BUSINESSPOLITICS

Rigathi Loses Ksh200M After Failing to Explain Source of Cash

Share
Rigathi Gachagua, MP for Mathira, is the running mate to the current Deputy President William Ruto - one of the frontrunners for the Presidency in the August polls. [Photo/ Jeff Angote|NMG]
Rigathi Gachagua, MP for Mathira, is the running mate to the current Deputy President William Ruto - one of the frontrunners for the Presidency in the August polls. [Photo/ Jeff Angote|NMG]
Share

United Democratic Alliance (UDA) Deputy Presidential candidate, Rigathi Gachagua, has lost Ksh200 million to the state after failing to explain to a court the source of the funds.

The funds were frozen by the High Court in 2020 pending a petition by the Assets Recovery Authority (ARA) for the cash to be forfeited to the government. The state had linked the funds to graft and money-laundering.

Gachagua, MP for Mathira, is the running mate to the current Deputy President William Ruto – one of the frontrunners for the Presidency in August polls. High Court Judge Esther Maina on Thursday, July 28 ruled that Gachagua had failed to explain how he acquired the funds.

The Assets Recovery Authority (ARA) suspected the funds to be proceeds of crime as they represent payments made by government agencies to companies associated with Gachagua. Among the government agencies which made payments are the Mathira Constituency Development Fund, Nyeri County government, Ministry of Lands (Kenya Informal Settlements Programme), National Irrigation Board, the State Department for Special Planning, Ministry of Health and the Bungoma County government.

The funds were held in various bank accounts. Three accounts registered in the MP’s name at Rafiki Micro Finance Bank had Ksh165 million, Ksh35 million and Ksh773,228 respectively. A different account holding Ksh1,138,142 is registered in the name of Jenne Enterprises.

READ>>Flutterwave Exposed – CBK Slams Nigerian Fintech Amid Ksh6.2B Freeze

ARA in court filings accused Gachagua of being involved in massive money laundering. It called for the court to intervene to avoid a scenario where Gachagua withdraws the funds

“That within the said period, there were massive suspicious cash withdrawals, transfers, inter and intra-bank transfers from other accounts to the accounts under investigations and other bank accounts owned by Mr Gachagua in suspicious complex money-laundering schemes,” the court filings read in part.

“There are reasonable grounds to believe that the suspect’s bank accounts were used as a  conduit for money laundering in efforts to conceal, disguise the nature, source, disposition and movement of illicit funds and should be preserved,” ARA continued.

READ NEXT>>KCB Revises Interest Rates On Its Savings Accounts

 

Written by
MARTIN SIELE -

Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Articles
The Hub Karen Mall
BUSINESS

Two International Brands Open Outlets at The Hub Karen

The Hub Karen Mall has announced the entry of two international brands,...

Julius Thairu --- Chief Commercial and Customer Officer at Kenya Airways
BUSINESS

Soft Landing: Kenya Airways Hangs on ‘Fly Kenya’ Policy to Boost Numbers

Kenya Airways today held strategic deliberations with key government stakeholders in a...

Windhoek Beer launch in Kenya
BUSINESS

Kenya’s Alcoholic Drinks Market Welcomes a New Beer Brand

Kenya Wine Agencies Limited (KWAL) has introduced Windhoek Beer into the Kenyan...

Del Monte Kenya staff transport
BUSINESS

Del Monte Kenya Makes Radical Shift in Staff Transport

Del Monte Kenya Ltd, the fresh fruit producer, has announced the transition...