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Economy

MPs threaten to stop NYS budget over Sh10bn scam

Parliament session. FILE PHOTO | NMG
Parliament session. FILE PHOTO | NMG 

MPs have threatened not to approve any budgetary allocation to National Youth Service (NYS) programmes until action is taken against individuals behind the Sh10 billion fictitious payments scandal.

The National Assembly Committee on Labour and Social Welfare — which oversights the Ministry of Public Service, Youth and Gender Affairs — also demanded that the list of fictitious companies that were paid be made public.

In a meeting with Cabinet Secretary Margaret Kobia yesterday, the lawmakers were categorical that they will not continue to give money to the NYS which is riddled with scandals. “It is not prudent to continue pumping billions into the NYS with all these scandals that we are waking up to every day. We are not getting value for money channelled towards NYS,” said Homa Bay women representative Gladys Wanga.

Nominated MP David ole Sankok demanded that the ministry publishes names of people behind the fictitious companies that were paid at the expense of those that offered services.

“We want to know the faces of people behind these companies and the specific amounts that they received from the ministry,” Mr Sankok said. Prof Kobia told MPs that she did not know the exact amount of money lost because she was yet to receive a report from investigating agencies.

She said action would be taken against those found culpable, urging the MPs to give investigators time to do their work.

She said that payment vouchers the ministry gave officials of the Directorate of Criminal Investigations show that the amount was Sh900 million, adding that the figure could rise.

Public Service Principal Secretary Lilian Mbogo Omollo in a memo to Prof Kobia on May 12, said contracts under investigations amount to Sh900 million and not 10 billion as captured in intelligence reports.

“The investigative team came to us and asked for specific vouchers which we provided and the total was Sh900 million,” Prof Kobia told the lawmakers.

“Our internal and external audit systems showed that our accounts were okay but that does not mean that no money has been lost. However, I am still waiting for a report from the investigative agencies to know the exact figure,” Prof Kobia added.

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