NYS scandal suspect loses bid to be cleared

An attempt by a director of a company to be cleared from accusations of fraudulently receiving more than Sh115 million from National Youth Services for goods not supplied has been dismissed by the Court of Appeal.

Yvonne Wanjiku Nderitu had pleaded with the court to be removed from the case, arguing that she was an inactive director of Firstling Supplies, hence wrong to slap her with the fraud charges in her private capacity.

She also argued that her company, Firstling Supplies Ltd was distinct from Firstling Supplies, which is owned by James Thuita Nderitu, who is alleged to have received about Sh1.1 billion from the scandal-ridden agency within eight months in 2017.

A bench of three judges dismissed the case, saying the extent of her participation as a director is a matter of evidence that can only be resolved by the trial court.

“The appellant has not demonstrated that the amendment of the charge sheet was for any other purpose than to fully capture the recipients of the funds said to have been acquired fraudulently and to fully capture all the persons and entities involved in the alleged offence,” said Justices Fatuma Sichale, Jamila Mohammed and Mbogholi Msagha.

The judges said the presence of payment vouchers indicating the payee’s name and postal address closely matching that of Ms Ngugi’s demonstrates some substance in the decision by the Director of Public Prosecutions to charge her.

Ms Ngugi, Mr Thuita and others were charged in 2018 with claims of defrauding the NYS through fictitious payments. She wanted the court to quash her charges and be compensated arguing that the trial was unfair to her. She claimed that she was not actively involved in the day-to-day running of the company and that she was a minority director with 10 percent holding in the firm.

She also said the case as well as the freezing of her accounts had subjected her to hardship.

The Director of Public Prosecutions Noordin Haji opposed the appeal saying she was misleading the court since investigations revealed that she was actively involved in the transactions of the company’s business.

Mr Haji said the firm and its directors conducted business and received payments from the NYS and upon comprehensive investigations, he was satisfied that the firm as a separate entity and its directors were criminally liable.

In 2020, the Assets Recovery Agency (ARA) won against Mr Thuita after forfeiting Sh35 million, which he could not explain how he made it. The agency is also targeting four properties including residential property in Thome, Garden estate and Runda, belonging to him.

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