Former NYS chief loses house, land, Prados over theft

A former finance director of the National Youth Service (NYS) has forfeited property worth millions of shillings to the State in a symbolic victory for agencies involved in the fight against corruption.

The assets, found to have been bought using money stolen from the NYS by Sam. M. Mwadime, include a maisonette in Kasarani, Nairobi and a parcel of land in Juja, Kiambu County.

High Court judge Mumbi Ngugi in a Thursday ruling also ordered Mr Mwadime and other accused persons in the case filed by the Asset Recovery Authority (ARA) to surrender four high-end vehicles to the State.

The vehicles had been registered in the names of relatives to conceal the true identity of the owners.

Justice Ngugi said the ARA had proved an intricate web of illegal theft of cash from the NYS, involving Mr Mwadime and other accused persons, including his wife Susan Mkiwa Mndanyi, John Vandame, Anthony Gethi, Charity Wangui Gethi, John Ndungu, Paul Gachoka and James Kisingo.

“From the facts presented by ARA, which have not been controverted, the assets in issue were purchased using funds stolen from NYS. All show a complex scheme of money laundering contrary to the law,” the judge said.

The ARA said Mr Mwadime had tried to cover his tracks by conducting the property transactions using a fake name and ID card. The fake ID, which he also used to open an account at Family Bank, bore the name Samuel Mdanyi Wachenje although records at the civil registry linked the serial number on the document to one Fatuma Osam Abdi.

A key suspect in the NYS cash scam, Josephine Kabura, allegedly wired Sh40 million to Mr Mwadime’s Family Bank account on two occasions in 2015.

He used part of the money to purchase the Kasarani house worth Sh21 million from Tirus Mutoru in 2015. Mr Mwadime paid for the property in several instalments and later transferred it to his wife, Susan. The Juja parcel of land was valued at Sh3.9 million in 2015.

Although all the suspects in the NYS scandal, including Mr Mwadime, were served with the court papers, they never defended the case.

Justice Ngugi said evidence confirmed that that funds stolen from the NYS got to the suspects’ accounts through Ms Kabura’s.

The ARA through State counsel, Mohammed Adow, said it was tipped off about the Sh791m loss by former Devolution Secretary Anne Waiguru.

Investigators obtained documents and recorded statements from over 25 members of staff in various NYS departments, including administration, accountants, and procurement.

They found that some Sh695 million had been committed through the NYS’ IFMIS system for payment to several firms, including Form Home Builders, Roof and All Trading Reinforced Concrete Technologies, Tegmen Trading, Grumium Engineering and Draco Capital.

Form Home Builders, Roof and All Trading and Reinforced Concrete Technology belonged to Ms Kabura. The others belonged to Peter Omari Otuoma and Caroline Njambi Kinuthia.

The firms claimed they had supplied hard and soft stones to the NYS for the upgrading of roads in Kibera and Mukuru.

Investigations revealed that Form Home Builders received Sh218 million between December 22, 2014, and January 21, 2015. Roof and All Trading received Sh252 million between February 5, 2015, while Reinforced Concrete Trading received Sh320,160,000 between February 5, 2015, and March 31, 2015. All the three accounts were opened in November 2014.

Some Sh381 million was internally transferred through account-to-account transfers by Ms Kabura from her accounts to those of Mr Ndung’u.

Analysis of various documents and witness statement revealed that the payments were irregular as they were not supported by any documents, said the ARA.

The Ministry of Public Works confirmed that there were no valid supply contracts or tender documents to support the payments. The funds were wired through G-Pay systems to Kabura’s accounts. Who moved them to her companies’ accounts.

Mr Ndung’u entered into several transactions to purchase or invest in several properties and assets for an on behalf of other persons using the funds.

One of the Toyota Prado’s, registered as KCE 852T and worth Sh5.25 million, was allegedly bought by Mr Kihara but under the name of a Mr Kago. Investigations showed the vehicle ended up in the hands of Paul Gachoka.

The second car, also a Prado KCD 536 valued at Sh5,070,000, was similarly bought by Mr Kihara under the name of Mr Ndung’u but allegedly later transferred to Mr Mwadime — who also bought a similar car at Sh3.3 million and later changed ownership to Mr Kisingo.

The forfeited property is just a fraction of the Sh791 million stolen from NYS. The ARA is targeting more assets including a Range Rover worth Sh23.4 million, a Jeep Cherokee, Toyota Prado, a Land Cruiser as well as plots and houses in Roselyn Estate, a property in Clay City, plots in Ruiru Juja east, Muthaiga North, a restaurant at Mercury House along Moi Avenue and Juja Farm and a plot in Thika, all belonging to suspects facing charges in court among them Mr Gethi.