Grand Corruption in Kenya
Anglo Leasing
The mystery of the missing irrevocable Promisory Notes given to Anglo Leasing and Finance Limited by The Government of Kenya
The story of the Anglo Leasing Scandal cannot as yet be conclusively told. Too much information still remains hidden by the Government of Kenya from the people of Kenya. This is obviously not acceptable. The time has come, for the people of Kenya to call the Government of Kenya to account, and demand an end to the ceaseless investigations of Anglo Leasing that go nowhere.
In its entirety the Anglo Leasing grand corruption scandal is made up of 18 security related scandals, of which most were either with fictitious companies, or involved committing the government to pay for goods and services that were non-existent or overpriced. [Full Report]
Did someone use the name of Spacenet Inc., a global player in the VSAT industry, to obtain contracts by deception from the Government of Kenya?
In this affair, the Ministry of Transport & Communications wanted to use 980 Post Offices to roll out Internet services for the Postal Corporation of Kenya (PCK), via a scheme called ‘Posta Surf’. On 19th June 2002, then Minister for Transport & Communications Musalia Mudavadi wrote a project justification letter to the Minister for Finance, Chris Obure. In the letter he sought exemption for the PCK from the Audit & Exchequer Public Procurement Regulations 2001 and permission for the PCK to engage in a direct procurement. [Full Report]
Asking The Tough Questions About The GG Kariuki Report On The Kenya Navy Ship Contract
On July 15th 2003, the Government of Kenya (represented by the Treasury and Ministry of Defence) entered into a contract with Euromarine Industries by which Euromarine would deliver an oceanographic survey vessel to the Kenya Navy for close to Ksh 4.6 billion. The contract features as one of the 18 contentious security related contracts colloquially described as Anglo Leasing type. On the same day, two financing contracts were also entered into with two Spanish firms. At some point, Euromarine sub-contracted the ship’s construction to another Spanish firm known as Astilleros Gondan. [Full Report]
Kenya commits to pay us$12.8 million (ksh 840 m) to overhaul Anglo Leasing helicopters!
Something is brewing at the Kenya Police Airwing and it ’s not smelling too good. Documents have come to light regarding the award of a US$12.8 million (Ksh 840 million) contract to overhaul 4 Russian built helicopters operated by the Kenya Police Airwing.
It would appear that 9 years after they were bought in 1998, these 4 helicopters have consumed close to US$ 15 million each and Kenyans are now being asked to spend an additional US$ 12.8 million to overhaul them. This calls for an immediate explanation from the Government of Kenya as to why we are throwing good money after bad, servicing these second hand helicopters which have done nothing to improve either our debt or security situation. [Full Report]
This is a reprise of a post I did on my site in January. It occurs to me that we have to keep reminding Kenyans and the government that Anglo Leasing won’t go away, because it has made itself a part of our collective future regardless of whether we care about it or not. The figures to be essentially post-paid are mind-boggling. The economists should tell us what they’d do with 56 billion shillings. The fact remains that Anglo Leasing has also destroyed any anti-corruption credentials President Kibaki ever possessed.
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Could we be on the verge of cracking the Anglo Leasing case? Over the last two weeks, Members of Parliament have twice discussed the irrevocable promissory notes issued to the fictitious credit providers associated with the 18 or so Anglo Leasing type contracts. And now the Daily Nation reports that the Ministry of […]
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During a meeting at the Treasury called by the Permanent Secretary for Finance, Joseph Kinyua last week to discuss public concern about the Anglo Leasing, invited representatives of civil society requested to see the Anglo Leasing irrevocable promissory notes that Finance Minister Amos Kimunya recently brandished at a press conference. They could not have […]
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Abuse thrives where systemic and ethical controls are weak. Anglo Leasing is merely the latest in a long series of abuses made possible by loopholes in the system. We are unfortunately, sure to hear of more, particularly given that this is an election year. At such times, as Kenyans know through painful experience, the hunt […]
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A Promissory Note is an unconditional promise made in writing by one person or entity to another promising to pay either on demand or at a fixed or determinable time in the future a certain sum of money either to the bearer of the note or to a specified person. In essence a Promissory Note […]
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Another 36 Irrevocable Promissory Notes Tabled In Parliament
In a new development, on Wednesday 9th May 2007, Maoka Maore, MP for Ntonyiri, tabled 36 irrevocable promissory notes issued by the Finance Ministry in early 2003 ostensibly to guarantee repayments for a loan by Midland Finance & Securities Limited of Euro 49,650,000 to pay for a digital multi-channel security systems telecommunications network for the […]
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This morning, Wednesday May 9th 2007, Mr. Amos Kimunya refused to table any documentation related to the 18 Anglo Leasing type contracts, which have exposed 34 million Kenyans to an unconscionable debt of Ksh 56.33 billion. The Minister has failed the accountability and transparency test in Parliament and demonstrated that he does not care […]
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The Government of Kenya issued IRREVOCABLE PROMISSORY NOTES valued at more than 56.33 BILLION shillings to GHOSTS. As Kenya’s Controller & Auditor General told Parliament in April 2006, these Promissory Notes were given to various parties - including Anglo Leasing and Finance Limited, for goods and services that did not exist, or if they did, […]
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PRESS RELEASE
PARLIAMENTARY QUESTIONS ON THE PROMISSORY NOTES ON WEDNESDAY 2ND MAY 2007. ORDER PAPER SCHEDULED FOR THE AFTERNOON SESSION. WHERE DOES YOUR MEMBER OF PARLIAMENT STAND?
The Government of Kenya issued IRREVOCABLE PROMISSORY NOTES valued at more than 56.33 BILLION shillings to GHOSTS. As Kenya’s Controller & Auditor General told Parliament in April […]
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In brief we offer an alternative view of the Judgement of the
Constitutional Court
in Re Deepak Kamani & Rashmi Kamani (Petition No. 199 & 200 of 2007) dated June 22nd 2007 by Justice Nyamu, Wendo and Emukule.
In this constitutional proceedings, Deepak Chamanlal Kamani and his brother Rashmi Chamanlal Kamani had gone to court to […]
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Something is brewing at the Kenya Police Airwing and it’s not smelling too good. Documents have come to light regarding the award of a US$12.8 million (Ksh 840 million) contract to overhaul 4 Russian built helicopters operated by the Kenya Police Airwing.
It would appear that 9 years after they were bought in […]
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The Navy Ship Scandal & What Parliament Missed
On July 15th 2003, the Government of Kenya (represented by the Treasury and Ministry of Defence) entered into a contract with Euromarine Industries by which Euromarine would deliver an oceanographic survey vessel to the Kenya Navy for close to Ksh 4.6 billion. The contract features as one of […]
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A replying affidavit filed in the Kenyan courts could prove deeply embarrassing to the presidential ambitions of Musalia Mudavadi. In June 2002, Mr. Mudavadi was Minister for Transport & Communications when he wrote a project justification letter to the Minister for Finance, Chris Obure. In the letter he sought exemption for the Postal Corporation of […]
Kenyans may soon know how much we owe to commercial creditors.
It is now settled that Kenya ’s public debt portfolio of US$10 billion is a matter of concern. That a substantial portion of it – over US$1 billion – relates to uncertain commercial creditors is a matter of urgent national importance. That […]
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Undated Memorandum by Dr Chris Murungaru
An undated statement by Dr Chris Murungaru in response to allegations made against him by John Githongo and the UK Government, among others. [Full Report]
Undated Press Release by Kiraitu Murungi
An undated Press release by Kiraitu Murungi following his resignation from the Cabinet. [Full Report]
Anglo Leasing Cabinet Minute Number 91 of 2001
The minutes of the Cabinet meeting in which the approval of memorandum CAB (01) 62, which sought approval for specified financing arrangements for priority security projects for the police force, was given. [Full Report]Government Changes Tempo On Its Fight Against Corruption
A Government press statement within which it states that it will move expeditiously to fast-track all cases of perceived corruption including pending audit queries by the Public Accounts and Public Investment Committees, all the culpable actions reported in the report of the Ndung’u Commission, release and action on the report of the Goldenberg Commission, Anglo Leasing; and that any other cases of perceived corruption will be dealt with expeditiously. [Full Report]
KACC John Githongo Press Statement, 18 September 2006
A press statement by former PS John Githongo responding to Hon. Martha Karua’s assertions that he refused to cooperate with the Kenya Anti-Corruption Commission in its investigations into the Anglo-leasing affair and that he refused to authenticate his previous statements to KACC in London on the same. [Full Report]
President Kibaki's Statement On Saitoti & Murungi Resignations
A press statement announcing the President’s acceptance of resignation requests from Hons. Saitoti and Murungi to step aside from their ministerial responsibilities to pave way for investigations into issues raised by the Goldenberg Commission and investigations into the Anglo-Leasing Affair respectively. [Full Report]
Vice President Moody Awori's Statement On Anglo Leasing
A press statement by Hon. Awori absolving himself of any personal responsibility for his ministerial statement of April 2004 on the Passport Contract issue.[Full Report]
PAC Report, March 2006
A report by the Public Accounts Committee of Parliament on the Procurement of Passport Issuing Equipment by the Department of Immigration, Office of the Vice-President and Ministry of Home Affairs. [Full Report]
Republic of Kenya v Nedermar, 10 August 2006
A digest of the proceedings at the District Court in The Hague as it considered whether to lift several attachments made on the embassy buildings of Kenya as well as on the official bank account of the embassy. [Full Report]
Ringera Report
The report of the Integrity and Anti-Corruption Committee of the Judiciary of September 2003 that discussed the causes, nature, impact and forms of corruption within the Judiciary, as well as identification of corrupt members of the judiciary and the recommendation of disciplinary action against them. [Full Report]
Security Related Procurement - 18 Cases
A list of contentious security contracts with details of contract date, government officials involved, contracting entities and financiers. [Full Report]
Special Audits of Security Projects
The Controller & Auditor General’s report on the financing, procurement and implementation of 18 security related projects. [Full Report]
Christopher Murungaru v UK Home Secretary and 2 Others
UK high court of Justice (Queen's Bench) Division upholding the UK travel ban against the former minister for Internal security pending disclosure of the material basis for the decision by the Home Secretary.
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AG Of Kenya v Prof Nyongo 06 Feb 07.
In this ruling the East African Court of Justice castigated the Government of Kenya for the attempts to intimidate the president of the EACJ.
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Christopher Ndarathi Murungaru v Kenya Anti-Corruption Commission
The Constitutional Court confirmed the constitutionality of the KACC Director's powers to issue compulsion notices to disclose the provenance of property under the Kenya Anti-Coruption and Economic crimes Act, 2003.
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Republic of Kenya vs Nedermar Technologies BV - District Court of the Hague 25 July 2006
Here the President of the District Court in The Hague considered whether to lift several attachments, obtained ex parte, on the Kenya Embassy and official bank accounts. Finding that Nedermar Technologies BVI has a prima facie case against GOK, under a contract for project Nexus a secret communications establishment of the department of Defence in Kenya.
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Anglo Leasing and Deepak Kamani
Deepak Chamanlal Kamani and his brother Rashmi Chamanlal Kamani had gone to court to obtain various orders and declarations which if they had been granted would have had grave ramifications on the prospect of ever resolving the Anglo Leasing corruption scandal, in which they both stand implicated and indeed wanted by the Kenya Police and the Kenya Anti Corruption Commission.
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Githongo - Mwiraria Audio Clip
On Friday, June 11, 2004, then Finance Minister, David Mwiraria asked Governance and Ethics PS, John Githongo to drop the Anglo Leasing investigation because it could bring down President Mwai Kibaki's government. He made the request in the presence of then Justice and Constitutional Affairs Minister, Kiraitu Murungi.
In the recording, Githongo is heard briefing the two ministers about why the KACC had ordered Ojiambo's arrest Read More
Anglo Leasing "Stop The Theatrics; Where Is The Evidence?"
Statement by Civil Society Organizations on Government Accountability for Anglo Leasing
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Promissory Notes: Sunday Nation Editorial
Articles and editorial from the Sunday Nation of 27th May 2007 on the conduct of the Treasury regarding the promissory notes corruptly issued to suspect security contractors.
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Promissory Notes: Kimunya Raps Activists
Reports on the pressure piling up on Amos Kimunya, the Finance Minister to explain the irrevocable promissory notes.
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Public Forum on Promissory Notes
Multimedia Footage of a Public Forum on Promissory Notes Held in Nairobi by Civil Society on 16th May 2007
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Promissory Notes - Recent Press
Article by Xan Rice in the Guardian discussing the fact that Kenya may be legally bound to repay tens of millions of pounds of debt incurred when security-related contracts were signed with non-existient companies in the so called Anglo-Leasing deals
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Mwalimu Mati On Promissory Notes
Footage of Mars Group CEO Mwalimu Mati on Citizen Television discussing the Anglo Leasing Promissory Notes Public Forums with Louis Otieno.
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The Anti-Corruption Collapse
Article in the Africa Confidential of October 2006 on the failure of Aaron Ringera’s investigations, reinforcing the growing criminalisation of the state.
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Civil Society Puts HSBC Bank on Notice
Statement from civil society asking Kenyans to join them in bringing government to account for the irrevocable promissory notes for overvalued and non performed contracts.
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HSBC Caveat Emptor: The People of Kenya Will Not Pay These
Copies of the promissory notes tabled in Parliament by Hon. Maoka Maore on Wednesday, 9th May, 2007:
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Kenyans Speak Out on Promissory Notes
Audio footage of the Easy FM Ciku radio show where Kenyan’s calling in vented their fury over the irrevocable promissory notes.
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GoK-PWC Kenya Contract For Anglo Leasing Probe
The contract and terms of reference between the Government of Kenya and auditors Price Waterhouse Coopers to do a forensic investigation into the security contracts.
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Hansard - Irrevocable Promissory Notes Discussed
An extract of the parliamentary mention and debate of the Anglo-Leasing irrevocable promissory notes by Hon. Joseph Nyagah and Hon. Paul Muite including links to previous Hansard’s of 2006 and 2007.
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Did the President Know ? Why has he remained silent ?
John Githongo the former Permanent Secretary in the Office of the President in Charge of Governance and Ethics is living in exile in the United Kingdom after fleeing for his life over death threats as a result of his investigations into corruption in the Kibaki Administration. The President has remained silent on the allegations of corruption in his administration by his former PS. The controller and Auditor Generals report together with the Parliamentary Accounts Committee report have conclusively demonstrated the allegations by Githongo to be true. Today the man who tried to tell Kenyans the truth remains in exile and Kibaki in Statehouse.
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It's time to send the Honourable Members of Parliament home
Ntonyiri MP Maoka Maore (Kanu) broke the Anglo Leasing Scandal to parliament on April 20, 2004. Three years later in 2007 this scandal remains unresolved. Controller and Auditor General's report of 2006, and the PAC report of 2006 have been tabled in parliament.
The findings of both reports remains unchalleged. Both reports find the Government of Kenya caused the taxpayers billions of Kenya shillings by paying for goods and services that were non-existent or over-priced. Payment was by way of irrevocable promissory notes.
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Who Has The Promissory Notes ?
Statement from civil society asking Kenyans to join them in bringing government to account for the irrevocable promissory notes for overvalued and non performed contracts.
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