ARA loses bid to seize property of high-ranking Somali diplomat

The High Court has declined to grant the State orders to seize property worth Sh119.9 million, suspected to be proceeds of terrorism activities, from a high-ranking Somali diplomat in Kenya.

The Assets Recovery Agency (ARA) sought to seize the house of Gabriel Cusman Moxamed, a Somali diplomat in Kenya, located along Eldama Ravine Road in Nairobi and valued at Sh110 million.

ARA argued that Moxamed bought the house in Nairobi using the proceeds from the sale of his family’s house worth Sh220m in Mogadishu to a suspected terrorist, Abdi Nasir Ali Mahamud.

The agency informed the court that Ali is listed on the Office of Foreign Assets Control (OFAC) Treasury Sanctions Network for financing Houthi aggression and instability in Yemen. Ali is also in Kenya’s security watch list. The agency also applied to attach Moxamed’s Sh8,855,240 in various bank accounts.

According to ARA, Moxamed denied knowing Ali, leading the agency to conclude that his explanation regarding the source, destination, and use of the funds was unsatisfactory

However, Justice Benjamin Musyoki said there is no evidence linking Moxamed to any criminal activity and that ARA should have done a thorough investigation to convince the court otherwise.

Justice Musyoki of Milimani High Court, noted that the only alleged crime committed by Moxamed, according to ARA, was the sale of his family’s house to Ali.

“Nothing untoward has been traced against him. His only crime in this matter, if the applicant (ARA) were to be believed, is selling his family inheritance to Ali,” said Justice Musyoki.

The judge said that forfeiting the proceeds from the sale of his family house would be taking Moxamed’s legitimate inheritance from him, yet it has not been traced to any criminal activity.

ARA had accused Moxamed of being part of Ali’s network and of engaging in terrorism financing, acquisition of terrorist assets, and money laundering. The agency argued that the funds in the bank accounts and the purchase price of the Nairobi property constituted proceeds of crime by virtue of being associated with Ali, a known terrorist.

ARA said that Sh56 million (USD 560,000) was transferred to the JIBCA Service Limited account in the I & M Bank Riverside branch by Dahir Mahamoud on behalf of Ali between February 29, 2024, and March 1, 2024.

ARA said that upon receipt of the suspected funds, Moxamed and Jibca withdrew substantial amounts in cash and transferred others to multi-destinations in a suspicious manner. ARA said the rapid transactions were indicative of money laundering and concealing the true source and purpose of the funds.

ARA said that Jibca purchased the property from Siana Property Limited for sh110,500,000.

In his defence, Moxamed stated he is a Somali national holding diplomatic, Great Britain, and Ireland passports.

He told the court that his father had served as a Supreme Court judge in Somalia and later as Minister for Industries and Public Works, and Minister for Finance, a career which spanned 21 years.

Moxamed said that he inherited various properties from his late mother, Maymuna Culusow Xirsi, among them the property he sold to Ali.

He said the sale of the house on November 22, 2023, was legally done through Osman Law Office for Public Notary and Legal Services between him and Dahir Mohamoud Mohamed for sh220 million (USD 2,200,000).

Moxamed said such sales are thoroughly scrutinised by the Financial, Economic and Cyber Crimes Unit, and the Attorney General of the Federal Republic of Somalia verified the sale as proper and done through a legal process. He insisted that during the transaction on the house in Mogadishu, he only met the notary public and Dahir Mohamoud Mohammed, who he understood to be representing Ali.