Senate opposes pay for contracts

The government has been warned against paying for the Anglo-Leasing scandal contracts amidst revelations that some Western countries were exerting pressure to have the multi-billion deal honoured.

Senate Finance Committee suspected foul play in what they termed as an about-turn by government officials who were previously opposed to approval of the payments for the 18 contracts.

The Committee chairman Billow Kerrow (Mandera, URP) said Parliament had made a decision that the contracts should be cancelled and there would be no further payments.

Mr Kerrow who addressed the media at the Senate explained that out of the 18 contracts in the Anglo-Leasing type scandals, three of them were concluded and payments made.

The government cancelled six contracts whereas the remaining nine were also cancelled following recommendations from an independent consultancy firm engaged to investigate their legality in 2007.

The amount has increased to a whooping Sh125 billion from Sh54 billion in 2003 due to accruing interests rates. (READ: Why State wants to pay off Sh125bn for Anglo-Leasing)

Mr Kerrow warned legislators in the National Assembly against endorsing a move by the government to have the debt cleared saying effecting the payments was tantamount to conning taxpayers.

“The argument that for a government to access credit in international markets, it must clear its debts is neither here or there because that can only be applicable if the debts are legally binding and not those arising from irregular transactions,” said the Senator.

He commended Treasury for seeking Parliament’s approval and challenged the MPs not to let Kenyans down by being used as a rubber stamp to endorse corruption as opposed to upholding the rule of law.