Witness details complex National Youth Service fraud

From left: Ms Lucy Ngirita, Ms Anne Ngirita and Ms Phyllis Ngirita at Milimani Courts in Nairobi during the hearing of a case in which they are accused of stealing Sh468 million from the National Youth Service. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • Prosecutors argue that a corrupt ring of NYS store keepers, inspectors, accountants and senior managers colluded with former Public Service and Youth PS Lillian Omollo to approve payments of Sh8 billion to companies that did not supply anything to the NYS.
  • The procurement bureaucrat on Friday held that companies owned by members of the Ngirita family received millions for supply of tea leaves, canned beans, beef and pineapples that had actually been delivered by other firms.

Several contracts that the National Youth Service (NYS) awarded to suppliers were duplicated and used to pay firms owned by five members of one family at the expense of individuals who did legitimate business with the agency, a Devolution ministry official told the Chief Magistrate’s court Friday.

Mr Sebastian Mokua, a witness in the trial of 35 individuals over the theft of Sh226.9 million from the NYS, told chief magistrate Douglas Ogoti that contract numbers in genuine supply tenders also appear in documents that were used to process payments to Catherine Wanjiku Mwai, Lucy, Ann, Phyllis and Jeremiah Ngirita.

In some instances, the duplicated contracts would then have supply prices hiked, as demonstrated by Mr Mokua through a canned pineapples deal.

DIFFERENT AMOUNT

“Your honour, in the other circular, the contract NO. S/69294 was assigned to Chungo Commodities Limited whose address is in Nairobi. In the contract for Chungo there are four items. One item is duplicated for Jerrycathy but with a different amount. But all other items are different.

“For Chungo, the item which is duplicated is pineapple pieces tinned. For Chungo, the cost is Sh140 for 432 grammes whereas for Jerrycathy, the cost is Sh168 yet the product also comes from Del Monte,” Mr Mokua held.

Prosecutors argue that a corrupt ring of NYS store keepers, inspectors, accountants and senior managers colluded with former Public Service and Youth PS Lillian Omollo to approve payments of Sh8 billion to companies that did not supply anything to the NYS.

SH226.9 MILLION

The complexity of the scheme has now seen DPP Noordin Haji opt for prosecution in batches. In the trial that proceeded before Mr Ogoti, 35 individuals have been charged with the theft of Sh226.9 million.

At the time of the flagged payments, Mr Mokua was working at the State Department of Public Works as acting officer in-charge of the supplies branch.

The procurement bureaucrat on Friday held that companies owned by members of the Ngirita family received millions for supply of tea leaves, canned beans, beef and pineapples that had actually been delivered by other firms.

The trial was adjourned to November 12, when Mr Mokua will return to the witness box.