Former Devolution CS Anne Waiguru questioned over Sh180m loss at youth fund

Former Devolution CS Anne Waiguru leave after she appeared before National Assembly Public Investment Committee (PIC) at Parliament on Thursday 24/03/16 over Youth Fund. [PHOTO.BONIFACE OKENDO/Standard[

Former Devolution Cabinet Secretary Anne Waiguru yesterday denied being briefed on the loss of a youth fund's Sh180 million.

Members of a parliamentary committee castigated Ms Waiguru for entrusting suspended Youth Enterprise Development Fund (YEDF) acting Chief Executive Officer Catherine Namuye with running of the public entity against an advisory by the Ethics and Anti-Corruption Commission (EACC) that she was unfit to hold public office.

The Public Investment Committee (PIC) members also pressed Waiguru to state if she had any dealings with the fund's director Michael Wamai's firm, Lukenya Earth Movers. The firm is under investigation in connection with the Sh791million National Youth Service scam.

PIC chairman Adan Keynan (Eldas), while grilling the Board of Directors over the payment of Sh44 million to Saverine Holdings Ltd for the fund's works, said despite claims that Waiguru directed board chairman Bruce Odhiambo to cancel the tender, the questionable amount was paid last February.

Dodge query

Waiguru found herself on the receiving end, when she tried to dodge Aldai MP Cornelly Serem's question. Serem wanted to know if Wamai was her appointee to the Youth Fund board. She answered in the affirmative.

This was after it emerged that previous attempts by Wamai to secure a contract with NYS flopped, but last year after he joined the board in 2014, he won a tender worth Sh147 million to construct youth camps in slums.

Waiguru however denied knowledge of the fraudulent happenings at the fund, instead blaming ex-Principal Secretary (PS) Peter Mangiti, who has an alternate representative sitting in the board.

On Tuesday, Mangiti told the committee he directed that the all investigating agencies relevant to the matter be called in and that  he briefed the former CS accordingly, though not in writing.

"I don't know the circumstances under which the fraudulent transactions were committed. I did not receive a substantive briefing from the PS as is the normal practice for formal communication. There was nothing in writing from Mangiti indicating what had happened," Waiguru indicated when she was put on the spot by committee vice chairman Kimani Ichung'wa (Kikuyu) for only asking for an administrative report and directing Mangiti to follow up.

At some point, Waiguru almost lost her cool, wondering why she was being dragged into a matter she was not aware of.

She took a swipe at the media and legislators, who she claimed have crucified her by linking her to graft cases under her former ministry.

"Whistleblowers have become victims. I don't think anyone in Government can speak out after they saw what happened to me. I have learnt my lesson," she said.

Ichung'wa lashed out at her for ignoring EACC's report and a letter by former board chairman Gor Ssemelang'o on the recruitment of a substantive CEO and integrity issues against Namuye and misleading the committee that the board did not put a request through her office to appoint a substantive CEO.