The state cannot trace Ksh5 billion that had been deposited in Mathira MP Rigathi Gachagua’s bank accounts, suspected to be proceeds of money laundering and graft, cannot be traced.
The MP received Ksh12.5 billion through three accounts in Rafiki Micro Finance Bank, in seven years, and the Asset Recovery Agency (ARA) was able to trace withdrawals worth Ksh7.3 billion.
However, ARA is now unable to explain the disappearance of over Ksh5 billion, that cannot be traced even through bank statements.
The accounts are now remaining with only Ksh200 million, that the state agency seeks to seize as it tries to unravel the mystery of the disappearance of the money. The accounts have already been frozen by the High Court.
His savings account that received Ksh5.8 billion now remains with only Ksh773,228, while another account that received Ksh877 million now remains with Ksh35 million.
Another account at the centre of the mystery received Ksh5.87 billion of which Ksh705.1 million was been withdrawn according to bank statement. The account now remains with Ksh165 million balance, leaving some unexplained Ksh5.1 billion.
According to an explanation from Rafiki Micro Finance Bank, the Ksh5.1 billion was used for trading transactions.
Most of the money was received from 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.
“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,” the ARA says in court documents.
Several companies which received part of the money are also under scrutiny, even as ARA seeks to unravel the mystery surroundding the saga.
“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,” argues ARA.
Former Agriculture Cabinet Secretary Mwangi Kiunjuri is also under investigation, since some of the payments were made when he was a CS, from his ministry.