Former Garsen MP Danson Mungatana and his business associate Collins Waweru have been charged with fraud.
Their lawyer yesterday had asked the court to drop the charges against them after they began out-of-court settlement talks with the complainant.
However, the prosecution declined the request on grounds that the duo's offences were criminal.
“The Ministry of Defence is involved as a complainant. Inasmuch as they want to reconcile with the complainants, most of the charges are by the State," the prosecution said.
On Wednesday, Mungatana was finally been charged at a Kibera court after the court turned down his application of settling the case out of court.
Magistrate Abdul Lorot ruled that the application to defer the plea taking lacked merit and dismissed it.
“They had an agreement but the decision by the prosecution to charge them was arrived at because it met the public interest threshold,” Lorot said.
The MP and his co-accused pleaded not guilty and were released on Sh200,000 cash bail to charges of forgery of documents and obtaining money by false pretence.