Bank driver who got Sh346m stolen from NYS

A driver at KCB Group is entangled in a Sh346 million payout that was stolen from the National Youth Service (NYS) and conceded that he knew businesswoman Josephine Kabura, a key suspect in the scandal.

Paper trail before the Public Accounts Committee (PAC) indicated that Mr John Kago received Sh136 million from Ben Gethi, also linked to the scam, and Sh156 million from Ms Kabura through accounts held at KCB and Family Bank.

Mr John Kago told PAC Thurday that he only received Sh60 million from Charity Wangui Gethi, the mother of Mr Gethi, for purchase of a property in Nairobi’s Lovington- a transaction that collapsed.

He told the committee chaired by Rarieda MP Nicholas Gumbo that when the deal collapsed, the Sh60 million that had been paid to M M Gitonga and Company Advocates was wired back to Ms Gethi’s account in Faulu Kenya.

The suspended KCB driver denied receiving money from Mr Gethi and Ms Kabura.

He, however, said he borrowed a Sh60 million loan from Ms Kabura repayable at an interest rate of 10 per cent per month and which he had refunded in full.

MPs questioned how a driver turned into an overnight millionaire at the height of the 791 million shillings NYS scandal.

The MPs demanded to know how Mr Kago owned a multimillion-shilling property in the city including a fleet of high-end vehicles on a salary of less than Sh40, 000.

“Are you a driver or a decoy? You own property worth millions of shillings including high-end vehicles that some of the privileged Kenyans like me don’t drive. It negates why people work,” Mr Gumbo said.

READ: House team orders arrest of NYS scam suspect Kabura

MPs said that Mr Kago and his company Good Luck Ltd handled Sh346 million contrary to his evidence that he only received Sh60 million from Gethi’s mother.

“I have challenged the information that you are presenting to me in court. The money you are mentioning doesn’t reflect in my account and no evidence has been adduced to show I received the money,” Mr Kago said.

The committee, however, confronted Mr Kago with a trail of transaction totalling to Sh346 million transacted through his account between January and April 2015.

READ: State targets more assets from NYS scandal suspects

The paper trail shows that Mr Kago received Sh136 million from Mr Gethi and Sh156 million from Ms Kabura through accounts held at KCB and Family Bank.

Mr Kago is said to have received Sh20 million, Sh10 million, Sh20 million, Sh40 million and Sh60 million from Ms Kabura between January 16 and March 31, 2015.

He also received Sh20 million, Sh10 million and Sh40 million among others from Mr Gethi.

“It is shocking that Kago was able to get Sh60 million as loan in the streets of Nairobi without any collateral…this must have been a sweet deal,” Timothy Bosire, Kitutu Masaba MP said.

Mr Kago told the committee that he met Ms Kabura in December 2014 when she wanted to buy a property.

He further told the MPs that he runs unregistered car hire and property business. He listed his properties to include a Sh23 million Range Rover, a 350 S Class Mercedes Benz and an eight-seater Land Cruiser and a Toyota Fielder-- cars for hire. He said the Range Rover was hired for a daily fee of Sh40, 000.