This archive report was first published on 27 June 2020.
On June 27, 2020, the High Court took a significant step in the fight against corruption by freezing over Sh200 million in the account of Mathira MP Rigathi Gachagua.
The funds, held in three accounts at Rafiki Micro Finance bank, are suspected to be proceeds of crime and are linked to payments made to companies associated with the MP.
According to documents filed in court, the Assets Recovery Agency (ARA) had preliminary investigations that established Mr Gachagua and Jenne Enterprises Limited were involved in a suspected complex scheme of money laundering.
The funds in question emanated from various government agencies, including the Ministry of Lands, the Ministry of Health, and the National Irrigation Board.
Justice John Onyiego of the Anti-Corruption Division of the High Court stopped the MP and Jenne Enterprises from dealing with or transferring the funds, pending a petition by the ARA for the money to be forfeited to the government.
The MP received Sh5.8 billion in seven years, including funds from companies or business entities providing services to ministries, state agencies, and county governments.
The agency received information on suspected complex money-laundering schemes on March 30 and subsequently applied for and was issued with warrants to investigate the accounts.
The agency argued that there were reasonable grounds to believe that the MP's bank accounts were used as a conduit for money laundering and that the funds should be preserved to prevent them from being withdrawn and defeating the cause of justice.
