Prosecution wants ex-Youth Fund boss put on defence

The prosecution has asked a court to put a former Youth Enterprise Development Fund chief executive on his defence in a Sh208 million embezzlement case.

The prosecution states that as the chief accounting officer, Mr Juma Mwatata breached a section of the fund’s order in 2007 by signing a contract with Comnete Technologies Limited.

In submissions filed on Wednesday, the prosecution alleged Mr Mwatata signed the contract for the supply of 1,050 hatching machines. with without the requisite approval from the board.

"The section of the order quoted in the court document vests the board with the management and administration of funds," Mr Fredrick Ashimoshi submitted.

He said evidence by Mr Gor Semelang'o and Mr James Gitau Singh — who were the fund’s chairman at different times — indicates clearly that “no approval was sought and given by Youth Enterprise Development Fund board prior to the execution of the contract."

Mr Mwatata is charged with willful failure to comply with laws relating to management of funds, abuse of office and engaging in a project without prior planning.

The prosecution says he improperly "conferred a benefit" on Comnete Technologies Limited to supply 1,050 hatching machines at a contract of Sh208,520,000.

"The contract was executed and payment of 30 per cent of the contract price approved on the same day, August 16, 2012 before the bidder furnished an advance payment bond," the prosecutor said.

LYING IN STORES

He said that witnesses testified that the hatcheries are still lying in stores at Kasarani Stadium and the project was not viable as the fund did not recover its investment.

"The poultry farmers who applied for loans testified that they incurred losses and are unable to pay their loans due to malfunctions of hatching machines," Mr Ashimoshi said.

He added that several board meeting minutes were produced in court and none captured the budget for the project as having been approved.

"The prosecution has adduced evidence that the project was not budgeted for in the estimates presented and approved by the board," he said.

Mr Ashimoshi submitted that the prosecution had established a case against Mr Mwatata.

"We therefore urge the court to rule that the accused has a case to answer so that he can give an explanation as provided under the criminal procedure code," the prosecutor said.

The case will be mentioned on June 21.