Mudavadi defends Treasury in Sh928m Anglo Leasing deal

Former Cabinet minister Musalia Mudavadi has defended the Treasury over two Anglo Leasing contracts worth Sh928 million signed with three American companies some 14 years ago.

Mr Mudavadi, currently the Amani National Congress leader, told an anti-corruption court that former Finance minister Chris Obure committed no wrong by authorising his then Finance secretary Samuel Bundotich to enter into the contracts on behalf of the government.

Under the controversial contracts, the American firms were supposed to finance and supply Internet services to the Postal Corporation of Kenya (PCK).

Mr Mudavadi, who in 2002 was the Minister for Transport and Communication, said that Mr Obure sought his clearance to commit the government on behalf of the PCK to get Internet services from Spacenet Inc of America. The PCK falls under the Communication ministry. Mr Mudavadi, a 2013 presidential poll loser, said in his evidence-in-chief:

“No one can say that Mr Obure acted arbitrarily in authorising the signing of the contracts committing the government to pay for the supply of Internet services to PCK.”

Led in his evidence by defence lawyers Kioko Kilukumi, Chacha Odera and Kamau Karori, Mr Mudavadi said the American firm was to supply Internet services to over 900 post offices countrywide operating in rural areas.

A former Deputy Governor of Central Bank of Kenya (CBK) Jacinta Mwatela also testified against the four former top civil servants. Hearing continues.