appeal, stating that it failed to justify its questionable financial transactions with Kimaco Limited—a company deemed a shell entity for laundering money.

The dispute revolved around MozzartBet’s payment of Sh256,851,910 to Kimaco for purported software development services. However, the Asset Recovery Agency (ARA) proved that Kimaco lacked the technical capability to fulfill such contracts, branding it a front company.

Court’s Findings

• No Legitimate Business Activity: Kimaco had filed nil tax returns with the Kenya Revenue Authority (KRA), confirming it was not engaged in genuine business operations.

• Undelivered Services: Despite the payment, MozzartBet admitted that Kimaco never provided the promised software solutions.

• Suspicious Fund Transfers: Investigations uncovered a complex money trail, with Kimaco channeling funds to MozzartBet directors—Emmanuel Charumbira (Zimbabwean national) and Musa Cherutich Sirma (Kenyan national).

• Shareholder Involvement: Part of the money was traced to Branimir Melentijevic, a shareholder of MozzartBet Africa (the majority owner of MozzartBet Kenya), through intermediary payments totaling USD 104,563.30.

Judges’ Ruling

The court concluded that MozzartBet could not claim innocence as a third party, stating:

“There was sufficient evidence, on the statutory threshold of balance of probabilities, to implicate MozzartBet… it cannot benefit from such protection.”

This ruling reinforces the judiciary’s stance against money laundering and upholds the forfeiture of the Sh256 million as illicit proceeds.