Detectives have arrested Mathira MP Rigathi Gachagua.
Mr Gachagua was seized from his Sagana home in Nyeri County.
The MP told Nation.Africa on phone that detectives from the Directorate of Criminal Investigations (DCI) raided his home early Friday morning.
“As predicted two dozens of DCI officers raided my Nyeri home and arrested me to face trumped-up charges of money laundering. I am being driven to Nairobi at reckless speed to spend the weekend in the cells,” the MP posted on his social media page.
Last month detectives said they have finalised investigation into tenders involving companies associated with Mr Gachagua, putting the legislator in trouble over Sh12 billion said to have passed through his accounts.
The number of companies associated with the MP’s transactions, and those of his proxies, have now reached 40, revealing what seems to be a complex web of transfers.
Most of the transfers end up in a company known as Wamunyoro Investments Limited, where Mr Gachagua and his wife, pastor Dorcas Wanjiku, are the only shareholders.
“We have completed that investigation and it has taken us a lot of time,” said Director of Criminal Investigations George Kinoti, without revealing his next move.
Eight months ago, detectives from the Serious Fraud Unit of the Directorate of Criminal Investigations questioned the MP over alleged corruption and money laundering and later released him without charges.
In their final report, detectives say Mr Gachagua used his companies and proxies to fraudulently procure multibillion-shilling health tenders in the counties and the national government.
For instance, while a company known as Upperdeck Agencies won a Sh9.4 million tender to supply linen to Nyeri County hospitals, its proprietors were listed, in the bank records, as Gerald Waema Mbatha and Moses Otieno.
Detectives later found out that when the money was paid on February 18, 2015, the entire amount was transferred to Wamunyoro Investments Limited, leaving a balance of Sh5 only.
Proxies companies
They also found out that the listed proprietors were not signatories to the bank account.
The sole signatory was a Mr Sammy Cheborgey, an employee of Mathira National Government Constituency Development Fund (NG-CDF) committee. But Kenya Revenue Authority documents indicate Mr Gachagua is linked to the company.
The entire scheme appears to have started when Mr Gachagua’s elder brother, James Nderitu, who died in 2017, was the governor of Nyeri County.
The family appears to have used some of the companies – through proxies – to carry out business with the county.
“Accounts held at Rafiki Deposit-taking Microfinance have been used to source for loans (and) these loans have been used to cover up for funds received from government departments or intercompany transfers in a bid to conceal the ultimate beneficiary or beneficiaries of the funds,” the final investigation report says. BY DAILY NATION