Central Bank’s failure to do proper regulation contributed to the loss of Sh791 million in the National Youth Service scandal, a parliamentary watchdog committee has said. The accounts were held at CBK,” Gumbo told Njoroge. The National Assembly Public Accounts Committee has blamed Central Bank governor Patrick Njoroge for failing to stop the irregular payments. However, Njoroge told the committee that three banks- Sidian, Family and Faulu Micro-finance Ltd have been fined a million shillings each for handling the proceeds of crime. The watchdog committee is scrutinising a special audit by Auditor General Edward Ouko that revealed that over Sh1.9 billion was stolen in the NYS scandal and identified businesswoman Josephine Kabura as the prime suspect.

Source: The Star August 08, 2016 03:11 UTC