Rigathi Gachagua, the MP for Mathira and the UDA’s deputy presidential candidate, has lost Sh202 million to the state after the High Court ruled that the money held in four accounts at Rafiki Microfinance is the proceeds of corruption.
The MP, who is also William Ruto’s running mate, confirmed receiving the payments from government entities, but there was no proof that he also provided any services or goods to the government, according to Justice Esther Maina.
Three accounts at Rafiki Microfinance Bank are being used to hold the money; one holds Sh165 million, the other Sh35 million, and the third Sh773,228.
All three are registered in the MP’s names. A fourth account with Sh1,138,142 in it is opened in Jenne Enterprises’ name.
“I have carefully considered the evidence on record including affidavits, annexures and submissions by all parties and I am satisfied that the funds are liable for forfeiture to the government,” the judge said.
The Assets Recovery Agency (ARA), according to Justice Maina, has proven that the MP and his firms benefited from funds despite not supplying any items or rendering any services to the ministries or organizations that awarded him contracts
The court also rejected Mr. Gachagua’s claims that he invested the funds in fixed deposit accounts and made loans to several of his businesses in order to earn interest.
The MP said that in order to gain interest, he moved money back and forth between his savings and fixed deposit accounts.
Mr Gachagua had claimed that the money was in a fixed revolving fund rotating between three accounts for seven years. And upon maturing- quarterly- the principal amount plus interest earned are rolled back to the savings account, at his request.
Gachagua had been picked up at his Nyeri home by officers from the Directorate of Criminal Investigations (DCI) on July 23, 2021 over money laundering claims.
He was then ferried to the DCI headquarters for questioning. The Mathira Mp’s arrest came after he was linked a Ksh12 billion unexplained payments made through 42 proxy companies.
Gachagua was charged with conspiracy to commit an offence of corruption, fraudulent acquisition of public property, money laundering and acquisition of proceeds of crime and conflict of interest.
He was however released on July 26 on a Ksh12 million cash bail and an alternative Ksh25 million bond after spending three days in police custody
