E-Clips:- Business Pictorial - UK Joins In Sh7b Tender Probe

British envoys are providing vital information that could net the people behind Anglo Leasing Finance, the company at the heart of the Sh7 billion tender scandals.

The disclosure comes in the wake of what is seen as a massive cover-up by the Government in failing to give vital information about the two contracts they signed with the firm to supply terrorist proof passports and to build forensic laboratories on protected forest land for the CID.

British High Commissioner Edward Clay yesterday admitted his staff were cooperating with the Government in giving details about the firm, reportedly based at Liverpool, in the north west of England. Mr Clay said since the underhand dealings were made public in Parliament last month by Ntonyiri MP Maoka Maore, the High Commission had tried to find out about the "shadowy company and the people it belongs to in the UK."

Mr. Maore was first to blow the whistle on the Sh2.7 billion passport scandal when he revealed that the Government had hired Anglo Leasing, bypassing the usual strict tender process.

And last week, there was more uproar when it emerged that the previous government had on August 6, 2001 signed a Sh4 billion deal with the same firm for the laboratories and then paid Sh72 million commitment fee when it signed the contract.

Adding fuel to the fire was the disclosure that the Narc Government had gone on to pay Anglo Leasing a staggering Sh152 million only last November after the finance firm presented architectural drawings for the scheme. Even worse, the Governments printed estimates for the next financial year showed a further Sh464 million had been earmarked for the same firm for the project.

But even as the British High Commissioner revealed his team was trying to provide more information for the Kenya Government, during a courtesy call at the Finance ministers office yesterday, the minister himself again declined to name the people behind Anglo Leasing.

Mr Mwiraria also attempted to pass the buck for the project to the previous government, saying the contract had been signed when Kanu was in power.

However, the minister was unable to explain why the present government went on to give Sh152 million to the finance firm 11 months after it had taken over from Kanu.

He said he had only seen the contracts on the passport and forensic laboratories tenders a month ago and could not name those behind the finance firm. "What is in it (the contract) I cannott give to Kenyans. I cant give names unless I have written proof," the minister said in the presence of Mr. Clay.

He confirmed the Government had released promissory notes for the Sh4 billion immediately the laboratories contract was signed but maintained that none of them had been discounted. "The promissory notes are all cancelled and have been returned," Mr. Mwiraria said.

But the minister had more shocking news for Kenyans when he said that those who released payments to the finance firm must have found the servicing of the external loan already in place. A statement he gave to Parliament on Wednesday afternoon appeared to contain contradictions and aimed at attempting to protect those behind the scandal.

For example, although Mr Mwiraria stated the laboratories contract was signed in 2001 when the Government committed itself to a Sh4 billion loan, it appears the Narc Government then continued to service the agreement without even knowing if the land earmarked for the labs had been secured.

It also seems incredible that any government, having committed itself to such an expensive and important project, would take two years before receiving the architectural drawings and designs and more than three years for those designs to be approved by the ministry of Roads, Public Works and Housing. And even if the current Government were innocent of any wrongdoing, why did it pay Anglo Leasing Sh152 million just seven months ago?

Mr. Mwiraria failed to inform Parliament that the amount which Anglo Leasing was paid – included in this years Budget as public debt redemption – was interest charged on the Sh4 billion loan. And by stating that all the promissory notes had been cancelled and returned, the minister was actually telling Kenyans that Anglo Leasing had just been holding onto the notes for the last four years.

Next year therefore it is likely that the accounts of the Consolidated Fund will be scrutinised to see if any extraordinary payments have been made.