Youth Fund board dismissed, ministry to recover Sh180m loot
Public Service, Youth and Gender Affairs Cabinet Secretary Sicily Kariuki speaks at a forum on February 8, 2016. Ms Kariuki dismissed the Youth Fund board on April 6, 2016 and vowed her ministry would recover the Sh180 million lost through corruption. PHOTO | ROBERT NGUGI | NATION MEDIA GROUP
What you need to know:
Speaking in Othaya, the CS said all the money looted in the Sh180 million scandal would be recovered once investigations are concluded.
She was on a tour of Nyeri County during which she distributed cheques worth Sh24.4 million to women’s groups.
This comes in the wake of the resignation of chairman Bruce Odhiambo.
The Youth Fund board has been sent home and any money lost will be recovered from the members, Public Service, Youth and Gender Cabinet Secretary Sicily Kariuki said Wednesday.
Speaking in Othaya, the CS said all the money looted in the Sh180 million scandal would be recovered once investigations are concluded.
She was on a tour of Nyeri County during which she distributed cheques worth Sh24.4 million to women’s groups.
“It is true that money was looted and I want to assure Kenyans that the ministry will ensure that the entire Sh180 million is recovered,” she said.
Announcing the suspension of the board, she said: “The entire board has been sent home and all those who were involved will be brought to book.”
This comes in the wake of the resignation of chairman Bruce Odhiambo who, together with suspended Chief Executive Catherine Namuye, has been accused of failing to prevent the loss of the funds.
Mr Odhiambo also allegedly received Sh3.3 million from a company accused of having fraudulently obtained money from the institution, now under investigation by a parliamentary committee.
Standard Chartered Bank officials on Tuesday explained to a Parliamentary Investments Committee chaired by Eldas MP Adan Keynan how a man going by the name Bruce Dominic Odhiambo was paid Sh1.8 million and Sh1.5 million on March 5 and 16, respectively, from an account operated by Quorandum Ltd.
Ms Mary Runana, the bank’s head of financial crime compliance, said they reviewed the transactions when media reports started emerging of shady dealings between the Youth Fund and Quorandum, which is owned by Mr Mukuria Ngamau.
“We noted that one of the recipients of the funds had a similar name to one of the principals of the Youth Fund,” said Ms Runana.
Mr Odhiambo was initially paid for consultancy services, then later as a supplier. Since he is not a customer of the bank, Ms Runana said they did not have any more information about him.
She said they also noted from media reports that Quorandum had been paid for an information technology-related contract yet they knew their customer as being in the construction industry.
