E-Clips:- Business Pictorial - Four To Face Court Over Anglo Leasing Scandal

Four people believed to be at the heart of the Sh7 billion Anglo Leasing scandal could be charged in court. Files on the first case – the Sh2.7 billion passports scandal – with recommendations for possible prosecution will be placed before Attorney General Amos Wako by the end of this month, the Presidents special advisor on corruption, Mr John Githongo, said yesterday.

Although Mr Githongo did not disclose the names of those suspected of what is seen as the worst corruption case in the Kibaki administration, independent sources said the prosecution could target four people. Mr Githongo commented, in an exclusive interview with the Nation:

"The bulk aspect of the investigations were completed last year. The file was taken to the Attorney General. It was then felt that the international aspect of the investigations should be carried out."

He went on: "We sent detectives overseas and that was also completed and the file is now with the Kenya Anti-Corruption Commission. It should be submitted to the Attorney General by the end of this month." Interestingly, Kenyas anti-graft chiefs appeared to be divided on how to handle the cases ... a full year after Narcs first corruption scandal came to light.

Mr Githongos remarks came barely a month after the head of the Kenya Anti Corruption Commission, Mr Aaron Ringera, caused a stir by publicly stating there would be prosecutions "only if there was a crime committed". Mr Githongo however denied that the Government lacked the political will to deal with the Anglo Leasing affair, which had tainted Narcs image.

"There is considerable political will by this government to deal with this matter conclusively. The Anglo Leasing case is hanging around the neck of this government like a millstone. We have to deal with it. We have to prosecute it," he said.

Questions have been raised about the delay in prosecuting the Anglo Leasing cases and swift move in Parliament later to water down the Public Accounts Committees report on the scandal.

Although Justice Ringeras remarks were technically – made during a television interview – were correct, they raised eyebrows because of the PACs findings of serious irregularities and the eventual dismissal of three top civil servants over the deals. Yesterday Mr Githongo said Kenyans would judge the government on its handling the Anglo Leasing scandal and the State was aware of this.

"Many of the judgments that are being made with regard to this governments commitment in the fight against corruption will be determined on how we deal with Anglo Leasing. The Kenyan people are watching us and judging us on this one," he said.

Mr Githongo admitted that new corruption networks had developed in the last two years while old ones had fought to survive, implying there were other cases of high-level corruption yet to be exposed. Detectives from the Kenya Anti Corruption Commission have been investigating the Anglo Leasing scandal both locally and in foreign countries including Britain, the USA and Switzerland.

"In the majority of the countries they visited they had very good co-operation. The findings of their inquiries have been integrated into the file," Mr Githongo said.

In the first of the two contracts under investigation, the firm was given an order worth Sh2.7 billion, without competition, to supply terrorist-proof passports for the Immigration department, which comes under the Office of the Vice-President and Ministry for Home Affairs.

In the second, it was awarded a contract worth Sh4 billion – again, without competition – for building and fitting out three forensic science laboratories for the Criminal Investigations Department (CID), in the Office of the President. No work was done on either contract. And in both cases Anglo Leasing and Finance Ltd hurriedly returned money it had been paid by a government which did not seem to know its physical office address or its directors.

Since the scandal was revealed in April this year, two permanent secretaries have been replaced together with high ranking officials from the Treasury and the Attorney-Generals chambers. Among those affected were former Treasury PS Joseph Magari and Sylvester Mwaliko of who served in the Home Affairs docket. As the Public Accounts Committee (PAC) was investigating the passports deal, it stumbled on the CID laboratories project and once again, Anglo Leasing and Finance returned the money paid out as commitment fee and the subsequent two instalments made by the Narc Government worth $4.7 million (Sh376 million).

The government has held firm that all the money paid to the Anglo Leasing and Finance had been returned – and that all the promissory notes signed by the Finance ministry for the two projects currently at the heart of the scandal had been returned to the Government. Mr Githongo said the lavish lifestyles of government ministers had stirred a great deal of resentment from the public.

"You get jittery when you hear that Cabinet Ministers are acquiring wealth in a manner not warranted by their salaries and other emoluments. But you should separate facts from rumours ; the rampant conspicuous consumption by senior politicians and civil servants is what is most adversely affecting public perception about our corruption campaign. Conspicuous consumption has adversely affected us much more than Anglo Leasing in the public perception. its more damaging and the one that disgusts Kenyans most," Mr Githongo said.

He acknowledged that there would "naturally" be people in government opposed to the Aglo Leasing cases beng taken to court and some of them were "powerful."