United Democratic Alliance (UDA) running mate Rigathi Gachagua has been accused for allegedly cornering youths to launder tax payers money through fraudulently acquired government tender deals.
Milimani Law Court Judge Esther Maina on Wednesday ruled Gachagua to forfeit ksh200M to state that he had acquired fraudulently from government agencies.
According to judge Esther Maina, Mathira legislator through his lawyer, failed to prove to the court how he obtained ksh200M that had been frozen pending completion of the investigations.
The Serious Crimes Unit (SCU) sleuths have established that the embattled lawmaker used various companies to secure tender from government ministries, state department, parastatals and county government where the money was wired to Rafiki Micro-Finance, owned by the legislator.
Serious Crimes Unit probe into Gachagua’s graft case established that the MP and his two female associates lobbied youths and women to register companies and wired tax payers money into Rafiki Micro-Finance accounts of the companies registered by the youths after securing tenders from government agencies.
“The MP and two of his trusted female associates approached youths and women to register companies and open accounts at Rafiki micro-finance, then used his influence and blackmail to secure tenders for the companies” said Directorate of Criminal Investigations.
Gachagua’s personal assistant, Julianne Jahenda is said to be the signatory in all the accounts opened by the youths at Rafiki Micro-Finance.
“In a well orchestrated and executed plan, the youths were then given loans by the micro-finance and assisted to supply the required goods, most of which were substandard and broke down immediately after being delivered, leading to losses of hundreds of millions of tax payers money” added DCI.
Investigations also indicated that in 2014, Central Kenya county received medical equipment worth ksh27.4M for supply of non functional dialysis and water treatment plant. The tender was reportedly awarded to Gachagua’s youths and payment made through a single voucher to Rafiki Micro-Finance which was later transferred to Gachagua’s account.
Gachagua’s associate is also linked to supplying a faulty junk incinerator worth Ksh10M to a South Coast Hospital. Gachagua also wired ksh123.1M from a Western region based hospital for the supply of medical equipments.
Jahenda’s account was also detected with Ksh234M that she couldn’t account for.