A bid to stay a court order requiring Deputy President Rigathi Gachagua to pay the state Sh200 million has failed.
However, the Court of Appeal declined the bank’s request to stay the implementation of a High Court decision.
The funds, which were declared to be the proceeds of crime, are held in Gachagua’s Rafiki Microfinance Bank account.
In July of this year, Justice Esther Maina ruled that the DP had failed to produce evidence to prove that his wealth was derived from loans and government tenders.
She ordered him to forfeit the funds in his bank account for failing to provide a valid source.
However, the bank filed an application with the Court of Appeal to stay the implementation of those orders pending an appeal.
They contended in front of Justices Imaan Laibuta, Kathurima M’Inoti, and Paul Gachoka that the money in question is a security that guarantees several loan facilities.
According to the institution, the Asset Recovery Agency has been demanding the money and has threatened to file contempt proceedings if it is not paid immediately.
However, the Court of Appeal dismissed the bank’s application, citing Section 92 (6) of the Proceeds of Crime and Anti-Money Laundering Act.
The section provides for an automatic stay, which means that the Assets Recovery Agency cannot seize the funds in question until the appeal is resolved.
