John Ngirachu
10 November 2009
Nairobi — MPs have waded into the leadership squabbles at the Youth Enterprise Fund, and are now calling for the removal of the board of directors over allegations of impropriety.
At a press conference at Parliament Tuesday, the MPs led by Kamukunji legislator Simon Mbugua supported the reinstatement of the fund's chief executive officer to the leadership of the fund and asked for the removal of the board.
Mr Mbugua said a report of the Auditor and Controller General for the first year of the fund's existence had established that Sh250 million had been looted from the youth fund since its inception, all at the behest of the board.
He did not have a copy of the auditor's report but said it would be presented to Parliament in three weeks' time at which point it will become open to scrutiny.
"The board of the fund is currently under investigation by the Kenya Anti-Corruption Commission on allegations of massive looting of the kitty by the current period covered by the Auditor General," said Mr Mbugua.
He said Mr Wario had been cleared by KACC, Youth Affairs minister Prof Helen Sambili, Prime Minister Raila Odinga and Head of the Civil Service Francis Muthaura and therefore needed to come back to the fund.
The wrangling between the board and Mr Wario goes back to the refusal by the latter to sanction a deal that would have had a Canadian company, Enablis Entrepreneurial Network, receive Sh300 million from the fund.
The decision to grant the loan put the fund on the spot and correspondence seen by the Nation then showed how the loan to Enablis Entrepreneurial Network was approved against the backdrop of vicious boardroom intrigues, pitting the board against the fund's management.
According to Mr Mbugua, some of the board members are also directors at the Canadian company and wanted to use the opportunity to rob the fund using the company.
They also said that youth groups in the constituencies have had their allocations looted through fictitious companies and individuals that are unknown to the fund in a scheme orchestrated by the members of the board.
Mt Elgon MP Fred Kapondi said the youth fund's board should be removed or resign as it has no reason to oppose the return of Mr Wario, who also has the support of Prof Sambili.
Mr Wario was suspended on March 25 and returned to the leadership of the youth fund three weeks ago by Prof Sambili.
The board, however, said they would not allow him back and at a press conference at their offices said he would not be allowed to transact any business on its behalf.
When Mr Wario resisted this, they put out advertisements in the press to condemn him.
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