Youth jobs cash probe started in June: WB

The World Bank on Tuesday said it began investigations into a youth programme under the Office of Prime Minister four months ago.

The financial institution said the investigation led to the subsequent cancellation of the programme on October 11. (READ: WB cancels funding for Kenya youth project)

The funds would be diverted to other activities aimed at raising youth employment in the country, the Bank added.

In a statement sent to newsrooms titled World Bank on Kenya Youth Empowerment Project locally known as Kazi Kwa Vijana, the financial institution stated that on August 18, 2010, three projects were initiated under the programme.

In the projects, three components were identified, including labour-intensive works and social services to which Sh4.3 billion was allocated and was to be coordinated by the Office of the Prime Minister. It was called Component I.

In the second programme, the Kenya Private Sector Alliance (Kepsa) was given Sh1.5 billion for private sector internships and training and called Component II.

The Ministry of Youth and Sports was given another Sh1.5 billion under the programme to provide capacity-building and policy development. This was called Component III.

The World Bank said that while it was satisfied with how Components II and III utilised their funds, it was not happy with how the OPM expended its funds.

The Bank said it will continue funding the Kepsa and Youth ministry components.

The international institution said a financial management review of Component I found that transactions totalling Sh33,061,925 required further clarification from the government to determine whether they were eligible to be paid out of the fund.

At the same time, Prime Minister Raila Odinga will face a parliamentary committee over the alleged embezzlement of funds.

Public Accounts committee chairman Bonny Khalwale said they also want the auditor general to do an audit on the Kazi Kwa Vijana programme before they question the PM.

Sports assistant minister Kabando wa kabando said the PM should take political responsibility over the scam. (READ: PM told to resign over jobs scandal)