E-Clips:- Business Pictorial - Minister Approved Deals With Bogus Firms

Mr David Mwiraria, as minister in charge of Treasury, had political accountability for the approval of suspect contracts. He claimed to have been misled into giving the go-ahead to former Finance permanent secretary Joseph Magari to approve the passport project in which the Government was to buy equipment at Sh2.7 billion. The same equipment had been offered by a French firm at Sh700 million.

The phantom company, Anglo Leasing and Finance Limited, which was given the tender is believed to be linked to tycoon Deepak Kamani. Under his watch, Treasury approved a number of security projects involving suspicious entities and whose prices are suspected to have been inflated by as much as 500 per cent.

The Government also continued to pay, or revive, projects from the Kanu government which should have been reviewed or terminated. The former Finance minister has also been named by former Ethics PS John Githongo in a dossier given to the President last November, as having been among those who attempted to slow down corruption investigations. In a letter to the Central Bank of Kenya in mid-2004, then acting PS Joseph Oyula identified several security projects – excluding passports – for which he claimed the Finance minister had given authority:

Navy Ship:

Signed in July 2003, this project to build a naval patrol boat was awarded to a company believed by ministers to be associated with businessman Anura Perera. The price tag for the patrol boat, Sh4.2 billion, is suspected to be inflated. Two of the companies allegedly lending the Government money to buy the boat appear to be phantoms.

National Security IT link:

Signed in May 2003, the project is intended to give the provincial administration a communications system akin to a "national intercom". At Sh4 billion, the project is suspect, and a misallocation of funds. Ministers believed it is associated with businessman Deepak Kamani, whose family has a history of involvement in dubious and costly projects.

E-cops:

Signed in May 2003, this project, allegedly to buy computing equipment and spy cameras for the police is regarded as one of the most blatantly wasteful, at Sh6 billion. It was given to a company called Infotalent, which does not exist where it is claimed to be registered. Infotalent is believed to be associated with the Kamani family.

Silverson Establishment:

The tender for the supply of vehicles to the Office of the President was inexplicably classified security and awarded to a non-existent company and $910,000 paid. Though nothing was delivered, in 2003 the Government made a budget provision of more than Sh400 million for the project. It was cancelled and all funds refunded. The dummy company which was given the contract is believed to be associated with the Kamani family.