Property suspected to have been bought using part of money paid out illegally by Youth Enterprise Development Fund (YEDF).
The Asset Recovery Agency (ARA) has secured court orders freezing the transfer of a luxury home in Nairobi’s Lavington estate using the Sh180 million stolen from the Youth Enterprise Development Fund (YEDF).
The High Court on Thursday ordered that the house should not change hands because it is suspected that it was bought using part of the money paid out illegally by the youth fund as the state agency steps recovery of assets acquired with stolen taxpayers’ funds.
The house was bought by Mr Mukuria Ngamau, the managing director of Quorandrum Ltd which was paid Sh180 million by the youth fund for ICT services which were not delivered. It was bought from Duchess Park, a real estate developer.
Should the court confirm that the firm was paid the Sh180 million for fictitious consultancy services, the residential house could revert to the State and sold to recover the stolen money.
A businessman has also been asked to surrender Sh8.8 million he allegedly received from Quorandum Ltd purportedly for a loan advance before November 26.
“Preservation order is hereby issued prohibiting the transfer, mortgage, attachment, disposal or any other dealing with property known as Duplex apartment for a period of six months,” said Justice Hedwig Ong’undi.
“Order issued directing the 2nd respondent to deposit Sh8.8 million into an escrow account in the joint names of the Assets Recovery Agency and the 2nd respondent.”
The purchase of high-end properties has emerged as a money laundering trend in some of the mega scandals that have rocked key State agencies.
Some Sh743 million worth of stolen assets and cash were traced and frozen in the past 11 months as the newly-established Asset Recovery Agency (ARA) flexed its muscles in the war against corruption.
Parliament’s Public Investments Committee (PIC) probe of the youth fund detailed how public funds were illegally moved through commercial banks into individual pockets and ultimately used to buy personal assets.
Mr Ngamau used his company Quorandum Limited’s Chase Bank account to receive money from the youth fund and make several transactions with third parties.
PIC recommended the prosecutions of more than 10 people it identified for allegedly conspiring to defraud the youth fund of its resources.
Top on the list is former YEDF chairman Bruce Odhiambo, suspended chief executive Catherine Namuye and Mr Ngamau.
PIC says Quorandum Limited separately received Sh115 million and Sh65 million from the youth fund as payments for purported consultancy services to develop an Information, Communication and Technology (ICT) Strategic Plan and Enterprise Resource Planning (ERP) System.
The money was then used to make payments to third parties, including settlement of a Sh18 million debt owed to Great Lakes Limited.
The payment was made through Nairobi law firm Ngigi Mbugua & Company Advocates, revealing the involvement of professionals in facilitating the illicit transactions.
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Editor's note: This story has been updated to remove the name of Ezekiel Owuor after no charges were brought against him.
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