Second phase of NYS probe starts

The Directorate of Criminal Investigations and the Director of Public Prosecutions have begun the second phase of investigations into the loss of billions of shillings at the National Youth Service.

Of the 54 suspects named by DPP Noordin Haji on Monday, only 19 have been arrested.

Mr Don Mwaniki Kariungi, another suspect, surrendered to the DCI and was taken to court Tuesday morning.

The Integrated Financial Management Information System buyer went to DCI investigations bureau director John Kariuki’s office when he saw his name in the list made public by the DPP.

Police hope the next phase of the investigations will lead to the recovery of more money.

LOSS OF SH469 MILLION

Top DCI officers said they believe NYS employees and the directors of 10 companies who have appeared in court were involved in the loss of Sh469 million.

About Sh9 billion was lost in the scandal that involved fraudulent payment of funds from NYS.

Those yet to be apprehended include Mr Nicholas Ahere, a senior deputy director at NYS; Mr Wellington Lubira, the acting director of finance; Mr Evans Kundu, who was in charge of the Mechanical and Transport department; Mr Clement Murage, a former chief accountant at NYS, and Mr Peter Maema.  They are accused of receiving fraudulent payment vouchers and signing them.

Others are former senior superintendent at NYS Peter Murutu; former head of procurement Rogers Nzioka and internal auditors Lucas Owino, Stephen Riungu and Peter Muthomi.

STILL AT LARGE

Former officer in charge of operations at NYS Huduma Centre George Ouma; former senior accountant Christopher Simbauni, Mr Humphrey Mbogo, an accountant, and several others are still at large. They are believed to have helped suppliers to fill fake stock card ledgers. 

These are cards that show every item that is in and out of stores.

According to the DCI, some of the cards issued to the companies did not originate from NYS.

Mr Haji said the first phase of the investigations showed money was paid to some people and firms who were not awarded any tenders. 

“I urge suspects who are still in hiding to surrender to the DCI or the nearest police station,” Mr Haji said.

CANNED BEEF

Ms Catherine Wanjiku, the director at Kunjiwa Enterprises which received Sh23.4 million for supplying canned beef and pineapples despite not bidding, is still at large.

The circulars and contract documents issued were declared fake by detectives.

Arkroad Holdings, whose directors are Peter Warugah Kimani and Anthony Wakara Wamiti, received Sh28.7 million for supplying drilling grease.  Investigators said counter requisition and issue vouchers used were backdated for most local purchase orders.

DCI officials received evidence for that from the Government Printer, the Credit Reference Bureau and the hand over or take over reports issued by employees.

FRAUDULENT PAYMENTS

The supply of goods by these companies was not registered for and some payments were made before the firms bid or supplied them.

DCI boss George Kinoti said the second phase of the investigations began soon after the first one was completed.

“The second phase will focus on the companies and banks that benefited from the fraudulent payments,” Mr Kinoti said.