Anti-graft sleuths probe NYS over new suspect deals

Anti-corruption detectives raided the National Youth Service headquarters in Nairobi on Tuesday and took away vouchers used to pay suppliers last month.

Sources said that three detectives from the Ethics and Anti-Corruption Commission (EACC) were interested in eight vouchers used to pay suppliers for the delivery of training tools and equipment.

The value of the vouchers was not immediately established but the money was paid out last month.

As part of the ongoing investigation, several senior NYS officers have been summoned to the EACC headquarters to give more information on the payments.

EACC Deputy Chief Executive Michael Mubea on Wednesday confirmed that anti-corruption detectives were at the NYS headquarters on Tuesday investigating issues related to irregular payments.

INVESTIGATING IRREGULAR PAYMENTS

He said the fresh investigation had nothing to do with the previous one undertaken by the Directorate of Criminal Investigations (DCI) into the loss of Sh791 million.

“We are looking at something entirely different and not what the DCI looked at. I can’t get into details of what we are looking at because it is too early but we are undertaking investigations on irregular payments,” Mr Mubea said.

He also said that the EACC, on Wednesday, received a file from Director of Public Prosecutions Keriako Tobiko on the Sh791 million scandal. However, the commission was yet to launch investigations into how the money was lost.

“We will study it and then launch our investigations,” Mr Mubea said.

On Wednesday, NYS Director-General Nelson Githinji also confirmed that EACC officials had been to their offices and were given documents to assist in their investigations.

“They asked for some documents as part of their investigations, I guess as directed by the DPP. The approach is usually a letter addressed to the organisation’s head with (a) specific request for documents relating mainly to suppliers like payment vouchers. But on this one, it identifies the merchants through LPO numbers and not names,” Dr Githinji said.

IT IS A DECOY
If it turns out the money was paid irregularly, it will be the third time in as many months that the NYS is on the spot over corruption allegations.

In June, Devolution and Planning Cabinet Secretary Anne Waiguru revealed that there had been an attempt to siphon Sh800 million from the NYS using the stolen Integrated Financial Management Information System (Ifmis) passwords of Deputy Director Adan Harakhe.

She said the plot was discovered before the money could leave the NYS account.

Last month, while giving a progress report on the investigations undertaken by the DCI, Ms Waiguru again said that NYS had lost Sh791 million in irregular payments.

It later emerged that four companies linked to politically connected individuals received the bulk of the money and that the amount was used to pay for work done in the upgrading of Nairobi’s Kibera slum.

Ms Waiguru named 21 public officials she alleged were responsible for the fraud.

However, her critics claimed that the announcement was meant to shield those involved in the loss of the Sh800 million.

WAIGURU CHALLENGED
In July, Cord leader Raila Odinga had said that Ms Waiguru should be sacked in connection with the loss of the Sh791 million.

Last month, Ms Waiguru demanded that Mr Odinga withdraw the remark and apologise or she would sue for defamation.

However, Mr Odinga, through his lawyer, Mr Paul Mwangi, said he would not apologise. He challenged the CS to sue him, saying this would give her an opportunity to explain how the money was lost.

On Tuesday, Ms Waiguru filed court papers suing Mr Odinga and seeking damages for tarnishing her character.

In the documents filed through the firm of Mohammed Muigai and Company, she accused Mr Odinga of uttering defamatory statements about her at a July 17 press conference while linking her to the Sh791 million scandal.

Last week, Mr Tobiko criticised the investigations carried out by the DCI and wondered why Ms Waiguru had not recorded a statement over the matter and yet she had initiated the investigations.

He also questioned why the EACC had not been involved in the investigations as most of the dealings in question fell under the EACC’s legal mandate. He said the case was beyond the mandate of the DCI.

21 MENTIONED IN SAGA
According to Mr Tobiko, only two of the 21 officials adversely mentioned over the loss had recorded statements with the DCI as suspects; the rest did so as potential witnesses.

Queries were also raised about why the huge payments made to five companies were not reported to the Central Bank or the Financial Reporting Centre as required by law.

It has emerged that all firms that received suspect payments had accounts at the KTDA branch of Family Bank.

“From the evidence, huge deposits and withdrawals were made at these bank accounts,” Mr Tobiko said. “It is not clear from the file how such deposits and withdrawals were made without the same being reported to CBK as required by law.”