Embattled former Cabinet Secretary (CS) Anne Waiguru's name has been mentioned in a new alleged corruption scandal unearthed by a parliamentary committee at the Youth Enterprise Development Fund (YEDF).
The Public Investment Committee (PIC) on Tuesday heard that senior YEDF officials colluded with a top bank to defraud money through malicious activities and payment of non-existent services that led to loss of Sh400 Million.
During the examination, the Committee led by Eldas Member of Parliament (MP) Adan Keynan questioned why YEDF chairman Bruce Odhiambo had suspended Finance Manager Benedict Etavachi, and copied the suspension letter to Waiguru and former Devolution Principal Secretary Peter Mangiti.
The legislators wondered whether Etavachi had been ejected from office through the hands of an external force, an action that could have occasioned the supposed misappropriations.
"What was the rationale of copying this letter to Anne Waiguru and former PS Engineer Peter Mangiti?" Asked the Committee's Vice Chair, Kikuyu MP Kimani Ichung’wa
"Was this a conspiracy to cover up the theft? Were you acting under duress or instructions from the former CS and PS? Was there a motive?" Queried another member, Chris Wamalwa.
The Committee was surprised after Mr Odhiambo caved in to pressure and admitted to have authorised former CEO Catherine Namuye as the sole signatory to bank accounts, contrary to approval by the Fund's board.
Etavachi, who was being questioned by PIC, said that the agency paid close to Sh180 Million to a company for consultancy services. However, after intense probing, it was unveiled that no services of that kind were rendered.
Despite being one of the signatories to the YEDF bank accounts, Etavachi revealed that he was denied access to the accounts and that the bank had allowed massive withdrawal of money without the authorization from the department's board.
The Sh400 Million in question had been deposited in a Chase Bank fixed account, but could not be accounted for, with the lawmakers expressing concerns that the scam might be bigger than the one at National Youth Service (NYS).
"This scam could run into billions of shillings and make the NYS scandal child's play. This is worse. In the NYS theft, there were some materials and constructions but in the fund's case, money was simply stolen from bank accounts," said Ichung'wa.
The new revelations come as Ms Waiguru wrote to Inspector General of police Joseph Boinnet, requesting for protection following her affidavit linking powerful politicians to the NYS graft.
Read Also: Waiguru Now Seeks Protection from Boinnet
