Former NYS boss Githinji blames Harakhe for NYS funds fraud

October 6, 2016 6:07 pm
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Githinji, who appeared before the House watchdog team, said Harakhe should be charged for misleading information to a parliamentary committee while he was under oath/CFM NEWS
Githinji, who appeared before the House watchdog team, said Harakhe should be charged for misleading information to a parliamentary committee while he was under oath/CFM NEWS

, NAIROBI, Kenya, Oct 6 – Former National Youth Service (NYS) Director General Nelson Githinji now wants his Deputy Adan Harakhe investigated for making false statements when he appeared before the Parliament’s Public Accounts Committee (PAC) looking into the loss of Sh791 million from the NYS accounts through fraudulent transactions.

Githinji, who appeared before the House watchdog team, said Harakhe should be charged for misleading information to a parliamentary committee while he was under oath.

He went on to produce documents extracted from the Integrated Financial Management Information System (IFMIS) showing that his former deputy approved transactions that led to the loss of Sh695.4 million.

The former NYS boss indicated that Harakhe had access to the NYS Funds in the IFMIS Systems three months before his formal appointment as Authority to Incur Expenditure (AIE) in the government financial management system.

“Through the IFMIS system, it was evident that Adan Harakhe had access to the system before his formal appointment as AIE holder, and I have attached an extract from IFMIS that shows transactions that happened all the way from December 14, 2014, which may be a clear indication that you may need to relook whether indeed that individual did lie under oath,” he stated.

The former NYS Director-General said Harakhe used to report directly to former Devolution and Planning Cabinet Secretary Anne Waiguru, which was an informal arrangement.

“Even though his appointment indicated that I was to supervise him, the reality is that he was on a direct reporting line to then CS Waiguru. As a matter of fact copies of such communication are attached where he went ahead and communicated directly,” he said.

Githinji said Harakhe was posted and given authority over key departments such as finance, human resources and procurement, among others.

He further denied claims made by his former deputy that he gave companies associated with his wife and in-laws contracts while he was still at the helm of NYS.

“I read with consternation, information from a local daily attributed to the former AIE holder under oath, stating that as an AIE holder he knew of companies that had money reserved for purchase of various items, in the dates that he claimed his password had been stolen which claims we know now to be false and alarmist,” Githinji told the House team.

“This assertion assumes that there were predetermined outcomes expected out of the procurement processes that were being dealt with during that time. Allow me to say, that this may very well be the explanation that the committee has been looking for as to how the system fraud happened at NYS. If there was a reservation order that the AIE holder knew of, then he was in complete complicity in the well choreographed approvals that form the basis of this investigation.”

Githinji was appearing before the Public Accounts Committee on Thursday to give evidence on the NYS scandal, which came to light after it was initially reported that Sh791 million had been lost.

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