Former PS Cheruiyot Quizzed Over Anglo Leasing Daily Nation 29 July 2004 Page: 1
The former Internal Security PS Zakayo Cheruiyot was yesterday questioned by the anti-graft commission in connection with the Anglo Leasing and Finance scandal.
Mr Cheruiyot appeared before senior commission officers for more than seven hours – from 10 am to 5.30 pm.
He "was being questioned on what he knows on the issue, since the company started working with the Government," during his time as PS, an official said. The officers wanted to know from him the individuals behind the Anglo Leasing firm and who signed the contracts.
Mr Cheruiyot will resume recording his statement today. The officers had been looking for Mr Cheruiyot since Monday. Senior officers of the Kenya Anti-corruption Commission wanted to know if Mr Cheruiyot had signed any of the contracts between the Government and the firm.
It is understood Mr Cheruiyot denied any involvement in the affair. Talks between the former PS and the officers centred on investigations into the Sh4 billion contract to build and equip three forensic science laboratories for the CID. All money involved had since been returned to the Government and the contract has been cancelled.
National Security minister Chris Murungaru said last week that the Narc Government had inherited the Anglo Leasing contracts from the Kanu regime.
While exonerating his ministry from the scandal, Dr Murungaru explained the Office of the President had since January last year started investigating many questionable contracts and projects inherited from the past administration.
He said: "After only 18 months in office, it is now patently clear that the perpetrators of grand corruption in the previous regime are fighting back".
The CID laboratory contract with Anglo Leasing and Finance received Cabinet approval in July 2001. "Documents now in our possession show that a payment advice instructing the Central Bank of Kenya to pay Anglo Leasing and Finance Limited a total of US$900,000 (Sh72 million) was issued the same day the agreement was signed on August 16, 2001," Dr Murungaru said.
He argued that the Government was duty-bound to complete projects initiated by Kanu and had spent time scrutinising all agreements entered into by the previous regime. The failure to build the forensic laboratory was blamed on the lack of land.
Despite the payment of the commitment fee to the finance firm and subsequent payment of US$4 million (Sh320 million), no work had started, the ministrys scrutiny had established.
Dr Murungaru said the Government knew the names of some of those involved and that it had in its possession all details regarding the transaction, but could not reveal them.
Apart from the forensic laboratories, Anglo Leasing and Finance company was also involved in another deal worth Sh2.7 billion to supply a system for terrorist-proof passports.