This archive report was first published on 22 June 2021.
On May 29, 2018, the arrest and arraignment of suspects linked to the National Youth Services scandal sparked a series of investigations. One of these investigations was conducted by the Asset Recovery Agency, which led to the freezing of Sh13 million.
According to a court order issued by Judge James Wakiaga, the funds were frozen pending the determination of the application filed by the Asset Recovery Agency. The order prohibits Active Electrons Africa Limited, First Suppliers, and Ameritrade Limited from dealing with the funds held in their names at Standard Chartered Bank and Equity Bank.
The court ordered the transfer of the funds to the Asset Recovery Agency's account held at Kenya Commercial Bank Limited, KICC Branch. The funds in question include Sh3,648,158.40 held in the name of Active Electrons Africa Limited, Sh718,024.35 held in the name of First Supplies, and Sh2,962,876.25 held in the name of Ameritrade Limited.
The Asset Recovery Agency conducted the investigation after the arrest and arraignment of suspects linked to the scandal. The agency told the Anti-Corruption Court that the investigation is premised on the Directorate of Criminal Investigations into theft of public funds amounting to Sh467,896,993 from NYS.
Financial investigations by the DCI revealed massive schemes of embezzlement of public funds, fraud, and money laundering, rendering the funds proceeds of crime liable for forfeiture.
