MPs have directed the state corporations’ regulator to pursue former National Youth Service (NYS) managers and board members to recover millions of shillings lost during their tenure.
A review by the Auditor General determined that the
monies may have been lost through abandoned projects, irregular payments and
questionable appointments.
A parliamentary committee chaired by Navakholo MP
Emmanuel Wangwe now says former accounting officers, finance officials and
board members should be held personally liable.
They hold that the individuals carry the responsibility over decisions that left the youth agency burdened with stalled projects and disputed payments.
The Public Investments Committee on Social Services, Administration and Agriculture (PIC-SSAA) want the Inspector General of State Corporations to act.
They have in a report directed the inspector to commence
recovery proceedings against the former officials, with interest charged at
prevailing Central Bank of Kenya rates.
The committee reviewed NYS accounts covering the 2019-20
to 2024-25 financial years.
MPs raised concerns about the failure by NYS to recover
public money tied to construction projects that stalled years after contractors
received substantial payments.
The committee singled out the construction of a
double-span kitchen, dining hall and barracks at the NYS Engineering Institute
in Ruaraka.
The project was awarded in 2011 at a contract sum of
Sh192 million, but the contractor allegedly received Sh186 million before
abandoning the site.
A subsequent inspection by the committee found the
buildings incomplete, with visible cracks on walls and floors, and were deteriorating
after years of neglect.
MPs faulted the NYS management for failing to invoke
contractual provisions that would have allowed the government to recover losses
arising from delayed completion.
Another project under scrutiny is the construction of a
VIP stand at the Gilgil College Parade Ground.
The committee found that although the scope of works had
been reduced, the contractor was still paid Sh14.6 million instead of the
revised contract value of Sh12.7 million.
The MPs ordered the recovery of the Sh1.94 million
overpayment from the former accounting officer, finance officer and board
members.
The report also questioned the payment of Sh7.53 million
in gratuity to a former director general despite an ongoing court case
involving the officer.
The gratuity was processed following advice from the director of human resource. That was after the then Principal Secretary in the State
Department for Youth Affairs indicated no objection.
The committee directed the Inspector General of State
Corporations to establish whether the court case has been determined in favour
of the former director general.
If not, the committee said the entire amount should be
recovered from the officials who authorised the payment, together with
interest.
MPs also raised questions over the recruitment of a
Procurement Specialist on a two-year contract costing taxpayers Sh6.7 million.
The specialist earned Sh322,040 per month, a salary that
exceeded the Public Service Commission's recommended cap.
According to the committee, the officer's duties largely
duplicated those of the existing head of supply chain management, hence was an
unnecessary expenditure without any demonstrated value for money.
Beyond financial transactions, the committee warned that
thousands of acres of NYS land are at risk of being lost through
encroachment.
About 2,247 hectares spread across Yatta,
Mavoloni, Athi River, Mombasa Technical Institute and Mwatate remain unfenced
and have already attracted informal settlers.
The accounting officer has been directed to develop and
implement a comprehensive land management and security framework within three
months.
The report, MPs directed, should include boundary
demarcation, fencing and continuous monitoring of the parcels.
In another directive, the committee recommended that the
Director of Public Prosecutions institute legal proceedings against the former accounting officer over anomalies surrounding the construction of sewerage
works at the NYS Training Institute in Naivasha.
The contractor received Sh30.7 million, which is about
58 per cent of the contract value, but abandoned the works before completion.
The committee also ordered investigations into payments
amounting to Sh99.7 million made to trainers and lecturers outside the Integrated
Personnel and Payroll Database (IPPD).
To address NYS’ long-standing financial challenges, MPs
directed the current accounting officer to submit a comprehensive turnaround
strategy to Parliament.
The strategy is required to outline measures to improve
budgeting, financing and financial sustainability.
MPs also want an inquiry instituted into the ownership
and protection of NYS land held by ministries, departments and agencies to
safeguard public assets from encroachment.
The House team also reprimanded the former accounting officer for breaches of the Public Audit Act.
INSTANT ANALYSIS
Parliament's push to hold former NYS officials personally liable signals a shift from merely documenting audit failures to demanding individual accountability for the loss of public funds. By ordering recoveries, investigations and possible prosecutions, MPs are raising the stakes for state corporation managers who approve questionable payments or abandon oversight. The recommendations also expose persistent governance weaknesses at NYS, from stalled projects to vulnerable public land, testing whether enforcement agencies will finally translate audit findings into tangible consequences.
