ARA wires back SH200 million to Gachagua – Business Daily
Deputy President Rigathi Gachagua. FILE PHOTO | NMG
Deputy President Rigathi Gachagua on Wednesday won back Sh202 million he forfeited to the state last year over claims of money laundering after Assets Recovery Agency (ARA) tabled evidence showing that his companies performed the contracts, which had been questioned.
Mr Gachagua struck a deal with the state agency, which was adopted by the Court of Appeal, wiring back the funds to the DP’s three bank accounts. A fourth account at Rafiki Microfinance was in the name of Jenne Enterprises.
“The settlement is adopted and the matter is hereby marked as withdrawn,” a bench of three judges led by Justice Daniel Musinga said.
The move comes soon after the Director of Public Prosecutions (DPP) Nordin Haji withdrew corruption charges against Mr Gachagua saying there wasn’t enough evidence to sustain the trial.
Read: Court hands Gachagua’s Sh202 million to State over fraud
The case, according to the investigating officer Obadiah Kuria, was commenced before investigations were completed.
The funds emanated from several state agencies including the Ministry of Lands (Kenya Informal Settlements Programme), department of Special Planning, Ministry of Health, Bungoma county government, Mathira constituency development funds, Nyeri county government and National Irrigation Board.
Other contracts were won by Mr Gachagua’s companies at Kenya Power and Lighting Company Ltd.
The state department for Arid and Semi-Arid Lands (ASAL), for example, paid Mr Gachagua’s company- Triple Eight Construction Sh32.1 million for the construction of primary sewer and electro-mechanical works and was paid in June 2016.
KPLC paid also paid M/S Wamunyoro Investment Sh9.9 million in March 2013 for the gravelling of its Nairobi West office yard and surface drainage, while the Ministry of lands paid his company Sh52.2 million for the supply of flatbed scanners and stations, for a contract awarded in November 2013.
Pan African Tsetse and Trypanosomiasis Eradication Campaign (PATTEC) also paid him Sh35 million for supplies while the Bungoma county government paid Sh35 million to Ecarter Diagnostic Ltd.
Mr Gachagua’s three bank accounts held a total of Sh200 million while the fourth account, holding Sh1,138,142, is registered in the name of Jenne Enterprises.
The ruling, last year, had proved that the MP and his companies benefited from funds yet did not deliver any goods or provided any services to the ministries or agencies, which gave tenders to him.
“I have carefully considered the evidence on record including affidavits, annexures and submissions by all parties and I am satisfied that the funds are liable for forfeiture to the government,” the judge said.
All three are registered in the MP’s names. A fourth account, holding Sh1,138,142, is registered in the name of Jenne Enterprises.
Read: DPP withdraws Sh7.3 billion fraud charges against Gachagua
“I have carefully considered the evidence on record including affidavits, annexures and submissions by all parties and I am satisfied that the funds are liable for forfeiture to the government,” the judge said.
Mr Gachagua had defended the millions saying apart from the contracts, he deposited the money in a fixed revolving fund rotating between three accounts for seven years. And upon maturing- quarterly- the principal amount plus interest earned are rolled back to the savings account, at his request.
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