Anti-graft agencies are unable to trace over Sh5 billion that were deposited in the bank account of Mathira MP Rigathi Gachagua, who is currently being investigated for alleged money laundering.
Gachagua is said to have received more than Sh12.5 billion through three accounts in Rafiki Micro Finance Bank, in the last seven years, something that detectives view has suspicious.
In a court document, Asset Recovery Agency said it had traced Sh7.3 billion withdrawals through bank statements in accounts that were left with a balance of Sh200 million.
But the agency noted that no bank statements were showing how the remaining Sh5.1 billion was withdrawn from the fixed account in what he described as “a complex scheme of money laundering”.
High Court froze more than Sh200 million owned by the MP, exposing his financial was chest and cash dealings from his three accounts in the microlender not known for huge transactions.
One savings account had a balance of Sh773,223 after receiving Sh5.8 billion and a fixed deposit account left with Sh35 million after receiving around Sh877 million.
A second fixed account had Sh5.87 billion of which Sh705.1 million had been withdrawn, gut had an Sh165 million balance, leaving unexplained Sh5.1 billion, according to the agency’s court documents.
ARA is seeking further questions from Rafiki Micro Finance Bank having been unconvinced with the bank’s explanation that the Sh5.1 billion was used for trading transactions.
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According to ARA money started pouring into the MP’s account soon after the Jubilee administration took power in 2013.
Gachagua is said to have received funds from the Ministry of Land (Kenya Informal Settlement Programme), Bungoma County Government, State Department for Planning, Ministry of Health, Nyeri County Government, Mathira CDF, and the National Irrigation Board.
During the seven-year period, massive suspicious cash withdrawals and bank transfers to the accounts to the accounts were made and are currently under investigation.
According to the agency, the money transactions were designed to conceal, disguise, and hide the nature, source movement, and depositing of the funds.
Related: MP Rigathi Gachagua Risks Losing 200M Over Money Laundering Claims
