Sh6.1bn NYS suit hits another hurdle as court sets 30-day deadline

The fight over the recovery of Sh6.1 billion linked to alleged corruption at the National Youth Service (NYS) remains at a standstill after the court gave the defendants 30 days to meet outstanding requirements, raising fresh concerns over delays in resolving the dispute involving public funds.

The Anti-Corruption and Economic Crimes Court issued the deadline on Thursday after the proceedings were held up by missing defence statements and unresolved questions over the filing and production of documents.

Presiding over the matter, Hon Velnah Mochache voiced dissatisfaction with the continued delays, noting that the case had failed to progress despite previous directions intended to limit repeated mentions and pave the way for a hearing.

“I have instructions to mention a matter only twice, then place before a judge for hearing. This is the second time I’m mentioning it, but none of you have complied,” Mochache said.

The civil suit was brought by the Ethics and Anti-Corruption Commission (EACC) against the NYS, Benson Gethi Wangu, who operates through several business entities, including Highview Trading and Ratego Technologies, as well as 14 other defendants.

The commission is seeking to recover Sh6.1 billion it alleges was claimed through fraudulent transactions involving goods and services that were never supplied to the government agency.

The disputed claims are supported by vouchers numbered 000001 to 002901, relating to alleged deliveries made between 2013 and 2015. The items covered include boots, cooking oil, baked beans, sugar, helmets, T-shirts and fuel.

According to the EACC, the transactions were backed by procurement records that had allegedly been altered or improperly processed. The commission says some local purchase orders did not have the required approvals, while delivery documents were allegedly falsified to support payments for goods that never arrived.

The agency maintains that the disputed supplies were not delivered to either the NYS headquarters or its mechanical and transport branch, despite claims being presented for payment.

However, the defendants and several suppliers have challenged the commission's position, arguing that multi-agency committees established to verify pending government bills had already examined the transactions and confirmed the legitimacy of the supplies.

The opposing positions have left the court to determine whether the claims were supported by genuine deliveries or involved payments for goods and services that were never provided.

During Thursday's session, the EACC told the court that it had fulfilled its obligations and pointed to the defendants' failure to submit their statements of defence as a major obstacle to progress.

“Since September 21, we have not received any statement of defense from any of the defendants. The plaintiff had complied. Perhaps the defendants can give the court the status.”

The commission's lawyer also disputed suggestions that the EACC had failed to provide sufficient clarification regarding its notice seeking the production of documents.

The exchange came as the court sought to address the outstanding procedural issues that have delayed the case. Mochache's 30-day directive gives the defendants a fresh period to comply with the requirements, as the dispute over the alleged fraudulent supply claims remains unresolved.

The case centres on the EACC's efforts to recover public money it says was lost through fictitious contracts and claims for undelivered goods, while the defence and suppliers maintain that the disputed transactions had already undergone verification by the relevant government committees.