If police recommendations are accepted, Devolution Cabinet Secretary Anne Waiguru could testify against her juniors in the ministry expected to be charged over the Sh791 million National Youth Service (NYS) scandal.
The Directorate of Criminal Investigations (DCI) in a new report submitted to the Director of Public Prosecutions (DPP) wants Ms Waiguru to become a prosecution witness in the case that could expose the extent of the conspiracy to defraud taxpayers through questionable procurement dealings.
Planning Principal Secretary Peter Mangiti and National Youth Service (NYS) Director General Nelson Githinji are among 23 Devolution and Planning ministry officials reportedly recommended for prosecution over Sh791 million payments authorities say were fraudulently made to three companies.
Also recommended for prosecution is Mr Githinji’s deputy, Adan Harakhe, whose stolen password was used in the attempted theft of Sh695 million in June, which blew the cover on the earlier theft. The initial suspicious transaction involved Sh828.6 million, but investigations showed the PS had approved Sh133 million.
While Ms Waiguru explained the payment of Sh695 million was stopped, the DCI found similar transactions to defraud the Government had been carried out between December 2014 and April 2015 totalling Sh791 million.
Githinji was the holder of the Authority to Incur Expenditure (AIE) at the time the money was paid out. These dubious deals marked the start of Waiguru’s tribulations. She has constantly maintained that she was the one who blew the whistle on suspicious transactions at NYS.
DPP Keriako Tobiko had sent a file on the investigation back to the investigating agencies in September after the initial probe by the CID proved not actionable. Mr Tobiko then explained it was important that the CS recorded a statement.
prosecution witness
The Standard learnt that a team of detectives from the Banking Fraud Investigations Unit has now resubmitted their file to Tobiko, following the probe into the loss of the Sh791 million and conspiracy to steal Sh695 million.
The officers said after recording Waiguru’s statement, they concluded she would be a prosecution witness. Tobiko confirmed the police sent the file to his office on Friday, listing the CS as a witness and promised to make his decision soon.
“The file was resubmitted to this office and it is true the CS is listed as a prosecution witness. There are many other recommendations therein. We will look at the recommendations and evidence therein before making a decision,” Tobiko explained.
He said he was also waiting for another file from the Ethics and Anti-Corruption Commission (EACC) and Kenya Revenue Authority (KRA) who are also independently investigating the same matter.
“The police were investigating aspects in the Penal Code while EACC and KRA had their lines that they were pursuing. It is the same matter but different aspects,” said Tobiko.
But on Tuesday, Waiguru was grilled for eight hours at the EACC headquarters before her lawyer Ahmedinassir Abdullahi announced she was a prosecution witness. Officials at the EACC said they sent the file to the DPP yesterday also listing her as a witness.
“It is obvious after talking to her she will be a witness in this matter. Unless the DPP finds more evidence or gaps in the matter,” an official confided to The Standard.
The EACC file also recommended for prosecution the persons mentioned in the saga. When she went to the EACC, Waiguru told the officials she was the one who blew the whistle on the fraud and she was ready to be their witness.
“I first wrote to the CID on June 5, asking them to investigate various IFMIS transactions that had been reported suspect. To avert financial loss, the AIE holder flagged the matter immediately and this prompted my action,” she said. Following the DPP’s order, police interrogated all the 24 people who had been mentioned in the saga. Some of them are now suspects while others are witnesses, officials aware of the probe said.
Those mentioned in the file include Mr Harakhe and 23 others. In its report, the DCI has recommended that the directors of Form Homes Builders, Reinforced Concrete Technologies and Roof and All Traders also be charged with fraud. Those targeted include Josephine Kabura Irungu, Peter Omari Otuoma and Ben Gethi.
Those working at the Ministry of Devolution and Planning who are facing prosecution 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.
suspicious dealings
The CS was grilled in her office by the officers where she recorded her statement. Mangiti and Devolution Principal Secretary Mwanamaka Amani Mabruki were also grilled by both police and EACC.
Tobiko said several aspects of fraud raised in the file fell under the mandate of the EACC. It was then that he also sent a copy to KRA for action. KRA has also talked to the CS and other officials mentioned. Waiguru, who first revealed the names, said investigations showed Sh791 million was lost in the suspicious dealings.
