Fraudsters stole Sh791 million from National Youth Service, says Devolution Cabinet Secretary Anne Waiguru

Cabinet Secretary for Devolution and Planning Anne Waiguru and Principal Secretary Mwanamaka Mabruki address the Press at the Harambee House yesterday. [PHOTO: FIDELIS KABUNYI/STANDARD]

It is now official, the National Youth Service (NYS) lost Sh791 million in a scandal allegedly involving six companies.

Devolution and Planning Cabinet Secretary Anne Waiguru, under whose docket the NYS is placed, said she received a reply letter from the Director of Criminal Investigations attesting to the fraud following submission of her probe request in June.

Waiguru said investigations identified fraudulent payments made to suppliers of road construction and building materials.

She also said DCI confirmed efforts by some officers to defraud NYS of Sh695 million in committed transactions. “The DCI confirmed that they have completed investigations and have submitted the file to the Director of Public Prosecution for further action,” she said in Harambee House, Nairobi yesterday.

The letter, said Waiguru, has also submitted to the ministry names of 21 officers recommended for prosecution.

The minister released names of the suspects including Ministry of Devolution’s Joel Kanyi Karenju, Francis Kariuki, Jennifer Manyara Mugure and Roda Kavu Makau.

Others are NYS officers Adan Karakhe, Samuel Wachenje, Hendrick Nyongesa Pilisi, Naftaly Githinji, Ruth Njeri Hihu, Charles Onsase Nyaachi, Mary Wangui Mbuthia, Ezekiel Karanja Kamau, James Gitau Kanuthu, Samuel Kilonzi, Fredrick Okello Nasiche, Regina Nyambura Mungai, Philip Joshua Otinga, Jane Wangeci Gichuki, David Dicks Alunga, Titus Libondo and Chemos Kororia Ndiema.

These are just suspects and they remain innocent until proven otherwise through a judicial process.

The four from the Ministry of Devolution and the rest from the NYS are set to face disciplinary action from the ministry pending action from the DPP. “I am submitting the names to the Ministerial Human Resource Advisory Committee and to the Public Service Commission in line with the law and HR policy to send all the officers on compulsory leave pending the decision by the DPP,” said the CS.

Quick action

Waiguru said she was relieved for the completion of the first stage of the investigation adding it was a positive step to a progressive closure of the matter.

In June, Waiguru said she invited police to investigate an attempted fraud amounting to Sh826 million at the NYS.

“I wrote to the CID on June 5 asking them to investigate various IFMIS transactions that had been reported suspect. To avert financial loss, the Authority to Incur Expenditure (AIE) holder flagged the matter immediately and this prompted my action,” she said.

The CS, however, said from the transactions, no amount had been paid. She also said so far no officer has been suspended as it’s not clear if it was an inside job or external hacking.