Waiguru and I Shared NYS Millions, Business Woman Reveals

A key suspect in the Sh791 Million National Youth Service Scandal now claims she shared millions with former Devolution Cabinet Secretary Anne Waiguru.

In papers filed in court on Monday, Josephine Kabura Irungu puts Waiguru at the centre of the scam, revealing that Waiguru introduced her to doing business with NYS and even helped her register the companies used in the dubious dealings.

According to Irungu, the former CS instructed her to open accounts for them with the Family Bank and specifically KTDA Plaza branch.

“Ms Waiguru called an employee of Family Bank whose role was to ensure that the accounts were opened and operated without any hiccups,” alleges Ms Irungu. 

She further mentions in the affidavit, that Waiguru was well aware of payments made and even ordered Sh80 Million to be paid to anti-graft detectives in a cover up scheme.

Irungu further alleges that in July last year, two detectives approached her while in office, and one passed a phone to her (Irungu). 

“The person on the phone was CS Waiguru who instructed that I hand to one Mr Mugwanja Sh80,000,000 I had earlier disclosed to Waiguru I had kept in the two safes,” she claims.

When reports emerged that Central Bank was questioning huge payouts at NYS, Ms Waiguru allegedly organised a meeting at her Runda home attended by among others; Political Scientist Mutahi Ngunyi, Mr Hassan Noor who was the Devolution Ministry Chief of Staff, and Mr Joseph Mugwanja, the director of the Banking Fraud Department.

In the court papers, Ms Irungu explains that Mr Ngunyi who worked as a consultant for the NYS, advised Waiguru to release an official statement to calm the public rage.

“He also advised her to do a backdated letter on the purportedly stolen password... This backdated letter was dated June 5, 2015,” she adds.

Ms Irungu further narrates that when the scandal became public, she was informed by Ms Waiguru that her name and the three companies would be included in the charge sheet, and only 'funny' charges would be levelled agaist her.

"CS Waiguru assured me that only ‘funny’ charges would be preferred against me.....abuse of office and breach of public trust,” she says in the court papers.

Irungu, who was one of the contractors supplying road building materials to the NYS department, also mentions Waiguru's sister, Loise Mbarire, claiming that the CS would often send the sister to pick from her money stashed in bags which she withdrew from the bank.

However, the former Minister, who was recently cleared by Anti-graft agency regarding the NYS theft, has since denied the claims by Irungu, saying that she lived at Kitusuru in August 2015 and not Runda.