I will not suspend Waiguru, says President Uhuru Kenyatta

State House sustained defence of embattled Devolution Cabinet Secretary Anne Waiguru over claims of attempt to pilfer over Sh800 million from the National Youth Service while ruling out that she was under investigations.

In a nutshell, the President’s statement on Waiguru made it clear he would not suspend her as demanded, first because there is nothing to hold against her, investigations are ongoing and they are not even about her as a person.

In a statement laden with claims that the Opposition was keen to taint the image of his administration ahead of planned visits by Pope Francis and US President Barack Obama, President Kenyatta through his spokesman Manoah Esipisu declared that in any case, not a coin had been lost in the bid to raid the NYS cash troughs.

The Presidency also brought in the line that only hard-working ministers like Waiguru were on the radar, insinuating that she was a victim of her ‘good work’.

“I must warn though, that the global attention on Kenya ahead of the Obama visit for the Global Entrepreneurship Summit and the visit by his Holiness, will attract attention-seeking politicians. These are likely to engage in schemes that depict the Government as corrupt and incompetent,” said the President through Mr Esipisu.

The opening statement in defence of Waiguru, who is under pressure from the Coalition For Reforms and Democracy led by Raila Odinga to step aside until her name is cleared in the NYS cash controversy, was on its own quite telling: “The corruption investigations at NYS have been twisted to meet certain political ends. It is for this reason that we need to put the record straight in the spirit of ‘Uwazi’ (transparency).

After outlining the progress of investigations so far, the President declared: “The report further indicates that so far, there is no evidence of loss of funds given that the transaction was reversed at Integrated Financial Information System (IFMIS)”. It however conceded there was attempt to illegally siphon through compromise of the payment system by way of ‘stolen identity’.”

This was the clearest indication yet that the embattled CS will not be suspended over corruption allegations rocking NYS.

Instead, President Kenyatta turned the heat on Waiguru’s critics, saying she was a victim of her efficiency as the controversy over the Sh826 million attempted fraud at NYS raged.

Esipisu made it clear that Waiguru, who is currently in Bogota, Colombia, enjoys the confidence of her boss since “officers who work to safeguard the public good must be protected”.

“There is never noise when there is no work. People who work tend to be targeted most of the time,” Esipisu told journalists at State House yesterday in a press conference called to ‘set the record straight’ over corruption claims in Waguru’s docket.

CS AWAY

“The corruption investigations at NYS have been twisted to meet certain political ends. It is for this reason that we need to put the record straight in the spirit of ‘Uwazi’. Secondly, the issue of Sh826 million has been twisted in order to execute a well-choreographed scheme,” he added.

And separately, National Treasury Cabinet Secretary Henry Rotich and his Principal Secretary Kamau Thugge told the National Assembly’s Public Accounts Committee that the attempt to manipulate the electronic platform to steal the Sh826 million was detected swiftly as the process was only in the second of a 26-step process.

Majority Leader Aden Duale (Garissa Township) notified the National Assembly that Waiguru was away from the country until July 6 on an international engagement, hence the need to postpone next Tuesday’s session with MPs on the NYS saga.

Yesterday, State House insisted Waiguru was not under any investigations.

The Ethics and Anti-Corruption Commission (EACC) has opened investigations into irregularities surrounding the procurement of consultancy services for a software used to install and maintain IFMIS.

Waiguru was then the acting Director IFMIS who signed the contract alongside Finance Secretary Mutua Kilaka on behalf of the Government while Neeraj Pradhan, a director of Copy Caty Ltd, signed on behalf of the IT firm.

“The Cabinet Secretary is not under any investigations and on the NYS probe, she is the one who invited the police to investigate. If officers act to safeguard the interests of the public, they should be protected,” Esipisu said.

FOODSTUFF SUPPLY

Reports have since emerged that the Central Bank of Kenya (CBK) had queried a huge payment given to one of the suppliers.

However, the Government has explained that the inquiry by CBK on the amount paid to Ms Bora Global was standard practice and the regulator was not probing any payments at NYS.

Bora Global had received Sh40 million to their account, for supply of foodstuff at NYS.

“CBK is not carrying out any investigations at NYS. On May 29, 2015, CBK wrote to the Ministry of Devolution and Planning, asking for a clarification regarding Real Time Gross Settlement System transaction to Ms Bora Global Ltd. This clarification had been requested by Development Bank, as the bankers for Bora Global Ltd,” State House explained.

It went on: “Such requests emanating from commercial banks to the Central Bank are standard practice and the matter was clarified. To the best of my knowledge, no other transaction has been queried by CBK at NYS. Narratives around CBK investigations at NYS must therefore be treated as political speculation.”

On the ongoing probe by CID into entries at IFMIS, the Government insists that an attempt to siphon Sh826 million through alleged hacking of IFMIS was thwarted in time.

Six computers have since been seized from employees of NYS for forensic analysis by the Department of Criminal Investigations Cyber Crime Unit to establish the person who did the fraudulent entries.

Some 16 statements have been recorded to date from staff at NYS and the Ministry of Devolution for entries into six companies.

Form Homes Builders, Draco Capital, Roof and All Trading, Reinforced Concrete Technologies, Grumum Engineering and Tegmen Trading are said to be sharing directors.

Last week, Waiguru, called a press conference and was at pains to explain why NYS was procuring foodstuff that include powdered milk, sugar and rice from foreign countries, yet the Government policy dictates that local manufacturers should be given first priority.

“I think it’s unfair to ask a leading question because you want to clear a story but let me make it clear that the firms picked to supply the food are locally owned and can import from anywhere,” she said when asked to clarify the preference of milk and rice from Far East.

Waiguru also said there was nothing wrong with two or three people registering several companies and bidding for tenders as this would enhance their chances of winning tenders.

Esipisu said he could not comment on the origin of goods and if their prices were inflated since they did not have that information.