The conviction of former National Youth Service (NYS) officials Samuel Wachenje and Hendrick Nyongesa Pilisi marks a major chapter in Kenya’s ongoing struggle against public sector corruption.
Found guilty by Milimani Chief Magistrate Wendy Kagendo, the two former senior officials were convicted of fraudulent activities resulting in the unauthorized disbursement of Ksh 791 million.
The case highlights systemic weaknesses in public financial oversight and the severe consequences of misuse of entrusted power.
The fraudulent scheme took place between December 1, 2014, and June 5, 2015, at the NYS headquarters in Nairobi. Wachenje, the f
ormer Director of Finance, and Pilisi, the Principal Supply Chain Management Officer, were found to have bypassed mandatory financial protocols, specifically the Ministerial Tender Committee (MTC) approval process.
According to Magistrate Kagendo, the two officials breached the public’s trust by authorizing payments that were neither approved nor verified by the MTC, a body designed to oversee and prevent such misappropriations.
This evasion of oversight laid the groundwork for the substantial financial loss, which totaled Ksh 791 million.
The prosecution presented evidence that exposed the mechanics of the scheme.
Records revealed that fraudulent entries were made in Kenya’s Integrated Financial Management Information System (IFMIS), an electronic system intended to ensure transparent government financial transactions.
Investigators found that Wachenje and Pilisi used IFMIS to manipulate payment amounts by adding extra zeros to various transaction entries, inflating the costs of projects.
This method was applied across 25 transactions, resulting in payments that far exceeded legitimate amounts.
In addition to manipulating digital records, the officials used falsified Local Purchase Orders (LPOs) as part of their scheme.
These LPOs, which are typically used to document and authorize purchases of goods and services, were falsified to support the inflated figures on payment vouchers.
By attaching these fake LPOs to the vouchers, the two officials managed to create a paper trail that appeared legitimate, allowing funds to be diverted into private accounts.
The prosecution’s evidence revealed the intended beneficiaries of this fraud, tracing the flow of funds to accounts controlled by businesswoman Josephine Kabura Irungu.
The funds were funneled into her companies, including Form Homes Builders, Reinforced Concrete Technologies, and Roof and All Trading, and were subsequently deposited in accounts at Family Bank’s KTDA branch.
In a final attempt to conceal the stolen funds, large cash withdrawals were made from these accounts, complicating efforts to trace the full extent of the financial misappropriations.
The fraud’s impact was notably visible in the inflation of project costs. Engineer Peninah Mwangi, a road construction expert, testified that the actual cost of materials for a road project in Kibera was Ksh 78,857,835.
Yet, the NYS disbursed an exaggerated amount of Ksh 791 million, a discrepancy of Ksh 712,527,165.
This glaring difference underscored how inflated transactions burdened taxpayers and compromised public infrastructure projects meant to benefit local communities.
This case is a reflection of the broader issue of graft in Kenya’s public sector.
The NYS has been embroiled in multiple corruption scandals over the years, exposing a culture of impunity and manipulation within public institutions.
The misuse of IFMIS, a tool designed for financial transparency, further raises questions about the safeguards in place to prevent misuse by government officials.
The convictions of Wachenje and Pilisi represent a victory in Kenya’s fight against corruption, but they also underscore the need for reforms.
Strengthening the MTC’s role, enhancing auditing procedures, and increasing oversight over systems like IFMIS could help mitigate the risk of similar frauds in the future.
Transparency and accountability are crucial in restoring public trust and ensuring that public funds serve their intended purpose.
Without significant systemic reforms, however, the risk of corruption remains high.
Kenya watches the sentencing phase of this case, it serves as a reminder of the need for ongoing vigilance and the reform of public financial management systems.
Add Comment