Kenya Kwanza Alliance presidential running mate Rigathi Gachagua has forfeited his Sh200 million that was frozen by the High Court to the state following the court’s ruling.
According to High Court Judge Esther Maina, Gachagua failed to explain how he got such an amount of money from Government agencies.
In the Thursday Ruling, Maina said she was satisfied that the funds were indeed proceeds of crime and are subject to forfeiture to the state.
Gachagua admitted to receiving funds from government agencies and entities after being awarded tenders to supply goods or render services.
The court said there was no contract nor document to show the tender was executed to support Gachagua’s claims, save for a letter dated February 9, 2015, allegedly from a ministry of the government showing a company by the name Wamunyoro Investments Limited had been awarded tenders.
ARA said the notification of the tender award with that date was not addressed to Kimemia but to Machine Centre Limited and Wamunyoro Investment Limited whose directors were listed as Rigathi Gachagua, Arthur Igeria and Elizabeth Wachufa.
ARA said there is no shred of evidence showing Machine Centre Limited and Wamunyoro Investment Limited performed any transactions under the contract.
“Kimemia has not produced any evidence to show that she participated in the alleged tender indicated in the notification of award. She has also not produced any evidence demonstrating that the notification was ultimately awarded to her or the said companies and she participated in the alleged tender indicated in the notification award,” ARA said.
She also produced no Local Purchase Order (LPO) for the supplied goods or services
The High Court also dismissed allegations that the funds were in a fixed deposit account and that turned out not to be the case.
"There was an argument that the funds were in a fixed deposit account, but that is not the position," Maina said.
Three personal accounts at the Rafiki Microfinance Bank belonging to Gachagua were frozen in May 2020 when Senior Resident Magistrate Muthoni Nzibe granted a request by the Asset Recovery Agency (ARA) to have the accounts frozen.
Gachagua and his partner Ann Kimemia alleged they did legitimate business, a legitimate tender won in 2007 from which the funds came.
However, ARA said there was no evidence supporting the claims and wanted the money given up to the state on grounds that they were proceeds from criminal activities.
The documents before the court showed the funds were suspected to be proceeds from criminal activities that involved an elaborate scheme of money laundering.