The National Youth Service Scandal was a corruption scandal within Kenya's Ministry of Devolution and Planning. Ksh. 791 million ($7,650,000) is said to have been stolen from the ministry's coffers, with some saying that figure could have been as high as Ksh. 1.8 billion ($17,400,000).
Background
In September 2015, Kenya's director of public prosecutions asked to record a statement over the disappearance of Ksh. 791 million from the ministry of Devolution and Planning. Public Accounts Committee chairman Nicholas Gumbo said he was looking into the ministry's accounts in which the ministry had bought overpriced items including condom dispensers for $250; a television set worth Ksh. 1.7 million ($17,000) and sex toys. Waiguru denied these allegations on her Facebook page saying that she is not involved in the purchase of anything for the ministry. She said that no money had gone missing from the ministry's coffers.
On 22 November 2015, Waiguru stepped down from her cabinet position following pressure from the public and the opposition on her role in the scandal. There was also additional pressure from some members of the Jubilee Alliance, of which she was a member, who viewed her as a political liability. She said that her doctor had advised her to step down as the pressure negatively affected her health.
In February 2016, she was cleared by the Ethics and Anti-Corruption Commission (EACC) on all charges. However, in March 2016, EACC Chairman Phillip Kinisu said that there had been errors in clearing Waiguru. He stated that these errors had been as a result of a communication breakdown between government agencies.
Deputy president, William Ruto, initially defended Waiguru saying all accusations against her were false and that they were the creations of the opposition to paint the government as being lax in fighting corruption. He later retracted this statement and said that Waiguru should take responsibility for the millions that went missing in her ministry.
Others mentioned in the scandal include Josephine Kabura, Ben Gethi, Adan Harakhe, Mutahi Ngunyi and Kipchumba Murkomen.
Public Accounts Committee Hearing
The Public Accounts Committee (PAC) chaired by Hon. Nicholas Gumbo summoned, among others, Anne Waiguru, Josephine Kabura, CID boss Ndegwa Muhoro, Mutahi Ngunyi, Hillary Sigei, Nelson Githinji and Ben Gethi severally.
Members of the PAC included MPs Jackson Rop (Kipkelion West), Abdikadir Aden (Balambala), Timothy Bosire (Kitutu Masaba), Mbadi John Ng'ongo (Gwassi), Fathia Mahbuub (Mandera), Japhet Kareke Mbiuki (Maara South) and Clement Wambugu (Mathioya).
Josephine Kabura
Josephine Kabura Irungu is the owner of at least 11 companies that won various contracts at the National Youth Service. She is accused of having been overpaid on each one of those contracts. She has been described in sections of the media as a hairdresser. She told the PAC that she is an IT expert with a diploma and higher diploma from the Kenya College of Accountancy.
Kabura says she met Waiguru while working at the Ministry of Finance, specifically in the IFMIS department. During this time, she says she started running errands for Waiguru before culminating in her companies being appointed the sole contractors to deliver materials for National Youth Service projects. It was during this period that she met Adan Harrakhe who made payments to her in his role as Authority to Incur Expenditure (AIE) holder.
Kabura's affidavit
On 15 February 2016, Kabura filed an affidavit in court which described, in detail, her role in the scandal. In the affidavit, she explained how Waiguru helped her register companies that would later be awarded various contracts at the National Youth Service. She also said that she was specifically asked by Waiguru to open bank accounts at Family Bank's KTDA Plaza branch.
In her affidavit, she said that Waiguru was involved in all levels of the scam and that they were advised by the director of the Banking Fraud Department, Joseph Mugwanja. She details how most of the money she received as payment for work done ended up being given to people she described as 'suspicious'. For instance, at one point she was asked to give Ksh. 20 million to a Mohammed which, she was told, was to facilitate more business. In another instance, she was told by National Youth Service deputy director general Adan Harrakhe to deposit Ksh. 40 million into a bank account.
She details how she was asked to give some of the profits to a Ms. Loise Mbarire, Waiguru's sister. She delivered this money in gunny bags to Mbarire who had parked her car at the basement of the KTDA Plaza.