Economy

Court gives assets agency until Monday to conclude NYS probe

ps

Former Public Service PS Lillian Mbogo. FILE PHOTO | NMG

The Assets Recovery Agency (ARA) has until Monday to conclude investigations on bank accounts linked to loss of Sh468 million at the National Youth Service (NYS).

High Court judge Hedwig Ong’undi slashed more than 30 days off the freeze order time saying the entries under investigations were not many to warrant the long period.

The court had on September 7 granted ARA a 90-day extension to investigate Equity and Diamond Trust bank accounts linked to former Public Service PS Lillian Mbogo -the main suspect of the NYS scam.

“I therefore vary the orders issued on September 7, 2018 allowing the applicant (ARA) 90 days for investigations by giving ARA up to October 29 5pm to complete and close its investigations in respect of all accounts stated,” he said.

Investigators are looking into how Ms Mbogo made cash deposits of millions of shillings in accounts belonging to her children in months when theft of funds was reported at the NYS.

The ARA has revealed in court documents that millions of shillings, including a Sh20 million cash deposit made on or before April 20, were wired to the accounts registered in Mr Mbogo's children.

Ms Mbogo is among senior government officials and businesspeople named in the first phase of the NYS scam investigations involving Sh468 million.

The suspects were charged in May with various crimes related to the theft of public funds as the government heightened efforts to crack down on widespread corruption.

The former PS is said to have deposited cash in her accounts in batches of Sh900,000 to escape the reporting threshold.