10 face charges over Anglo Leasing contracts

Ethics and Anti-Corruption Commission chairman, Mumo Matemu.

After over a decade of chasing shadows, the anti-graft agency has recommended the prosecution of 10 people for involvement in the multi-billion shilling Anglo Leasing contracts scam.

But this was not without the oddity that has stalked the pursuit of the kingpins behind these scandals, given that the agency still kept Kenyans guessing who they may be since they were not named.

The Ethics and Anti-Corruption Commission (EACC) chairman, Mumo Matemu, announced the suspects were both Kenyans and foreigners, but declined to name them.

Matemu said his office sent the files with the recommendations to the Office of the Director of Public Prosecutions yesterday morning.

”The commission has now concluded investigations regarding the Anglo Leasing scandal and subsequently recommended various persons to be prosecuted," said Matemu.

The DPP Keriako Tobiko confirmed he had received five files from EACC on Anglo Leasing and would review them for action. "I received the five files and will take time to review them. I have not opened to see what is there but will do so," said Tobiko.

Matemu said they had also recommended that the suspects' bank accounts be frozen and that the State seize money obtained fraudulently.

The development turns a new leaf on the long winding and controversial campaign to unmask the architects of the Anglo Leasing scandal that refers to 18 security-related contracts through which billions of taxpayers' money was lost.

Dating back to 2003 when the Government signed the contracts shrouded in secrecy under the guise of national security, efforts to prosecute the masterminds of the Anglo Leasing scam have been fruitless over the years leading to the cynical conclusion of the scheme perpetrated by 'ghosts'.

Devastating costs

The Anglo Leasing 'ghosts' remained under cover in three successive governments since some of the dodgy contracts were signed under the Kanu regime, and the rest under President Kibaki’s Rainbow Coalition government.

The Jubilee administration, that inherited the unresolved matter, was forced to fork out a Sh1.4 billion payout to settle claims arising from the contracts so as to avoid more devastating costs of reneging on deals Government signed.

President Uhuru Kenyatta, who ironically led a parliamentary watchdog investigation into the scandal as opposition leader in 2006 when he described the intricate scam as "a system to continue robbing the country blindly", ordered a fresh investigation after his government paid out the claim that also stood in the way of Kenya’s debut international Sovereign Bond.

The payments were made to First Mercantile Securities Corporation and Universal Satspace, firms associated with businessman Anura Pereira, who however has stated his businesses were not involved in Anglo Leasing dealings.

Yesterday, Matemu said none of the suspects is above the law and revealed they had interrogated all parties mentioned in the issue.

Sources told The Standard that up to 20 people had been interviewed by EACC and its predecessor, the defunct Kenya Anti-Corruption Commission (KACC).

Among those who were recently grilled were businessman Deepak Kamani and his father Chamanlal Kamani.

Busia Senator Amos Wako recorded a statement in July, this year, as it was during his tenure as Attorney General that the State entered the contracts.

Wako was recently involved in a public spat with his successor Githu Muigai on who was to blame for the weak defence that resulted into the two cases in which a payment of Sh1.4 billion to Pereira’s companies was made.

"The man you see before you is a mortician. The patient died on the operating table long time ago. Githu Muigai is the mortician. If you think the patient should have lived, ask the surgeons," Prof Muigai said then while pointing the finger of blame at Wako.

But Wako shot back: "If I was a surgeon as he has clearly indicated in his remarks, then I handed over the office of AG to a fellow surgeon to continue with the treatment of the said patient. He took over the office and swore to diligently serve the people of Kenya in his capacity as the principal legal advisor to the Government.”

Kamani, his father and brother Rashmi had in July moved to court to stop the Government from releasing information to the Swiss authorities in relation to the contracts.

They wanted Muigai barred from acting on a request by the Swiss federal attorney for information about them relating to money laundering and dealings with companies implicated in the Anglo Leasing scandal.

The three argued that the AG had publicly stated he would act on the request that alleged they were involved in money laundering between 1999 and 2004 and could be extradited to Switzerland to face prosecution.

The court declined to grant temporary orders restraining the AG from releasing the records sought by the Swiss government.

The Kamanis were linked to companies that were awarded the 13 out of 18 security contracts.

The anti-corruption body had started investigations against the Kamani brothers in 2006 over allegations of corruption and economic crimes involving procurement of security projects between the Government and some companies, including Anglo Leasing and Finance Company Ltd.

It was then that the immigration, on March 30, 2006 cancelled their Kenyan passports on    grounds that their absence was a deliberate way of evading investigations into the scam.

Although Kamani had been on the run since the Anglo Leasing scandal broke out in 2004, he returned to the country in 2011 and appeared before the KACC.

State overpaid

Among the controversial contracts awarded to Kamani was the supply of 994 security vehicles and spare parts to the Office of the President whose delivery would be done over eight years.

The Government was to repay the company over a period of 13 years. Kamani was the director of Kamsons, a motor firm that sold a fleet of low technology India-manufactured Mahindra four-wheel drive vehicles to the Kenya Police in 1993.

Some of the contracts awarded to Kamani that were negotiated for cancellation and restitution include supply of the forensic laboratories for CID, immigration security equipment, E-Cops/Infotalent projects, security vehicles for the police, and modernisation of police equipment.

According to valuation reports prepared by PricewaterhouseCoopers, the Government paid the suppliers more than the value of works, goods, and services delivered under each of the contracts associated with Kamani.

When the Anglo Leasing scam broke out, John Githongo, who was then President Kibaki’s Permanent Secretary for Governance and Ethics, and had pressed for action on top administration officials implicated in the scam, resigned and went into exile, fearing for his life. Githongo is among those who have been interviewed by EACC.

Suna East MP Junet Mohamed had also demanded explanations from the Treasury on a pattern he said was worrying.