Fresh details on Waiguru's link in NYS scam

Former National Youth Service Director Nelson Githinji (right) and Josephine Kabura in court on November 15, last year, when they were charged with conspiracy to defraud NYS. [Photo: File]

A suspect has made damning claims about former Devolution Cabinet Secretary Anne Waiguru’s involvement in the Sh791 million scam.

The claims come days after Ms Waiguru was cleared by the anti-graft agency.

In a sworn affidavit deposited in court, the stunning claims include sharing of millions with the former CS and alleged transfer of Sh80 million cash that was hidden in her office on the orders of Waiguru.

Whereas Waiguru, whose subordinates had been charged, had claimed innocence and in fact called herself a whistle-blower, Ms Josephine Kabura Irungu now claims the former CS was aware of the payments and was involved in a cover-up of the National Youth Service (NYS) scheme when investigations started.

Also mentioned among those advising her on how to deflect attention from herself when questions started being asked was political commentator Mutahi Ngunyi.

Ms Irungu, who is one of the accused in the Sh791 million scandal, claimed Waiguru introduced her to doing business at NYS and facilitated award of contracts to her on the understanding they would both benefit once the deals were closed and paid for. Irungu filed a damning 112-point affidavit at the High Court registry, in which she alleges Waiguru’s involvement in the payments that authorities termed fraudulent and for which a dozen Government employees and suppliers are facing fraud charges.

“That it was also agreed that to disguise the truth, NYS staff would be charged in a phony set-up for the purpose of driving favourable public perception,” she claims even as she defended what she called the transparent and honest nature of her business.

In the affidavit, Irungu recounts how in July, last year, Waiguru allegedly asked her to hand over Sh80 million that she (Irungu) had kept in two bags in her office to purportedly friendly anti-graft detectives who were to help in covering up investigations.

She claims on July 9, 2015, two detectives came to her office and one of them gave her a phone to use only to find out that it was Waiguru who was calling.

“The person on the phone was CS Waiguru who instructed that I hand to one Mr Mugwanja Sh80,000,000 I had earlier disclosed to Waiguru I had kept in the two safes,” she claims adding that the money was taken in seven bags.

Joseph Mugwanja is said to be an Ethics and Anti-Corruption (EACC) detective who was present at an early morning meeting in Waiguru’s house in Nairobi, reportedly prompted by reports that Central Bank was questioning huge payouts at NYS.

When they were arrested, she claims Waiguru explained to her that they had found a perfect ‘decoy’ and that Mugwanja had prepared a charge sheet for the ‘decoy’. All that was required, she claimed, was to be taken to court and the ‘cleansing’ ritual would start.

In her affidavit, Irungu also made allegations against the police and journalists who she alleges were involved in the cover-up of the probe.

Yesterday, the Director of Public Prosecutions Keriako Tobiko approved additional money laundering charges against 11 suspects including Irungu.

News of the affidavit broke on the day Waiguru attended her first political meeting called by Jubilee leaders to discuss how to front one candidate for the Nairobi governor’s post.

In the affidavit, Irungu, a hairdresser, says she met Waiguru while working at Kenya Data Networks between April and May 2012 and they became friends and great acquaintances. Thereafter, at Waiguru’s request, she took her CV personally to her Evergreen House number 29 in Runda where Waiguru introduced her to her family.

“She informed me that she could link me with influential and resourceful contractors at the Finance ministry, including a Mr Karani Nyamu who, she said, she had introduced (her close friend and business associate). She told me she had assisted in securing major contracts through his companies Verve K.O and Zinga Technologies, which do ICT consulting and major ICT project implementation,” Irungu says in the court papers.

Irungu claims that in 2013 during campaigns, the issue of Integrated Finance Information Management System and Ministry of Finance contracts was overtaken by events but Waiguru told her that she was heavily involved with the now ruling party in their campaigns to ensure that they won the elections.

She claimed Waiguru assured her that if the party won, she could be appointed a CS and could then do business with her.

The applicant alleges that in mid-August 2014, Waiguru invited her to her Runda house and requested her to bring along a copy of her national ID, passport size photos and her PIN certificate to facilitate the incorporation of her companies.

Irungu says during the period between August and September 2014, then Devolution CS introduced her to her personal assistant, Betty Maina, with whom she had worked at the World Bank, Hassan Noor the director of administration at the Devolution Ministry who was also the chairman of the Ministerial Tender Committee, Adan Harakhe who was then poised for a senior position in the administrative and finance structure in the NYS, Mutahi Ngunyi, a consultant at NYS and later Loise Nyamu Mbarire, Waiguru’s elder sister.

Irungu says Waiguru gave her a ‘secure’ phone to use which only she would call and instructed her to only switch it on between 7am and 9am, then again between 7pm and 9pm.

She further states that on October 7, 2014, Betty Maina called her and requested for a meeting at a restaurant near Uchumi House, Nairobi. After a cup of tea, Ms Maina gave about seven copies of certificates of incorporation for the companies the CS had assisted her to register.

She says Waiguru subsequently instructed her to open bank accounts for the companies at Family Bank and specifically at KTDA Plaza Branch.

“She called a Mr Raphael Ndunda who was an employee of Family Bank. As Head of Compliance, his role was to ensure that the accounts were opened and operated without hiccups,” Irungu alleges.

She says with the companies duly registered, she was poised to do “clean and honest business” with NYS. The applicant claims that in November, she received her first Local Purchase Order (LPO) for the delivery of construction materials for the Kibera Project by Hassan Noor.

Irungu claims that she floated the idea of computer accessories to Waiguru and she loaned her Sh1 million. She alleges the CS also provided Sh24 million seed capital to start supply of road construction material and the money was brought to her by Loise Mbarire.

She says Waiguru was involved at all levels and held several meetings with her and various highly placed government officials including a director of banking fraud department involved in the investigations of the scandal when the matter arose under what she alleges are disguised allegations of corruption.

“The CS was fully aware of the transactions leading to the payment of Sh791 Million. She knew that the project was genuine business where materials were supplied and payments made for my business,” Irungu says.

She claims Waiguru clearly understands and she had always understood that the payments made in the transaction were not fraudulent and no offence under the money Laundering Act had been committed.

Ms Irungu says the matter had been blown out of proportion, with a false agenda to appease the public that it was a fight against corruption. “The court process has been variously abused, orders obtained unjustly to achieve this fraudulent and misplaced perception.”

She claims that in dealing with Jua kali workers and contractors, she was advised by Waiguru to withdraw money in cash and carry it in bags since the bulk of payees could not take cheques.

Irungu claims after the newspaper expose on Central Bank questioning NYS payments, Waiguru summoned her very early in the morning at her Runda house where she met Ngunyi, Harakhe, Noor and Mugwanja.

During the meeting, she says those in attendance agreed that since the investigations would be conducted by EACC, it would be necessary to divert the attention of the investigating officers.

She filed the document at the Milimani Law Courts’ civil division through lawyer Samson Nyaberi, an affidavit in which she claims the proceedings commenced by the Assets Recovery Agency are a misuse of the court process aimed at shielding real players in the alleged embezzlement of public funds.