https://nation.africa/kenya/news/politics/rigathi-gachagua-the-making-of-mr-moneybags-3891994
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[SIZE=7]Rigathi Gachagua: The making of Mr Moneybags[/SIZE]
Tuesday, July 26, 2022
While he recently admitted that he is worth Sh800 million, a good tidy sum for a tenderpreneur, investigators who have taken him to court would want him to account for close to Sh12.5 billion that passed through his accounts.
During his recent dealings, Mr Gachagua had targeted the health and agriculture sectors, which receives the bulk of funding from the national government. This is the playground where he has made billions of shillings and formed business networks which baffled detectives who looked at the cash trail that led to the blocking of his accounts.
Mr Gachagua runs his empire with his born-again pastor wife, Dorcas Wanjiku. Both are joint shareholders of 15 companies that have been the target of detectives and the Assets Recovery Agency. These are Wamunyoro Investments, Delta Merchants Limited, Heartland Supplies Limited, Calvary Creed International Limited, Ridor Properties Limited and Ridor Furniture Mart Limited. Others are Specific Supplies (K) Limited, Biovet (K) Ltd, Pioneer Medical (K) Limited, Technical Supplies and Services (K) Limited, Vetland Agencies Limited and Crystal Kenya Limited. They also own Elisons Hair and Beauty, whose two employees transact millions.
The total amount that has been frozen from his accounts is Sh202 million though the total amount paid to firms linked to Mr Gachagua amounts to Sh2.1 billion.
In one instance, Encartar Diagnostics Limited received business worth Sh400 million from the counties of Nyeri, Bungoma, Kwale, Kisii, and Tharaka-Nithi. Some bank documents show that this company transferred Sh113 million to Mr Gachagua’s Savings Account at Rafiki DTM.
Rapid Medical Supplies, the company which has Mr Gachagua’s PA as a signatory — though not a director — had in one instance transferred Sh58.2 million to Mr Gachagua’s Rafiki DTM account. There are other “unspecified transfers” of Sh120 million to the same account, an indicator that there could be other unexplained sources of money.
Another beautician used as a proxy was Ms Julia Muthoni, a beautician at Ellisons Hair and Beauty who registered two companies: Klishine Limited and Asoma Enterprises. Records indicate that there were cash flows to Mr Gachagua’s Wamunyoro Investments from Asoma Enterprises. Some of this money came from CDF Mathira, Nyeri County, Kenya Rural Roads Authority-Nyeri and National Irrigation Board.
Skytop Agencies has been prolific in winning tenders from government ministries which includes Lands (Sh82 million), National Irrigation (Sh51 million) and has been the conduit of “loans” (Sh234 million).
Some of the money is later paid to “Rigathi Gachagua and relatives” (Sh36 million) or bank cash withdrawals and through M-Pesa (Sh64 million).
In Nyeri County, during the governorship of Mr Gachagua’s brother, the auditor-general found that Encartar Diagnostics Limited was once awarded a Sh12 million tender to install a dialysis machine. This machine later broke down after installation. The company was also awarded another Sh123 million tender in Bungoma for the supply of various medical equipment. The company transferred the bulk of the money, first paid to Rafiki Micro Finance Account, to Mr Gachagua’s personal account in the same institution.
Mr Gachagua has another company, Technical Supplies & Services (K) Ltd, which has been doing business with the national government. The money is shown to flow directly to Wamunyoro Investments.
Another element of Mr Gachagua’s wealth is that he has not invested in businesses that have huge number of workers. Instead, some of the companies are briefcase companies – and as ARA seemed to suggest, some of the money was disguised as loans to conceal the funds.