Fresh details emerge on how NYS lost over Ksh 1.8 billion
Published on: June 07, 2016 07:01 (EAT)
Businesswoman Josephine Kabura Irungu, who implicated former Devolution and Planning Cabinet Secretary Anne Waiguru in the National Youth Service (NYS) scam, was the biggest beneficiary in the loot that saw the service lose over a billion shillings. In an Auditor General’s report tabled in the National Assembly, Kabura – who swore an affidavit implicating Waiguru in the Ksh 791 million scam – received Ksh 1,299,627,930 from NYS for services reportedly offered to the institution. Kabura, according to the report, received the money on account of eleven businesses transacted with the NYS. As if this was not enough, she was set to receive another Ksh 695,400,000 as payment for more services to the NYS in what the Auditor General terms as a ‘failed fraudulent payment’. Kabura rose to fame after swearing an affidavit in which she accused the former Devolution CS of being at the centre of the Ksh 791 million loss at the NYS. She was grilled by the Ethics and Anti Corruption Commission (EACC) more than once but always ‘stood by her affidavit’ despite Waiguru’s defence team poking holes at the document presented to the ethics body. On the other hand, Waiguru termed the affidavit by Kabura as ill-motivated and aimed at tainting her image. Waiguru was under pressure from the Coalition for Reforms and Democracy (CORD) under the leadership of Raila Odinga to resign following the allegations. She bowed to pressure and resigned, although citing a health advisory from her doctor. According to the special audit report now lying squarely in Parliament, a total of Ksh 1,863,512,255.66 was lost at the NYS under unclear circumstances. In case one, Ksh 791,385,000 was lost; another Ksh 609,252,760.60 lost in case two; Ksh 240,751,576.06 in case three; and Ksh 222,122,919 in case four. The report further revealed that Ksh 3,088,597,456.67, the annual wage bill of the NYS, was at risk of being misappropriated over lack of enough funds to pay suspected cartels doing business with the service. Another Ksh 70,000,000 paid by A.I.E. (Authority to Incur Expenditure) issued to NYS Gilgil Field Unit has also not been accounted for. The Auditor General recommends that Criminal Investigations be lodged against all officers involved in fraudulent transactions and appropriate action taken against them should they be found culpable. The Auditor General further recommends that all suppliers, businesses and companies found culpable in the loss of the money be terminated from transacting with the government and government agencies and appropriate action taken against them. The report also recommends the recovery of all wages and benefits paid to NYS cohorts.