LOCAL PURCHASER ORDERS IN TGE 791 MILLION IN NYS SAGA FAKE, SAYS BANKING FRAUD UNIT.

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Lawyer Joseph Wagalla representing suppliers to the National Youth Service leaving Milimani law courts on Monday October 19, 2015.

BY SAM ALFAN.

The Banking Fraud Investigations Unit says that local purchase orders used to drain Sh791 million for National Youth Service were forged.

 However there is no information about why the banking fraud investigations unit said so.

 This after the AG made a successful application seeking to be enjoined as a interested party in the suit. Justice Onguto allowed the AG application and he will appear as the fourth respondent on the suit.

 This came as the Banking Fraud Investigations Unit claimed that local purchase orders allegedly used to siphon Sh 791 million for National Youth Service were forged.

 Attorney General Githu Muigai has been enjoined in a suit filed by seventeen suppliers to the National Youth Service has moved to court seeking orders to unfreeze their bank accounts.

 The proprietors of seventeen suppliers to the National Youth Service moved to court last week seeking orders to unfreeze their bank accounts and further stop the police from arresting them over the transaction with State Corporation.

 The applicants Peter Omari Otwoma, Josephine Kabura Irungu and Caroline Njambi Kinuthuia claim that investigation being carried on by the banking fraud in the account is unconstitutional.

 Through their Joseph Wagara, told court that police should be halted from carry out investigation and the intended prosecution over the alleged theft of money from NYS.

 In their replying affidavit through lawyer Ashimosi they told the court that, Investigations shows that there was a conspiracy to steal a further Sh695, 450,000.

  Investigating Officer Jeremiah Matipei in his replying affidavit filed in court to an application seeking to have the frozen bank accounts lifted says the companies obtained payments fraudulently.

 The  companies are  Form Homes Builders, Reinforced Concrete Technologies limited, Roof and All Trading company the three companies received a total of Sh 791, 385,000  between December 2014 and march 2015. The money was transferred to Family bank accounts.

  Form Homes Builders received Sh 218, 925,000 from NYS between 22nd December 2014 and 21st January 2015. Roof and All Trading Company received Sh 252, 300, 00 between 5th February 2015 and17th March 2015.

 Investigations have revealed that payments were made to the said firms bank accounts held  in Family Bank  opened between 13th and 14th December 2014.

 The three companies are owned by Josephine Kabuga Irungu. In the course of investigations, Matipei says that soon thereafter money from the accounts was transferred to several individuals and companies accounts.

The investigator is opposed to Kabuga’s request seeking to have the accounts unfrozen and orders prohibiting investigations as they will interfere with the constitutional mandate of government agencies to investigate and prosecute criminal conduct.

The lawyer told Justice Joseph Onguto, that the applicant’s bank accounts have been frozen including several advocates over allegation fraudulent transaction.

He said that sometime in   February and November 2015 the applicants sold and delivered road construction materials to NYS projects sites in Kibera, Mukuru kaw Njenga and Mukurui kwa Reuiben in Nairobi County and were duly paid.

Mr Wagara submitted that on July 20, police officers from banking fraud investigation unit arrested the applicants under the guise that they had stolen and fraudulently acquired money from NYS.

They have made statements and given out document concerning the transaction to indicate that no theft occurred.

The lawyer told the court that police have converted a purely commercial transaction to a criminal case.

 

 

 

 

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