—– Forwarded message from jbatec@ . . . —–
Date: Sun, 28 Jun 2009 07:51:48 -0700 (PDT)
From: jbatec@ . . .
Subject: Why Eligibility Must be a Requirement Necessity for Release of Funding

Folks,

The Coalition Government in Kenya has failed to provide clear information to address issues surrounding Youth Funding for Development. There has been no educational sensitization to inform Citizens and educate the Public on requirement and accessability of the so called Youth Funding. Instead the whole arrangement turned into an ugly saga, a stop to a dead end. Question is, what have they done with the funds?

The best this Coalition Government have done and portrayed, is exceeding corruption that which contributed into tearing the Country apart and causing endless insecurity, fear, pain of poverty, tribal hate amongst the good people of Kenya with unnecessary engineered extreme hunger. This is performing intentional serious criminal act against the uninformed innocent Society who depend on services from its Government without favour or discrimination.

It is my conclusion that this Coalition Government is dysfunctional and is only interested in massing for power and enjoy staying on power for personal gratitude/gain and limelight enough to serve their own personal interest with those of their family members as well as to those of their connections. They have no leadership skills or direction to benefit the Public and the Nation, or to alleviate poverty amongst the poor Kenyans. They have failed to guide the country to posterity. They have no ideas, skills or talent that can drive the Country to Greener Pastures. Instead, they are driving Kenya into oblivion, into destruction of the darkest endless pit.

Urgent New Strategy for sustaining lives in Kenya and to save the Civil Society, Community, Youth, Women and Faith Based from collapse is extremely urgent and necessary.

Things Have Fallen Apart in Kenya and the situation is dangerous and completely out of hand by the dysfunctional Coalition Government system.

Thanks,

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com

http://www.eastandard.net/InsidePage.php?id=1144017702&cid=4&

http://www.eastandard.net/InsidePage.php?id=1144017672&cid=541&

Just what happened to youth fund millions?

Published on 24/06/2009

Related Stories

Kazi Kwa Vijana Crisis In Kibera 4/06/09

PM forms team for youth jobs project

Youth to receive Sh5b for employment creation

By Kenneth Kwama

An audit showing hundreds of millions of public funds meant for the youth may have been misused will dent the Government’s display of commitment to creating jobs for the youth.

A damning report by the office of the Controller and Auditor General shows part of Sh1 billion President Kibaki launched for a national youth fund ended up in pockets of individuals and companies in unclear circumstances.

The Controller and Auditor General says huge chunks of the money, entrusted to the Youth Enterprise Development Fund (YEDF) Board was given to various youth groups, intermediaries and suppliers, with virtually no oversight.

The audit will put the Government at pains to explain how, at a time when it is promoting the creation of 300,000 temporary jobs for youths through a new initiative – ‘Kazi kwa Vijana’ – money for such a noble venture was diverted at the onset.

The Youth Enterprise Development Fund was launched by President Kibaki in February 2007 under the Ministry of Youth and Sports with an initial budgetary allocation of Sh1 billion.

The fund, unveiled soon after the launch of the women fund, was then seen as part of campaign goodies to sweeten President Kibaki’s then bid for a second term.

But the Government argued it had a key objective to facilitate youth employment through the Youth Employment Scheme.

Last month, President Kibaki cited the Youth Enterprise Fund as a success venture. But now the Controller and Auditor General finds the Fund’s management paid for contracts with no guarantees, with some involving single-sourced companies.

For example, the auditors pointed out it was unclear how a Sh50 million grant to the youth kitty from the Kenya Pipeline Corporation for a ‘business plan competition,’ was spent.

No details

The fund’s management paid out Sh45 million to Techno Server on April 26, 2007 and July 24, 2007, for the event but auditors questioned how the firm was selected to carry out this exercise. The report adds the company did not provide any details on how it spent the money.

Another Sh7.5 million of public funds also found its way to a private account owned by an amorphous group called Pamoja Youth Foundation — a paper company, whose legal identity could not be ascertained. The money was for the same ‘business plan competition’ for which Techno Server had been paid.

At one time, another single-sourced recruitment firm was paid Sh490,000 to hire staff, contrary to procurement rules.

Last month, Youth Affairs Minister Hellen Sambili and the YEDF Board dismissed the CEO Umuro Wario and elevated his deputy, Ture Boru in an acting capacity. Later, Wario, who was initially sent on compulsory leave, alleged he had been edged out for failing to yield to pressure from board members on various tenders and business transactions.

When contacted, the Board’s Chairperson Hellen Tombo told The Standard that they were aware of the audit and its queries.

“We were audited like any other organisation and the audit raised a number of concerns, which we have addressed. It is good to investigate first so that you don’t fall into the traps of people who could be pursuing ulterior motives,” said Tombo.

Boru said the questions raised by the auditors were allegations. Tombo and Boru agreed to grant The Standard further interviews on the subject.

In one instance, it paid out Sh11.4 million to an organisation called Youth Employment Scheme Entrepreneurs to clear out the group’s overdraft, without explanation.

Credit management

The Fund’s management capped the generosity on October 11, 2007, by advancing the same organisation another Sh2 million, which was never explained.

The audit also poked holes at the Fund’s computerised credit management system used to maintain the individual loans accounts, which it reported, was reflecting a total balance of Sh177.4 million compared to the financial statements balance of Sh227.6 million. This revealed an unexplained difference of about Sh50.2 million.

Besides this anomaly, the management irregularly transferred Sh500 million to a fixed deposit account, without seeking approval from Treasury as required.

“In addition, certificate of bank balance and bank the statement reflecting the movement and ending balance of this account was not availed for audit verification. Therefore, we could not confirm the above figure of Sh500 million,” said auditors in their report.

Of the Sh41.2 million, which should have been in the main account at Equity Bank as at June 30, last year, the cash book indicated a balance of only Sh18.5 million, meaning the whereabouts of about Sh22.7 million could not be explained for that particular account.

Probably the question that should be asked is: Where did all the money go? The auditors say it is impossible to tell, because the money trail disappears inside a number of irretraceable bank transactions, which even the auditors could not map out.

“Under these circumstances it was not possible to ascertain the nature of these payments. YEDF management needs to provide adequate evidence of payees to the national audit office for verification,” said the auditors.

In a letter dated November 28, last year, the Controller and Auditor General told the Ffnd’s CEO about its findings and gave a number of recommendations to help streamline the board’s operations.

Lacking evidence

Another Sh15 million, which was paid out to various youth groups, was only supported by a schedule containing a list of benefiting youth groups, and amounts received, with no further evidence of the transactions.

According to the audit report, the YEDF cashbook, payment vouchers and supporting schedules reflected that some Sh7.2 million had also been disbursed to youth groups as loans through Postal Corporation of Kenya (PCK).

But scrutiny of its main bank account statements of October 15, 2007 revealed the recipients were companies and individuals. Also in the records is the name of a law firm and individuals who were paid Sh1.3 million for performing unspecified duties for the fund.

http://allafrica.com/stories/200707310971.html

Kenya: Youth Fund to Become a Bank

Brian Adero And Elizabeth Mwai

31 July 2007

Nairobi — The Government has announced the formal conversion of the Youth Enterprise Development Fund into a State corporation.

The institution will later evolve into a fully-fledged bank. Approval to make the revolving fund a parastatal was granted through a Presidential order in May, this year.

Youth Affairs minister, Mr Mohamed Kuti, on Monday said following the Gazette notice, a board has been constituted to run the organisation. The 12-member team is headed by Ms Hellen Nthombi.

The minister said the new parastatal would be operational as a chief executive is appointed. He said the ministry has already advertised for the position.

Kuti said the Fund has an adequate capital base as required by the Central Bank of Kenya regulations for conversion into a banking institution.

“There are many banks which were started with less money like Sh1 billion, while the Youth Fund has a financial base of over Sh2 billion,” said Kuti. “I don’t see any reason why we should not turn it into a Youth Bank.”

Youths to access funds at lower interest rates

He said the move to convert the fund into a parastatal as been prompted by complaints from youths, who claim commercial banks had made it difficult to acquire loans.

“There are many problems that youths face while applying for the funds, the major one being the issue of collateral. They were being asked for a third party security, sometimes even household goods. We felt that it was not correct,” said Kuti.

He said through the corporation, youths would access funds at lower interest rates and a harmonised security requirement and collaterals. He said the Government aims to create a one-stop shop for the disbursement of the funds throughout the country.

“We hope that this will serve the youths throughout the country,” he said.

The minister pointed out that the current micro-financing institutions disbursing the youth fund demanded that borrowers give collateral either in form of household goods or title deeds equivalent to the sum being loaned.

He said currently, there are 27 financial intermediaries handling the youth funds.

The minister made the announcement when he announced the 300 winners of this year’s National Business Plan competition.

Youth Empowerment Centres to be created in every constituency

Kuti said the Government could not arm twist intermediaries to relax the rules without facing a risk of losing the money due to lack of payback.

However, the decision of converting the Youth Enterprise Fund State Corporation into a bank will be based on reviews of the performance of the intermediaries.

The Permanent Secretary, Major (Rtd) Kinuthia Murugu, said the purpose was to empower the youth.

“We want the youth to grow in business and get opportunities in Government contracts,” he said.

The ministry also announced the formation of Youth Empowerment Centres in every constituency at a cost of Sh8.5 million each, which will be done in collaboration with MPs through the Constituency Development Fund.

The construction of the first eight centres will be done by the end of the year, said Kuti.

He said the centres are also supported by various organisations among them Microsoft, Ministry of Health, Safaricom, World Bank and Ministry of Information and Communication, among others.

Meanwhile, Internal Security and Provincial Administration minister, Mr John Michuki, has said banks should relax their borrowing requirements to make the youth development fund more accessible to the youth.

Youth urged to borrow aggressively and invest wisely

Speaking over the weekend, Michuki said the requirement to operate an account for six months before qualifying for a loan was a bottleneck to the youth, majority of who were enjoying banking services for the first time.

“Commercial banks should review conditions necessary for the youth and women to access loan facilities from the youth development fund as well as conventional loans so that we can promote economic liberalisation for Kenya,” he said during a Family Bank function in Murang’a.

“While aware of the need to be prudent, banks must get an ingenious way of giving out loans while relaxing the account opening requirements for the youth,” said Michuki.

The minister, however, challenged the youth to borrow aggressively and invest wisely. He added that indigenous banks have supported Government’s efforts to distribute devolved funds like constituency development funds and local authorities transfer funds in rural Kenya.

He also said that indigenous banks had encouraged borrowing by extending banking services to rural banking.

Family Bank chairman, Mr Titus Muya, said the bank’s conversion process is now complete and customers can enjoy a full array of banking services.

http://www.youtube.com/watch?v=IsBBkre8wlo

http://allafrica.com/stories/200707310971.html

Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com