EACC unearths bigger theft at NYS in probe

EACC Chief Executive Officer Halakhe Waqo. (Photo: Gideon Maundu)

The Ethics and Anti-Corruption Commission (EACC) says the amount of money embezzled from the National Youth Service (NYS) could be more than the Sh791 million it has been investigating.

EACC Chief Executive Officer Halakhe Waqo Thursday told the National Assembly’s Public Accounts Committee (PAC) that the amount looted could be as much as Sh1.8 billion as the scandal keeps on mutating.

He said the commission is looking into the special audit report commissioned after the revelation of the scandal, that shows there is more than meets the eye from what the public was initially told.

Mr Waqo told the watchdog committee that although the commission first moved in to investigate an alleged irregular payment of Sh791 million, the probe had led them to 12 new other cases that have pushed the amount lost past the Sh1 billion mark.

“A majority of Kenyans know of the Sh791 million, but what we are pursuing is running into billions. Besides what is known to the public, we have 12 other cases and we are still opening more files. This is an animal that keeps mutating,” he said.

The anti-graft chief, however, said he could not divulge specific details on some of the cases, saying some of them are at advanced investigation stages, and could, therefore, jeopardise their progress.

He said the commission, together with the Directorate of Criminal Investigations and the Assets Recovery Agency, are trailing fixed assets and cash amounting to Sh471.2 million deposited in different bank accounts or paid to individuals, including lawyers.

Of these are fixed assets, including luxurious motor vehicles, houses and land believed to have been acquired from proceeds of the NYS cash, estimated at Sh406.4 million. He said the accounts and assets have either been frozen, seized or preserved, pending conclusion of investigations. The rest, he said, is cash, totalling Sh64.8 million deposited in various bank accounts or transferred to people believed to have been part of the mega scandal.

Waqo said EACC is preparing to conduct a system audit of the Integrated Financial Management Information System (IFMIS) to seal loopholes that have been exploited to embezzle public funds.

On Wednesday, former Senior Deputy Director at NYS Adan Harakhe claimed that his IFMIS system password was hacked, resulting in irregular approval of Sh695 million.

He also adversely mentioned former Principal Secretary Peter Mangiti and former NYS Director General Nelson Githinji in connection to the scandal.