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{
    "id": 683526,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/683526/?format=api",
    "text_counter": 226,
    "type": "speech",
    "speaker_name": "Hon. Keynan",
    "speaker_title": "",
    "speaker": {
        "id": 41,
        "legal_name": "Adan Wehliye Keynan",
        "slug": "adan-keynan"
    },
    "content": "During this exercise, the Committee observed with concern that the Auditor-General has raised several audit queries relating to financial mismanagement and misappropriation of funds at the Fund. Hardly three months later, the Committee received information on financial mismanagement of approximately Kshs180 million from Call Deposit Account that the Fund held with Chase Bank. Pursuant to Standing Order 206(c), the Committee commenced its inquiry into the allegations of fraud and financial mismanagement of approximately Kshs180 million at the YEDF. The Committee concluded inquiry between December, 2015 and April, 2016 after which it tabled the Report on 4th May, 2016. The Committee held several meetings. We interacted with about 19 witnesses. Before I go into the details of what we have observed and what we are going to recommend, one of the things that we have observed, and this is one thing that must be cured as a matter of urgency, if we have to develop as a nation, is to be sensitive to the needs of our youth. The framers of this critical investment had a noble idea of addressing issues that are peculiar to our youth. Sadly, 10 years down the line, the YEDF is a shell that has lost direction and the purpose it was created for. It has become like any other omnibus Government enterprise. If you look at the history of this institution, from the time it was created to date, you will find that it has been riddled with controversies and challenges. The Government has been funding it and yet there is nothing tangible that has come out of this Fund other than claims of mismanagement and misappropriation of funds. In all these, what message are we sending to the youth because this programme was tailor-made to the youth aged between 18 and 35? Once upon a time, I was in that age bracket, and many of us were in that age bracket. The scenario we have today in the management of this entity is something that, as a matter of urgency, the Government must be willing and prepared to address if we have to develop the talents and give opportunities to this critical sector of our population. Sadly, this institution, for a number of years was being managed just like a private enterprise between two individuals; one was Acting Chief Executive Officer (CEO) and the other the Chairman. Both of them were least qualified to hold those two positions. You will note from the presentation that, indeed, these two individuals, one Catherine Namuye and the other Dominic Odhiambo had turned the YEDF into a personal enterprise that they managed in whichever way they felt prudent. You will realise that Ms. Namuye in a letter dated 11th February, 2015, instructed Chase Bank to make payments to a company called “Quorandum Limited.” an amount of Kshs115,710,000 for alleged consultancy services that were never rendered. The Chairman of the Board without the knowledge of the other Board members decided to have the Acting CEO as the sole signatory. To have the Acting CEO as the only signatory to the Call Deposit Account was a prelude to this practice. The Chairman, first of all, called for a board meeting but the real issues were not canvassed. Later on, he decided to selectively implement issues that were completely outside the Board minutes and made his favourite acting CEO as the sole signatory to a bank account held at Chase Bank. Where on earth does one person become the sole signatory to a Government-run agency? This was the first thing. Where was the Finance Manager? Where was the Company Secretary? Where were the other officials of this critical investment? By change of signatory, the Chairman whose misdeeds I will dwell on later on, gave Catherine Namuye unfettered access to that Call Deposit Account. This is what led to the fraudulent abuse of office by both the Acting CEO and the Chair."
}