NATIONALNEWSPeople Daily

‘Key suspect in NYS scam wanted to set up mobile firm’

A lawyer testifying in the Sh791 million National Youth Service (NYS) case yesterday revealed how Sh78 million was to be used to set up mobile communication business.

Martin Gitonga of M M Gitonga Advocates told trial magistrate Martha Mutuku how he drafted an agreement between a company known as Community Development Systems Limited (CDS) and John Kago, a prime suspect in the NYS scandal, to be used in the transaction of the business.

He said that in March 2015, he received instructions from the managing director Oscar Mwangi of CDS Limited that they wanted to start a mobile communication business since they had been issued with a licence and had no money. He said that from the instruction documents he was given by Mwangi, Kago was the investor and wanted him to draft a proper agreement between the two.

The court heard that Sh78,750,000 was the money the investor was to give for the 5 per cent shares in the company since the company needed a total of Sh1.57 billion to start the business.

The lawyer was testifying in a case in which Kago is charged alongside 10 others namely Josephine Kabura, Ben Gethi, Samuel Wachenje, lawyer Patrick Onyango Ogolla, Anthony Gethii Kihara, Benson Gachoka, John Hope Vandamme, Martin Gachara Wanjohi and Charty Wangu who have denied 15 counts of money laundering. During cross-examination, the witness said that he was not aware of the source of the money deposited by Kago.

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