E-Clips:- Business Pictorial - Anglo Leasing Arrests Looming

Kenya Anti-Corruption Commission’s investigations into the Sh7 billion Anglo Leasing scandal are at a critical stage and high-profile arrests could be just days away.

Two top investigators, whose identity is a closely guarded secret, have been in Europe to pursue the perpetrators. They were reported to have visited four European countries — France, Switzerland, Holland and the United Kingdom — to, among other things, try to put together evidence that would unmask the faceless mandarins behind the shadowy paybacks to Central Bank of Kenya.

Sources in anti-corruption circles described what the detectives have discovered as "astonishing and revealing’’.

Their work was made easy by the fact that they found substantial investigative and intelligence material already compiled by the foreign governments. But top government sources were more cautious, saying the investigation was likely to take a little longer. "I foresee the investigators going back (to Europe)," said the sources.

The Government is reportedly aware that unless the investigations lead to successful prosecutions, then it is unlikely to get any more cooperation from foreign governments, who so far have been "helpful".

Word in anti-corruption circles is that the case against many high-profile suspects is ready "and has been ready for a while". The Anglo Leasing investigation has gathered steam behind the scenes since Mr Justice Aaron Ringera formally took over as the director of KACC.

Power barons, who are believed to have received huge sums of money to turn a blind eye on corrupt deals, are said to be wary of the detectives’ foreign mission, because they would have no control of the investigation abroad.

Investigators believe that the Anglo Leasing scandal is part of a massive corruption network at key government offices, including Treasury and Office of the President, which has been robbing the country blind for decades. "It is impossible, even under the Kanu regime, for one person to steal US$50 million," a top government source said.

Reports of fresh ground covered in unravelling the scandal, which has dented the image of President Kibaki’s government, came as Justice Minister Kiraitu Murungi told a local radio station that arrests and prosecution would come next month — which is only a few days away.

Passport scandal The passport scandal broke on May 14 when the President’s office announced that "serious irregularities" had been found. Four officials were suspended as a result.

On the same day, Anglo Leasing published a statement in the Press saying it was pulling out of the project because of "adverse reports and publicity".

"We assure the government and the public that Anglo Leasing & Finance has complied with the required financial standards and procedures," it read. A week later the Auditor-General published a critical report. He explained that as Kenyan passports had been open to fraud and forgery, international tenders for a computer system were invited in October 2001.

By February 2003, after the new government had taken over, two sets of bids from international firms had been rejected on price and technical grounds. Then, on the advice of the government’s IT department — whose director is one of the suspended officials — it was agreed to expand the system to cover visas and immigration border controls.

But before this was announced, the Home Affairs ministry received an "unsolicited technical proposal" for the new project from Anglo Leasing, which offered a price of £20m. The supplier would be FranÁois Charles Oberthur of Paris — the world’s leading supplier of Visa and MasterCard credit cards.

The Auditor-General said: "The indications are that the firm [Anglo Leasing] may have had foreknowledge of the recommendation to enhance and expand the system."

Despite the lack of competitive tendering, Anglo Leasing was paid a "commitment fee" of more than £600,000. The Auditor-General said: "The basis for determining the ability of the two firms to perform the contract is not clear."