Youth Fund fraud case flops but jail term holds
By Nancy.Gitonga, February 17, 2023
The managing director of Quorandum Company, Mukuria Ngamau, yesterday received a reprieve after the Anti-Corruption Court quashed a seven-year imprisonment over theft of Sh180 million from the Youth Enterprise Development Fund.
Ngamau made headlines in September 2021 after the Anti-Corruption Court slapped him with the sentence for conspiracy to commit an economic crime.
But yesterday, Justice Esther Maina overturned the conviction and sentence after finding that the Director of Public Prosecution had withdrawn the charges against four other alleged co-conspirators; namely Youth Fund’s former officials Catherine Namuye (CEO) and Bruce Odhiambo (board chairman), who died during the trial.
The judge added that Ngamau’s co-accused, Doreen Waithira, was acquitted following a finding that she was not involved in the fraud. As a result, Justice Maina held that the prosecution’s case concerning a conspiracy could not be sustained against Ngamau.
Withdrew charges
“The appeal succeeds but only on the first count of conspiracy. The conviction is not safe because the State withdrew charges against four alleged conspirators and another one was acquitted,” she said.
The judge upheld the sentencing and conviction of Ngamau for the other offences — unlawful acquisition of public property and making false documents.
Ngamau, who is serving the sentence, will have to pay a total fine of Sh720.8 million, or serve 20 years in jail for the four other offences as imposed on September 30, 2021, by Anti-Corruption Court Chief Magistrate Douglas Ogoti.
Evidence showed that Ngamau and his trading company received the money without rendering any service and after forging contract documents for the provision of ICT consultancy services.
The cash was moved from the Youth Fund account at Chase Bank to Quorandum Ltd at the same bank, from where it was wired to different people.
The High Court has since frozen the accounts of Ngamau and all the properties bought using proceeds of crime money.