CS Ruku orders probe into NYS procurement process amid allegations of embezzlement of Sh2bn

CS Ruku orders probe into NYS procurement process amid allegations of embezzlement of Sh2bn

The directive comes in the wake of allegations surrounding a Sh2 billion embezzlement scandal implicating officials at the NYS College in Gilgil, which is currently under investigation by the Ethics and Anti-Corruption Commission (EACC).

Public Service CS Geoffrey Ruku has instructed the Public Procurement Regulatory Authority (PPRA) to conduct a thorough regulatory and compliance review of all procurement and disposal proceedings at the National Youth Service (NYS) from July 2019 to date.

The directive comes in the wake of allegations surrounding a Sh2 billion embezzlement scandal implicating officials at the NYS College in Gilgil, which is currently under investigation by the Ethics and Anti-Corruption Commission (EACC).

The order was issued following a high-level consultative meeting held at Harambee House, which brought together officials from the Ministry, PPRA, and NYS.

Speaking to the press after the meeting, Ruku stated that the review is intended to strengthen accountability and transparency at the institution, which has come under scrutiny over its financial operations.

The CS further directed the Commandant General of the NYS to submit a certified copy of the institution’s Procurement and Asset Disposal Systems and Procedures Manual, as established under Section 45(1) of the Public Procurement and Asset Disposal Act, 2015, for his review and policy guidance.

"I hereby direct the Commandant General of the National Youth Service to submit a certified copy of the institution’s Procurement and Asset Disposal Systems and Procedures Manual for immediate review," said Ruku.

He emphasised the importance of strict adherence to legal and ethical standards in public procurement, citing relevant provisions in the National Youth Service Act, 2018, the Public Procurement and Asset Disposal Act, 2015, and the Public Officer Ethics Act, 2003. These laws prohibit NYS staff and council members from engaging in direct or indirect business with the agency.

According to the CS, the NYS must operate in accordance with national values and principles of governance as enshrined in the Constitution of Kenya. He stressed that procurement processes must be transparent, fair, competitive, and cost-effective to maintain public trust in government institutions.

The EACC has since collected “valuable evidentiary material” from the homes and offices of individuals implicated in the Sh2 billion NYS embezzlement scandal.

Those under investigation include three senior NYS officials, their spouses, family members and proxies. They are accused of abusing positions of trust and authority to misappropriate public funds through collusion, procurement fraud, and payments for fictitious contracts.

The suspects include: Nicholas Makokha, Deputy Commandant General in charge of operations and logistics; David Muthee Mbogo, head of supply chain management at the Gilgil Paramilitary Academy; Mbogo’s wives: Felista Wanjiru Wandugi and Winfred Cherotich Towett; his brother Elias Muthee, also a Director at Marvel Hotel; their associates: Naftali Kaberu and his wife, Florence Muthoni Karanja, and Joseph Maina Kagiri, accountant at the Gilgil Paramilitary Academy.

On Wednesday, the EACC, acting on court orders, conducted raids on the suspects’ residences as part of ongoing investigations, which are also exploring allegations of conflict of interest and abuse of office.

The suspects are believed to have traded with NYS through various companies, leading to payments amounting to Sh2 billion between the 2019/2020 and 2024/2025 financial years.

Following the raids, the suspects were escorted to the EACC headquarters at the Integrity Centre in Nairobi to record statements.

“Today’s operations have yielded valuable evidentiary material that will support the ongoing investigations. Upon conclusion of the inquiry, the findings will inform the appropriate course of action, including prosecution of culpable individuals and/or recovery of unexplained wealth or proceeds of corruption,” said the commission in a statement.

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