The Assets Recovery Agency has refuted Mathira MP Rigathi Gachagua’s assertions that the Sh200 million they seek forfeited to the government is repayment of loans. Gachagua and Anne Kimemia of Jenne Enterprises Limited, according to the agency’s submissions, have failed to produce any proof to prove a relationship between the purported “loans” acquired or guaranteed and the money in question. Kimemia is a close business associate of Gachagua’s.
The supposed loans, according to the agency, are nothing more than a ruse to deceive the court.“The allegations by Gachagua that they transferred funds from the conduit companies to their accounts to trade with or hold in trust is playful. This is because the companies are legal entities that can enter into agreement with other entities including the shareholders or directors and there is no existence of such agreements between Gachagua and the companies,” the agency says.
“We argue that the issue before the court is the validity of the money in issue and whether the same can be forfeited to the state,” it writes.
Gachagua alleged in his filings that he saved Sh200 million at Rafiki Microfinance Bank between 2013 and 2020, which he put into a fixed deposit account.He claims that every time money was rolled over, the bank statement would show a new entry for the same amount after three months, giving the false appearance that the account was holding Sh12 billion. He claims that the savings were necessary to allow company entities in which he was an investor and shareholder to obtain bank loans and guarantee those corporate entities’ ability to conduct business.