Waiguru to face committee in youth fund probe

Former Devolution Cabinet Secretary Anne Waiguru. The Public Investment Committee (PIC) Vice Chairman Kimani Ichung’wa said Ms Waiguru and former PS Peter Mangiti should appear before the committee in two weeks time to shed light on the loss of Sh180 million from the fund, paid to a phantom company that apparently did no work. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • A letter suspending finance manager Benedict Atavachi, and copied to both Ms Waiguru and Mr Mangiti, was illegal, since as a non-executive chairman he had no authority to interfere with the day-to-day running of the organisation, including suspension of junior officers.

A parliamentary watchdog team investigating corruption at the Youth Enterprise Fund has summoned former Devolution Cabinet Secretary Anne Waiguru over the matter.

Public Investment Committee (PIC) Vice Chairman Kimani Ichung’wa said Ms Waiguru and former PS Peter Mangiti should appear before the committee in two weeks time to shed light on the loss of Sh180 million from the fund, paid to a phantom company that apparently did no work.

“All letters written by chairman of the board Bruce Odhiambo were copied to Ms Waiguru and Mr Mangiti and it is only fair that they appear before this committee to tell us what they know,” he said.

Acting inspector general of state corporations Titus Muriithi said investigations by the agency indicated that most of the decisions made by Mr Odhiambo were irregular and outside his mandate, and varied with the decision of the board.

A letter suspending finance manager Benedict Atavachi, and copied to both Ms Waiguru and Mr Mangiti, was illegal, since as a non-executive chairman he had no authority to interfere with the day-to-day running of the organisation, including suspension of junior officers.

Mr Muriithi, who appeared before the committee Thursday, said Mr Odhiambo also overruled decision of the board to send on compulsory leave both acting chief executive Catherine Namuye, and Mr Atavachi since the board had directed that they be suspended.

“Mr Odhiambo later sent Mr Atavachi a suspension letter while he was on leave to regularise the board decision but the same has not happened with Ms Namuye to date,” he said.

MPs put Mr Muriithi on the spot to explain why the inspectorate failed to take steps to deal with fraudulent transactions at the youth fund that led to loss of taxpayers’ money, and only seemed to act one year later after the committee had began probing the issue.

Igembe South MP Mithika Linturi said there appeared to be a cartel at the ministry of Devolution, Treasury and the Youth Fund.