NYS scandal fueled the heat under Anne Waiguru’s chair

Planning PS Peter Mangiti (right), former NYS Director-General Nelson Githinji (second right) in court with their co-accused during the hearing of the NYS case. [PHOTO: GEORGE NJUNGE/STANDARD]

NAIROBI: Devolution Cabinet Secretary Anne Waiguru will now appear in court as a civilian witness in the Sh791 million National Youth Service (NYS) scandal following her resignation yesterday.

Investigations into the NYS scandal are however still ongoing even as Planning PS Peter Mangiti was charged with interfering with a public official in the conspiracy to steal Sh695 million from NYS.

Also charged was NYS director-general Nelson Githinji who stepped aside Monday last week, together with 23 others.

The two officials were charged with attempting to persuade a senior deputy director-general in charge of administration at NYS, Adan Harakhe, to engage in something illegal.

Githinji and Mangiti allegedly dissuaded and threatened Harakhe against reporting the matter.

The officials will now face off with Waiguru in her capacity as a civilian witness, unless President Uhuru Kenyatta appoints her to another portfolio.

Police last week, after questioning Waiguru, said she would be a prosecution witness in the NYS scandal.

The Banking Fraud Investigations Unit resubmitted their file to Director of Public Prosecutions Keriako Tobiko listing Waiguru as a witness.

The officers said after recording a statement from Waiguru, they concluded she would be a prosecution witness. Tobiko last week confirmed the file was resubmitted to his office.

“... it’s true the CS is listed as a prosecution witness. We will look at the recommendations and evidence therein before making a decision,” said Tobiko.

He, however, said his office is waiting for another file from the Ethics and Anti-Corruption Commission (EACC) and Kenya Revenue Authority, which are also independently investigating the matter. The two institutions have returned a similar verdict corroborating the findings of the Directorate of Criminal Investigations (DCI).

Tobiko has further ordered the interrogation of seven senior Family Bank officers in connection with the NYS scam.

Tobiko had earlier before questioning of Waiguru said he had received a file from the DCI with details on alleged fraudulent Integrated Financial Management Information Systems (IFMIS) transactions at the NYS.

He said the file would be reviewed independently by a team of prosecutors in his office and a decision made based on the law and evidence.

The DCI recommended 24 people, who include suppliers and three companies be jointly charged with stealing Sh791.3 million from NYS.

The companies named in the DCI report include Form Homes Builders, Reinforced Concrete Technologies and Roof and All Traders. Those associated with the companies and are targeted include Josephine Kabura Irungu, Peter Omari Otuoma and Ben Gethi. Ministry of Devolution employees targeted include Joel Kanyi Karenju, Francis Kariuki, Jennifer Manyara Mugure and Roda Kavu Makau.

Others are NYS officers Harakhe, Samuel Wachenje, Hendrick Nyongesa Pilisi, Naftaly Githinji, Ruth Njeri Hihu, Charles Onsase Nyaachi, Mary Wangui Mbuthia, Ezekiel Karanja Kamau, James Gitau Kanuthu, Samuel Kilonzi, Fredrick Okello Nasiche, Regina Nyambura Mungai, Philip Joshua Otinga, Jane Wangeci Gichuki, David Dicks Alunga, Titus Libondo and Chemos Kororia Ndiema. The scandal led to calls by the Opposition and some Jubilee leaders for Waiguru to resign.

Waiguru has always held that she was a whistle blower in the scam.

She said officers in her Ministry detected an unauthorised commitment of the amount in the IFMIS, but moved with speed to prevent any loss.

“As the minister responsible for NYS, I wrote to the CID on June 5 asking them to investigate various IFMIS transactions that had been reported suspect. To avert financial loss, the Authority to Incur Expenditure (AIE) holder flagged the matter immediately and this prompted my action,” Waiguri said.

As questions raged over the scam she said: “It’s possible it is external but it’s also possible it is internal. So we are letting police do their job and once that is complete, if there will be any officers culpable, action will be taken.”