NYS Scandal: Suspect James Thuita Withdrew Sh1.6 Billion before ARA Froze His Bank Accounts

It has now emerged that some suspects in the multi-billion-shilling National Youth Service (NYS) scandal withdrew most of the cash looted from the youth agency before their accounts were frozen.

Daily Nation reports that one of the prime suspects, James Thuita Nderitu  managed to withdraw more than Sh1.5 billion before the Assets Recovery Agency (ARA) obtained orders to freeze the accounts.

Court documents show that Thuita, companies linked to him and his estranged wife received Sh1.61 billion from the NYS in the months to November 2017.

He was however able to withdraw a huge part of the cash and only Sh33.8 million was left in his 10 banks accounts premised at Standard Chartered Bank and Equity Bank on September 7th, 2018, when ARA was granted freezing orders.

“Mr. Nderitu and his estranged wife, Yvonne Wanjiku Ngugi, are among dozens of civil servants and business people who have been charged with loss of hundreds of millions at the NYS through fictitious invoices for goods such as firewood and stationery and multiple payments on one supplier invoice,” the report in the Business Daily says.

ARA now wants the court to grant it orders to seize his property which include residences in Thome, Garden and Runda estates.

“There is reasonable ground to believe that the accounts of the respondents were used as conduits of money laundering contrary to Sections 3, 4 and 7 as read together with section 16 of the Proceeds of Crime and Anti-Money Laundering Act,” ARA says in court documents.

It adds: “An investigator said in an affidavit that the banks accounts including those of Mr Nderitu’s firms — Flagstone Merchants, Excella, Firstling and Interscope — were used as conduits for money laundering."

ARA says Firstling Supplies Limited received a whooping Sh612 million in one day from NYS wired in eight installments. In a period of three months, the company received Sh876.4 million.

By the time court issued freezing orders, the account only had Sh6.28 million. Another company linked to Thuita, Flagstone Merchants received Sh278.6 million within a period of two months, including Sh235 million in one day, and only Sh1.2 million remains in the account.

Firstling is registered in the name of Thuita and his estranged wife, Yvonne Wanjiku Ngugi. The two were once married but now claim to have divorced.