New probe targets suppliers of NYS over fraudulent payments involving billions

Police and the anti-graft agency have opened separate investigations at the National Youth Service (NYS) following fresh claims of fraudulent payments involving pending bills.

Officers from the Directorate of Criminal Investigations (DCI), who commenced a probe about six months ago, are combing through all payments made to suppliers for the last six years.

They want to establish if there are any cases of collusion between suppliers and public officers that may have led to theft of money in fictitious claims involving billions of shillings.

The exercise was triggered by allegations that some ghost suppliers had been included in a list prepared by the ministry to offset pending bills from 2013 to 2016, outside the Sh791 million scandal in 2015.

The Ethics and Anti-Corruption Commission (EACC) and the Kenya Revenue Authority are investigating six firms that were paid Sh70 million from NYS during the same period.

The firms are either owned by one person or share directors of related persons.

EACC, in a letter dated November 13, 2017, wrote to KRA asking the taxman to undertake an audit on six firms that were collectively paid more than Sh85 million. All the firms operate different accounts at KCB.

“This is to inform you that the companies listed below are under our investigation as a result of transactions with the Ministry of Devolution. This is to recommend that you undertake tax audit of these companies with a view to determining and recovering the amount of taxes due,” EACC Deputy Director of Forensic Investigations John Lolkolol wrote to KRA.

One name of a director appears to be listed by three firms that all share the same ID number. The other three also appear to have one person as a director.

Already, senior officials from the Ministry of Devolution and the NYS have recorded statements.