In 2016, a special audit of the National Youth Service accounts by the Auditor General revealed an elaborate scheme to defraud taxpayers that led to the loss of Sh1.9 billion and an attempted theft of Sh695 million.
But the losses could have been worse than what the Auditor General uncovered, according to a report on the special audit by the parliamentary Public Accounts Committee (PAC).
The report, that was released in March this year, states that the sum which may have been misappropriated, and needs to be further investigated by the Director of Criminal Investigations (DCI) and the Ethics and Anti- Corruption Commission(EACC), may be to the tune of Sh23 billion for the entire ministry. Of that sum, slightly over Sh10 billion is directly traceable to NYS.
As the case gains momentum , and the police detectives tightened noose on those involved ,three suspects in the second National Youth Service (NYS) scandal have turned to State witnesses, the prosecution told the court on Monday.
The prosecution further told Trial Magistrate Douglas Ogoti that the charges against the three had been withdrawn.
The three are now set to testify against former National Youth Service (NYS) Director-General Richard Ndubai, former Youth and Gender Affairs Principal Secretary Lilian Omollo and other suspects charged in the scandal.
The trial of Mr. Ndubai, Ms. Omollo and other suspects charged with theft of funds at NYS is set to begin on Monday, October 29.
The accused persons in the first phase of the fraud case are 37, among them Mr. Ndubai and Ms. Omollo, and the case involves theft of Ksh.225 million from the youth agency.
They are charged with offences of conspiracy to commit an offence of economic crime, abuse of office, willful failure to comply with applicable procedures and guidelines relating to management of public funds.Other charges include neglect of official duties, fraudulently making payments, breach of trust, making documents without authority, uttering false documents, false accounting, fraudulent acquisition of public property, dealing with suspect property and money laundering.
The accused persons comprise senior, middle and lower cadre government officials believed to have played key roles in the commission of the said offences.
The prosecution will be demonstrating to the court how the accused colluded and facilitated payment of Ksh.225 million to fictitious entities.
#UPDATE: ODPP drops all charges against 4 suspects, who have since turned into State witnesses in the NYS scandal, after recording fresh statements. The four are Rogers Nzioka, Josephat Njoroge, Stephen Riungu & Lucas Otieno. #NTVToday @SethOlale pic.twitter.com/KITGcEk9dA
— NTV Kenya (@ntvkenya) October 29, 2018
“The Prosecution shall endeavour to prove the ingredients of each and every charge against the accused persons through primary evidence, expert witnesses, graphs, electronic evidence and through cooperating witnesses who were accused persons and now state witnesses,” said the prosecution.
The court consolidated the 10 files involving the scandal and categorised them into three separate cases whose hearing is set to go on until March 2019.
The hearing of the case which begins on Monday, October 29 is scheduled to go on until December 7, 2018.