22 companies, 5 counties: DCI firms up Ksh.12B embezzlement case against MP Rigathi Gachagua

Mathira Member of Parliament Rigathi Gachagua was on Monday night interrogated by Directorate of Criminal Investigation (DCI) officers over the embezzlement and theft of county funds.

Gachagua also spent the better part of Tuesday at the DCI headquarters where he was questioned over the suspicious movement of over Ksh.12 billion through his bank accounts.

Citizen TV is in possession of the investigation report which has linked Gachagua and his associates to various tenders in several counties and state departments from where monies were transferred to his personal and company accounts.

Details of the investigation have been captured in a 25-page document which lists several tenders, payments, money transfer and associates since the year 2015.

According to the Serious Crimes Unit of the DCI, the investigations were triggered by the legislator’s suspicious dealings at the National Irrigation Board, Nyeri County government, several county governments as well as other public entities.

DCI has been investigating a total of 22 companies associated with the MP and has also visited 5 counties in the course of their probe.

In Kwale County a tender for Ksh.12 million was awarded to his company named Encartar Diagnostic Ltd for the supply of an incinerator. The company was paid Ksh.10 million when the incinerator was installed in 2013 but in 2019, the incinerator became faulty and is no longer in use.

In Bungoma County, a tender was yet again awarded to Encartar Diagnostic Ltd for the supply, delivery and installation of medical equipment for a period of two years.

The company was paid the bulk of the amount through Rafiki Microfinance accounts and thereafter transferred to Gachagua’s personal account.

The tender awarded by the Bungoma County government was for Ksh.123 million  and items supplied to 4 hospitals including the Bungoma Referral Hospital.

In Nyeri County, Rapid Medical Supplies Ltd, a company associated with Gachagua, was paid a total of Ksh.27.4 million for the supply and installation of 10 dialysis machines as well as a water treatment plant and dialysis kits.

But according to the DCI findings, three out of 13 bidding companies met all requirements including Rapid Medical Supplies which was the lowest among the three.

However, after supplying the dialysis machines in June 2014, one of the machines was not functional, and even after being replaced, the second equally failed to functional completely. Other equipment supplied as conductivity sensors and heating pumps worked for several hours and stopped. The water treatment plant has since stopped being used because the dialysis equipment has been faulty.

In Kisii County, a tender was issued for the supply and installation of a 16 multi-slice computed tomography also known as a CT scanner. Four out of ten companies met requirements and proceeded to the financial evaluation. Two companies associated with Gachagua were included and Encartar Dignostic Ltd won the tender at Ksh.52 million.

The CT scanner is still functional and several people who took part in the procurement process have been interrogated.

Still in Kisii, another tender was reportedly awarded to Rapid Medical Supplies worth Ksh.42.5 million to supply five ambulances at a cost of Ksh.8.5 million each.

According to the DCI, this tender was unanimously awarded to the company associated with Gachagua despite the bid being second lowest.

The Serious Crimes Unit is also investigating IFMIS payments to companies linked to Gachagua that have so far received over Ksh.2 billion since 2013.

But the vocal legislator has denied any wrong doing and says he is being politically targeted.

The DCI is also investigating how Bungoma County made payments directly to Gachagua totaling Ksh.112 million between June 2015 and June 2019.

Sources say the MP could be facing investigations on whether he influenced in any way the awarding of various tenders to companies associated with him.

DCI has since established that Gachagua has done business with many ministries, state corporations and county governments including; National Irrigation Authority, Lake Victoria South Water Works Agencies, Ministry of Lands, Mathira Constituency CDF, National Land Commission, Ministry of Devolution, Council of Governors, Kenya Informal Settlement Programme, Tana Water Works Agency, Ministry of Energy, Water Regulatory Authority, Ministry of Finance, Ministry of Transport and the Kenya Rural Roads Authority.

Two accounts – one with Ksh.35 million and the other with Ksh.165 million at Rafiki Microfinance – have since been frozen as investigations continue.