Waiguru ensured theft at NYS was undetected, PAC told

Former Devolution Cabinet Secretary Anne Waiguru directed the reorganisation of scandal-riddled National Youth Service (NYS) to ensure the theft of Sh791 million took place without detection.

Samuel Wachenje, a former NYS deputy director in charge of the finance department, said Ms Waiguru called a meeting at her Harambee House office at which she directed that all procurement and payments be centralised at the NYS headquarters, meaning there would be no oversight by other government departments.

Mr Wachenje also told the Public Accounts Committee, which is investigating the scandal, that by the time he was interdicted, there was Sh2.5 billion in pending bills, meaning the total amount stolen from the agency may have exceeded the Sh1.8 billion known to have been lost so far.

“Ms Waiguru directed that Adan Harakhe be made in charge of key departments including finance, procurement, human resources and administration, and that all payments be approved at the NYS headquarters,” he said.

COVER FOR CORRUPTION

According to the MPs, the former Devolution minister's directive created the necessary cover for corruption to thrive at the NYS, since not even accounting officers at the ministry headquarters were in a position to approve and verify payments.

Maara MP Kareke Mbiuki said Mr Wachenje — who denied accumulating assets worth millions within a short period though his monthly salary ranged from Sh89,000 to Sh120,000 per month — appeared to have been used as a conduit by “high forces” to embezzle public funds.

The former NYS official asked to give evidence behind closed doors to explain how pressure was coming from top officials to conduct fraudulent transactions and payments that led to the loss of billions from the NYS.

He said former director-general Nelson Githinji asked him to be in charge of the finance docket, although he could not furnish the committee with the written letter of his appointment. He was picked to head the department though he had not studied accounting as a profession.

Mr Wachenje, who denied owning a Sh21 million maisonette in Nairobi’s Kasarani estate, a Toyota Harrier worth Sh3.3 million and Sh10 million in his bank account, told the committee he studied Economics at the University of Nairobi and was also an alumnus of Starehe Boys Centre.

COMPETENCE QUESTIONED

Tongaren MP Eseli Simiyu said former Starehe director Geoffrey Griffin “was turning in his grave” on learning that one of his former students had paid a whooping Sh791 million to build a road in Kibera, whose cost government engineers had put at Sh78 million.

His competence also came into question after he admitted he approved a payment of Sh12.5 million to the Consulting House, a public relations agency, in excess of the contract sum, which he said was an “oversight.”

Mr Wachenje's revelations raise more questions about the role of Ms Waiguru in the NYS scandal, given that she directed that individuals of questionable competence, including Mr Harakhe, whose academic qualifications are also shrouded in mystery, be in charge of key departments.

Ms Waiguru has denied any active role in the scandal, saying she was a whistle-blower. She resigned from office under pressure but has not come out to deny claims by her officers, including allegations that her supposed companies won tenders worth Sh3 billion.

ZEROES ADDED

Kipkelion West MP Jackson Rop also questioned Mr Wachenje’s approval of the Sh791 million payment. Although the materials, personnel and equipment were from the NYS, he still went ahead and made payments to three companies owned by Josephine Kabura, for which he blamed Ms Waiguru for “giving instructions” for the payment.

Former principal secretary Peter Mangiti was also thrust into the picture, on the commitment for payment of Sh695 million, saying he directed that the payment be made since it was at the express direction of “Ms Waiguru.”

The payment was frozen after Mr Harakhe claimed his password had been stolen and Ms Waiguru called in the Directorate of Criminal Investigations (DCI) to probe alleged theft at the NYS.

The DCI has stated previously that in the course of its investigations of the attempted theft of the Sh695 million, detectives discovered that much more had already been stolen, through the “addition of zeroes”, before the ministry raised the red flag.