Excerpt : Your Excellency, After felicitations, I write to your good office as patriotic Kenyans who was a senior members of Public Accounts Committee of Parliament at the time the infamous Anglo-leasing contracts were unearthed, and decisions made on the invalidity of the contracts.
After felicitations, I write to your good office as patriotic Kenyans who was a senior members of Public Accounts Committee of Parliament at the time the infamous Anglo-leasing contracts were unearthed, and decisions made on the invalidity of the contracts. I am concerned that your government may consider making payments in regard to these contracts that may ultimately leave this country shs 125 billion poorer, and render our esteemed nation a favourable playground for would-be fraudsters.
Your excellency, you will recall that the Auditor-General in his special April 2006 report to Public Accounts Committee then chaired by yourself on the 18 Anglo-leasing type contracts revealed that the total value of the contracts as at 30th June 2005 was shs 56.3 billion. Of these, shs 32.5 billion in respect of 12 projects were contracted before 31st December 2002 under former President Moi’s government. Shs 23.8 billion in respect of 6 projects were contracted after 31st December 2002 under the leadership of former President Kibaki.
A total of shs 17.5 billion had been paid by the government towards these contracts by 30 June 2005, according to the audit report. In these contracts, the Public Accounts Committee examination revealed some or all of the following characteristics: fictitious contractors, forged documents, fraudulent transactions, irregular procurement processes, massive over-pricing and non-delivery of the goods and services. It was a massive scandal that could only be executed through connivance of senior officials in government.
Your excellency, in moving the PAC report before the House, you stated and I quote from the Hansard “ Anglo-leasing is a system that has been used to fleece the taxpayers and the Kenyan public under the guise of security. If not brought to check, it will continue to rob this nation of the much needed resources that could be used to better the lives of millions of Kenyans”. As you rightly predicted, it continues to rob the nation!
Your excellency, following your committee’s report, Parliament adopted the recommendations that all the ongoing contracts be properly and legally cancelled immediately, and further payments under the contracts suspended. Consequently, Treasury Minister confirmed to the House that all promissory notes were withdrawn and no further payments will be made. He further affirmed in early 2007 that PwC consultancy firm had been hired to examine the contracts and advise Treasury on their legal termination. In May 2008, the Treasury again hired PwC to assess and report progress that has been made on the disposition of each of 18 security contracts since July 2007 when the firm had submitted its preliminary findings.
It is now apparent that senior officials in government have not been keen in defending the cases that were filed in courts abroad to effect the payments, according to the report by the firm dated August 2008. For instance, in the First Mercantile Securities Corporation case, it reported that ‘we are uncertain as to likelihood of a successful outcome for GOK as the AG has restricted the lawyers from including in the defense, the evidence of criminality and corruption’. Similarly, it argues that the valuation evidence produced by PwC, and FBI evidence as to the limited involvement of Spacenet Inc were not included in the defense.
Your excellency, in the case of Universal Satspace, the situation was no different. The AG’s office declined to support the lawyers representing the government, and non-payment of their fees also jeopardized the case according to the consultancy firm. For instance, reports produced in August 2007 that were vital to the case were not presented to the lawyers until 9 months later despite several requests by the lawyers. The KACC too, then headed by Justice Ringera, , declined to share information with lawyers, as did the Department of Defense. The UK’s Serious Fraud Office also ended their investigations citing non-cooperation from the government.
Your excellency, it is clear from the above that individuals within the establishment were keen to allow these cases to be lost by the government so that the payments could be facilitated. Government had the time, and evidence, to win both cases above according to PwC report but it did not happen. The proposed payment of these two contractors will, if effected, lead to a flood of legal claims by the shadowy figures behind the scam to fleece Kenyans.
Your excellency, it is my considered opinion, and humble request, that you take up the fight against these contractors to the highest courts in the world. We also request you to take urgent steps to discipline those in your government now who may have been involved in this grand lootery that continues to haunt our nation. It is important to note that those who were responsible for the deliberate failure to execute these cases successfully are as much guilty of fraud as those perpetrators of the scam, and must therefore be dealt with in the same way.
In conclusion your excellency, I am cognizant of your busy schedule but hasten to remind you that the settlement of these claims will cost this great nation its image and standing in the world. Its your turn to stand up against corruption once again.