How forged papers were used in NYS scam – Police
Police investigations have revealed that documents used to transfer Sh800 million from the National Youth Service headquarters were forged.
This is according to Corporal Jeremiah Matipei’s affidavit in response to a suit by six companies seeking to have their accounts unfrozen.
The affidavit gives details on how the money was moved to a business woman’s account before it was hurriedly transferred to other accounts.
FORGED
“Investigations have revealed that three companies that received Sh791 million from the NYS belonged to Josephine Kabura Irungu. However, we have found out that the local purchase orders used to transfer the amounts were forged,” said Mr Matipei.
The officer said the Banking Fraud Investigations Unit (BFIU) had reached an advanced stage of their inquiry, which would lead to criminal charges against some individuals. He asked the court not to issue any orders to unfreeze the accounts.
The 20 accounts at different banks were frozen on October 9 through a court order to allow the BFIU to complete investigations into the NYS scandal.
However, six companies alleged to have benefited from the loot filed an application last week to lift the court order that froze their bank accounts, and an order stopping the Director of Public Prosecutions from charging any of their officials.
CONSTRUCTION MATERIALS
The companies said 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.
The affected companies are Form Homes Builders Limited, Reinforced Concrete Technologies Limited, Roof and All Trading Company Limited, Gurumum Engineering, Tegmen Trading and Draco Capitol.
They sued through their proprietors Josephine Kaburu, Peter Omari Otwoma and Catherine Njambi Kinuthia. They argued that there was a scheme to shield people behind the NYS scandal since the money received by the companies had no relation to the lost millions.
“Payments made to third party accounts have no relation whatsoever to the NYS theft. It has resulted in innocent people’s accounts being frozen because the investigators have turned a commercial transaction to a criminal case,” they said.
CONSPIRACY TO STEAL
Mr Matipei, however, swore that investigations had revealed that the companies and their directors conspired to steal the money allocated for NYS to develop infrastructure under the Treasury’s Integrated Financial Management System.
He said the payments were made in three tranches in which Form Home Builders received Sh218,925,000 in January 2015, Roof and All Trading Ltd Sh252,300,000 in March and Reinforced Concrete Ltd Sh320,160,000 in March.
“The payments were made to a bank account opened between December 13 and 14, 2014. But soon thereafter, the money was transferred to individual bank accounts,” said Mr Matipei.
He opposed the application to unfreeze the accounts, arguing that it would not only scuttle their investigations but also stop them from recovering stolen public funds.
At the same time, Justice Joseph Onguto allowed the Attorney- General to take part in the proceedings as an interested party. He set the hearing for November 2.
SOURCE: Daily Nation
