Mathira MP Rigathi Gachagua, who spent the weekend in police custody, Monday pleaded not guilty to six counts related to Sh7.4 billion graft.
The charges he faces involve money laundering, fraudulent acquisition of public property, conflict of interest and conspiracy to defraud the Nyeri county government.
Mr Gachagua was arrested on July 23 at his Sagana home in Nyeri County and is charged alongside nine people who are not in court.
In court on Monday, the prosecution asked Chief Magistrate Lawrence Mugambi to issue summons against the nine so they can answer to the charges.
The prosecution did not oppose Mr Gachagua's bail application, made by his legal team of 10 lawyers led by Kioko Kilukumi. However, it asked the magistrate to consider the amount of money in question.
He was released on a Sh12 million cash bail or a bond of Sh25 million and ordered to deposit his passport in court.
The MP’s release came even as his legal team accused the State of using the lower courts in the Judiciary to impose stringent bond terms on graft suspects.
Dr Irungu Kang’ata (Murang’a senator) also alleged that the Directorate of Criminal Investigations (DCI) is “throwing” huge figures in court documents to force magistrates to impose hefty cash bails and bond terms.
“Under article 49 of the Constitution, every accused person is presumed innocent until proven guilty and has the right to be released on bond. The bond terms granted to Mr Gachagua are too high yet the tenets of bail and bond are to secure the court attendance of the accused person,” said Dr Kang’ata.
Lawyers Silvanus Osoro (South Mugirango MP) and Alice Wahome (Kandara MP) said the bond terms were equal to a penalty or a fine.
They claimed that the lower courts are being used by the State to persecute politicians allied to Deputy President William Ruto.
The other lawyers for Mr Gachagua were Gladys Sholei, Kipchumba Murkomen, Gibson Kimani, Wycliffe Nyambuto, Agnes Kibiru and Paul Gacheru.
Mr Kilukumi, a senior counsel, told the court that the lawmaker was arrested at 3am on Friday by a squad of 20 police officers, whom he said violated his rights by failing to present him in court within 24 hours as required by law.
Mr Gachagua is accused of acquiring Sh7.3 billion in proceeds of crime between 2013 and 2020, through business dealings in the government.
The six counts he faces include conspiracy to commit an offence of corruption, fraudulent acquisition of public property, conflict of interest, money laundering and acquisition of proceeds of crime.
The prosecution has pegged the first three charges on the Anti-Corruption and Economic Crimes (ACECA) Act of 2003, where Mr Gachagua could face a maximum of 10 years in jail for each count.
The other three charges are premised on Proceeds of Crime and Anti-Money Laundering Act, 2009, where he could face a total of 42 years.
The lawmaker is charged alongside nine others, who are yet to be arrested, though they have since been summoned by the Anti-Corruption Court in Milimani, Nairobi, on August 3.
They include Mathira CDF manager William Mwangi Wahome, Ann Nduta Ruo, Julianne Jahenda Makaa and Samuel Murimi Ireri. Also wanted in court to answer to the charges are Grace Wambui Kariuki, Lawrence Kimaru, Irene Wambui Ndigiriri, David Reuben Nyangi Nguru and Rapid Medical Supplies Ltd.
Together with the MP, they are jointly charged with conspiracy to commit corruption by defrauding Nyeri County of Sh27.4 million, purportedly for supply of dialysis machines to Nyeri Provincial General Hospital.
Mr Nguru, Rapid Medical Supplies and the MP face a separate charge of fraudulent acquisition of public property.
Chief magistrate Lawrence Mugambi heard that on December 29, 2014, they received Sh6 million from the Nyeri County government, being part of the payment for the supply of the dialysis machines.
Regarding money laundering, the State claims that between January 2015 and June 2019 Mr Gachagua, with intent to unlawfully dispose monies received from Bungoma County, indirectly received Sh104.8 million and engaged in a movement to conceal transfer of the said sum.
The court heard that between September 2015 and September 2016, he laundered Sh7.5 million received from the Kwale County government.
On acquisition of proceeds of crime, the State claims that between year 2013 and 2020, the MP fraudulently acquired Sh7.3 billion through his three accounts at Rafiki Microfinance Bank.
On conflict of interest, the court heard that Mr Gachagua acquired indirect private interest in a contract for construction of Njathaini primary school, funded by the Mathira CDF.
The State claims the contract was awarded to Skytop agencies, a company owned by Ms Makaa, who is his close associate.
