Some are said to have used proxies to register companies that were used to siphon millions of shillings.
Those involved are said to be senior government officials who colluded with other people to steal the money from NYS. Some are said Most of them were paid without doing any work.
It is understood that the money was paid out soon after the last scandal which cost the organization sh1.6 billion.
“The money was paid over a long period and through phony companies,” said senior government officials aware of the scandal.
In January 2016, Richard Ndubai, a long-serving public servant and a former Permanent Secretary, was sworn-in as the new Director-General of (NYS).
It is under his tenure that the new scandal occurred.
Some of the companies that were paid in the new scandal were also involved in the first one and are reported to have lodged a series of claims, which were classified as pending bills.
“For some time this bills were not paid because the Cabinet Secretary then, Sicily Kariuki wanted an audit. But as soon as she gave an okay for the genuine ones to be paid, all other fictitious companies were paid,” said an official in the Office of the President.
The Director of Public Prosecutions Noordin Haji and Director of Criminal Investigations George Kinoti have already swung into action.
“All I can I say is that this matter is under active investigation,” Haji said.
According to multiple sources, a number of high profile people at NYS and at the ministry of public service, Youth and Gender have already recorded statements and could be charged in court in a matter of days.
President Uhuru Kenyatta is reportedly very upset by the new revelations and has vowed to deal with anyone linked to the scam.
On Wednesday, Uhuru appointed Deputy Head of Public Service Wanyama Musiambo to lead efforts towards the eradication of corruption and illicit trade in counterfeit goods.
In 2016, a special audit by the Auditor General, found that the biggest beneficiary of the scandal was Josephine Kabura Irungu, who received Sh1.3 billion on account of 11 companies.
She was also meant to benefit from the attempted theft of Sh695 million.
About Sh791.4 million was illegally paid for the construction of the 3.5km Kibera road, yet there was no works included in the procurement plan for the 2014/2015 fiscal year.
The special audit noted that the money was fraudulently paid between December 2014 and March 2015, to three suppliers whose site details were irregularly defined.
In August 2015, NYS lost Sh791 million and a plot to loot another Sh695 million was underway when the suspicious transactions were flagged by the Central Bank’s financial reporting centre, and later exposed.
On August 22, 2016, eight suspects in the Sh791 National Youth Service scam were charged with money laundering.
Josephine Kabura and businessman Ben Gethi appeared before Nairobi chief magistrate Daniel Ogembo alongside six others and denied the charges.
The eight were accused of colluding to wire the amount from NYS coffers and using part of it to purchase property through phony companies.
Also charged with fraud were former NYS boss Nelson Githinji and former Planning PS Peter Mangiti. They denied the charges.
On March 9 this year, 23 people charged in the NYS scandal were acquitted.
Chief Magistrate Kenneth Bidali said the prosecution failed to prove its case beyond reasonable doubt.
Source: The Star