Former Youth Fund Boss Convicted And Fined Ksh 1 Million For Corruption

A case investigated by the Ethics and Anti-Corruption Commission (EACC) has resulted in the conviction of former chief executive officer of a state corporation who was found guilty for irregularly awarding a Ksh200 million tender for supply of automated hatcheries to the youth across the country.

Mr. Juma Mwatata Mwangala, former CEO of Youth Enterprise Development Fund was found guilty for abusing his office and ordered to pay a fine of Ksh.1 million or in default serve six months imprisonment.

He was convicted by anti-corruption court Magistrate Mr. Felix Kombo who ruled that the prosecution proved beyond doubt that Mr.Mwangala did not comply with the procurement regulations. He used his office on August 16th 2012 being the accounting officer of the Youth Enterprise Fund to improperly confer a benefit on Comnete Technologies Ltd a contract for Ksh.208, 530,000 for supply, delivery and installation of 1,050 hatching machines without the requisite approval of the Corporation’s Board. Mr. Mwangala used his influence to pay the supplier before advance payment bond was made to the Youth Fund.

The magistrate however acquitted Mr. Mwangala on two other counts of engaging in a project without prior planning and failure to comply with the laws relating to management of public funds due to lack of sufficient evidence.

The court heard that the suspect abused his office therefore upon execution of the contract on August 16th 2012, payment to Comnete Technologies was processed the same day and paid before the supplier provided the advance payment bond of 30 per cent as required in the contract.  Consequently, the supplier banked Ksh62.5 million on the same day the contract was signed.  The supplier later provided the bond on August 20th ,2012.

The Ethics and Anti-Corruption Commission EACC conducted investigations into alleged irregularities in the purchase of the hatcheries by Youth Enterprise Development Fund for Kshs.200 million. The investigations revealed the purchase of hatcheries was not approved by the Board. The project also became a white elephant project because a feasibility study was not conducted.

Upon conclusion of investigations, EACC recommended that the then CEO Mr.Mwangala  be charged with three counts of charges.

Meanwhile a police officer has been convicted and fined Ksh. 175,000 by the same court for soliciting and receiving a bribe of Ksh. 20,000.

Police Constable, Richard Loisa Sekengei was found guilty by Mr. Kombo of soliciting and receiving the money from a member of public to facilitate processing of a passport for the complainant.

The administration police officer who was attached to Nyayo House at the time he committed the offence will pay Ksh. 100,000 for soliciting the bribe and another Ksh. 75,000 for receiving the bribe.