PART I: A PERSPECTIVE OF THE SCAM AT NYS – JANUARY 2018

The following is a synopsis of activities at the National Youth Service that are impacting negatively on integrity of its management and therefore justifying the need for investigations on irregularities in the procurement transactions feared to have occasioned theft of public funds through overbuying, overstocking and making payment for substandard goods in a scale feared to be much bigger than any other unearthed in the recent past.
Over a considerable period of time, it has become clearer that the PS MPYGA and DG NYS connect intimately in matters procurement. They are proactive in payment of ‘correct’ suppliers and have regular strategy meetings over drinks outside the office. Dr. Ndubai has deliberately allowed the PS Lillian Omollo to micro manage the Service where she regularly chairs ad hoc meetings to influence the determination of which firms to pay and or award what order or contract.

The use of fake documents to supply and support payments has reached worrying heights. Further, the fake documents have been used to support payment to firms, which did not make any deliveries by a well-organized cartel. The following highlight on some of the issues may lead to the areas that need special scrutiny: –
1) Large fictitious ‘pending bills’ have been approved and forwarded for payment and paid but are not in the original list drawn by an inter-ministerial verification committee that was commissioned immediately the Jubilee government took power. The perfect list drawn through an uncompromised validation committee has however been expanded with time through collusion with suppliers using this window to insert fake claims.
2) The cartels have influenced the payment in favor of fictitious bills sidelining genuine pending bills leading to auctioning of several service providers’ assets by auctioneers.
3) Forged and fake supply contracts have been used to obtain orders and processing of payments of hundreds of millions of shillings to favorite suppliers who own multiple trading firms that are trading concurrently and simultaneously to create fake competition during bidding.
4) Procurement of unnecessary goods, rations and foodstuff are merchant driven rather than need driven leading to overstocking of items in various outstations like Engineering Unit and NYS College occasioning huge loses of public funds with potential to health risk.
5) The debt situation in the Service continues to rise (1.5 b in Gilgil alone) through fleecing funding to the field stations and a tendency to require vouchers to be forwarded to Headquarters for payment is solely to acquaint with suppliers and pay them in return for personal gains.
6) The DG/PS and the leading favorite suppliers have united and suppressed proposals for internal investigation on incongruities of procurement activities at the Mechanical Transport Branch and at NYS Headquarters by rubbishing requests to do so thereby allowing it to remain a major corruption corridor in the Service.
7) He has placed a system that channels procurement through the PA who collects money in return to issuing instruction on who is to supply what with the audit consultant from his family covering audit trails at this point.
8) The Internal cartel superintends the shameless awarding of tenders, contracts and orders to patronizing suppliers who operate multiple trading firms.
9) The DG was kin from the onset to hurriedly recruit three close relatives (Warui Mundia-nephew, Simon Muchiri-cousin also a brother in Law to PS Lilian Mr Kenedy Asinuli) to work as consultants at the NYS. These relatives double up as proxy suppliers of goods to the Service and one firm, Evergreen Enterprises Ltd supplying uniform kits and other items of great volumes and monetary value falls under this category.
10) It is unclear what official role these relatives are playing while drawing thousands of shillings in salary plus other allowances when the Price Waterhouse Coopers, (PWC) FMA is currently officially engaged for similar consultancy at NYS.
11) A Senior Chief Finance Officer from the ministry headquarters sits at NYS to ensure seamless payment to the favorite firms in return for facilitation fees. This officer and the senior economist are both currently doing other people’s work and have also a sideline where they process payments of fake deliveries.
12) The following firms are deeply involved in the scam suspected to cost the misappropriation of Billions of shillings of public funds and their investigation will agree with the above listed claims;
a. Mammeny Suppliers, Edmand Suppliers, Occasions Suppliers and Ensal K (LTD). They have received over 70 million purporting to the supply of wood fuel, foodstuffs and rations in FY 2017/18 in Gilgil.
b. Maatis logistics, Achok Suppliers were paid 59 million on 23 December 2017. An IFMIS Super user Mr. Kenedy and two other accomplices were involved; the super user can irregularly complete a payment process without requiring other players.
c. Sakata investments, Active electrons Africa, EXCELLA, First link and Flagstone suppliers and enterprises are favored for lucrative bulk supplies and are suspects of receiving payment for none supply of goods.

Via Daily Post.  Read more