Former Garsen MP Danson Mungatana who was on Thursday arraigned at Malindi Law Courts denied fraud charges and was released on a Ksh.3 million cash bail.
Mugatana who was arraigned alongside six other suspects is accused of alleged theft of Ksh.51.5 million from Kilifi County.
The suspects are facing charges of fraudulent acquisition of public property, uttering false documents and dealing with proceeds of crime.
Mungatana had been arrested in Nairobi on Wednesday night and taken to Malindi.
He was linked to the scam by a businesswoman who claimed the politician used her company as a conduit to illegally receive Ksh.9.1 million from the Kilifi County Government.
According to the Ethics and Anti-Corruption Commission (EACC), investigations revealed that six companies were named as beneficiaries but did not deliver any goods or services to Kilifi County.
They are Daima One Enterprises, Zohal Services Limited, Makegra Supplies Limited, Kilingi Investments Company Limited, Leadership Edge Associated Limited and Johazi Investment Company.
It was discovered that the Local Service Orders (LSO) used were fake and did not originate from the county government.
EACC also found that County Government officials processed and approved payments for goods/services that were not delivered.
The Director of Public Prosecution however says that they are pursuing 14 others in the same syndicate.
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