Fund boss ‘to blame for loss of Sh180m’

Suspended Youth Enterprise Development Fund Chief Executive Officer Catherine Namuye has been accused of ordering the payment of Sh180.8 million to a firm that did nothing for it.

Acting CEO Emmanuel Odero told the National Assembly’s Public Investments Committee (PIC) that Ms Namuye directed Chase Bank to transfer Sh180.8 million to Quorandum Limited, which did not have a contract to offer consultancy services for the fund.

“I was the chairman of the tender committee before I was appointed acting chief executive officer. The supplier has never been procured by the fund. The tender committee did not approve such a service and has no tender minutes for the same. We have no contract with Quorandum Limited,” said Mr Odero.

Ms Namuye is said to have written two letters to Chase Bank, asking it to pay Sh115 million and Sh65.8 million to Quorandum Limited.

The money had been in a fixed deposit account and the payment was done without involving the signatories.

One of them, Ms Judi Kimeto, the lending officer at the fund, said she was not party to the instructions issued to Chase Bank.

EACC INVESTIGATING MONEY LOSS
Mr Robert Murima, the acting finance manager, said no transaction can go through without mandatory signatories appending their signatures.

“A Class B signatory cannot process a payment without a Class A signatory’s involvement. Two Class A signatories can sign,” he said.

PIC members were surprised by the revelations during a meeting on Monday afternoon.

They said the relationship manager at the bank would be invited to explain the suspicious transactions.

MP Kimani Ichungwa (Kikuyu, TNA) said Chase Bank acted contrary to the instructions the fund gave regarding signatories.

He said there could have been collusion between the bank’s employees and the fund staff.

“What are the standing regulations for government officials in signing bank transactions?” asked Mr Ichungwa.

Mr Cornely Serem (Aldai, URP) said the PIC needs an explanation on the issue of transferring money without the authority of the signatories.

Mr Odero said the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission had taken statements from the staff and are investigating the loss of the money.