A suspect in the National Youth Service (NYS) scandal is in more trouble after a creditor went to court to attach her properties over a Sh800,000 debt.
Wedco Limited wants Phylis Njeri Ngirita to pay back the money they loaned her. They obtained orders stopping the Niavasha-based trader from operating one of her accounts, pending determination of the suit.
Justice John Onyiego allowed the company’s application to freeze Phylis’ account and directed that she responds to the allegations within four days.
“Having read the application, an order is hereby issued prohibiting the respondent, her employees or any other person acting on her behalf from accessing the money held in her account at Kenya Commercial Bank,” ruled Onyiego.
Phylis is among the four members of the Ngirita family facing criminal charges over theft of millions of shillings from NYS.
According to the Asset Recovery Agency (ARA), the Ngirita family allegedly siphoned more than Sh465 million from NYS for goods and services not rendered.
The company, through lawyer Isaac Miencha, argued that since the vehicle Ngirita used to guarantee the loan had been seized by ARA as part of the illegal proceeds from NYS, they feared they would have nothing to recover the loan if she defaulted.
“There is real danger that the agency will dispose of the vehicle to recover the lost public funds while Ngirita is likely to withdraw the money in her account without repaying the loan. It is only fair if the court stops her so that the company does not lose its investment,” said Miencha.
He submitted that since the creditor loaned Ngirita the amount, she had defaulted with the total interest accruing to Sh1.3 million.
The agency has already filed a suit against the Ngiritas, which it claimed revealed their dealings with top NYS officials and the secret deals of depositing huge chunks of money in different bank accounts then hurriedly transferring to proxies and purchasing multi-million shillings property to conceal theft.
In one instance, three family members are said to have received more than Sh133 million from NYS in less than 36 hours.