MP Gachagua Scandal: Detectives have completed investigations into a multi-billion tenders scandal involving the Mathira member of parliament Nderitu Gachagua.
According to Director of Criminal Investigations George Kinoti, the investigations have revealed that Gachagua used up to 40 different companies to transfer billions of money. All the monies he transferred, estimated to be Sh. 12 billion, ended in a company known as Wamunyoro Investments, of which Gachagua and his wife are the sole directors.
Kinoti said that the MP had used his companies and proxies to access multi-billion tenders from the government, both local and national.
“While a company known as Upperdeck Agencies won a Sh. 9.4 million tender to supply linen to Nyeri County hospitals, its proprietors were listed, in the bank records, as Gerald Waema Mbatha and Moses Otieno. Detectives later found out that when the money was paid on February 18, 2015, the entire amount was transferred to Wamunyoro Investments Limited, leaving a balance of Sh. 5 only. They also found out that the listed proprietors were not signatories to the bank account. The sole signatory was a Mr Sammy Cheborgey, an employee of Mathira National Government Constituency Development Fund (NG-CDF) committee. But Kenya Revenue Authority documents indicate Mr Gachagua is linked to the company,” an investigative report that appeared in the Daily Nation on Thursday said.
DCI Kinoti’s final report on Gachagua further says that Gachagua’s accounts held at Rafiki Deposit-taking Microfinance were used to source for loans (and) these loans have been used to cover up for funds received from government departments or intercompany transfers in a bid to conceal the ultimate beneficiary or beneficiaries of the funds.
“The bank statements were noted to made minimal or no payments whatever to ‘would-be’ suppliers, yet they receive large amounts for supplies (and) works done. This is likely to imply that no supplies are made or works done,” the DCI said.
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The report in the Daily Nation noted that the Asset Recovery Agency (Ara) has taken the MP to court over the source of his immense wealth. “While Ara had targeted to freeze the accounts, the agency told the court Mr Gachagua managed to withdraw Sh.7.3 billion, which he disbursed to various companies and bought some assets. The agency said it could only locate Sh.5.2 billion, according to court records,” the report on the MP Gachagua scandal said.
