Former National Youth Service (NYS) deputy director-general Adan Harakhe reported directly to former Devolution Cabinet Secretary Anne Waiguru.
This was an informal arrangement, former NYS director-general Nelson Githinji told a House committee on Thursday.
He said Mr Harakhe was his deputy only in name.
Dr Githinji said Mr Harakhe was posted and given authority over key departments such as finance, human resources and procurement, among others.
In addition, Dr Githinji told the committee, Mr Harakhe was made an AIE — Authority to Incur Expenditure — in the IFMIS financial management system.
DEPUTY HAD MORE POWERS
These were decisions reserved for the director-general, Dr Githinji said.
Dr Githinji said although he was the head of the NYS, it appeared his deputy had more powers.
He had also been directed to give Mr Harakhe full cooperation from his “superiors” and hence he could not question some of his decisions.
IFMIS records indicate Mr Harakhe used his password and approved over Sh1.8 billion, the total amount stolen from the agency.
Dr Githinji was appearing before the Public Accounts Committee on Thursday to give evidence on the NYS scandal, which came to light after it was initially reported that Sh791 million had been lost.