Wednesday, August 17, 2011

Ex-PS chased me away, says auditor



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Paul Waweru | NATION Former Home Affairs PS Sylvester Mwaliko (left) and former Treasury PS Joseph Magari in a Nairobi court on August 16, 2011 during the hearing of a case against them. They have denied irregularly paying Sh90 million to Anglo-Leasing.
Paul Waweru | NATION Former Home Affairs PS Sylvester Mwaliko (left) and former Treasury PS Joseph Magari in a Nairobi court on August 16, 2011 during the hearing of a case against them. They have denied irregularly paying Sh90 million to Anglo-Leasing. 
By RICHARD MUNGUTI rmunguti@ke.nationmedia.com
Posted  Tuesday, August 16  2011 at  22:00
IN SUMMARY
  • Anglo-Leasing hearing told how former Home Affairs official refused to hand over file with contract details
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A former Home Affairs ministry permanent secretary chased away an auditor investigating payments of more than Sh90 million to Anglo-Leasing and Finance Ltd, a court heard on Tuesday.
Mr Kennedy Mwangi Mwaniki, a principal auditor at the Kenya National Audit Office, told the anti-corruption court that Mr Sylvester Mwaliko refused to release the file pertaining to the contract with the foreign company.
“He chased me away, saying I should be accompanied by a senior person,” Mr Mwaniki told principal magistrate Lucy Nyambura.
The auditor said Mr Mwaliko only released the documents after a director in the audit department, a Mr Gatubi, accompanied him.
“What did you establish after examining the file?” asked private prosecutor Joe Okwach.
“We discovered that a three per cent commitment fee paid to Anglo-Leasing and Finance Ltd of 956,000 euros (Sh91.6 million) was irregular,” Mr Mwaniki replied.
The court heard that the payments had caused a “public outcry, forcing Parliament to summon the controller and auditor-general.” He said payment of the fee contravened procurement procedures.
Mr Mwaniki also said there was no advice on due diligence to the minister for Finance before payments were made.
“Even though the minister was authorised by law to effect the payments, he could have been misled in the absence of advisory notes,” the court heard.
The auditor was testifying in a case involving former Treasury permanent secretary Joseph Mbui Magari, Mr Mwaliko, Treasury official David Onyonka and Dr Wilson Sitonic.
The four have denied a charge of abuse of office over a contract entered between Anglo-Leasing and Ministry of Home Affairs to procure passports in which the government allegedly lost millions of shillings.
Cross-examined by defence lawyers Edward Oonge, Fred Ngatia and Alice Ondiek, Mr Mwaniki said the company which won the tender had to meet certain conditions before payments could be made.
The Attorney General’s office, he said, had offered advice over the contract but it was ignored.
“We did not get evidence to show a test for due diligence was ever carried out,” Mr Mwaniki told the court.
The suspects are out on bond.
The hearing continues on Wednesday.

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