Suspended Youth Fund executive links board to Sh180m loss
Suspended Youth Enterprise Fund CEO Catherine Namuye. PHOTO | FILE
Suspended Youth Enterprise Fund (YEDF) chief executive Catherine Namuye says there were specific board interest in the payment of Sh180 million to Quorandum Limited, the firm at the centre of the scam.
Ms Namuye told the Public Investments Committee (PIC) that she was under pressure from unnamed board members to make the payments to the firm.
She told MPs there was also pressure from external sources for the payment to made, especially from the Devolution ministry.
“I executed a decision of the board. The ICT and Enterprise Resource Plan (ERP) strategy was the board agenda,” she told PIC chaired by Adan Keynan (Eldas).
Ms Namuye refused to disclose who on the board that is chaired by Bruce Odhiambo had put pressure on her and demanded a closed session with MPs to provide more details in camera.
Ms Namuye at some point broke down when the MPs fired fast and furious questions.
The committee had to allow her some time out to refresh and compose herself moments after the media was asked to leave for the camera session.
Before reporters were ordered to vacate the hearings that were held in public, Ms Namuye was under pressure to explain how the fund contracted the services of Quorandum, whether she authorised the payments and if she became curious when Mr Odhiambo wrote to Chase Bank appointing her the sole signatory to the fund accounts contrary to the board resolutions.
Mr Odhiambo suspended Ms Namuye and financial manager Benedict Atavachi and copied the letters to former Devolution cabinet secretary Anne Waiguru and PS Peter Mangiti.
Ms Waiguru and Mr Mangiti will be summoned. PIC is investigating how the YEDF paid Quorandum Limited in two instalments of Sh115 million and another Sh65 million for alleged consultancy services.
“I do recollect making payments but it was through a process. The board gave instruction that I should be the sole signatory.
“I found it curious and I questioned the matter on the basis that we had proposed additional signatories through the recommendations from the General Purpose committee of Finance of the board,” Ms Namuye said.
The money was transferred to Quorandum in two instalments, 10 days after Mr Odhiambo wrote to Chase Bank informing its managers of the change in signatories.
The bank managers on Tuesday told PIC that it conducted due diligence before effecting the transfers and moved further to report the suspicious transactions to the Financial Reporting Centre (FRC).
At the time of making the report to FRC, the bank said only Sh6.4 million out the Sh115.7 million in Quorandum’s account had left the bank.
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