Investor accuses police of witch-hunt, defends Sh791m NYS payment

Businesswoman Josephine Kabura Irungu claimed she was condemned without a hearing. PHOTO | FILE 

By PAUL OGEMBA, pogemba@ke.nationmedia.com

In Summary

• Josephine Irungu says her companies did not steal any money from the NYS and all the cash they received was for delivery of goods.
• Ms Irungu has accused police of giving false information to have her bank accounts frozen.
• Ms Irungu’s bank accounts and 20 others in different banks were frozen on October 9 through a court order to allow the Banking Fraud Investigations Unit to complete investigations of the NYS scandal.

A businesswoman whose companies received Sh791 million stolen from the National Youth Service has accused police of giving false information to have their bank accounts frozen.

Josephine Kabura Irungu claimed that her companies, Form Homes Builders Ltd, Reinforced Concrete Technologies Ltd and Roof and All Trading Company Ltd did not steal any money from NYS and all they received was for delivery of goods.

“The payment was purely a commercial transaction after a delivery of goods ordered by NYS. There was no conspiracy between me or my companies and NYS officials to steal the money as claimed by the investigating officer,” said Irungu.

She accused the Directorate of Criminal Investigations of releasing misleading information to the public even after arresting and detaining her for two days.

Ms Irungu is fighting to have an order which froze her accounts lifted, arguing that they were issued on allegations and speculations.

“The misleading information was ostensibly aimed at framing me and my companies as culprits of a corrupt transaction with NYS. My side of the story has not been sought in a clear breach of my right to fair hearing,” swore Irungu.

READ: Anti-graft agency reveals how NYS cash is stolen

She was responding to investigating officer Jeremiah Matipei’s submissions which detailed how NYS documents were forged to transfer Sh791 million to her account before being hurriedly wired to other bank accounts.

According to Mr Matipei, the Local Purchase Orders (LPO) used to transfer the amount to Ms Irungu’s account were forged and the companies and some NYS officials conspired to steal the money allocated to develop infrastructure under the treasury’s Integrated Financial Management System (IFMIS).

He said that the payments were made in three tranches where Form Home Builders received Sh218,925,000 in January 2015, Roof and All Trading Ltd received Sh252,300,000 in March and Reinforced Concrete Ltd got Sh320,160,000 in March.

Ms Irungu, however, denied the claims, saying the LPOs were genuine and were signed by the NYS finance officer.

“The LPOs were genuine and duly signed and stamped by the director in charge of finance. The unsigned LPO he provided was not among those used to pay us,” said Irungu.

Ms Irungu’s bank accounts and 20 others in different banks were frozen on October 9 through a court order to allow the Banking Fraud Investigations Unit (BFIU) to complete investigations of the NYS scandal.

However, six companies alleged to have benefited from the loot filed an application to lift the court order which froze their bank accounts, and an order stopping the Director of Public Prosecution from charging their officials.

According to the companies, they were duly paid for supplying road construction materials to NYS project sites in Kibera, Mukuru kwa Reuben and Mukuru kwa Njenga slums in Nairobi.