Nairobi News


How rogue staff manipulated amounts to inflate NYS contracts – police

By JOHN NJAGI October 5th, 2016 1 min read

The Director of Criminal Investigations Ndegwa Muhoro has laid bare details of how unscrupulous staff distorted figures to inflate transactions related to  National Youth Service (NYS) contracts.

Mr  Muhoro on Wednesday narrated to a parliamentary committee how zeroes were added in fraudulent NYS transactions, resulting to companies earning hundreds of millions above contract amount.

Most of the companies belonged to Josephine Kabura, who later claimed to have shared the loot with former Cabinet Secretary Anne Waiguru.

Ms Waiguru has since denied the claims.

Mr Muhoro on Wednesday told the Public Accounts Committee that the money was stolen through collusion and manipulation of the financial management system IFMIS.

He also refuted claims by former NYS deputy Director General Adan Harakhe that his IFMIS password was stolen.

Mr Muhoro said there was no way a password could have been stolen, adding that it was shared with another user.

Investigations have also indicated that Mr Harakhe approved inflated transactions, leading to the loss of Sh791 million, Mr Muhoro said.

Investigations also revealed that 21 other companies benefited and won tenders amounting to Sh 999 million, he said.