E-Clips:- Business Pictorial - Firms At The Center Of Scandals Blacklisted

The government blacklisted Anglo Leasing and Finance Company-the firm at the center of two tendering scandals involving billions of shillings.

Finance minister David Mwiraria announced yesterday that the government would in future not engage in any dealings with the controversial company.

“It is very easy to blacklist any company that is playing tricks with the government and I can now say (that) we will not be dealing with Anglo Leasing Finance.” He told parliament, in response to a clarification sought by Embakasi MP David Mwenje.

The minister had sought to shed light on the two controversial contracts – one to supply terrorist proof passports and the second one, for the building and equipping of three Criminal Investigation department laboratories. The two scandals could have cost the country Shs 6.7 billion.

The announcement comes in the wake of an order issued by the chairman of the parliamentary Public Accounts Committee (PAC) James Magara that all payments to the firm be immediately stooped amid concern over the manner in which the controversial agreement were negotiated.

“The committee has resolved, and in fact, directs you, because these are oversight functions for this parliament, that those contracts and promissory notes that are outstanding should not be paid,” Magara s letter to the Treasury said in part.

“If possible, a letter to that effect should go out this afternoon so that we can say the country every penny,” he added.

At the same time, Mwiraria shocked the House with revelations that advance payments were made to the firm even though no land had been identified towards the project as required in the contract.

The minister who could not explain the circumstanced under which the payments were made, however, blamed the former Kanu administration for negotiating the deal in the first place.

“I do not know under what circumstances the payments were made since it was entered into during the kanu regime,” he said.

He explained that following the adverse publicity that followed the firm s dealings, the government has withdrawn from the forensic project.

“The adverse publicity on the project has eroded the confidence of the consortium of investors on the project, forcing them t withdraw from the project,” he said.

He said the company has fully refunded the money that was as advance payment including promissory notes that have so far been cancelled.

“They further confirmed there were no contractual obligations on either side. This refund closed the forensic laboratory project,” he said.

An attempt by the minister to discuss the passport deal was objected to by deputy speaker David Musila after Kitutu Chache MP Jimmy Angwenyi said the PAC was currently investigating the scandal and would furnish the house with its findings. The passport deal that has so far seen the sacking of two permanent secretaries David Magari (finance) and Sylvester Mwaliko (home affairs), among others, is by far the worst financial scandal to face the Narc administration that was elected on a platform of zero tolerance to corruption.

Several MPs including Maoka Maore (Ntinyiri) Dr Oburu Oginga (Bondo), Billow Kerrow (Mandera Central) and Dr Gurrach Galgalo (Moyale) blamed the government for entering into a contract with the company that seems to have disregarded all the procurement rules.

Even as the controversy follow the firm s dealings, government officials including Mwiraria, is national Security counterpart, Dr Chris Muringaru, office of the president permanent secretary Dave Mwangi have failed to reveal the local players.

Analysts have pointed out that the company must be having highly placed officials in the government who have enabled it to win lucrative contracts and had been paid huge sums of money, in advance, without following tendering and accounting procedures.

Murungaru has stated that he knows nothing about Anglo Leasing yet the acting Treasury permanent secretary Joseph Oyula told PAC on June 4 that the office of the president countersigned the contract wit the shadowy company for the CID project.