Anne Waiguru And The Corruption Saga at NYS

[Ab-Titchaz]

Waiguru brought in officer to handle procurement

THE Central Bank has written to the Ministry of Devolution about questionable payments of hundreds of millions shillings to private companies through the National Youth Service.

The CBK letter comes amid claims that Devolution and Planning CS Anne Waiguru has fallen out with NYS Director General Nelson Githinji.

Waiguru has now transferred an Under Secretary from the Interior ministry to her docket and created for him the position of NYS Senior Deputy Director General, or Githinji's deputy.

Those in the know however say that the officer, Adan Gedow Harakhe, has become more powerful than Githinji because he has been put in charge of all administration, procurement, finance and human resource.

His transfer to NYS was communicated to Githinji through a letter dated November 27, 2014 and signed by Devolution PS Peter Mangiti. The Chief of Staff and Head of Public Service Joseph Kinyua approved the transfer on April 24. Documents show that Harakhe started work at the NYS six months before the Public Service Commission approved the transfer.

Harakhe, a former DC in Western Kenya, was given Authority to Incur Expenditure (AIE) that was previously a preserve of Githinji's.

When CBK last month raised queries with Mangiti, the PS responded by writing to Githinji over the issue.

"We are in receipt of an email from Central Bank of Kenya requesting that we clarify the purpose for these payments and whether the goods have been supplied or services rendered to the ministry," said a letter sent to Githinji on May 29 and signed by Francis Kariuki for the PS.

"We are unable to reply to these issues since we only receive processed payments vouchers from your end. Please liaise with the Head of Supplies Chain Management for them to clarify on these issues and reply to us urgently to enable Central Bank to release the money to the beneficiaries using the National Youth Service letterhead," the letter said.

Yesterday, Githinji denied knowledge of the letter, telling the Star he had not seen it.

"We as an institution have no role whatsoever in procurement matters. All procurement matters are adjudicated at the Ministry headquarters."

Waiguru last year appointed Githinji to replace Kiplimo Rugut amid controversy that strained relations between the main political parties in the ruling coalition, TNA and URP.

Sources say the move to deploy Harakhe to NYS came at a time when Waiguru had also requested the transfer of Chief Finance Officer John Munywoki from the ministry. He was moved to Treasury and then Water.

Another accountant at the ministry, identified only as Karenju, has also been moved to Water, while Githinji's Personal Assistant Jane Muringi was suspended early this year in unclear circumstances.

Documents in our possession show that the NYS has paid over Sh665 million to suppliers and consultants since November last year and CBK has raised questions on some of the payments Harakhe has made, including Sh40 million to Bora Global Ltd.

The company was paid two vouchers – of Sh32 million and Sh18 million – on May 15, 2015, for supply of powdered milk to the NYS.

Bora Global Ltd was registered on October 31, 2013, with Maria Blessings Nyambura Ng'ang'a, Wilson Waihenya Ngima and Julius Muvea Muinde listed as directors.

The same documents show that Mutahi Ngunyi of The Consulting House has been paid Sh38.9 million for consultancy services for the implementation of the NYS 5-point Vision strategy.

Ngunyi received Sh25 million (Sh12.5 million each) as quarterly payment while he received Sh10 million on May 27 and another Sh3.9 million on the same day as reimbursement costs while implementing the 5-point Vision strategy.

On May 25, 2015, Ms Things of Desire was paid Sh37.5 million, in two transactions, for supply of rice.

Transcend Media Group (TMG) has received Sh161 million in the last year for publicity and rollout of NYS rebranding.

Tunasco Instaat T.T.T.A.S paid about Sh175 million for supply of leather boots while Brand Associates has been paid over Sh113 million for consultant services in NYS rebranding for media buying.

Alpha Mercantile received about Sh13 million for supply of sugar.

- See more at: Central Bank of Kenya queries huge NYS payments | The Star

 

[Ab-Titchaz]

Central Kenya MPs call on Uhuru to protect Waiguru from Opposition's 'political vendetta

​

http://standardmedia.co.ke/article/...-waiguru-from-opposition-s-political-vendetta

 

[Ab-Titchaz]

Waiguru alleges plot to siphon Sh826m from NYS




By AGGREY MUTAMBO

In Summary

• The Central Bank of Kenya is reported to have questioned the payments since last November of Sh665 million by NYS, including payments authorised by the new senior deputy director-general, Gedow Harakhe.
• The CBK, which may look at transactions going through commercial banks to determine their validity, got curious about the large amounts of money being moved from NYS coffers, just two months to the end of the financial year.
• But while they argued the Sh665 million paid out by the NYS was not under investigation, it was revealed that some of the supplying companies are owned by the same individuals, raising questions about whether due diligence had been done.

An attempt was made to steal Sh826 million from the National Youth Service(NYS), Devolution Cabinet Secretary Anne Waiguru claimed on Thursday.

She was speaking at a press conference she had called to respond to press reports about procurement at the NYS, now one of the best-funded agencies of the government.

The Central Bank of Kenya is reported to have questioned payments since last November of Sh665 million by the NYS, including payments authorised by the new senior deputy director-general, Mr Gedow Harakhe.

Questions have also been reported by the press, particularly The Star, revolving around procurement, especially by companies that seemed to share directors.

Ms Waiguru said swindlers had infiltrated the ministry's financial systems and created payments for non-existent supplies worth Sh826 million.

If criminals have the capacity to enter government procurement systems and create payments for fictitious purchases, then it raises serious questions about the security of public funds and the adequacy of the security for government computers.

'WE DIDN'T LOSE MONEY'

"It would have been a very huge loss had it happened," she said, adding that the payments were stopped before they were completed.

"We didn't lose money. If we hadn't noticed, and they continued processing like there is something going on, maybe in a month they would have managed to do payments and we would have lost," she said in her office in Nairobi.

"Somebody got into the system and made very many commitments of similar transactions. We noticed and asked the Director of Criminal Investigations to investigate. It could be external … but it could also be internal, but we do not want to speculate until the investigation is done."

The NYS was transferred from the Youth and Sports ministry to the ministry of Devolution when the Jubilee coalition came to power. Youth empowerment is an important campaign promise for the government and a lot of money has been spent on the NYS.

Last year, it was allocated Sh17 billion to increase the number of recruits from 5,000 to 31,000. This year, the NYS budget stands at Sh25 billion.

There appears to be a quiet but vicious tussle, denied by all parties, between NYS Director-General Nelson Githinji and Ms Waiguru. The perception is that the assertive Ms Waiguru, or her close aides, has moved in and taken control of key operations at the NYS, marginalising Dr Githinji.

LUCRATIVE TENDERS

With a ballooning budget comes procurement and there is jostling for lucrative tenders to provide food, clothing, communication consultancies and other services.

It is likely that the allegations of tender shenanigans and illegal payments reported by The Star yesterday are the first shots of growing resistance against Ms Waiguru, especially her perceived control of the NYS.

Yesterday, she held a joint press conference with her principal secretary, Mr Peter Mangiti, and Dr Githinji to "clarify" allegations of illegal procurement and payments, malpractices in management and a poor working relationship between her and Dr Githinji.

They denied that there was a rift between Ms Waiguru and Dr Githinji over the appointment of Mr Harakhe as Dr Githinji's deputy.

The three denied the payments had been made illegally and argued they had provided details to the CBK on the transactions.

"We affirm that (a) proper procedure based on the law on procurement was followed. The NYS did not give one tender, it did not give two. There have been more than 200 tenders," said Devolution PS Peter Mangiti.

But while they argued that the Sh665 million paid out by the NYS was not under investigation, it was revealed that some of the supplying companies are owned by the same individuals, raising questions about whether due diligence had been done.

LARGE TRANSACTIONS SPOTTED

"People register many companies and we encourage them to do that to enhance their ability to compete.

"The law does not prohibit anyone from owning more than one company or being directors of more than one company. It is not illegal. You can't start asking us why they are. How do you expect us to answer a question like that?" asked Ms Waiguru.

"You cannot stop someone from bidding in a tender more than once because that is how they think they will enhance their chances. Everybody uses their ingenuity to make sure that they compete amongst their peers."

The CBK, which may look at transactions going through commercial banks to determine their validity, got curious about the large amounts of money being moved from NYS coffers, just two months to the end of the financial year.

Most of these firms that won tenders had similar directors among them and some are accused of importing food to supply to the NYS, thus going against the push to buy from Kenya.

One company was paid paid Sh40 million in mid-May to supply powdered milk.

Another received nearly the same amount for consultancy services. About Sh38 million was paid to a firm to supply rice, another got Sh13 million to provide sugar, while a media company received Sh165 million for running promotional campaigns for the NYS.

Waiguru wades into NYS tender row - VIDEO - News | Daily Nation

 

[Ab-Titchaz]

​

 

[Ab-Titchaz]

Woman owns firms at centre of NYS probe

By OTIATO GUGUYU

In Summary

• The property management firm belongs to 33-year-old Josephine Kabura Irungu who owns two other companies implicated in the scandal.
• Two other companies, Draco Capital and Tegmen trading which were allocated Sh115.8 million each are co-owned by Mr Peter Omari Otwoma and Ms Caroline Njambi Kinuthia.
• The two interestingly switched their residences when registering Tegmen Trading whose physical address is given as LR No 209924 Kenyatta Avenue.

The six companies under investigation over the theft of Sh695.4 million from the National Youth Service had their physical location indicated by land title numbers.

The companies whose registration details raise questions are apparently owned by only three individuals.

One company, Form Home Builders, was registered on June 10, 2015, five days after Devolution Cabinet Secretary Anne Waiguru wrote to the Directorate of Criminal Investigations to investigate its activities.

The property management firm belongs to 33-year-old Josephine Kabura Irungu, who owns two other companies implicated in the scandal.

Ms Irungu whose three companies, Form Home Builders, Reinforced Concrete Technology and Roof & All Trading were awarded a total of Sh348 million in supply tenders has her physical address registered as Plot No 209/3770 on Koinange Street, in Nairobi.

Two other companies, Draco Capital and Tegmen trading which were allocated Sh115.8 million each are co-owned by Mr Peter Omari Otwoma and Ms Caroline Njambi Kinuthia.

Registration documents show that Mr Omari lived in Thogoto when he registered Draco Capital while Mrs Kinuthia lived in Ngong. The company is allegedly located on Rose Avenue LR No 2093352, in Nairobi.

PHYSICAL ADDRESS

The two interestingly switched their residences when registering Tegmen Trading whose physical address is given as LR No 209924 Kenyatta Avenue.

Their companies are registered six weeks apart with Draco Capital apparently registered on Christmas Eve of 2014.

Mr Otwoma is also the sole director of Grumum Engineering that might have benefited from Sh115.8 million, even though details at the state law office show only the name has been reserved, and the company is not yet fully registered. The progress report into the investigations show that Sh695.4 million was committed to the six companies while the amount planned to acquire road construction and building material was Sh300 million.

Director of Anti-Banking Fraud Joseph Mugwanja said six computers were seized from NYS employees are being analysed by the cybercrime unit to identify the Internet protocol (IP) address of the computers used to make the fraudulent entries in IFMIS.

Paper trail indicate 18 disputed transactions were sanctioned by Mr Adan Harakhe who has the Authority to Incur Expenses (AIE) after they were requested by a Mrs Regina Mungai. Both of them have denied making such entries.

Mr Harakhe had sought to have payments deleted from the system in which funds are allocated for specific jobs undertaken by ministries to avoid pending bills claiming his password had been stolen by unknown people.

Woman owns firms at centre of NYS probe - VIDEO - News | Daily Nation

 

[Ab-Titchaz]

This National Youth Service(NYS) circus is pathetic. National Youth Service was never established as employment agency. Read Its Constitutive Act Cap 208 Revised 2012(1967). It was set up to inculcate sense of nationhood, service and patriotism.

There is nobody who is saying whatever the young people at the NYS are doing is wrong. It is part of the service to the country and what in effect the law has established them to do. Therefore this is not a benevolent government privilege to those young people and to the Kenyans.

Let us put this whole NYS issue into its correct perspective. One one the main pillar of struggle for constitutional reforms was to institutionalize rule base governance system and dismantle individual rule fiat. The NYS project as of now is attempt at recreating a benevolent individual who disregard rules, system of governance and institutions of governance as established by the Constitution.

Constitution of Kenya 2010 established two levels of governments with functions. In Articles 187 and 189, The Constitution provided framework on how levels of governments can coordinate, consult and cooperate in performing functions. This position was further reaffirmed by the High Court of Kenya in the Constituency Development Funds ruling of February 2015.

The services that the young people at the NYS are offering across the country( i have no idea why Kibra is such point of interest) are largely constitutional functions of the County governments. Marking you, this is Service NOT Employment.

A proper logical and appropriate mechanism for the sustainability of the NYS service rendered venture and for meaningful benefit to these young people is for Department of National Youth Service( Under whichever ministry its falls) to enter into legal framework with county governments. What is happening with NYS project is another example of undermining constitutionally set governance system.

This legal mechanism respect the Constitution and functions of the levels governments, and also provide clear funding system of the projects to being carried out by NYS. It will further clarify whether the activities of the NYS are permanent or temporary and also make it clear whether those young people are employees or not including whether they are paid full salary, allowances and or what mode of remuneration. This ensures certainty, credibility and impartiality of the NYS service work. .

Ndungu Wainaina

 

[Ab-Titchaz]

​

 

[Ab-Titchaz]

Disband NYS; it's an outdated outfit with no useful purpose

Dr Nelson Githinji, the NYS director-general. PHOTO | MARTIN MUKANGU | NATION MEDIA GROUP

By WAGA ODONGO

In Summary

• The reformed NYS still features drills under martinets, pageantry, fatigues and boots, all of which come from the service's disreputable past, when it was used to create cannon fodder for enemy armies.
• Watching a passing out parade of the NYS makes a visitor think that our country has the most professional grave-digging service in the world. It is deliberately low-tech and values strength at a time the premium seems to have been irreversibly placed on brains.
• The NYS, if you remember, was used to cordon off Uhuru Park during the Saba Saba rally, a move that left them vulnerable to the charge of both politicisation and militirisation.

I have always wondered why the government was so keen to revive the National Youth Service (NYS).

For a self-proclaimed digital government, revamping the NYS was a reaching back into prehistory.

But with this Integrated Financial Management Information System (IFMIS) business, I now know why the NYS had to get such an expensive makeover. The idea of a national youth service comes from a time of mass army conscriptions, when generals hoped to produce more men for the frontline than their opponents could make bullets.

Countries that still have massive youth services are usually either always on the brink of total war, or extremely tiny. Basically, a national youth service is a product of political paranoia about your neighbourhood.

Soldiering is now technical stuff. We have a professional, all-volunteer army that does not conduct mass recruitment. Neither does it need a mass of trained conscripts available on short notice. The army is no longer about brawn and numbers; it is about brains, tactics and operating technology.

The reformed NYS still features drills under martinets, pageantry, fatigues and boots, all of which come from the service's disreputable past, when it was used to create cannon fodder for enemy armies. I have been to the NYS headquarters in Ruaraka, and the place is a barracks.

Some claim that this service will instil discipline into the youth. Why is discipline synonymous with the military? This idea of "discipline" is spurious; after all, it was the Air Force that tried to overthrow the government in 1982. And the army was accused of looting at the Westgate Mall. Besides, I do not think it is possible to instil discipline into anyone above 18 – their habits are fixed by that time.

And isn't the NYS an admission by the government that the school system does not instill discipline? That 12 years of education often leads to ignorant brats who require further instruction to acclimatise to the world?

Of course, some will backtrack and say that the NYS has nothing to do with the military and is about development and vocational training. Must vocational training be done in combat boots?

Do you need to perform drills to be thought of as organised? I have been to several polytechnics in the country, and none seem to have marching grounds. The NYS is exactly like the military, except that instead of a firearm, they carry a shovel when marching.

Isn't it embarrassing that the supposed symbol of vocational training is a shovel, which requires no training to use. At least a jembe requires more technique. Watching a passing out parade of the NYS makes a visitor think that our country has the most professional grave-digging service in the world. It is deliberately low-tech and values strength at a time the premium seems to have been irreversibly placed on brains.

The charge about he politicisation of the NYS is also correct. In Russia, Nashi, a pro-government youth movement, is given state-funded holiday camps that feature the same quasi-military training. Nashi was instrumental in staging counter protests in 2011 that countered the anti-Putin protests.

In Kenya, Miguna Miguna revealed in his book, Peeling Back the Mask, how, while undergoing NYS training, they were addressed by senior government officials, who parroted the Kanu party line. If you have a captive audience of youth in a barracks and total control over what they learn, why not exploit them?

You would be a poor politician not to. Why not send them to the street to spontaneously protest your troubles? The NYS, as presently constituted, is an efficient organ of spreading whatever civic messages the government deems fit.

The NYS rebranding was all about politicising it. The word "presidency" is on every single NYS advertisement and billboard. They do not, for a second, want to let you forget who brought about this new, and improved service.

Clearly, State House and the Ministry of Planning and Devolution want to milk all its perceived success. The NYS, if you remember, was used to cordon off Uhuru Park during the Saba Saba rally, a move that left them vulnerable to the charge of both politicisation and militirisation.

All the good NYS can do will come at a cost. The cost of allowing NYS to build roads is depriving Kenyan contractors of opportunities. The government's role is to create jobs and not to undercut its citizens from government contracts.

It government should provide only services that the public sector obviously cannot provide.

The NYS should be disbanded because it is a continuation of militaristic folly, a political tool capable of being used to subvert democracy and now, we have found out, another avenue for entrepreneurship.

THE WAG: Disband NYS; it’s an outdated outfit with no useful purpose - DN2 | Daily Nation

 

[Ab-Titchaz]

Kahawa Tungu - How National Youth Service (NYS) is Being Prepared for Future Election Riggings