This archive report was first published on 5 August 2019.
On June 30, 2018, the Public Service ministry borrowed Sh1.1 billion from the National Youth Service (NYS) without the necessary approval, according to a report by Auditor General Edward Ouko.
The loan was made under the NYS Mechanical Trust Fund (MTF), which was established in 2011 to cover maintenance, repair, and service of motor vehicles, plant, and equipment.
However, the assets of the MTF were understated, casting doubt on the recoverability of the debt of Sh635.8 million as at June 2018, Mr Ouko's report stated.
The ministry has repaid Sh635.8 million but has been unable to pay back the remaining Sh478 million.
The irregular loan was borrowed in the year when dozens of people, including businessmen and civil servants, were charged following investigations into the theft of billions of shillings from NYS.
Former Public Service PS Lilian Omolo, ex-NYS director-general Richard Ndubai, and a number of business people were charged with the theft of nearly half a billion shillings of public funds in May.
The Sh468 million scandal follows a similar scam four years ago at the same agency, which saw nearly Sh2 billion get lost.
