PAC Condemns Mwiraria In Shs 2.7B Passport Scam The People Daily 07 July 2004
Finance Minister David Mwiraria and two former permanent secretaries – Joseph Magari and Sylvester Mwaliko – were personally responsible for the Shs 2.7 billion-passport procurement scandal, a parliamentary watchdog has established.
The Public Accounts Committee (PAC) now wants Mwiraria, Magari and Mwaliko to be surcharged for the Shs 2 million the government lost in the controversial deal.
In a report tabled in parliament yesterday, PAC recommended that Mwiraria be held responsible for involving the government in a “very expensive” project with Anglo Leasing and Finance Limited.
The committee reported that the physical location, directors and shareholders of the firm remain unknown to date.
Magari and Mwaliko, the report says, should also be held responsible for involving the government in a transaction, and should be banned from holding public offices.
“There was a conspiracy and prima facie evidence of fraud in the entire transaction,” the report says. “Magari and Mwaliko are responsible for the attempt to defraud the government.”
Both Magari and Mwaliko were suspended and eventually sacked over their role in the scandal.
PAC chairman and Mugirango South MP Omingo Magara tabled the 26-page report before parliament yesterday afternoon.
But his attempts to move for the adoption of the report ran into trouble when Speaker Francis Ole Kaparo ruled him out of order. Kaparo said Magara had failed to inform the chair of his intention to move the motion for debate and adoption of the report.
PAC consists of 11 members –Magara (chairman), Uhuru Kenyatta, Stephen Ondiek, Joseph Lagat, Ekwe Ethuro, Julia Ojiambo, Sospeter Ojaamong, Koigi Wamwere and Billow Kerrow.
William Ole Ntimama and Boniface Mghanga were also members until last week when they were appointed cabinet minister and assistant minister, respectively.
Kenyatta, the leader of the official opposition, did not attend a single meeting and was not involved in the production of the report, said Magara. All witnesses, except Mwiraria, appeared before the committee when summoned.
The committee also found that the government paid Shs 95.36 million to the controversial firm but only received Shs 93.37 million, incurring an exchange loss of Shs 1,990,315 in the transaction.
It took issue with Mwiraria s failure to appear before it to shed light on the scandal.
“The Committee noted with regret that it was not possible for the finance minister to appear before it despite its request for him to do so. The committee wished to establish the amount of information, which had been availed to the minister by the officers who were dealing with the project before he delegated his permanent secretary to sign the agreement on his behalf.
“The committee therefore, concluded that he was well briefed and was satisfied with the way the relevant officers handled the transactions,” noted PAC.
“The minister (Mwiraria) must be held responsible for any fraudulent activity or embezzlement of funds in the ministry because the accounting officer (Magari) operated under his instructions,” the report says.
“The minister and his accounting officer should pay for any loss incurred by the government as a result of such activities.”
The report says Mwaliko was personally responsible for the time wasted in “unnecessary” meetings for the project and any funds lost by the government.