Court rejects bid to halt payouts

Taxpayers may be forced to pay Sh1.4 billion to Anglo-Leasing companies after the High Court declined to stop the government from making the payments.

Mr Justice David Majanja instead threw the burden to Parliament, ruling that the matter was before the National Assembly.

He noted that stopping Finance Cabinet Secretary Henry Rotich from making the payments would be tantamount to interfering with MPs’ role in checking the government’s financial expenditure.

“The petitioner has alleged corruption in the Anglo-Leasing payment which this court takes seriously but which does not amount to interference with Parliament’s duties. In any event, they have not annexed any document to suggest the government will make the payments immediately,” ruled the judge.

‘WON’T SUFFER PREJUDICE’

He added that the Law Society of Kenya, which filed the petition, had not demonstrated how it would suffer prejudice if the government was not stopped from making the payments.

“It was the burden of LSK to demonstrate that they are entitled to the conservatory orders and although they have an arguable case, they have not even attached the judgement from England which compelled the government to pay the money,” ruled the judge.

Lawyer James Mwamu had sought to temporarily stop the government from paying the money to the companies pending the determination of their petition.

Mr Mwamu argued that taxpayers stood to lose Sh1.4 billion to ghost companies since the judgement in England compelling the government to make the payments was an infringement on the rights of Kenyans.

“A foreign judgement that violates the rights of Kenyans cannot be sustained since the government seems to be in a hurry to execute the huge payments to a company that does not exist,” he said.

He added that the controversial contract with Anglo-Leasing companies was still a subject of investigations by the Ethics and Anti-Corruption Commission and if the payments were made, the commission might not get to the bottom of the matter.

However, Attorney General Githu Muigai through senior deputy solicitor-general Muthoni Kimani defended the government move to pay, saying allegations of corruption were rumours and misinformation being fuelled by people with a certain agenda.

“If there is one Kenyan out there who can come to prove to us that the Anglo-Leasing scheme is a fraud then we will be the first people to seek a court injunction to stop the payments. The contract was dealt with in accordance with the English law and our part has been to execute it in accordance with the Constitution,” said Ms Muthoni.

She added that the government would have opted to settle the Sh1.4 billion secretly but because of the public interest and spirit of accountability, it decided to involve Parliament which will have the final say on the payments.

Mr Justice Majanja agreed with her submissions that the court should respect the doctrine of separation of powers and leave the Executive and the Legislature to sort out the matter.

LSK went to court claiming that the payment will be a breach of the Constitution and against the will of Kenyans since the judgement giving rise to the dispute was untenable and based on questionable grounds.

Universal Satspace (North America) LLC in September 2006 sued the government over claims of $12,366,816 (Sh1.4 billion) at the Justice Queen’s Bench Division Commercial Court in England.
The judge scheduled May 26 for hearing of LSK’s petition challenging the judgement.