THE Central Bank has written to the Ministry of Devolution about questionable payments of hundreds of millions shillings to private companies through the National Youth Service, the Star newspaper exclusively reported on Thursday.
The CBK letter comes amid claims that Devolution and Planning CS Anne Waiguru has fallen out with NYS Director General Nelson Githinji.
Waiguru has now transferred an Under Secretary from the Interior ministry to her docket and created for him the position of NYS Senior Deputy Director General, or Githinji’s deputy.
Those in the know however say that the officer, Adan Gedow Harakhe, has become more powerful than Githinji because he has been put in charge of all administration, procurement, finance and human resource.
His transfer to NYS was communicated to Githinji through a letter dated November 27, 2014 and signed by Devolution PS Peter Mangiti. The Chief of Staff and Head of Public Service Joseph Kinyua approved the transfer on April 24. Documents show that Harakhe started work at the NYS six months before the Public Service Commission approved the transfer.
Harakhe, a former DC in Western Kenya, was given Authority to Incur Expenditure (AIE) that was previously a preserve of Githinji’s.
When CBK last month raised queries with Mangiti, the PS responded by writing to Githinji over the issue.
“We are in receipt of an email from Central Bank of Kenya requesting that we clarify the purpose for these payments and whether the goods have been supplied or services rendered to the ministry,” said a letter sent to Githinji on May 29 and signed by Francis Kariuki for the PS.
“We are unable to reply to these issues since we only receive processed payments vouchers from your end. Please liaise with the Head of Supplies Chain Management for them to clarify on these issues and reply to us urgently to enable Central Bank to release the money to the beneficiaries using the National Youth Service letterhead,” the letter said.
Yesterday, Githinji denied knowledge of the letter, telling the Star he had not seen it.
“We as an institution have no role whatsoever in procurement matters. All procurement matters are adjudicated at the Ministry headquarters.”
Waiguru last year appointed Githinji to replace Kiplimo Rugut amid controversy that strained relations between the main political parties in the ruling coalition, TNA and URP.
Waiguru is pictured in the picture above with Captain Samuel Muchuki, and Director General National Youth Service Nelson Githinji in a slum cleaning exercise.
Sources say the move to deploy Harakhe to NYS came at a time when Waiguru had also requested the transfer of Chief Finance Officer John Munywoki from the ministry. He was moved to Treasury and then Water.
Another accountant at the ministry, identified only as Karenju, has also been moved to Water, while Githinji’s Personal Assistant Jane Muringi was suspended early this year in unclear circumstances.
Documents in our possession show that the NYS has paid over Sh665 million to suppliers and consultants since November last year and CBK has raised questions on some of the payments Harakhe has made, including Sh40 million to Bora Global Ltd.
The company was paid two vouchers – of Sh32 million and Sh18 million – on May 15, 2015, for supply of powdered milk to the NYS.
Bora Global Ltd was registered on October 31, 2013, with Maria Blessings Nyambura Ng’ang’a, Wilson Waihenya Ngima and Julius Muvea Muinde listed as directors.
The same documents show that Mutahi Ngunyi of The Consulting House has been paid Sh38.9 million for consultancy services for the implementation of the NYS 5-point Vision strategy.
Ngunyi received Sh25 million (Sh12.5 million each) as quarterly payment while he received Sh10 million on May 27 and another Sh3.9 million on the same day as reimbursement costs while implementing the 5-point Vision strategy.
On May 25, 2015, Ms Things of Desire was paid Sh37.5 million, in two transactions, for supply of rice.
Transcend Media Group (TMG) has received Sh161 million in the last year for publicity and rollout of NYS rebranding.
Tunasco Instaat T.T.T.A.S paid about Sh175 million for supply of leather boots while Brand Associates has been paid over Sh113 million for consultant services in NYS rebranding for media buying.
Alpha Mercantile received about Sh13 million for supply of sugar.