Economy

Agency seeks orders to seize assets in NYS cash theft

nys

Suspects charged with Sh791 million NYS funds theft including former Devolution PS Peter Mangiti (right) and Josephine Kabura (left) during a court appearance in March. PHOTO | FILE

Summary

  • The Asset Recovery Agency (ARA) eyes second batch of properties linked to Sh791m stolen from Devolution ministry.
  • ARA is seeking an order of forfeiture against the properties with the case set to be heard next month.
  • The ARA had in December 31 last year received orders freezing any transaction on the properties as they undertook investigations.

The Asset Recovery Agency (ARA) is seeking court orders to seize four vehicles and a house in Ruiru suspected to have been bought using Sh791 million stolen from the National Youth Service (NYS).

The agency is seeking an order of forfeiture against the properties with the case set to be heard next month. The agency Tuesday served the eight respondents through a notice published in dailies.

This is the second batch of properties that ARA is seeking to seize with an earlier court case on five prime properties filed earlier in the year.

Those named as respondents are: Charity Wangui Gethi, Anthony Kihara Gethi, Sam Mwadime, Susan Mkiwa Mndanyi, Vandame John, John Ndung’u, Paul Gachoka and James Kisingo.

“Take notice that the originating motion application is fixed for hearing on August 22, 2016 at 9:00 am in the forenoon or soon thereafter at the Milimani Law Courts and if you do not appear at the time and place above mentioned such order will be made and proceedings taken as the court may think just and expedient,” the ARA notice said.

The Ruiru property is described as a maisonette house on L.R No. 20857/190. The vehicles are three Toyota Prados, registration KCE 852T, KCD 536P and KCE 874R and another car KCB 715E whose make is not mentioned.

The ARA had in December 31 last year received orders freezing any transaction on the properties as they undertook investigations.

READ: NYS theft case widens with freeze of additional assets

Ms Charity Gethi is the mother to Ben Gethi who is alleged to have been a major player in the fraudulent dealings. Mr Anthony Kihara was said to be a relative to Ben but has refuted the kinship claims.

The NYS scandal first came to light in June last year after it was discovered that nearly Sh800 million had been irregularly transferred from NYS’ Integrated Financial Management System accounts to three companies for procurement of building materials.

The Banking Fraud Investigations Unit said they found the three companies- Form Home Builders, Roof and All Trading Ltd and Reinforced Concrete Ltd belonged to Ms Josephine Kabura who was also a key player in the dealings.

Police believe the money was then transferred from the supplies firms to 20 bank accounts, belonging to a number of companies, law firms and individuals.

The BFIU report revealed that Mr Gethi may have been the biggest beneficiary of the Sh791 million scam, having used the money to buy several assets through proxies.

A total of 26 people have been charged in court over the NYS scam on several charges including stealing and money laundering.

The NYS scandal claimed the careers of former Devolution secretary Anne Waiguru and PS Peter Mangiti after they were implicated in the dealings.