Anglo-Leasing payout was legitimate, says budget boss
Controller of Budget Agnes Odhiambo and Parliamentary Accounts Committee Chairperson Ababu Namwamba at Parliament on the 4th of June, 2014. She told the PAC that she approved the payment for two Anglo Leasing-type firms based on her analysis of the benefits to Kenya and in line with the Constitution after she was grilled over the payment of Anglo-leasing. PHOTO/EVANS HABIL
What you need to know:
- Ms Odhiambo said local banks have already received Sh570 million as the cost of the extension of the repayment date and should get Sh700 million by August 15 as interest on money borrowed two years ago to shore up the budget.
Controller of Budget Agnes Odhiambo Wednesday told the Public Accounts Committee she approved the payment for two Anglo Leasing-type firms based on her analysis of the benefits to Kenya and in line with the Constitution.
Ms Odhiambo said she considered the nation’s financial position at the time and an opinion from the Attorney General saying there were no two grounds for appeal, and that the country needed to pay the Sh1.4 billion so that it could issue a planned Eurobond.
She said because Kenya couldn’t settle a $600 million (Sh52 billion) debt owed to local banks scheduled to be paid by May, the government will have to pay an extra Sh1.2 billion.
Ms Odhiambo said local banks have already received Sh570 million as the cost of the extension of the repayment date and should get Sh700 million by August 15 as interest on money borrowed two years ago to shore up the budget.
She said while the contracts to Universal Satspace and First Mercantile Securities Corporation were fraudulent, the payment was legitimate as it came from judgements against Kenya in court.
“Failing to pay the debts would have affected generations to come,” said Mrs Odhiambo
The Controller of Budget also cited the assertion by the Treasury that failing to issue the sovereign bond would cost Kenya Sh21 billion every year.
