Youth fund loot bought Sh48m house, MPs told

Mr Adan Keynan, the Public Investments Committee chairman. PHOTO | FILE 

By EDWIN MUTAI, emutai@ke.nationmedia.com

In Summary

• Parliament has directed the Assets Recovery Agency (ARA) to move with speed to obtain a court order barring the transfer of the property that Quorandum purchased in Lavington, Nairobi.
• Quorandum handled a suspect IT contract and was paid Sh180 million despite the paying bank, Chase Bank, having flagged the transaction as suspicious.

A director of Quorandum Limited, the firm linked to the loss of Sh180 million at the ...
Youth Enterprise Development Fund (YEDF), bought a five-bedroom house using the proceeds of the loot.

On Wednesday, Parliament directed the Assets Recovery Agency (ARA) to move with speed to obtain a court order barring the transfer of the property that Quorandum purchased in Lavington, Nairobi.

“We want to direct the ARA to get an injunction and recovery order pursuant to the Anti-Money Laundering Act to recover the Sh48.5 million that Quorandum paid Duchess Limited,” Adan Kaynan, the Public Investments Committee (PIC) chairman, said.

The directive follows revelation by directors of Duchess that Ngamau Mukuria, the director of Quorandum, approached the property developer to purchase a residential apartment at a cost of Sh48 million.

Mr William Onyango Opanga, the general manager Duchess said the company was yet to transfer the property to Quorandum or Mr Ngamua because the construction of the apartments is ongoing.

“It is apparent that Duchess stops further transfer of property to Quorandum or any other third party. This property is clearly the proceeds of crime.

‘‘I hope the Attorney- General, the Director of Criminal Investigations, the Ethics and Anti-Corruption Commission will get to the bottom of this matter,” said Mr Kaynan.

Quorandum handled a suspect IT contract and was paid Sh180 million despite the paying bank, Chase Bank, having flagged the transaction as suspicious.

READ: Chase Bank blames agency over theft of youth funds

The firm had never received such huge payments before and had during the lifetime of the account only received Sh3,000.

The YEDF chairman Bruce Odhiambo is on the spot for unilaterally appointing Ms Catherine Namuye to be the sole signatory of the account contrary to set regulations.

When she appeared before the PIC earlier Ms Namuye said unnamed directors of the YEDF put pressure on her to make the payment.

“We have never sold anything to Bruce Odhiambo, the chairman of the Youth Enterprise Development Fund. We have never dealt with Mr Odhiambo,” Mr Onyango said. The PIC directed Duchess not to transfer the property to any party including Quorandum.

“This is clear that the property was purchased through proceeds of crime,” Kimani Ichung’wa said.

Mr Oburu Odinga said PIC must ensure that the property is frozen by the relevant authority to ensure that the lost money is recovered and returned to the public.