A court in Nairobi was puzzled at how a Kenyan managed to make Ksh1.1 billion in eight months, as he reportedly swindled off the money in the National Youth Service scandal.
The anti-corruption court ordered one James Thuita Nderitu to return the money, which he allegedly received from the NYS between March and October 2017, yet he did not offer any services in return.
A report by The Standard on Saturday, April 25, detailed that the Assets and Recovery Agency (ARA) found out that Nderitu's money was traced through five companies: Flagstone Merchants Limited, Excella Supplies Limited, Flagstone Co Limited and Interscope Tech and Services. He owned two of the companies with an ex-wife and current wife.
On March 21, 2017, he received Ksh195 million which ARA argued was not the actual amount, as the real figure was Ksh235 million.
In one week, between July 4 and July 13, 2017, one of his companies received Ksh795 million.
However, in 2018, ARA only found Ksh41 million in two of his bank accounts as the rest of the money was mysteriously missing.
"The money received from NYS and associates through their business entities and personal accounts was further intra-transferred into family members and associates accounts," ARA lawyer Peter Ngumi argued.
The Kenya Revenue Authority (KRA) earned Ksh1 million from the loot as tax payment, and the money can't be frozen nor recovered.
In his argument, Nderitu stated that he was involved in transferring money for agencies and that he was a businessman. He produced two payment entries, one for Ksh24 million and another for Ksh36 million from the Lands Ministry as evidence.
"The right forum in which a conviction can be made and a declaration that property is ill-gotten is the criminal court.
"The money in contention is the subject of a trial court that a finding will be made that a crime was committed," Nderitu argued after he was asked to return the Ksh1.1 billion.
Justice Ngugi Thuita was, however, not convinced by Nderitu's claims that his wealth had transpired from legit business activities.
"In my view, the respondents needed to go beyond the allegations that they have wide-range businesses and show how these businesses translated to the credits of millions from the NYS and the State Department of Public Service and Youth," Ngugi ruled.
