Mwiraria Declines To Appear before PAC 
East African Standard
05 June 2004

Page: 12

Finance minister Mr David Mwiraria yesterday snubbed summons to appear before the Parliamentary Public Accounts Committe.

At the same time, fresh details into the Sh2.7 billion passport scandal were disclosed.

Acting Treasury PS Mr Joseph Oyula, who appeared before the committee, is said to have told the public watchdog committee that the passport deal was a fraud.

And PAC chairman Mr Joseph Magara, who had initially scheduled a news conference to brief the media on the matter, cancelled it at the last minute.

His reasons were that the House Standing orders did not allow him to do so.

However, Magara said at Parliament Buildings that the watchdog was about to make a breakthrough in the probe.

"We have done 90 per cent of the work and what is now remaining is 10 per cent before we come up with a report," he said.

The South Mugirango MP said they had made "very good progress" in the probe of the scandal.

Mwiraria s failure to appear before the committee could probably be the remaining 10 per cent they were waiting for, he said mysteriously. Sources attending yesterday s meeting said Oyula admitted that the passport project was fraudulent.

Oyula, however, refused to disclose the local representatives of the London-based Anglo Leasing and Finance company that had been awarded the passport equipment tender, said the sources.

The commitee was reportedly told that the Government had been doing business with the firm and in 2002, it was paid Sh900 million.

The PAC further heard that Anglo Leasing was paid US$1.9m (about Sh152m) to put up a forensic laboratory for security personnel last November, said the source.

The sources added that the committee members were stunned by both the Treasury and national security officials after being told that no work had been done by the firm yet it had been paid the said monies.

Mwiraria has admitted that he signed the final authorisation for the project, but adds that he did so on the strength that he had trusted suspended Treasury PS Joseph Magari to negotiate the deal.

The PS in the Ministry of Home Affairs Mr Sylvestor Mwaliko has also been suspended in connection with the deal.

Governance and Ethics PS Mr John Githongo appeared before the accounts committee but failed to disclose the names of the local directors of Anglo Leasing. Magari and Mwaliko, who appeared before the PAC a fortnight ago, also refused to disclose the names. The committee adjourned its sittings for a week as members were due to leave for overseas on a study tour.