The State had promised to pay Infotalent Ltd for the supply of security equipment through promissory notes.
Head of Public Service Joseph Kinyua and defence lawyers in the Anglo Leasing case on Wednesday differed on when payments were supposedly made for the contract, entered 15 years ago.
The State had promised to pay Infotalent Ltd for the supply of security equipment through promissory notes, which then Attorney-General Amos Wako said could not be revoked.
On Wednesday, Mr Kinyua, who was Treasury Permanent Secretary in 2004, sought to challenge the contract, saying it did not specify that payments using promissory notes should be done after the goods and services have been delivered.
A promissory note is a financial instrument that contains a written pledge by one party to pay the other a defined sum of money, either on demand or at a specified future date.
“Issuing of promissory notes should be done after the goods have been seen and verified to have the intended specifications,” said Mr Kinyua.
Defence lawyer Kioko Kilukumi said the suggestion by Mr Kinyua that promissory notes would be issued after goods are delivered, was not expressly stated in the contract and he cannot therefore claim the contract was irregular.
The lawyer explained that the contract was lawful because its contents had been negotiated and had the approval of the AG’s office.