E-Clips:- Business Pictorial - Anglo Leasing: Mwiraria Bows Out

Kenyas Finance minister David Mwiraria resigned yesterday, as the media continued to focus on Anglo Leasing type corruption at the heart of Government. Mr Mwiraria quit after meeting the President in the morning. He told his key aides at the Treasury Building of his decision to go, then called a Press conference to make it public.

The minister – one of the Presidents key allies – announced his resignation at exactly 3.17pm in his former boardroom on the 14th floor of Treasury Building, Nairobi. Mr Mwiraria, 67, was the second Cabinet victim of the Anglo Leasing affair, following the Presidents refusal to reappoint former Internal Security minister Chris Murungaru to the Cabinet after a shake-up late last year. And observers believed last night that more resignations could be on the way.

For even as the Finance chief stepped down, question marks hung over the immediate future of two other senior members of Mr Kibakis inner circle: Vice-President Moody Awori and Energy minister Kiraitu Murungi. Like Mr Mwiraria, both were called to State House for talks with the President – on Monday evening and yesterday morning – and it is understood all three were invited to hand in their resignations.

Also present at the crisis talks was Mr Stanley Murage, a permanent secretary, who is Mr Kibakis financial and economics adviser. It is understood the President has become increasingly concerned about the effect of the Anglo Leasing affair on his Governments credibility, heightened by the public announcement by the World Bank that they had withheld Sh19 billion in aid because of the scandal, and the possibility that other major donors would follow suit.

All three ministers were named in the report to the President on Anglo Leasing and similar deals by former Ethics permanent secretary John Githongo.

Mr Awori has already been questioned by detectives from the Kenya Anti-Corruption Commission (KACC) over the Sh2.7 billion Anglo Leasing passports scandal, and Mr Murungi has been named several times in reports alleging attempts to cover up that and other similar deals. Neither minister was available for comment last night and it was not known if they intended to follow Mr Mwirarias example.

What appeared to be a continuing split in the Government over the best way to deal with the allegations of grand corruption was also believed to be the reason for the sudden cancellation of the Cabinet meeting scheduled for this morning. Ministers who spoke to the Nation confirmed that they had received notification earlier from the Head of Public Service, Mr Francis Muthaura, to attend a Cabinet meeting today and a further notice that the meeting had been cancelled.

Announcing he was resigning from the office he has held since Mr Kibaki came to power in 2002, Mr Mwiraria said simply: "This is meant to be a brief statement. I want to inform you that I have today in the morning taken a decision and submitted my letter to the President to step aside." Then, he read out his five paragraph letter of resignation to the packed news conference. Headed, False allegations against me regarding Anglo Leasing, it began: "The allegations made against me in the media by the former Permanent Secretary for Ethics and Governance, which have cast serious aspersions on my character and integrity have deeply disturbed me." And it went on: "In order that my name be cleared, and to protect the integrity of the President, the Government and our country Kenya, I hereby voluntarily step aside as your minister for Finance and a member of the Cabinet to pave way for investigations. "I would however like to make a request that investigations be carried out expeditiously so that the truth and the facts of the matter can be established. This will spare me and my family the pain and agony of having to sit and watch as my integrity is unfairly put to question."

He continued: "Let me take this opportunity to thank Your Excellency for having given me the opportunity to serve my country in your Government. "As I step aside, my conscience is clear that I have served the Kenyan people with dedication and honesty and have not been party to any irregularity, criminal or unethical conduct." At the end of the conference, Mr Mwiraria refused to answer questions, in spite of attempts to persuade him to reveal if he had signed the Anglo Leasing contracts knowingly.

He simply said: "I have subjected myself to investigations and you will have to wait for the findings." Mr Mwiraria then walked out of the 20ft by 10ft oval boardroom, furnished with 59 chairs, accompanied by an aide and returned to his former office where he packed his belongings before leaving the Treasury. Mr Mwiraria was the ninth minister to resign from government in 42 years since Independence. Three were Vice-Presidents: Jaramogi Oginga Odinga (1966), Mr Joseph Murumbi (1966) and Dr Josephat Karanja (1989), who have all since died.

The other ministers who quit were: Mr Charles Njonjo (Justice and Constitutional Affairs, 1983), Mr Kenneth Matiba (Transport and Communications, 1988), Mr Peter Habenga Okondo (Labour, 1990), Mr Kibaki himself (Health, 1991), and Mr Simeon Nyachae (Indistrial Development, 1999). Attempts to contact Mr Awori to find out whether he was also going to step aside to allow for investigations into the Anglo Leasing scandal were unsuccessful.

The head of the Vice-Presidential Press Service, Mr Browne Kutswa, said the V-P had left the office earlier in the afternoon and was not expected back. "We shall try to contact him and get a comment for you," he said. An official who picked up the phone at Mr Murungis Nyayo House office said he was unavailable for comment because he was in a meeting.