Former Garsen MP Danson Mungatana on Thursday appeared before the Malindi Law Courts over the alleged theft of Sh51.5 million from the Kilifi County government.
The former lawmaker was arrested alongside six other suspects for allegedly conspiring to acquire the said amount through fraudulent means.
He, however, denied the charges leveled against him, and was freed on a Sh3 million cash bail.
The prosecution wants the politician and his accomplices charged over uttering false statements, faking documents, acquisition of public property through illegal channels and handling proceeds from dirty deals.
Mungatana, who lost his first wife a few weeks ago, was arrested in Nairobi on Wednesday night over the said crimes before he was taken to the Malindi court for the case.
Mungatana reportedly used the name of a certain firm to get a loan amounting to Sh9.1 million from the Kilifi County Government.
Preliminary investigations indicate that six firms linked to Mungatana benefited from the scam.
The firms, however, did not deliver the promised services to the county government before the arrest was made.
The firms linked to saga are Johazi Investment Company, Kilingi Investments Company Limited, Makegra Supplies Limited, Leadership Edge Associated Limited, Daima One Enterprises and Zohal Services Limited.
The Ethics and Anti-Corruption Commission (EACC) discovered that the county government of Kilifi had made the payments but goods or services were not delivered at the end of the day.