Waiguru: I wasn’t informed about the Youth Fund theft
Former Devolution Cabinet Secretary Anne Waiguru has denied being informed of the Ksh180 million fraud at the Youth Enterprise Development Fund by her then PS Peter Mangiti.
Appearing before Parliament’s Public Investments Committee, Waiguru also denied being briefed by the Inspectorate of State Corporations of the fraud at the Youth Fund.
The former CS says Mangiti, as a member of the Youth Fund board, was the one mandated to ensure the law was followed in management of the funds, saying she was only informed after the alleged theft had taken place.
Waiguru has told committee, chaired by Adan Keynan, that she could not take any action as she wasn’t furnished with facts about the loss.
The former CS went on to state that she was in the dark about the circumstances under which former Acting CEO, Catherine Namuye, and Finance Manager, Benedict Atavachi, were suspended.
“The letters are single letters and do not explain why the CEO was suspended. The letters were coming in so quickly. Once the Director of Criminal Investigations (DCI) and the Ethics and Anti-Corruption Commission (EACC) have been called in, there is nothing a CS can do,” said Waiguru.
Waiguru said that she asked for an administrative report but she did not get it.
“An administrative report is what explains the circumstances and the things that were going on. If I went beyond requesting for the report, I would be accused of interfering with investigations. The PS needs to produce the briefs he claims he gave me. There is no written brief,” said the former CS.
The Former Devolution Cabinet Secretary is appearing before the National Assembly’s Public Investments Committee (PIC) to shed more light on the Ksh180 million Youth Enterprise Development Fund scam.
This is after Waiguru’s former PS, Peter Mangiti, blamed her for failing to take action on the multi-million shilling graft.
On Wednesday, the PIC was told how Quorandum Limited Managing Director Muriuki Ngamau, who presented himself as a businessman, used part of the money siphoned from the Youth Fund to buy a luxury home in Nairobi’s upmarket Lavington area.
This is after property development firm, Duchesspark Limited, reached a deal with Ngamau on the 30th of March last year. By the 24th of April, the entire Ksh48.5 million had been paid for the five-bedroom luxury apartment along Hatheru road.
The committee now wants the home seized.
The committee further wants the Attorney General and asset recovery agency to seek an injunction from the courts to recover the property which is still under construction.
Duchess Park limited says it cannot refund the money as it has already been paid to a contractor.
Quorandum’s advocate, Mbugua Ngigi, said the firm used a further Ksh18 million to pay an old debt to another company – Great Lakes Forwarders – that had been involved in construction works of law courts in Nyeri, Bomet, Wanguru and Marimanti in Tharaka Nithi.
The committee will also hear from more beneficiaries of the Youth Fund payments including companies suspected to be affiliated to Youth Fund board chair, Bruce Odhiambo.