DCI exposes money laundering methods used by Rigathi Gachagua, 20 fraud companies

The Directorate of Criminal Investigations (DCI) has revealed tricks allegedly used by Kenya Kwanza deputy presidential candidate, Rigathi Gachagua to launder looted “taxpayers’ money in fraudulent tender deals”.

In a lengthy statement, the DCI recounted that the Mathira MP enlisted the services of several youth and women groups who he pushed to register 20 companies and open accounts with a local financial institution.

The well-connected MP would then use a combination of threats, blackmail and connections to secure tenders for the companies and obtain over Sh1.7 Billion from close to 10 government ministries, state departments, parastatals and county governments paid through Rafiki Micro-finance.

“The MP and two of his trusted female associates approached youths and women to register companies and open accounts at Rafiki micro-finance, then used his influence and blackmail to secure tenders for the companies. However, one of Rigathi’s trusted confidants and Personal assistant Julianne Jahenda, was made a signatory in all the accounts opened by the suppliers at the micro-finance.

Director of Criminal Investigations George Kinoti Pulse Live Kenya

READ: Rigathi Gachagua slams judge after losing Sh202 million in high court ruling

“In a well-orchestrated and executed plan, the youths were then given loans by the micro-finance and assisted to supply the required goods, most of which were substandard and broke down immediately after being delivered, leading to losses of hundreds of millions of tax payers money.

“Hospitals were the most targeted by the crooked thugs who took advantage of efforts by County Governments to equip their health facilities and offer specialized health services to the public,” read the statement from DCI in part.

As soon as the payments were made, Gachagua and his associates would swiftly transfer the funds to his accounts, leaving the women and youth groups servicing loans incurred to deliver the faulty supplies.

“Shockingly, after the tenders were paid to the proxies’ accounts at Rafiki Micro Finance, Jahenda would immediately transfer the money to other accounts belonging to Rigathi, who would then deposit the monies in other different accounts to avoid detection by our hawk-eyed sleuths. In some cases, the poor youths would be compelled to sign blank cheques that would later be cashed and the money deposited to Rigathi’s personal accounts.

Rigathi Gachagua of Kenya Kwanza on the campaign trail Pulse Live Kenya

"The seasoned sleuths also established that there were funds going into Rigathi’s accounts from loans and inter-company transfers, indicating that he was the ultimate beneficiary of the funds received from the counties,” added the statement.

Sleuths got wind of his wayward scheme and moved in, teaming with the Assets Recovery Authority to have the matter prosecuted in court.

“The poor suppliers were then left paying for the loans that they acquired at the micro finance and supplied junks to county hospitals. It is through the painstaking investigations by sleuths from the Serious Crimes unit, that this high-level fraud was detected, leading to the freezing of Sh201,911,371.28 belonging to the MP by the Assets Recovery Agency.

“The Director of Criminal Investigations George Kinoti and the entire Directorate celebrates the detectives for a job well done, in a hostile environment. The Directorate encourages the sleuths to continue smoking out criminals, out to milk the country dry and deny our future generations a country to inherit,” concluded the statement.