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Over Sh1.6 billion might have been lost in NYS scandal

By LILLIAN MUTAVI February 18th, 2016 1 min read

The amount of money lost in the National Youth Service scandal could be as much as Sh1.6 billion, according to a new report seen by the Nation.

The report reveals that further investigations into the NYS scandal had shown that hundreds of millions of shillings were paid to 15 additional companies beyond the Sh791 million that has been in the public domain.

The report, the outcome of a meeting that was chaired by President Uhuru Kenyatta at State House, Nairobi, on Monday, shows that the Ethics and Anti-Corruption Commission (EACC) was investigating payments amounting to Sh869 million to the additional companies.

This brings the total of the amounts suspected to have been paid out irregularly to Sh1.66 billion.

The report was compiled by a team comprising representatives from the Office of the President, the Directorate of Public Prosecutions, the Directorate of Criminal Investigations (DCI), the Kenya Revenue Authority and the Asset Recovery Agency.

The report also says that the Central Bank of Kenya had fined Family Bank Sh1 million for its role in handling the NYS money.

In the face of claims by one of the business people facing charges arising from the scandal that Mr Joseph Mugwanja, the head of the Banking Fraud Investigations Unit (BFIU) of the DCI, had received Sh80 million to influence the investigations, the multi-agency team has placed all investigations under its technical team.

“To avoid duplication, all NYS investigations to be undertaken under MAT. In this respect, EACC and BFIU shall henceforth share information regarding the ongoing NYS investigations. Further investigations to be conducted jointly,” the reports recommends.

Read the full story here.

SOURCE: Daily Nation