KACC to reopen Anglo Leasing probe

In Summary

How it all started

-Anglo Leasing was one of major scams that soiled the early years of the Narc regime.

-The scandal is alleged to have started when the government wanted to replace its passport printing system in 2002.

-The tender, which was not publicly advertised, was originally quoted at €6 million by a French firm, but was later awarded to a British firm, Anglo Leasing Finance, at €30 million.

-The details were leaked to the media by a junior civil servant.

-There are 18 Anglo Leasing-related contracts that cost tax-payers about Sh56 billion.

Kenya’s anti-graft agency has a fresh opportunity to reopen investigations into the Anglo Leasing scandal which rocked the Narc government in 2004.

Newly-appointed Kenya Anti-Corruption Commission director, Prof PLO Lumumba, on Sunday said July’s court ruling that allowed the commission to pursue the suspects abroad would help solve one of the country’s major graft scandals.

Seeking foreign help

A High Court ruling three years ago barred the commission from seeking foreign help to unravel the puzzle that is Anglo Leasing scandal.

Mercantile Securities Corporation, one of the companies mentioned in the scandal, went to court in June, 2007, to challenge KACC’s request for legal assistance from Swiss authorities.

The case was prompted by a letter by then KACC director Aaron Ringera to the Swiss government requesting help to reveal the identities of the real owners of the company that received Sh914 million for communication equipment that was never delivered.

KACC also wanted to know which Kenyan officials were involved in the scandal. But on July 17, 2007, the shadowy company succeeded in blocking KACC from seeking the information. The case was heard by Mr Justice Joseph Nyamu, now in the Court of Appeal.

Mercantile Securities said KACC lacked powers to seek mutual legal assistance from a foreign country, and that such a request would only be made if there were criminal proceedings against the company in Kenya.

In mid-last July, three Court of Appeal judges — R.S.C Omolo, Samuel Bosire and Philip Waki — dismissed as “idle” the argument that KACC could not seek foreign assistance.

Citing the Anti-Corruption and Economic Crimes Act, the trio ruled that KACC had the powers to seek help from within and without to fight graft.

With the ruling, Prof Lumumba now faces his first test — will he take up a case that helped ruin the career of his predecessor?

Speaking to the Nation in an exclusive interview, he said the commission would exploit the ruling. “It opens a big window in terms of seeking foreign assistance,” he said.

According to him, the ruling had redeemed the Judiciary that has long been accused of placing obstacles in the fight against graft.