Firm got Sh128m from Youth Fund 'for no work'

Public Investments Committee chairman Adan Keynan (left) with vice chairman Kimani Ichung’wa probe a Youth Fund official at Parliament building. PHOTO | ROBERT NGUGI | NATION MEDIA GROUP

What you need to know:

  • Quorandum Limited was contracted by the Fund for consultation work on two contracts.
  • Mr Odhiambo told Public Investments Committee he unilaterally appointed Ms Namuye the sole signatory to the Fund’s investment account at Chase Bank.

  • Ms Namuye signed over the money to Quorandum Limited just 10 days after the authority was given to her.

A company based on Mombasa Road was the recipient of Sh128 million from the Youth Enterprise Fund between July 2014 and February 2015, according to documents set to be presented Thursday to the Public Investments Committee.

Quorandum Limited was contracted by the Fund, now under the spotlight after revelations of financial impropriety, for consultation work on two contracts.

The company was contracted to come up with a national information communication and technology strategy and policy for the Fund and a review of its business process and technology.

The company was represented by its Managing Director, Mukuria Ngamau, and Chief Operations Officer Paul Ndegwa at the meetings where the contracts were signed with the Fund.

Suspended Managing Director Catherine Namuye signed the contracts as the representative of the Fund and an advocate named Miriam Boit as a witness.

The Public Investments Committee is Thursday set to meet the management of Chase Bank, where the Fund banked its money.

These accounts were reportedly abused by the management of the Youth Fund.

Bruce Odhiambo, the chairman of the Youth Fund Board, told the Public Investments Committee he unilaterally appointed Ms Namuye the sole signatory to the Fund’s investment account at Chase Bank.

Ms Namuye signed over the money to Quorandum Limited just 10 days after the authority was given to her.

Benedict Atavachi, who was a finance manager at the Fund, told PIC that the contract awarded to Quorandum was not rendered.

Mr Atavachi was suspended by Mr Odhiambo, with suspicions raised because he copied the letter to send him home to the then Devolution Secretary Anne Waiguru and Principal Secretary Peter Mangiti. Mr Atavachi would eventually become the whistleblower in the matter.

He said Quorandum had neither been given the contract nor was the finance department involved in authorizing the payment.

Elsewhere, Public Service, Youth and Gender Affairs Cabinet Secretary Sicily Kariuki has confirmed that Sh180 million meant for Youth Enterprise Fund cannot be accounted for.

“The accurate position on the missing amount is a total of Sh 180 million, which cannot be accounted for and not Sh400 million as claimed earlier,” said the CS.

INVESTIGATIONS

Investigations are underway to get hold of those responsible for the unaccounted for money.

“It is only fair if a preliminary report by the inspectorate is brought to my office as we continue to investigate we take the appropriate action,” the CS said in Nakuru on Wednesday.