AN investigation by the Criminal Investigation Department indicates that Sh695,400,000 of questionable transactions at the National Youth Service were apparently approved by the Senior Deputy Director General Adan Gedow Harakhe.
The IFMIS audit trail indicated that the 18 questionable transactions were then submitted by Regina Nyambura Mungai, according to a progress report, submitted on June 19 to Devolution CS Anne Waiguru, by the Banking Fraud Investigation Unit of the CID.
"Both ( Regina and Harakhe) have disputed making these entries in the IFMIS system," BFIU boss Joseph Mugwanja stated.
"It is only a cybercrime report which can prove the contrary by identifying forensically the IP Address of the particular computer used to make the entries," said Mugwanja.
“Six computers which were seized from employees of NYS are still being analysed at Department of Criminal Investigations Cyber Crime Unit to establish the person who made the fraudulent entries,” Mugwanja stated.
Another four supply orders worth Sh133,200,000 were apparently cleared as they went through the laid down e-procurement procedure and were awarded by the Devolution Principal Secretary, Peter Mangiti.
On May 26, Dickson Gisiora wrote on behalf of NYS Director General Nelson Githinji to the CID stating that Harakhe's IFMIS account was used to approve payments without is knowledge on 20 and 1 May, 2015. He requested the cybercrime unit to investigate.
On May 27, Harakhe himself wrote to Jerome Ochieng, the IFMIS director at the Treasury, saying that his account had been hacked and requesting various orders to be reversed from the system.
Harakhe, a former DC in Western Kenya,
was appointed by Waiguru seven months ago.
Six companies are indicated in the IFMIS system as being involved in the Sh695m of disputed payments for road construction and building materials. Curiously the companies seem to share directors.
Form Homes Builders, whose director is Josephine Kabura Irungu, received tenders worth Sh154,950,000 in November 2014.
Draco Capital, whose directors are Peter Omari Otwoma and Caroline Njambi Kinuthia, received tenders worth Sh115,800,000 in December 2014.
Roof and All Trading, director Irungu, received a Sh77,250,000 tender in November 2014.
Reinforced Concrete Technologies, director Irungu, received a Sh115,800,000 tender in November 2014.
Grumum Engineering, director Otwoma, received a Sh115,800,000 tender in December 2014
Tegmen Trading, directors Otwoma and Kinuthia, received a Sh115,800,000 tender in January 2015.
"The committed amount is Sh695,400,000 while the amount planned for to acquire road construction and building materials was Sh300,000,000," states the CID report.
The explosive report was sent to Waiguru last Friday. BFIU boss Mugwanja told Waiguru that 16 statements had been recorded from NYS and Devolution officials.
On June 5, Waiguru wrote to the CID requesting them to investigate alleged manipulation of the IFMIS payment system at NYS.
Opposition politicians including PAC chairman Nicholas Gumbo have declared that they will also investigate the NYS transactions.
The Ethics and Anti Corruption Commission is also watching developments and told the Star yesterday, “We thought this probe ought to have been referred to us from the beginning."