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State House speaks out on Ksh826m NYS scandal

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State House says corruption investigations at the National Youth Service (NYS) have been twisted to meet certain political ends.

State House Spokesperson Manoah Esipisu says the Central Bank of Kenya (CBK) is not carrying out any investigations at NYS.  On the 29th of May 2015, CBK wrote to the Ministry of Devolution and Planning, asking for a clarification regarding an RTGS Transaction to Ms Bora Global Ltd.

This clarification had been requested by Development Bank, as the bankers for Bora Global Ltd. Such requests, emanating from commercial banks to the Central Bank are standard practice and the matter was clarified. To the best of my knowledge, no other transaction has been queried by CBK at NYS.  Narratives around CBK investigations at NYS must therefore be treated as political speculation.

Secondly, the issue of Ksh826 million has been twisted in order to execute a well-choreographed scheme.  On 20th and 21st May 2015, the NYS IFMIS system was hacked using a stolen identity and some illegal payments authorized. This transaction was caught on time and the Senior Deputy Director General for NYS wrote to the Director of IFMIS to stop the payments.

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The payments were stopped. Subsequently, the Cabinet Secretary for Devolution and Planning wrote to the Director of the Criminal Investigation Department (CID), asking for speedy investigations into this illegality. And on 19th June 2015, a Progress Report from CID was dispatched to the Cabinet Secretary indicating the following:

1.  Six computers have been seized from employees of NYS for forensic analysis by DCI’s (Department of Criminal Investigations) Cyber Crime Unit to establish the person who did the fraudulent entries.

2.   Sixteen statements have been recorded to date from staff at NYS and the Ministry of Devolution and Planning.

3.  The six companies who were listed for the fraudulent payments include:

  1. Form Homes Builders
  2. Draco Capital
  3. Roof and All Trading
  4. Reinforced Concrete Technologies
  5. Grumum Engineering
  6. Tegmen Trading

 4.  The report further indicates that so far, there is no evidence of loss of funds given that the transaction was reversed at IFMIS. Similarly, a Forensic Analysis Report by the Cyber Crime Unit is awaited in order to deal with the drivers of this criminality.

On the violence in Kibra over NYS projects, we encourage all parties to resolve whatever differences they have within the confines of the rule of law. But it is obvious that there are those among our political class with a history of pervasive violence as a way of winning their arguments. That Kenya of yesterday is behind us. The Kenya of stones in bags as a method of resolving problems is behind us.

But I would also want to assure the people of Kibra that we will re-build whatever was destroyed and shame the devil. This government is committed to the transformation of young people from the sorry state of ‘earners of wages’ to ‘owners of capital’; from ‘cannon fodder for bad politics’ to ‘agents of transformative change’.”

NEXT READ: MUDAVADI’s UDF EXIT RAISES EYEBROWS

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