One of the companies that Kenya has been trying to trace in regard to the loss of Sh10 billion in the ongoing Anglo Leasing cases against the Kamani family was struck off the register in the British Virgin Islands in 2008, which means it no longer exists in law.
Last Thursday, Kenya’s prosecution told the court that it could not trace Brian Mills, an American associated with Sound Day Corporation and Apex Finance Corporation.
The High Court had issued a warrant of arrest against the American but it had not been executed.
But documents from Panama now show that Mr Chamanlal Kamani, Mr Deepak Kamani and Mr Rashmi Kamani, who have been charged with conspiring to defraud the government of Sh4.5 billion through a purported supplier credit contract agreement, were associated with Sound Day. It was a shell company with offices at London’s PSJ Alexander.
The new documents, released by the International Consortium of Investigative Journalists from the vaults of Sound Day’s registered agent, Mossack Fonseca, indicate that the three were appointed directors of Sound Day on April 18, 1990 during a meeting chaired by Mr Colin Forster, who was resigning as the director.
The other director, who resigned to pave way for Kamanis was Ms Muriel Ann Atkin.
Incorporated in September 1989, Sound Day had its registered office at Wickham’s Cay in the British Virgin Islands and its registered agent was then Caribbean Corporate Services Ltd.
Sound Day is one of the firms that has been linked to the Anglo Leasing cases, but while it has been established that the Kamanis were the beneficial owners of Info Talent Ltd, which was to supply the police equipment, their link to Sound Day, which was to seek finance for the project, has been missing.
Previous court documents indicate that Sound Day came into the picture on October 30, 2003, when it received a letter from the permanent secretary Provincial Administration and National Security, Mr Dave Mwangi, seeking financial arrangements such as supplier’s credit to support the funding requirements of the government’s plans to modernise police equipment and accessories.
In response, Sound Day Corporation, in a letter dated November 20, 2003, confirmed its interest in the project.
It also wrote to Mr Mwangi and Mr Joseph Magari, then permanent secretary of the Treasury, requesting approval for direct procurement.
This culminated into a contract in December 2003 signed by Mr Mwangi, Mr Magari and Mr Brian Mills, the managing director of Sound Day.
Apart from Mr Mills and former Finance Minister David Mwiraria, all the others have been charged at the High Court. Mr Mwiraria has yet to take plea due to poor health.
It is the prosecution’s case that though Sound Day was to provide credit and supply the equipment to the government, the same contract provided that no equipment would be supplied before the government made the first payment.
In the arrangement, Sound Day was to charge an interest of 3 per cent for alleged financing, which in effect meant that the government was to pay interest upon monies that it was providing and that there was no credit to be advanced to the government by Sound Day.
Thus, Sound Day was to get money from the government and earn interest, which was described in court as a “classic case of reverse financing.”
Sound Day Corporation received 1.2 million euros on the strength of arranging for financing that never was. This money is said to have been deposited in a Swiss account belonging to the Kamanis.
The Panama documents also indicate that a search warrant was issued last year at the premises of Mossack Fonseca to get details concerning this company — including changes in registered agents and its transactions.
The Kamani's resigned as directors later and the board of directors was provided by Mossack Fonseca. That way, they could not be traced.