Gachagua To Forfeit Sh200 Million to State for Being Proceeds of Crime

Mathira MP Rigathi Gachagua is set to lose a whopping Sh200 million.

Justice Esther Maina on Thursday ruled that the legislator failed to show how he acquired the wealth.

The UDA presidential running mate will then be forced to forfeit the money to the government.

The money in question was frozen in 2020 after the Assets and Recovery Agency (ARA) sought orders compelling Gachagua to forfeit it.

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Due to transfers made from government agencies to businesses connected to the politician, as evidenced in court documents, the monies are believed to be proceeds of crime.

ARA submitted that their investigations revealed that the UDA presidential running mate and Jenne Enterprises Limited belonging to Ann Kimemia, were associated with a complex money laundering scam.

The funds are said to have come 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 utilizing or transferring the money.

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The funds are held at Rafiki Micro Finance Bank in four separate accounts.

One holds Sh165 million, a second account holds Sh35 million while the other holds Sh773,228. All the three are registered in Gachagua’s name.

The fourth account, holding Sh1,138,142, is registered in the name of Jenne Enterprises.

Documents filed in court showed that in seven years, the outgoing lawmaker received Sh5.8 billion, which included funds from companies or business entities providing services to ministries, state agencies and county governments.

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The agency allegedly got information on purported intricate money-laundering operations and criminal proceeds on March 30.

The agency launched an investigation, then requested and received warrants to look into the accounts.

Documents further revealed that after being transferred to businesses or other legal entities, the money was eventually moved to Gachagua’s personal fixed deposit account.

“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 agency said.

“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.”