AG Muigai defends role in handling Anglo Leasing cases

PHOTO | BILLY MUTAI | FILE Attorney General Githu Muigai. Mr Muigai Sunday said the US Supreme Court vindicates the legal opinion he gave the government to pay one of the Anglo Leasing firms before floating its US $ 2 billion Euro Bond.

What you need to know:

  • Professor Muigai, together with solicitor General Njee Muturi and Muthoni Kimani are on the spot for allegedly mishandling the court process that resulted in payment of Sh 1.4 billion Anglo Leasing contract.
  • LSK has petitioned Parliament to start proceedings for removal of the AG.

Attorney General Githu Muigai has launched his defence against claims of abuse of office tabled before Parliament by the Law Society of Kenya (LSK) who are seeking his  dismissal.

Professor Muigai, together with solicitor General Njee Muturi and Muthoni Kimani are on the spot for allegedly mishandling the court process that resulted in payment of Sh 1.4 billion Anglo Leasing contract.

The AG said over the 10 years the government has been fighting the two Anglo leasing related cases in Switzerland and UK, his office and the external legal teams consulted and noted further appeals would be futile.

“From the foregoing, it is clear that the State Law Office has over the 10-year period in which the cases were pending conducted the same to the best of its ability given the evidence available and the applicable law,” he said.

First Mercantile Securities Corporation and Universal Satspace went to court in Switzerland and the UK and got judgments compelling Kenya to pay Sh1.4 billion.

The two cases arose from two contracts signed by the Ministry of Information and Transport on July 11, 2002 for the purchase and supply of equipment and VSAT communication network for Postal Corporation of Kenya and the supply of the PCK Bandwidth for 980 VSAT communication systems in Post Offices throughout Kenya.

The AG who has come under intense fire, says the decision to pay, the mode of payment and the timing of payment as well as all consequential matter “were matters beyond the scope of the State Law Office”.

AFFECT EUROBOND

“When the issuance of the sovereign bond became an urgent priority for Treasury, they requested the State Law Office to obtain legal opinions on the impact of the pending debts would have on the bond,” said the AG in a statement.

LSK has petitioned Parliament to start proceedings for removal of the AG.

In the petition dated May 19, 2014, LSK wants the AG sacked for violating the Constitution, gross misconduct and for delegating power and instructions to MrMuturi to represent Kenya in the case without a licence to Practice in England or Wales.

But the AG says Mr Muturi, appeared not as counsel in the case but as a representative of the defendant “much in the same way as the Ambassador, duly authorised would have acted”.

According to the AG, the case was heard fully with the claimant and the Republic presenting their respective evidence and witnesses.