Business Daily (Nairobi)
Beatrice Gachenge
11 November 2009
A management crisis at the multi-billion youth kitty deepened on Tuesday after Sports minister Hellen Sambili stuck by her decision to re-appoint Mr Umuro Wario as CEO, prompting a key financier to threaten to pull out of a sponsorship deal.
Prof Sambili insisted Mr Wario would remain the head of the Youth Enterprise Development Fund, saying her decision was beyond reproach, a stand that contradicted the kitty's board which has refused to acknowledge the appointee.
The board is demanding that Mr Ture Boru, who has been acting as chief executive, be confirmed to the position.
Enablis Entrepreneurial Network, a key financier on youth development, has threatened to withdraw support, currently standing at Sh700 million.
This is against Sh500 million awarded to the youth fund in this financial year.
Mr Wario was suspended in March after being accused of disregarding recruitment and procurement procedures as well as financial misappropriation in a move linked to Sh300 million sourced through Enablis.
Questions were raised on how the fund landed into the partnership deal, which was expected to see the youth fund match Enbalis' contribution, to give loans to youth entrepreneurs.
In the partnership, Enablis would contribute Sh300 million similar to the youth fund for a five-year period, after which Enablis would mobilise a further Sh400 million for capacity building to the beneficiaries.
"Mr Wario has been cleared by the Kenya Anti Corruption Commission against the allegations," said Prof Sambili.
Canadian International Development Agency (Cida), the lead donor to Enablis, said it would walk out of the partnership if the crisis is not resolved.
Youth fund accused
In a letter seen by Business Daily, the youth fund stands accused of failing to honour their end of the bargain.
Cida approved a maximum of Sh353 million earmarked for the creation of Enablis Loan Fund in Kenya, for the purpose of assisting youth entrepreneurs.
"It should be noted that a functional and operational loan fund is a required component for the Cida project with Enablis East Africa.
In case this issue cannot be resolved by the end of December 2009, Cida has instructed Enablis to explore new partners in Kenya and in the region, as this is a regional and not a Kenya specific initiative," said Mr Stephen Weaver, counsellor and head of cooperation, Cida, in the letter dated October 26th.
The Sh300 million allocation to Enablis is the largest to a single institution.
The partnership deal with Enablis is currently in the second phase that was first signed in March 2007.
According to the youth fund management, an investigation commission by the office of the Prime Minister under the Inspectorate of State Corporations cleared Enablis, but the process has been stalled by the Kenya Anti Corruption Commission.
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