Public inquiry into scandal long overdue

Questions abound on the handling of the Anglo Leasing cases that have cost Kenya billions of shillings, the latest being the payment of Sh1.4 billion.

As Kenyans face another claim by the same recipients of the last payout, there is a need to close the floodgates and hold public officials responsible for these losses.

There have been serious questions on the way the State Law Office defended the suits by First Mercantile Securities Corporation and Universal Satspace.

The quality of the defence, the professionalism in the handling of the suits, and the timeliness of action are seriously in doubt.

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Were the officers responsible for the defence deliberately offhand in their treatment of the cases so that the awards could be made to the Anglo Leasing companies?

Kenya was not represented at crucial times of the proceedings. There were also serious delays in replying to crucial legal communication. 

In addition, the Solicitor-General was assigned to represent Kenya in foreign courts, yet he did not hold a certificate to practice in those courts. 

It is also clear that the defences of corruption and manipulation of the procurement process in breach of Kenyan laws and regulations were either improperly ventilated or abandoned.

But most important is that despite all the reports pointing to illegalities in the procurement of these contracts, no action has been taken against those suspected of involvement to date, except the conviction and a slap in the wrist of a former PS.

To gain the confidence of Kenyans, the President must immediately institute a public inquiry into the entire Anglo Leasing scam including an audit of the legal processes that led to the payment.

Although the Ethics and Anti-Corruption Commission is investigating the scandal, it has rolled on for far too long, and a public inquiry whose proceedings all Kenyans can monitor, might be our best bet to unravel the identities of the principles in these cases.

COSTLY ERRORS

In addition, an audit of the legal process is an important first step in closing the floodgates of claims the payment has opened. It is also urgent in order to respond adequately to other claims, including the current one for an additional payment of Sh3.5 billion in respect of another Anglo Leasing-type contract, to avoid costly errors in the legal strategy.

Culpability must be apportioned to individuals, who should be punished in accordance with the law. Costs incurred in the awards and legal costs should be recovered from them.

We must also question the process used in making the payments to the Anglo Leasing firms so far. The Principal Secretary, National Treasury, has admitted that he conducted the transaction without written authorisation from the President, contrary to Article 135 of the Constitution.

This is a blatant breach of the Constitution and Parliament must censure the secretary and other officials concerned.

The way this transaction was executed raises suspicion that these shady deals, conceived and nurtured under the Kanu regime and blossomed under the Narc administration, may have found new patrons in the Jubilee administration.

Only conclusive action to punish those behind the scandals can effectively rebut this suspicion.

Moving forward, the Attorney-General must inform Kenyans how much of their money has been spent on the 18 Anglo Leasing-type contracts and in related payments including legal fees and awards.

He must present to the public an assessment of the status of all Anglo Leasing contracts and their potential financial exposure.

Mr Kimeu is the Executive Director, Transparency International Kenya.