How police zeroed in on Sh468m NYS deals in first phase of probe

Of the Sh8.8 billion that was paid to suppliers by the National Youth Service (NYS) in the 2016-2017 and 2017-2018 financial years, investigators have so far flagged Sh900 million worth of questionable pay-outs.

The vouchers were submitted to the Directorate of Criminal Investigations (DCI) for analysis, and narrowed down to Sh468.9 million, being fraudulent payments.

However, police say this is the first phase of their investigations involving 10 companies.

A total of 13 vouchers, which officials had initially said amounted to Sh121 million, were found to be valued at Sh468 million.

In the 2016-2017 financial year, the State Department of Public Service and Youth Affairs received Sh22.2 billion while in 2017-2018, it got Sh17.9 billion.

Documents supplied to the investigators show NYS suppliers were paid Sh6.2 billion in the 2016-2017 period while Sh2.6 billion was paid in the 2017-2018 period - totalling Sh8.8 billion.

In the 2016-2017 period, there was Sh3.6 billion in unpayable claims, while Sh2.3 billion accounted for unpayable claims in the 2017-2018 - amounting to Sh5.9 billion.

According to documents supplied to the investigators, in 2016-2017, there were 1,401 suppliers as opposed to 421 in the 2017-2018 period.

“Note that the number of suppliers paid refers to all claims, i.e. both pending claims from previous management and current bills accrued by the State department,” a memo given to the team read.

The bank accounts of all 54 targeted individuals, who include 40 public servants and 14 businessmen and women, have been frozen by a multi-agency team investigating the matter.

The public servants are facing charges of conspiracy to commit an offence of corruption, willful failure to comply with applicable procedures and guidelines relating to the management of public funds, breach of trust by a person employed in public service, willful neglect to perform official duty, abuse of office, fraudulent acquisition of public property and making fraudulent payments from public revenues for goods not supplied.

As part of the probe, the police have also frozen the bank accounts of 13 firms said to have received Sh121 million from NYS. The firms operate three accounts - two with Consolidated Bank and a third one with Barclays Bank of Kenya.

The accounts were frozen on April 26 following a court order.

The DCI secured the freezing order through an affidavit sworn by Police Constable Kenneth K Kemei, who told Nairobi Chief Magistrate Francis Andayi that they were investigating the three accounts.

Mr Andayi issued the orders requiring the two banks to preserve any monies held in the accounts for 90 days and or pending the outcome of investigations.

The freezing corroborated a statement by the Ministry of Public Service, Youth and Gender Affairs that only 13 vouchers worth Sh121 million were under investigation by the multi-agency team led by DCI, and not the Sh8.8 billion.