How fraudulent recruitment agency left 1,200 victims in financial ruin

The scandal involving First Choice Recruitment Agency has left over 1,200 victims seeking justice after falling prey to a fraudulent overseas job racket.

Investigations by the Assets Recovery Agency (ARA) have uncovered a complex money laundering scheme allegedly orchestrated by the agency's CEO, Judy Jepchirchir, and her accomplices.

The agency reportedly misused the funds obtained from young Kenyans aspiring to secure jobs abroad, using the proceeds to purchase properties across Nairobi, Machakos, and Uasin Gishu counties.

During a Senate Labour and Social Welfare Committee hearing on Thursday, ARA Director Alice Mate disclosed that the recruitment agency opened over 27 bank accounts across five different banks to handle transactions amounting to approximately Sh300 million between February 2020 and May 2023.

Most of these funds were withdrawn in cash just below the reporting threshold, raising concerns of financial misconduct.

“Our preliminary investigations point to the fact that Ms Jepchirchir and her accomplices have registered their suspected criminal properties with proxies,” stated ARA's Deputy Director Timothy Nderitu.

He noted that several accounts have either zero or negligible balances, despite substantial transactions over the investigation period.

The agency's investigations have identified four properties linked to the suspects in Nairobi, Eldoret, and Machakos, along with 21 vehicles registered under their names.

These assets are now under scrutiny as investigators work to trace the money flow.

“We are analysing the accounts to trace the money flow. It is worth noting that the investigation points to a complex scheme which may prompt considerable time to navigate,” Mate said.

Jepchirchir is reportedly associated with 11 companies where she holds significant positions, either as a director or a bank account signatory.

In addition, the ARA has identified seven other suspects connected to the scheme.

The ongoing investigations have faced challenges as many receipts provided by victims do not bear the company’s official letterhead or stamp, complicating efforts to establish a clear link to the agency.

“The authority has obtained a list of 1,200 people it says were defrauded by the recruitment agency. Unfortunately, most of the receipts do not bear the company’s letterhead or official stamp,” Mate noted.

The Senate committee has demanded the agency refund Sh1 billion to the victims, including about 8,000 youth, who were left in dire financial straits after the agency failed to facilitate promised job placements abroad.

Labour Cabinet Secretary Alfred Mutua revealed that First Choice is among 25 recruitment agencies deregistered or denied registration, and confirmed that Jepchirchir and her accomplice, Faith Gichuhi, have been barred from managing any company.

“The ministry has stopped the operations of First Choice. Its registration certificate expired on February 18, 2023,” he stated.

The ARA has vowed to collaborate with relevant stakeholders to ensure justice is served and that the victims receive their rightful compensation.

“We seek 90 days to conclude the investigations. We want to ensure our investigations are foolproof. The intention is to preserve the assets,” Nderitu said.