Arrests start for suspects in NYS scandal

The first suspects of the National Youth Service (NYS) scandal are expected in court this week as investigating agencies complete their work.

In an indication that arrests may be carried out as early as today, the Directorate of Criminal Investigations (DCI) forwarded 10 files to Director of Public Prosecutions (DPP) Noordin Haji early Sunday morning.

Mr Haji received the files at 12.43am with recommendations to charge at least 48 individuals drawn from senior management at NYS and National Treasury, as well as suppliers.

The suspects face charges that include forgery, money laundering, abuse of office, obtaining by false pretence and fraud.

However, it is not automatic that all 48 will be charged immediately because after the DPP peruses the files, he has the power to either direct the DCI to re-investigate, close a file in case of insufficient evidence or even turn some suspects into State witnesses.

Haji said they were studying the paperwork.

“We are still reviewing the files and will give direction anytime and as soon as we are through. We have a competent team.”

The DPP said he was leading a team of experienced prosecutors during the final review of the files. Other officials said teams of investigators had been put on standby for action starting today or tomorrow.

Director of Criminal Investigations George Kinoti said the probe into claims of fraud at NYS was wide and deep, adding that it would be conducted in different phases.

“The hour of tears is approaching. That was the first phase of our investigations and we intend to go back to all complaints.”

Anticipatory bail

Last week, the High Court dismissed an anticipatory bail application in the NYS saga made by two suspects under investigation.

The two are James Thuita Nderitu, a director at Firstling Supplies Ltd, and Bernard Masiga Ayienga, senior finance officer at the Ministry of Public Service, Youth and Gender Affairs.

“I cannot hesitate to find that this application is unmerited. It does not meet the threshold for grant of anticipatory bail to the applicants. The same is dismissed with orders as to no cost,” ruled Justice Ngenye Macharia.

Firstling Supplies Ltd and Flagstone Merchants were paid Sh1.4 billion and Sh1.04 billion respectively from the Sh9 billion that is under investigation.

Besides arrest and prosecution, the State has flagged assets of individuals linked to the scam for possible seizure.

The Assets Recovery Agency (ARA) had been co-opted into the multi-agency team probing the payments as investigators identify assets and accounts where firms that may have been irregularly paid stashed the cash.

The 48 individuals are suspected to have either planned or aided the alleged looting through fictitious supplies and manipulation of the Integrated Financial Management Information System (Ifmis). They recorded statements last week.

Those questioned included directors of firms adversely mentioned as beneficiaries of fraudulent payments, procurement officers, auditors, accountants and finance officers from NYS.

They faced officers drawn from a team of detectives attached to the Economic and Commercial Crimes Unit, Financial Investigations Unit and the Serious Crimes Unit.

Payment documents

Suppliers were required to present letters of award, local purchasing orders, copies of contracts, delivery notes and invoices, and payment documents for work done as well as bank accounts they operate.

Some of those who recorded statements were Stephen Mwenda, head of supply chain at NYS, and his deputy Eliud Koome.

Mr Mwenda was appointed the substantive Head of Procurement late last year.

“We expect the individuals found culpable to appear in court in the next 36 hours from today,” Mr Kinoti said without revealing the identities of suspects or the amount of money involved.

Reports indicate that on Friday, Haji and Kinoti met to review statements recorded by the suspects.

The two met at the DCI headquarters on Kiambu Road where they scrutinised evidence gathered by detectives.