E-Clips:- Business Pictorial - Fight Against Graft Loses Punch With Every New Scandal Revealed

Narc was elected on a platform of zero tolerance for corruption but is yet to shake off the Anglo Leasing and Finance Company scandal that was unearthed last April.

While President Kibaki comes across as "Mr Clean", his clarion calls to fight corruption appear to lose punch every time a new scandal is revealed. The key scandals under Narc involve large sums of money spent on security tenders, which are, generally, shielded from public scrutiny.

Scandals that have embarrassed the Kibaki Government include a computerisation project for the Kenya Airports Authority (KAA), an attempted cancellation of a police communications network contract, a stamp duty waiver for Cabinet minister Peter Ndwiga, a Kenya Pipeline Company debt repayment deal with Triple A financiers and illegal recruitment of trainees by the Kenya Wildlife Service. In the Anglo Leasing case, the most talked-about scandal so far, the Government committed itself to two projects worth Sh7 billion.

To be fair to the Government, one of the contracts, a Sh4 billion CID forensic laboratories project, was not carried out entirely under the Narc administration. It had initially been signed by the Kanu regime in the run-up to the 2002 General Election.

However, the Kibaki Government has been on the spot over the deal because it failed to audit the project before releasing Sh240 million as loan repayment. It also failed to demand a performance certificate from the company responsible for putting up three buildings to house the forensic laboratories.

The most embarrassing moment, according to Roads and Public Works minister Raila Odinga, came when the Government released money to Anglo Leasing and Finance Company for merely presenting pieces of drawings instead of architectural works. Although the laboratory project was huge, no Government official had spoken about it until the Public Accounts Committee (PAC) stumbled on it while investigating the Sh2.7 billion terrorist-proof passport systems project, the second of the Sh7 billion deals.

The whistle on the passports deal was blown by Ntonyiri MP Maoka Maore, who questioned how the project had skyrocketed to Sh2.7 billion from Sh800 million.

While Vice-President Moody Awori distanced himself from the scandal, it transpired that Home Affairs permanent secretary Sylvester Mwaliko and his Treasury counterpart, Mr Joseph Magari, had signed the contract although the intended user, the Immigration Department, had opposed the project. The passports and laboratories projects eventually led to the sacking of Mr Magari, Mr Mwaliko, Financial Secretary Joseph Oyula and four other officials.

Mr Henry ole Ndiema, the principal immigration officer, who had resisted the Anglo Leasing and Finance Companys manoeuvres, was transferred to the Ministry of Water. With fingers pointing at top officials of the Treasury and the Office of the President, Cabinet minister Chris Murungaru issued a statement saying that the culprits had been identified. However, he declined to name them. Instead, he blamed Kanu figures he wouldnt name for using their massive wealth to tarnish Narcs reputation.

Finance minister David Mwiraria also joined the fray and blamed the Office of the President and the Ministry of Home Affairs for the two scandals. But when summoned to appear before the PAC to give his side of the story, he did not turn up. The committee, chaired by MP Omingo Magara, singled him out for censure, but his Cabinet colleague, Ms Martha Karua, rushed to his defence.

Nothing ever came of Dr Murungarus pledge to name those behind Anglo Leasing. The PAC report was rejected by Parliament and the Kenya Anti-Corruption Commission is yet to take anybody to court over the scam. To date, the Government has been unable to arrest the shadowy figures behind the finance firm.

In the airports project, a Liverpool-based company, Dyntech International, was paid Sh256 million to link all Kenyan airports by computer network. In mid-2003, KAA managing director George Muhoho cancelled the contract because no work had been carried out yet the firm was asking for more money. He said investigations had been launched but nothing has been heard over the matter.

At the Kenya Pipeline Company, the board entered into a Sh2 billion financial arrangement with Triple A , which had been named in an insurance scandal at City Hall. KPC was to pay Sh44 million every month to Triple A, which would then remit Sh32 million to Standard Chartered Bank. The scam led to the sacking of KPC managing director Shem Ochuodho and chairman Maurice Dantas.