Deputy President Rigathi Gachagua’s attempt to run away with a cool Sh200 million that he allegedly stole from the government through corrupt dealings has backfired badly on him.
The monies, which were found to be proceeds of crime, are held in Gachagua’s account with Rafiki Microfinance Bank.
She ordered him to forfeit the monies held at the bank to the State for failing to show a valid source.
They argued before justices Imaan Laibuta, Kathurima M’Inoti and Paul Gachoka that the money in question is a security that guaranteed several loan facilities.
The institution said the Asset Recovery Agency has been demanding the money and even threatened to institute contempt proceedings in case the amount was not settled immediately.
But the Court of Appeal dismissed the bank’s application, saying it was made in disregard of Section 92 (6) of the Proceeds of Crime and Anti-money Laundering Act.
The section allows for an automatic stay meaning before an appeal is concluded, the Assets Recovery Agency cannot seize the funds in question.
