Mathira MP denies corruption claims, insists money is clean
Mathira Member of Parliament Rigathi Gachagua has denied that his Sh200 million held in three bank accounts at Rafiki Microfinance Limited are proceeds of crime.
His denial comes after the Assets Recovery Agency (ARA) froze the MP’s accounts, claiming the same are proceeds of economic crimes and should be forfeited to the State.
In his defence, Gachagua says the monies are not proceeds of crime, but are legit earned from businesses.
He said besides being the MP for Mathira, he is also an astute businessman and nothing stops him or companies associated with him from doing business with the government, ministry of any State department.
In his court papers, the MP further avers that it is utterly misleading to indicate that he has received a whooping Sh12.5 billion between 2013 and 2020.
“This had been couched in a manner to suggest that the money has come from external bank accounts and or left to other external bank accounts,” says Gachagua.
His response comes after the High Court had in May last year frozen his three accounts holding Sh200 million, pending a petition by a State agency for the money to be forfeited to the government.
His other accounts that have been frozen include two in the name of Wamunyoro Investments Limited, one account each in the names of Technical Supplies and Services, Crystal Kenya Ltd and Jenne Enterprise.
Through lawyer Mohammed Adow, ARA claims they have amassed more than Sh5.8 billion within seven years, amounts that included funds from companies or business entities offering services to ministries, State agencies and county governments.
According to the Gachagua, the Sh200 million has been the same fixed revolving fund rotating between his savings and fixed deposit account for the last seven years.
“The way Rafiki Microfinance Bank Ltd operates is that if one intends to place funds on a fixed deposit, such funds are debited from relevant savings account or any other designated account and credited to a fixed deposit account,” he argues.
And upon maturing- in his case quarterly- the principal plus interest earned are rolled back at his request, to the savings account.
“My revolving fixed fund of Sh200 million has been subjected to this movement for the last seven years,” he said.
Legislator said one of his companies was awarded Sh10 million tender in 2011 by Kenya Power and Lighting Company to gravel Nairobi West office and Surface water drainage.
The money was later transferred to his other companies and eventually into his personal savings account.
His other company was also awarded Sh24 million tender in 2012 by Wajir County for construction of main trunk sewer and associated works.
He was paid Sh65 million by the Ministry of Lands and Housing for supply of some equipment.