Wako says AG’s office approved Anglo Leasing payouts

Busia Senator Amos Wako in a Nairobi court on June 21, 2018. He told the court that the Anglo Leasing contracts received approvals from his office when he was Attorney-General. PHOTO | PAUL WAWERU | NATION MEDIA GROUP

What you need to know:

  • The senator told the court that his office also permitted promissory notes issued to one of the Anglo Leasing firms.
  • He said his office later received a letter from Mr Mwangi, saying that the suggested adjustments had been incorporated.
  • He said the refund of the monies initially paid and the cancelation of the promissory notes amounted to termination of the contract.

Former Attorney-General Amos Wako Thursday told court that the Anglo Leasing contracts received approvals from his office.

Mr Wako, now Busia senator, said his office approved the security contracts with conditions, which were later met by the Treasury and the Interior ministry.

In the case, businessmen Deepak Kamani, Rashmi Kamani and Chamanlal Kamani as well as former Permanent Secretaries Joseph Magari (Finance), Dave Mwangi (Provincial Administration) and David Onyonka (former head of debt management at the Treasury) have been charged with corruption over the multibillion-shilling Anglo Leasing contracts in 2003.

PROMISSORY NOTES

The senator Thursday told the court that his office also permitted promissory notes issued to one of the Anglo Leasing firms, Infortalent Ltd, for the supply of security equipment.

A promissory note is a financial instrument that contains a written pledge by one party to the other a defined sum of money, either on demand or at a specified future date.

“The Attorney-General’s office found the agreement to be in order from the legal point of view, and advised Mr Dave Mwangi (former PS, Provincial Administration) that they may proceed to conclude the agreement upon compliance with our advice,” he said.

ADJUSTMENTS

He said his office later received a letter from Mr Mwangi, saying that the suggested adjustments had been incorporated — including verifying that Infortalent Ltd was registered in Geneva and that the Treasury had the ability to pay.

Mr Wako said his office received another letter from Treasury Permanent Secretary Joseph Kinyua requesting formal termination of the Anglo Leasing contracts.

The former AG, however, said a legal officer in his office advised that at the time Mr Kinyua made the request, all the monies paid to Infotalent had been refunded to the government.

NO CONTRACT

“One of the officers in my office advised that there was no contract in existence to terminate because the commitment fees, and the first instalment to the contract which had been paid, were returned. The promissory notes had also been cancelled,” said Mr Wako.

He said the refund of the monies initially paid and the cancelation of the promissory notes amounted to termination of the contract.

He added that one of the clauses in the contract provided that the agreement be-came effective when signed by parties, in addition to payment of the commitment fees.

The same therefore stood terminated once the monies paid were returned.

Hearing of the Infotalent case resumes next month.