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Fraud

EACC loses track of Mp Gachagua’s dirty money

Ethics and Anti-Corruption Commission ( EACC) detectives have lost a track of more than Sh5 billion that was in bank accounts belonging to Mathira MP Rigathi Gachagua.

The first-term lawmaker who is facing charges of money laundering received a suspicious payment of more than Sh12.5 billion through three accounts in Rafiki Micro Finance Bank within seven years.

Court documents show that the Asset Recovery Agency (ARA) traced Sh7.3 billion withdrawals through bank statements in accounts that were left with a balance of Sh200 million.

But ARA has not been successful in finding bank statements to show how the balance of Sh5.1 billion were withdrawn from the fixed deposit account through a complicated money laundering scheme.

The High Court has also frozen over Sh200 million from Gachagua in a financial war through shady deals in his three account at Rafiki Microfinance.

A savings account was left with Sh773,228 after receiving Sh5.8 billion and a fixed deposit account was left with Sh35 million after receiving Sh877 million.

Another fixed account received Sh5.87 billion then Sh705.1 million was withdrawn. It also had a balance of Sh165 million, leaving another untraceable Sh5.1 billion for ARA.

The agency is now piling pressure on Rafiki Micro-Finance Bank to explain how the Sh5.1 billion was used for trading transactions.

Documents filed in court by the ARA show that Gachagua has been receiving billions through his accounts soon after the Jubilee administration ascended to power in 2013.

Even before becoming an Mp, he had received funds from the Ministry of Lands (Kenya Informal Settlements Programme), State Department for Planning, Ministry of Health, Bungoma County Government, Mathira CDF, Nyeri County Government and the National Irrigation Board.

Gachagua, a close ally of Dp William Ruto is also the brother of the late Nderitu Gachagua, the first Nyeri governor, who died in office on February 24, 2017.

ARA has also filed a petition in court seeking to have the Sh200 million frozen forfeited to the State since the amount is proceeds of crime.

“Preliminary investigations established that the respondents were involved in suspected complex scheme of money laundering involving several companies, which initially received funds from government ministries and State agencies and later transferred the funds to companies/business entities associated with Gachagua and ultimately transferred the funds to Gachagua’s personal accounts,” reads part of ARA court documents.

Documents show that Mr Gachagua received a total of Sh347 million from Encarta Diagnostics Sh112 million, Wamunyoro Investments Sh7.5 million, Rapid Medical Supplies Sh58 million and Specific Supplies Sh103 million.

Some of these funds were later transferred to the two fixed deposit accounts at Rafiki. He sent Sh12.9 million to his wife Dorcas and Sh9 million to Toyota Kenya and Taitan Motolink.

Mp Gachagua has dealt with 33 banks and various companies including Wamunyoro Investments Ltd, Crystal Kenya Ltd, Machine Centre, Technical Supplies and Services Ltd, Skytop Agencies and Specific Supplies Ltd. He is a director in some of the companies.

The Mp colludes with one Anne Kimemia who trades as Jenne Enterprises through a complex laundering scheme.

He also recieved payments from Kwale and Bungoma counties, which paid Sh112.4 million to Encarta Diagnostics that were later transferred to several accounts.

ARA said that is an indication that he was using the companies as a conduit for money laundering.

“There are reasonable grounds to believe that the said accounts received and are holding funds which are believed to be proceeds of crime and the accounts were used to execute a complex money laundering scheme in an effort designed to conceal, disguise and hide the nature, source, movement and disposition of the funds,” ARA said in a petition.

The agency says the transfers were designed to conceal the source,  movement and depositing of the funds.

 


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