Scandal Takes An Amazing Familiar Route Daily Nation 15 May 2004 Page: 4
When National Security minister Chris Murungaru told Parliament that the Sh2.7 billion passport contract had been suspended pending investigations, it was the culmination of a dramatic week in which the controversial deal was dubbed the Narc Governments Goldenberg scandal.
Dr Murungaru was speaking on Wednesday soon after leader of the Official Opposition Uhuru Kenyatta rose to explain why he had failed the previous day to move an anticipated Motion of Adjournment for the issue to be debated as a matter of national importance.
Mr Kenyatta explained that, after consulting House Speaker Francis ole Kaparo, it was agreed that the motion be set aside to await the outcome of an investigation by Parliaments Public Accounts Committee.
But Mr Kenyatta insisted that, because of the serious nature of the affair, the project be halted in the meantime.
"Based on information we have received, this matter could turn out to be another Goldenberg," Mr Kenyatta told the House.
He sought assurance that, if any impropriety was uncovered, the Sh91 million paid to Anglo-Leasing, a broker in the deal, would be recovered. He also wanted the reports by the PAC and a parallel investigation ordered by Ethics and Governance permanent secretary John Githongo to be made public.
In response, Dr Murungaru assured the House that the investigations would be completed by the end of the week. He pledged that action would be taken against any official found involved in any impropriety.
The minister, whose docket is seen as key to the decision to upgrade a straightforward project to purchase passport-issuing equipment into a much bigger one, encompassing immigration controls and border security, cautioned MPs against assigning guilt to individuals before investigations were complete.
The passports matter burst into the headlines on April 20, when the MP for Ntonyiri, Mr Maoka Maore, tabled documents showing that the Government had paid Sh91 million to Anglo-Leasing as commission for the project, which was to cost Sh2.7 billion.
He said the company was linked to the same people who, in the 1990, were involved in the importation of the infamous Mahindra jeeps for the Kenya Police.
Other documents tabled included correspondence between principal immigration officer Henry ole Ndiema and the director of Government Information Technology Services at the Treasury, Dr Wilson Sitonik.
The correspondence showed that the Immigration Department wanted to modernise its passport-issuing system for Sh800 million. It had already identified three reputable international firms Ð De la Rue of Britain, Face Technologies of South Africa and GET Group of the United States Ð to bid for the contract.
But the Treasury and the Office of the President had disqualified the three firms and added a security component to the project, which ballooned the cost to Sh2.8 billion. Those responsible had bypassed procurement regulations to directly award the contract to French firm Francois Charles Oberthur Fiduciaire (FCOF).
FCOF is also a respected international firm, but the involvement of Anglo Leasing as the intermediary raised additional eyebrows. Soon afterwards, Nation investigations established that Anglo-Leasing did not exist at the address – Alpha House, 100 Upper Parliament Street, Liverpool, UK – shown on the money transmission documents for the 3 per cent advance commission.
However, the company clarified that it was based in Switzerland, but had only a representative office in Liverpool to handle business from English-speaking countries.
On April 21, Mr Githongo instructed the Kenya Anti-Corruption Commission to investigate the tender.
On the same day, the Parliamentary Committee on Security announced that it would summon Vice-President Moody Awori, who is in charge of the Home Affairs docket, under which Immigration falls, and senior government officials to answer questions on the deal.
On April 26, Mr Awori read a statement in Parliament that raised more questions than answers, especially by glossing over the role of Anglo-Leasing and the way Government procurement regulations had been flouted to give the contract to FCOF.
In the debate, Bomet MP Nick Salat referred to a "New Kamlesh Pattni" traversing Europe soliciting funding for the passport project, as members shouted the name of Mr Jimmy Wanjigi, a son of former Cabinet minister Maina Wanjigi and nephew of Treasury permanent secretary Joseph Magari.
Early last week, the anti-corruption police recorded statements from permanent secretaries Magari and Sylvester Mwaliko of Home Affairs and Mr Ndiema. Later in the week, businessmen Wanjigi and Deepak Kamani were also questioned.
Amidst exposes increasingly embarrassing to the Government, the head of Public Service, Mr Francis Muthaura, warned staff against divulging confidential information.