Rwanda's prosecution has called for the extradition of a Kenyan-American businessman who owned the now defunct DN International, a real estate development company that defrauded Rwandan property buyers 10 years ago.

The man, Nathan Lloyd Ndung’u was this week arrested in Nairobi over the fraud case he faces in Rwanda.

Faustin Nkusi, spokesperson of the National Public Prosecution Authority (NPPA), on Thursday, February 3, told The New Times that they are closely following the case and are in touch with their Kenyan counterparts.

"We have judicial cooperation with Kenya. Under the EAC Prosecutors’ Association, one of our common goals is jointly fighting crime, especially economic crimes, in the region and from this, we hope our request for his extradition will be implemented.”

Nkusi said Rwanda issued an international arrest warrant and extradition request in October 2018.

"We are happy he was arrested and we are therefore going to work with judicial authorities in Nairobi to ensure that our request for his extradition succeeds.”

In 2007, DN International acquired a loan of more than Rwf800 million from Fina Bank to develop 28 housing units, in Masaka Sector, Kigali.

In January 2010, DN International, embarked on a project to construct more than 50 residential housing units it was to complete by the end of that year.

A year later, Lloyd was arrested and detained at Remera Police station in Kigali before he fled the country that same year after an investigation was commissioned over fraud allegations.

By November 2011, it emerged that 19 people including top government officials had fallen victim to a scam after the homes they had bought were advertised for auction by Fina Bank, the financier of the project.

Apparently, on receiving money from homeowners, Lloyd did not deposit the money to the Bank, but instead diverted the money to other ventures.

Arrest in Nairobi

According to reports in Kenyan media, Lloyd was this week arrested as he arrived in Nairobi from the US.

He was flagged on Interpol’s Red Notice following a case in which he was tried in Rwanda and sentenced, in absentia, to five years in prison.

He was produced before a Nairobi court on Wednesday, February 2.

The prosecution in Kenya, it is reported, made an application to detain him at the Inland Container Depot Police Station for 21 days, pending a formal extradition request from Rwanda.

His lawyers opposed the detention, saying he should be released on bail, but the prosecutor opposed his release saying he was a flight risk given he had left Kenya while an international arrest warrant was still out for him.

As reported, the prosecution argued that being a dual citizen, Ndung’u might head back to the US, where he also has citizenship.

A ruling on his bail application will be made on Friday, February 4.

More charges

In 2017, people who formerly delivered supplies or bought homes from the firm launched a fresh lawsuit demanding payment for investments made on the development of one of the housing projects by DN International (Green Park Villas) in Gasabo District, which was incomplete when the firm became insolvent.

Francis Bayingana, a representative of petitioners during the lawsuit against DN International, on Thursday told The New Times that Ndung’u’s arrest was "good news for us.”

Bayingana noted that if all goes well, "our wish is that he is extradited to Rwanda to answer his case from here.”

Bayingana said: "We, previously, requested for this [extradition] and even petitioned parliament. We won our case in court and we have already received 40 per cent of our money, about Rwf800 million, but he should answer for the crimes he committed in this country also; issues of tax evasion, bounced checks, and others.”

In March 2016, Parliament looked into a petition in which at least 120 people demanded payment of more than Rwf700 million from the defunct real estate developer.

In August 2019, creditors celebrated a court ruling that cancelled an auction through which KCB Bank Rwanda had taken over their land.

According to Bayingana, when the commercial court ruled that the petitioners be paid back, they decided to be patient and not auction the defunct firm’s assets, houses and plots of land, as that would result in losses.

As such, they still have assets not yet sold and are looking forward to getting the rest of their monies back this year.

"We have 60 per cent more which is going to be paid back this year. We have assets not yet sold off,” Bayingana said.