Waiguru told to record statement over NYS cash theft

Politics and policy

Devolution and Planning cabinet secretary Ms Anne Waiguru. PHOTO | FILE 

By KIARIE NJOROGE

Posted  Friday, September 25  2015 at  16:26

In Summary

• He said that evidence shows that huge deposits and withdrawals were made from bank accounts belonging to several suspect companies and individuals. All the accounts are domiciled at Family Bank, KTDA branch.
• The DPP now wants the investigation to be conducted by a multi-faceted team including officials of the Ethics and Anti-Corruption Commission (EACC), the Central Bank of Kenya, the Financial Reporting centre (FRC) and the Kenya Revenue Authority (KRA).
• Mr Tobiko has poked holes into an investigation report on the scandal conducted by the Directorate of Criminal Investigation (DCI), citing multiple government agencies and people who ought to have been questioned by the investigators.

The Director of Public Prosecutions (DPP) wants Devolution Secretary Anne Waiguru to record a statement over the theft of Sh791 million from the National Youth Service (NYS)

Mr Tobiko has poked holes into an investigation report on the scandal conducted by the Directorate of Criminal Investigation (DCI), citing multiple government agencies and people who ought to have been questioned by the investigators.

The DPP now wants the investigation to be conducted by a multi-faceted team including officials of the Ethics and Anti-Corruption Commission (EACC), the Central Bank of Kenya, the Financial Reporting centre (FRC) and the Kenya Revenue Authority (KRA).

READ: Police seek 3 more weeks to conclude NYS investigations

Also read: 71 Cord, Jubilee MPs defend Waiguru's NYS projects

The NYS scandal has caused a political storm with the opposition demanding that Ms Waiguru steps aside. The NYS falls under her docket.

She has however protested her innocence, saying that she initiated the investigations by the DCI.

“The CS has not recorded a statement regarding this matter. It is important that the CS records a statement,” said Mr Tobiko in a statement released Friday.

He added that the scope of the DCI investigation was very limited and was only concerned with offences under the Penal Code.

Mr Tobiko said that the crimes committed fell under multiple agencies and laws like Proceeds of Crime and Anti-Money Laundering Act and the Prevention of Organised Crimes Act.

HUGE DEPOSITS

He said that evidence shows that huge deposits and withdrawals were made from bank accounts belonging to several suspect companies and individuals. All the accounts are domiciled at Family Bank, KTDA branch.

“It is not clear from the file how such huge deposits and withdrawals could have been made without the suspect transactions being reported to FRC and/ or CBK as required by law,” said Mr Tobiko.

“No statement has been recorded from any official of FRC or CBK. Furthermore, no statement has been recorded from the relevant official of Family Bank.”

Mr Tobiko said that some aspects of the fraud falls under the mandate of the EACC with regard to corruption and public officers’ ethics.