Time for Anglo Leasing heads to roll – EACC

October 16, 2014 2:23 pm
Matemu did not however name the individuals the commission wants charged in court, only saying they will await Tobiko's directive/FILE
Matemu did not however name the individuals the commission wants charged in court, only saying they will await Tobiko’s directive/FILE

, NAIROBI Kenya, Oct 16 – The Ethics and Anti Corruption Commission (EACC) on Thursday recommended the prosecution of several individuals linked to the multi-billion shillings Anglo Leasing scandal.

The commission’s chairperson, Mumo Matemu says the Anglo Leasing files have already been forwarded to the Director of Public Prosecutions Keriako Tobiko with a recommendation to prosecute the suspects.
Matemu did not however name the individuals the commission wants charged in court, only saying they will await Tobiko’s directive.

“The commission now awaits the directions the DPP will give on the matter,” he stated.

Those he wants charged are said to have played direct or indirect roles in the scandal whose investigations had stalled for years.

Matemu called on Kenyans to support the commission in fighting corruption saying they will not relent until the vice was crippled.

“I call on all Kenyans to join hands and support the war against corruption not only by not participating in corrupt practices but also by not tolerating the vice in any of its form,” he said.

“It is important to recognise that the war against corruption is a responsibility of all citizens.”

He said the commission will continue to perform its mandate, “and will do so professionally, objectively and with impartiality.”

On May 15, President Uhuru Kenyatta authorised the immediate payment of a controversial Sh1.4 billion Anglo Leasing debt, saying further delays were putting the country’s economy at risk.

He stated Kenya had exhausted all judicial options to forestall payment of the debt following judgments issued by courts in Geneva and London.

State House said The Treasury had also been instructed to pay Sh1.43 billion, which was the outstanding figure following numerous negotiations with the claimants who initially claimed Sh1.64 billion.

The start of the Anglo Leasing scandal was the contracting of a loan in December 2003 by the Department of Immigration which was then under the Office of the Vice President and Ministry of Home Affairs.

The purpose of the loan was to enhance security by modernising the issuance of secure passports and purchase of security equipment for use at Kenya’s borders.

The procurement process was however abused and a company going by the name Anglo Leasing and Finance Company Ltd was awarded the tender and Sh93 million paid up-front.

This became public on May 4, 2004 when the matter was raised in Parliament.

Subsequent review revealed that in the external public debt database, there were a total of 18 contracts similar to the one arranged by the Anglo Leasing and Finance Company Ltd and from then on these loan contracts were labelled Anglo Leasing.

Investigations revealed that the contracting of loans similar to Anglo Leasing had been going on in the Government for a long time.

In August 2004, the Ministry of Finance suspended payments of all the loans similar to Anglo Leasing and instructed the Controller and Auditor-General to carry out a special audit.

The Public Accounts Committee (PAC) also investigated the matter and on March 30, 2006, its chairman tabled the report on “Special Audit on Procurement of Passport Issuing Equipment.” The report was adopted by Parliament on 4th April 2006.

It covered all the 18 contracts and recommended that all contracts that had not been commenced should be terminated while those which had commenced should be re-negotiated with strict adherence to the procurement regulations and procedures.

It also recommended investigation and prosecution of all implicated.


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