E-Clips:- Business Pictorial - Mystery Of The Anglo Leasing Octopus

The Government is in a quandary over what to do with three permanent secretaries sacked in last week’s major reshuffle.

Their sacking is linked to the hydra-headed Anglo Leasing scandal, which has become a major headache for the Government as its octopus-like tentacles continue to entangle mysterious forces within and outside the country. Anglo Leasing’s mysterious ramifications have touched the raw nerve of Kenya’s donors concerned with the mega corruption that the Narc Government swore so passionately to fight when it removed the Kanu regime less than two years ago.

Officially, the Government maintains that Mr Joseph Magari formerly of Treasury, Mr Joseph Oyula— who took over from Magari after his initial suspension—and Sylvestre Malice of Home Affairs remain subjects of on-going investigations over its Sh2.7 billion passport deal with Anglo Leasing Finance Company. The further questioning and possible prosecution of the suspended top officials is likely to be tricky in the light of a statement by Head of Public Service and Secretary to the Cabinet, Mr Francis Muthaura, vouching for the innocence of two of the officers in another deal with the shadowy company.

Confronted with mounting donor apprehension over perceived selective prosecution of its corrupt officers and apparent softening to graft, the Government is desperate to haul a "big fish" before court to at least mollify its development partners and an increasingly skeptical public.

It would therefore be in its interest to press charges against the sacked officers to prove that their sacking is not just the end of the story for a government that campaigned on a platform of zero-tolerance to high-level corruption. However, any court action specifically against Magari and Oyula who were also linked to the Sh4 billion CID Forensic Laboratories Project now risks running against charges of State double standards and/or discrimination.

A genuine prosecution of the officers could potentially embarrass the Government as it could end up exposing the real characters behind the deals who have so far remained veiled in secrecy.

In what could be a pointer to the trail against the former PSs going cold, a source at the Kenya Anti-Corruption Commission (KACC) said investigations on the two scandals "were being widened." "We asked them all the questions we wanted a month ago but we are yet to take action as investigations were broadened and we are still pursuing other lines," the source said.

Brushing off fears that the Muthaura statement could have unwittingly offered a reprieve to the officers in future court action, he said the evidence against the officers uncovered since was likely to prove "too strong to be mitigated by the statement." Although it remains a poorly kept secret that senior officers still in Government played a key role in what appears to have been a plot motivated by private gain, Magari and Mwaliko were promptly suspended in an apparent bid to appease public anger amid concerns of the return of official grand corruption.

But more trouble for the Government was to follow soon when copycat details of the even bigger Forensic Laboratories deal scandal leaked out. With the public urging for more senior heads, including those of Cabinet ministers and more permanent secretaries to fall, Muthaura stepped in and unilaterally cleared the suspects of any wilful crime while accusing the media of bias and sensationalism.

Said Muthaura: "There is no evidence to warrant the sacking or disciplinary action against the ministers or permanent secretaries mentioned in the Press in connection with the contract... "We should avoid the temptation to sensationalise and exaggerate allegations of corruption for motives other than genuinely fighting corruption."

Muthaura’s statement could prove to be the Achilles Heel in the event of the trio being charged, although they were nevertheless sent packing in the reshuffle. Magari and Mwaliko were suspended for their role in the passport tender scandal, but prosecuting them while avoiding encroaching into the Forensic Laboratories tender will prove tricky.

Holding them to account for whatever illegality they could have committed without dragging the names of Cabinet ministers and well-connected businessmen who have featured prominently in accusations of shared impropriety could prove almost impossible. Oyula’s sacking is the more interesting considering that he was initially elevated from the Financial Secretary post to replace Magari following the latter’s suspension before he was inexplicably shown the door in last week’s reshuffle.

Oyula had appeared before the Parliamentary Accounts Committee and pleaded his innocence, as did Magari and Mwaliko. They maintained that their roles were limited to signing already-concluded deals. The sacked officers are reportedly bitter with what they perceive to have been a hurried effort to sacrifice them for merely discharging their duties "under instructions."

Yesterday, Government Spokesman Dr Alfred Mutua would not say whether any official reasons had been cited in the PSs sacking.

He said it was unlikely the President would have given specific grounds for sacking any of his officers. One of the affected PSs said he felt he had been a fall-guy for "involved politicians" and vowed he will "clean his name" at an opportune moment. He, however, declined to say whether he was still being questioned over the matter