The High Court has ruled that Mathira Member of Parliament Rigathi Gachagua acquired Sh. 202 million that is frozen at Rafiki Microfinance through corruption.
Following this ruling, Justice Esther Maina has ordered that Gachagua surrenders the money to the State. The money at Rafiki Micro Finance Bank are held in three accounts, with one holding Sh. 165 million, a second account holds Sh. 35 million while the other holds Sh. 773,228.
All the three are registered in the Rigathi’s name. fourth account, holding Sh. 1,138,142, is registered in the name of his company Jenne Enterprises
The Assets and Recovery Agency has been pursuing Gachagua and his associates to forfeit the money to the state arguing that it was acquired through money laundering and corrupt practices.
According to ARA, Gachagua’s three personal accounts conducted a series of huge suspicious debit transactions amounting to Sh. 7.3 billion and a total credit of Sh. 12.5 billion between 2013 and 2020, which they believe are proceeds of crime.
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Out of the huge bank transactions, the agency claimed the MP and his business associate could not explain how they acquired a total of Sh. 202 million.
The ARA said that Gachagua and Jenne Enterprises Limited were involved in a suspected complex scheme of money laundering.
The funds reportedly emanated from the Ministry of Lands (Kenya Informal Settlements Programme), State Department for Special Planning, Ministry of Health, Bungoma County government, Mathira Constituency Development Fund, Nyeri County government and the National Irrigation Board. Justice John Onyiego of the Anti-Corruption Division of the High Court stopped the MP and Jenne Enterprises from dealing with or transferring the funds.
In the judgment, the High Court determined that Gachagua had failed to explain how he acquired the wealth from government agencies.
Documents filed in court showed that within seven years, the MP received Sh. 5.8 billion, which included funds from companies or business entities providing services to ministries, state agencies and county governments.