NAIROBI, Kenya, Oct 19 – Preliminary Investigations by the Banking Fraud Investigations Unit have indicated that Local Purchase Orders (LPO) allegedly used to siphon Sh791 million from the National Youth Service were forged.
The unit further confirms initial reports by the Directorate of Criminal Investigations indicating that there was a conspiracy to steal a further Sh695 million.
While responding to an application seeking to have the order freezing bank accounts linked to the scam lifted, lead investigator Corporal Jeremiah Matipei said the companies obtained payments fraudulently.
The three companies involved in the scam are allegedly owned by one Josephine Kabuga Irungu, and are said to have received a total of Sh791, 385,000 between December 2014 and March 2015.
Matipei is opposed to Kabuga’s request seeking to have the accounts unfrozen stating that this will interfere with the constitutional mandate of government agencies to investigate and prosecute criminal conduct.
The affidavit by Matipei states that,“Form Homes Builders received Sh218, 925,000 between 22nd December 2014 and 21st January 2015, Roof and All Trading Company received Sh252, 300, 000 between 5th February 2015 and 17th March 2015 while Reinforced Concrete Technologies limited received Sh320, 160,000 between 5th February 2015 and 3st March 2015.”
The Investigations further revealed that the bank accounts held in Family Bank were opened between 13th and 14th December last year.
The investigators however pointed out that in the course of their investigations, the monies had been transferred to several individuals and companies accounts.
The Attorney General has since been enjoined in the suit and says he will be seeking to recover assets lost in the scam.
Late September, Director of Public Prosecutions Keriako Tobiko directed the CID to question Devolution Cabinet Secretary Ann Waiguru over the theft of Sh791 million shillings siphoned through the IFMIS system.
He had stated that it was necessary for the CS to be questioned because she headed the Devolution Ministry, which NYS was under.
“This investigation was commenced by the DCI at the request of the Devolution CS. However, the CS has not recorded a statement regarding this matter — It is important that the CS records a statement,” Tobiko said in a statement.
Waiguru has denied involvement in the scandal and was even defended by State House which said she had not committed any crime in the wake of calls for her suspension.