January 16, 2010 Leave a comment
In June 2009, Yipe.org published a damning report titled “A Fish Rots From Its Head – Crony Capitalism Exposed At The Kenya Youth Enterprise Development Fund” which exposed financial mismanagement and corporate governance conflicts of interest at Kenya’s Youth Fund.
This followed an article published in East African Standard whose basis was a management letter from the Kenya National Audit Office (KNAO) dated 28th November 2008 to the Youth Enterprise Development Fund. However the response to this article was the (former) Chairperson of the Fund’s Board accusing the Standard of being used in political machinations.
The Board was also adamant that Umuro Wario (the terminated and later re-instated CEO’s) sacking was legitimate, despite his protestations at being victimised over his opposition to a contentious deal between the Fund and Enablis Entrepreneurial Network, for which the Fund would loan Enablis Kshs. 300 million.
The Kenya Anti Corruption Commission’s most recent quarterly report for the period covering October to December 2009 investigated the procurement and found that established regulations were not followed in this instance. The Commission thus recomended that the loan agreement should be cancelled and in response, the Attorney General directed that further investigations should be carried out.
Read the Commissions report into the procurement here on page 9