MP Rigathi Gachagua's Bank Accounts Frozen as DCI and ARA Probe Sh12.5 Billion Tender Scam

Mathira MP Rigathi Gachagua’s bank accounts have been frozen over the alleged embezzlement of public funds amounting to Sh12.5 billion.

This comes after detectives from the Directorate of Criminal Investigations (DCI) completed a probe into how the billions were wired to Gachagua’s accounts between 2013 and 2020.

The first-time MP is said to have used proxies to fraudulently win tenders in various county government, State agencies, and ministries through 22 companies with him as the sole beneficiary. 

Gachagua is also being investigated by the Asset Recovery Agency (ARA), which is seeking to establish the source of the Sh12.5 billion that passed through his accounts.

Gachagua is said to have received the funds through three accounts in Rafiki Micro Finance Bank. 

The funds were received from the Ministry of Lands (Kenya Informal Settlements Program), State Department for Special Planning, Ministry of Health, Bungoma County government, Mathira Constituency Development Fund, Nyeri County government, and the National Irrigation Board and are suspected to be proceeds of crime. 

Citing an investigation file, Citizen TV reported that two hairdressers and a former mobile money transfer agent were awarded lucrative contracts by Mathira Constituency Development Fund (CDF) but Gachagua insists the deals are not fraudulent

“These people who are being accused of being nobodies and have done a lot of business were my employees previously. I have empowered and mentored them and made them grow,” Gachagua told the station.

Investigators said two companies that were paid Sh150 million went on to transfer a huge chunk of the money to entities owned by Gachagua. The DCI and ARA have frozen Gachagu’s four accounts holding a total of Sh202 million. 

Over 100 people who did business with Gachagua have been questioned in the past six months. They include Laikipia Senator John Nderitu who received Sh1.9 million from Gachagua, former Agriculture Cabinet Secretary Mwangi Kiunjuri (Sh5.9 million), Meru Senator Mithika Linturi (Sh1.3 million), and Ruguru Ward MCA (Nyeri) Karanja Muriuki who received Sh11 million.

“This is a witch-hunt and a scheme meant to harass me because of my political stand… We cannot criminalize enterprise. We cannot criminalize hard work. I have been in business for the last 20 years since I left the civil service. It is only natural that I have some little money,” Gachagua told Citizen TV.