By James Ratemo

A Canadian firm is threatening to pull out of a Sh100 million project with the Youth Enterprise Development Fund, after to the Fund’s internal wrangling put the project in jeopardy.

Youth Affairs Minister, Hellen Sambili and the Youth Fund Board both support different CEO’s, and both have vowed not to budge.

The board’s affair with a Canadian NGO, Enablis Entrepreneurial Network, which has been the bone of contention between the board and the re-instated CEO, Mr Umuro Wario, is now headed to the rocks.

Canadian International Development Agency (CIDA), which funds Enablis, says it will pull out of the agreement unless the raging controversy surrounding agreement between it and the Youth Fund is resolved by the end of next month.

In a letter to the Youth Fund Board Chairman, CIDA’s Head of Cooperation, Stephen Weaver, said the Youth Fund Board has reneged on its commitment, making CIDA contribution of Sh50million to lie idle in a Barclays Bank account.

Loan funds, provided to Enablis by CIDA, are given under the condition that matching funds are secured by Enablis on a 50-50 basis. This means with Enablis’ contribution of Sh50million, the Youth Fund is supposed to contribute a similar amount for the project to kick off.

"So far no payment has been made by YEDF to the Enablis Loan Fund. Until the YEDF funds are deposited, the loan Fund cannot be activated... In case this issue cannot be resolved by end December 2009, CIDA has instructed Enablis to explore new partnerships in Kenya and in the region, as this is a regional, and not a Kenya-specific initiative" warns Weaver.

In a press conference yesterday Youth Affairs Minister, Hellen Sambili stood her ground on the re-instatement of Wario, even as the Youth Enterprise Development Fund vowed never to recognise Wario as CEO.

"I stand by my position to reinstate Mr Wario which was totally in line with the Prime Minister’s Circular of June 22, 2009, which mandates the Ministers to deal with the appointment and removal of CEOs," argued Samibil.

In an Interview with The Standard, the Board Chairperson, Helen Tombo, vowed not to allow Wario back as CEO, instead saying the acting CEO, Ture Boru, is in charge.

"The Minister can revoke our contracts if she wants, but we cannot be part of an illegality. The Minister is no longer concerned to solve the stalemate and she once told us she is acting on orders from above," said Tombo.

Wario said he is still in office until directed otherwise by the Minister, and urged the Board to follow due process, instead of taking the war to the media.

Through paid-up advertisements and commentaries in the media, the Board has been reinforcing their position and dismissing Wario’s re-instatement.