PS grilled for wiring Anglo Leasing cash
National Treasury Principal Secretary Kamau Thugge (right) in this file picture. Dr Thugge said there must be a serious breach of the Public Finance Management Act to warrant the National Treasury Cabinet Secretary to freeze allocations to devolved governments. FILE PHOTO
What you need to know:
- Dr Thugge showed the committee a print-out of an email from State House spokesman Manoah Esipisu transmitting the President’s directive to the Treasury, which he said was the basis of his action.
- He also said that the Controller of Budget, Ms Agnes Odhiambo, had given her approval for the withdrawal of the money from Treasury’s account at the Central Bank of Kenya.
Sh1.4 billion has already been paid to two Anglo Leasing companies without the President’s written, signed and sealed directive as required by the Constitution.
National Treasury Principal Secretary Kamau Thugge told the Public Accounts Committee that the directive was yet to be delivered to his office.
Dr Thugge also revealed that the payment to First Mercantile Securities Corporation and Universal Satspace was made on Monday, when he asked the Central Bank to wire the money to an account at Natwest Bank in London.
The account is in the name of Travers Smith, LLP, the law firm representing the two companies he confirmed are both owned by businessman Annure Perrera.
“We got communication from the President,” said Dr Thugge, “and what I have committed to is getting that document (the written directive) from State House and to table it here. It’s in State House.”
Asked whether he had seen the document, Dr Thugge said: “I requested to have it. I was assured it was there. I didn’t have it, but I was told that it was there.”
Dr Thugge showed the committee a print-out of an email from State House spokesman Manoah Esipisu transmitting the President’s directive to the Treasury, which he said was the basis of his action.
He also said that the Controller of Budget, Ms Agnes Odhiambo, had given her approval for the withdrawal of the money from Treasury’s account at the Central Bank of Kenya.
MEMBERS DIFFERED
But committee members questioned this, with chairman Ababu Namwamba (Budalang’i, ODM) and Junet Mohammed (Suna East, ODM) insisting that as per the Constitution, the President’s directives should be in writing, with his signature and his official seal.
They cited Article 135 of the Constitution, which states that: “A decision of the President in the performance of any function of the President under this Constitution shall be in writing and shall bear the seal and signature of the President.
“Manoah Esipisu is not the President. He can write emails even today if he wants, but the only person who has the mandate constitutionally to make that kind of order is His Excellency the President, nobody else,” said Mr Mohammed.
“When you look at criminal responsibility for this, if you don’t get that proof, you’re in for it, I can assure you,” he warned.
Mr Namwamba said given the nature of the case, “this was not just any ordinary payment. It is not every day that the President calls a Press conference to announce that Treasury is going to make a payment”.
He told Dr Thugge: “When the chips fall, when the cookie crumbles, we shall sit with you mundu-khu-mundu (man to man), as I might say.”
Mr Namwamba asked Dr Thugge to submit to the committee within 24 hours, both the President’s directive and proof that payment had been made.
President Kenyatta announced last Thursday that he had ordered the controversial payment to be made after more than three months of consultations between the Treasury and MPs, who he wanted to give their approval.
But facing a rebellion from his Jubilee Coalition MPs, the motion seeking their approval was withdrawn a day before the National Assembly took a month-long break.
The matter has since acquired a political dimension, with the Opposition CORD using it as a basis of criticising the ruling coalition.
PAC’s special sitting yesterday was held as an attempt to get a coherent and comprehensive answer from Treasury and the State Law Office on whether Kenya can expect an avalanche of cases stemming from Anglo Leasing.
Deputy Solicitor General Muthoni Kimani told the committee that only one of the 18 Anglo Leasing projects dubbed Project Flagstaff, was still active.
The five that were cancelled and some Sh1 billion refunded have been overtaken by the time in law within which the contractors and financiers can sue.
Dr Thugge told the committee that the Sh1.4-billion payment was made in line with the Constitution and the approval of Parliament would still be sought as Article 223 provides for the approval to be sought within two weeks after it resumes sittings.
But John Mbadi (Suba, ODM) questioned Treasury’s honesty given that it had started the process of seeking approval before it sensed hostility and had the motion withdrawn.
“You’re being smart,” Mr Namwamba added.
Dr Thugge said the President decided to have the money paid because the penalties from the initial amounts were accumulating and the government was on the brink of shutting down because without the planned sovereign bond, there was a shortage of resources.
