E-Clips:- Business Pictorial - Kibaki Told To Sack Ministers In Sh7bn Scam

Pressure mounted yesterday on ministers and civil servants implicated in the Sh7 billion Anglo Leasing and Finance Company scandal to step aside in order to allow a thorough investigation.

Seven Western missions as well as Japan and the European Union –which represents 25 nations – also called on the Kibaki government to appoint a strong director for the Kenya Anti-Corruption Commission (KACC) as part of its measures against graft.

They spoke out amid concern that people who gained from the Governments dealings with the shadowy company may have influenced last weeks removal of anti-corruption czar John Githongo from the Presidents Office – a decison which was later reversed.

Apparently concerned about lax procedures which made possible massive payments to the controversial company, and the increasing abuse of security contracts, the missions called for swift implementation of the Governments Action Plan for Enhanced Financial Management, including the Integrated Financial Management Information System.

One statement was issued by the missions of Britain, Canada, United States, Germany, Japan, Switzerland, Sweden and Norway.

A second expressing similar views came from the European Union (EU) , which comprises 25 European, who said they were concerned about the threats to the Governments anti-corruption efforts. "Concrete results on the promises made more than 18 months ago have been below expectations," they said.

Mr Githongo was last week briefly transferred to the Justice and Constitutional Affairs Ministry from the Office of the President where he been directly reporting to Mr Kibaki as his advisor on the war against graft.

His appointment as Permanent Secretary for Governance and Ethics when Narc came to power had been held up as evidence of the Kibaki regimes commitment to root out the corruption of President Mois years.

His transfer last week came in a reshuffle of Cabinet ministers and Permanent secretaries, in which five new ministers were appointed from the Opposition and two permanent secretaries implicated in the Sh2.7 billion passports scandal were dropped.

But the decision was reversed a day later, according to Staff in the Justice Ministry, who had been expecting Mr Githongo and Ms Dorothy Angote as their new PSs.

Hours after the Presidents intervention, US ambassador William Bellamy spoke out against Mr Githongos removal and cautioned that the Kibaki governments credibility on governance and war against corruption was at stake.

Yesterdays statement was the second reported communication by the development partners about corruption under President Kibakis government and, in particular, cases involving Anglo Leasing and Finance Company.

The Nation yesterday exclusively reported that five of the donor nations had written to President Kibaki demanding a detailed explanation from the Government on the two scandals linked to Anglo Leasing and Finance Company.

In the first, a Sh850 million contract to supply terrorist-proof passports was expanded into a Sh2.7 billion project and awarded to Anglo Leasing without competitive bidding.

In the second, Kenya paid Sh242 million to the firm even though it had not started implementing a contract to build a CID forensic laboratory. Part of the money was released under the Narc government yet no work had started on the site after the firm was paid a commitment fee of $900,000 three years before by the Kanu government. The demand by donors for those who handled to the contracts to step aside is targeted at officials in the Office of the President and the Treasury, the two government departments directly involved in the deal.

Since the two scandals became public, top officials at the two ministries have appeared before the Parliamentary watchdog the Public Accounts Committee (PAC).

They include Mr Joseph Magari, who was then on suspension as PS for Finance, Mr. Joseph Oyula, then Financial Secretary and Mr Sylvester Mwaliko, then suspended PS for Home affairs.

Others include the PS for internal security Mr Dave Mwangi, the then director of Government Information Technology Services, Dr Wilson Sittonik, and deputy Central Bank of Kenya Governor, Dr Edward Sambili.

The CID project falls under the Office of the President where the minister is Dr Chris Murungaru while the passports project is under the Vice-President and Minister for Home Affairs, Mr Moody Awori.

Yesterday the donors said it was essential for all officials suspected in the two deals to step aside while investigations are carried out. "Thorough investigations, public disclosure of facts and full accountability, whether political or before the law, are clearly called for," the nine missions said.

They said they were dismayed by the recent attempt to downgrade the office of Governance and Ethics and to weaken the investigations into the Anglo Leasing and Finance contracts and other suspected corruption.

"We hope that reports that the decision has been made to retain the office of Governance ad Ethics in the office of the President is correct, and signifies that the investigations, current and future, will be carried out vigorously and, with the President’s full authority," the statement added.