Public Service CS Sicily Kariuki suspends youth fund board

Cabinet secretary Public Service, Youth and Gender Affairs Sicily Kariuki presents a cheque to one of the beneficiaries of the fund in Othaya yesterday. She announced the suspension of the Youth Fund Board over corruption. (PHOTO: KIBATA KIHU/ STANDARD)

Public Service Cabinet Secretary Sicily Kariuki has suspended the beleaguered Youth Enterprise Development Fund board.

The board's dismissal, the CS said, would facilitate thorough investigations into corruption allegations against the fund.

Speaking in Nyeri yesterday, Ms Kariuki also announced plans to recover the Sh180 million lost to graft. She said the board was barred from transacting any business until investigations are  completed.

"We have already sent the board packing as we embark on investigations. We need to bring to book the people who embezzled public money," she told a meeting in Othaya.

Kariuki said the Asset Recovery Agency was tracing assets obtained corruptly by members of the board and other suspects to be able to recover public money.

The CS, who was accompanied by Othaya MP Mary Wambui, spoke at the Othaya Catholic Hall when she disbursed Women Enterprise Fund cheques.

"The ministry will not rest until all the culprits are brought to book. The matter is being handled by the relevant agencies including the anti-corruption commission and Parliament," she said.

She added that any money lost in the scam would be fully recovered from the people involved.

"Individual accounts of those implicated are likely to be frozen once investigations are complete," she said.

The board and management led by Bruce Odhiambo and suspended Chief Executive Officer Catherine Namuye have been accused of failing to prevent the loss of the funds.

The money was meant to help the youth start businesses in a bid to address unemployment and widespread poverty.

Mr Odhiambo and Ms Namuye are said to have colluded to make Namuye the sole signatory to the fund's Chase Bank account.

This was in violation of the Public Finance Management Act, which provides that only a board resolution can approve change of signatories.