E-Clips:- Business Pictorial - Former PS Quizzed Over CID Lab Deal

A former Treasury permanent secretary was yesterday questioned on how a Sh4-billion contract was awarded to the scandal-ridden Anglo Leasing and Finance Company.

Mr Mwaghazi Mwachofi was summoned by the Kenya Anti-Corruption Commission (Kacc) to explain how the shadowy firm won the tender to build and equip three forensic laboratories for the CID. Mr Mwachofi was the top Treasury civil servant when the firm won the tender. The investigators wanted him to reveal any roles his staff and he played in signing the 2001 contract.

Narc, which took over power from Kanu after the December, 2002, General Election, paid millions of shillings to unknown individuals for the contract that never took off.

Mr Zakayo Cheruiyot, the permanent secretary in charge of Internal Security at the time, finished writing his statement on the controversial deal yesterday. He was questioned by senior Kacc officers for more than seven hours on Wednesday.

He could not finish writing his statement and was asked to return yesterday at 9am. He left the commissions offices at Integrity Centre in Nairobi shortly before 1pm. "He was being questioned on what he knows about the controversial laboratories tender since Anglo Leasing started working with the Government during his time as PS," an official revealed.

The officers also wanted him to name the individuals behind the shadowy firm, especially those who signed the contracts, which received Cabinet approval in July, 2001. The failure to build the laboratories was blamed on lack of land.

Although the Government paid a commitment fee to Anglo Leasing and later paid another Sh320 million ($4 million), no work had started, the ministry said it established.

Mr Mwachofi and several PSs were sacked by President Moi in a major reshuffle that included the removal of Vice-President George Saitoti, on August 30, 2002.

The changes came as rebellion grew within Kanu over Mr Mois single-handed decision to nominate Mr Uhuru Kenyatta as the partys presidential candidate in the 2002 election.

Mr Moi had appointed Mr Mwachofi as the Treasury PS on March 28, 2001. He landed a World Bank job overseas after being sacked but he is currently in Kenya. All money paid out has since been returned to the Government and the contract cancelled.

The Office of the Vice-President and Ministry for Home Affairs awarded Anglo Leasing and Finance another contract to supply terrorist-proof passports valued at Sh2.7 billion.

President Kibaki has already sacked two permanent secretaries, a top Treasury official and another from the Attorney-Generals chambers over the passport scandal. The permanent secretaries were Mr Joseph Magari (Treasury) and Mr Sylvester Mwaliko (Home Affairs).