A Dubai-based gold-buying firm has obtained a court order freezing a bank account belonging to a Kenyan company involved in a failed gold deal.
A Dubai-based gold-buying firm has obtained a court order freezing a bank account belonging to a Kenyan company involved in a failed gold deal.
SH Trading DMCC and its majority shareholder Cord Kabus Dupree secured the order from the High Court to freeze the account of Afriswiss Commodities Ltd, a gold trading company based in Kenya.
Justice Moses Ado issued the directive preserving at least $140,000 (approximately Sh18 million) in Afriswiss Commodities' account at I&M Bank Kenya, pending determination of the case.
Milimani Law Courts.
“That in the meantime, prayer 2 (preserving the funds at I&M Bank Kenya) is temporarily granted until then, that is, until 10/07/2025, when further orders shall be issued,” the judge stated.
The Dubai-based firm expressed concern that the Kenyan company might disown the deal and transfer the funds before the conclusion of the case.
SH Trading DMCC which engages in gold importation said it established operations in Kenya after being introduced to key industry players, including Afriswiss Commodities Ltd.
According to Mr Dupree, the referral came through officials from the Ministry of Mining, which gave the firm confidence to pursue the transaction.
An agreement was signed on May 9, 2024, for the shipment of 25 kilogrammes of gold from Kenya to Dubai.
In accordance with the agreement, SH Trading DMCC paid $118,000 in advance to cover costs such as government royalties, export taxes, insurance, smelting, customs handling and agency fees.
The seller also committed to securing the export permit, certificate of analysis for the minerals, a movement permit and to settle all relevant taxes.
Central role
Through its lawyer Kenneth Amondi, SH Trading claimed that Mr Lynnwood Farr, the CEO of Afriswiss Commodities, played a central role in executing the agreement.
Mr Farr allegedly assured the Dubai firm that he had access to a reliable gold supply and convinced them to wire part of the funds to the company’s bank account while the balance was paid in cash.
Mr Amondi said during the transaction, Mr Farr always called the shots creating the impression that he was in full control of the process from sourcing the gold to its export.
“It is the plaintiff’s case that notwithstanding the plaintiff paying the defendants $118,000 to facilitate the process of purchase and ultimate export of the gold as agreed by the parties, the same was not done and to date the plaintiff is yet to receive the commodity at the designated port,” the company said.
The company through the CEO admitted receiving $136,940, inclusive of interest for the supply of gold not delivered, and for causing the merchant an estimated business loss of $2.5 million.
