MPs order freeze of Sh48m property acquired using Youth Fund money

Quorandum Director Mukuria Ngamau before the Public Investment Committee on Tuesday. [PHOTO: BONIFACE OKENDO/STANDARD]

A parliamentary committee has directed authorities to freeze the transfer of property worth Sh48.5 million to a firm that was paid Sh180 million by the Youth Enterprise Development Fund (YEDF).

The National Assembly Public Investment Committee (PIC) yesterday directed the Assets Recovery Agency in Attorney General Githu Muigai's office to speedily obtain an order to repossess the residential unit purchased by Quorandum Ltd Managing Director Mukuria Ngamau.

The MPs argue the property was bought with proceeds of funds stolen from the agency.

Mr Ngamau is a person of interest after receiving payments for ICT consultancy services from suspended former acting CEO Catherine Namuye. The committee has heard the services were never rendered.

The House team also grilled Allan Ngigi Mbugua over the payment of Sh18 million he received on behalf of Great Lakes Forwarders Ltd for the payment of the sub-contracted tender awarded by the Judiciary to construct four courts since 2013. Committee Chairman Adan Keynan also warned the managers of Duchees Ark Development Limited, a construction company, General Manager William Onyango and in-house lawyer Muthoni Kamau of dire consequences if they transferred ownership of the ongoing construction property in Lavington to a third party.

The lawmakers urged other agencies probing the matter to take interest in the property and ensure part of the funds were recovered.

"We direct the AG's office to expedite this matter and reclaim the property being constructed in Lavington. We also urge the same agency to obtain an order under the proceeds of crime and anti-money laundering laws to recovery the Sh48.5 million that was stolen and is in circulation," said Mr Keynan.

"If this property is completed and transferred to a third party or to Quorandum Ltd, the company managers will be held liable. We are going to write officially to Prof Muigai and call upon the Ethics and Anti-Corruption Commission (EACC) and Directorate of Criminal Investigations to take up the matter," he cautioned.

The MPs agreed to direct the freeze of the property after Onyango and Kamau disclosed details of their dealings.

They were particularly interested in the matter when it emerged that the Sh48.5 million was paid through a direct transfer from Chase Bank within three weeks by Ngamau after signing the sale agreement on March 30, last year. MPs Keynan, Kimani Ichung'wa (Kikuyu), Majority Leader Aden Duale (Garissa Township), Thomas Mwadegu (Wundanyi), Chris Wamalwa (Kiminini), Irungu Kangata (Kiharu), Sammy Mwaita (Baringo Central), Paul Otuoma (Funyula), Muthomi Njuki (Igamba Ng'ombe) and Oburu Oginga (nominated) queried the level of trust between Ngamau and the firm.