By WILFRED AYAGA
Kenya: A major showdown is looming in Parliament after the Government confirmed that it was processing payments for the controversial multi-billion shilling Anglo Leasing contracts.
Through a letter to the joint House Business and Appropriations and Finance Committees, the Government said it was already processing payment for one of the companies with which it has been embroiled in a legal battle for settlement of claims accruing from the contracts.
The Government will pay over Sh1.5 billion to First Mercantile Ltd, in a deal that could attract fierce debate when the committee’s report is tabled in the House.
As a sign of the controversies ahead, divisions emerged in the committee on Tuesday when Treasury Cabinet Secretary, Henry Rotich, Attorney General Githu Muigai and Principal Secretary Kamau Thugge appeared before it armed with the letter confirming that indeed deliberations had taken place where an agreement to settle the amount had been reached.
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The letter also mentioned another company, Universal Satspace, which, together with Mercantile, waged legal battles in Switzerland and London respectively with the Kenya Government for settlement of claims arising from the controversial contracts.
Mercantile had been contracted to supply equipment for a Very Small Aperture Terminal (VSAT) communication network for Postal Corporation of Kenya.
Rotich, in his submissions had told the committee that he required its consent to make payments to the two companies. The letter stated that the Government had hired an international law firm, Dentons UK, which had advised that the payments should be settled.
Other avenues
“Dentons advised that there was no legal avenue left for the Government of Kenya apart from settling the payments. The National Security Council meeting directed the Chief of Staff and Head of Public Service to explore other avenues that could be used to settle the matter and proceed on the basis of what they agree, after informing the President,” the letter reads in part.
It further disclosed that the Government had already appended its seal to the payment contract documents and that Treasury was on the verge of making the payments.
The letter indicated that the Government was already processing payments for Mercantile and was seeking the Committee’s approval.
“The settlement agreement letters have been signed by the Government of Kenya and the claimants and the National Treasury are now processing documentation for payment,” the letter reads in part.
During presentation of the Supplementary Budget estimates, MPs raised concern that part of the money set aside for foreign debt repayment may have been meant to settle the Anglo Leasing contracts.
Nominated MP Isaac Mwaura, a member of the Budget Committee, said the cloud of secrecy surrounding foreign debt payments led to suspicions, which have characterised the payments.
“We have made efforts to get the Government to reveal the country’s foreign debt, without success,” he said.
Committee members, unhappy with the payment of questionable debts, demanded full disclosure of the faces behind the Anglo Leasing companies.
“It is important for the country to be told the names behind the companies being paid this money,” said Mwaura.
Committee chairman Mutava Musyimi, confirmed that they had indeed received the letter from Rotich and would table their final report on the payments.
“We had said that it would be possible for the Government to settle the payments then come for approval. But members realised that due to the political sensitivity of the matter, it would be better to get political blessings,” said Mutava.
