The Standard 20.05.2014

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STANDARD

THE

Tuesday, May 20, 2014

Kenya’s Bold Newspaper

ANGLO LEASING Blame game renewed; Battlelines redrawn

President Uhuru Kenyatta

Damned if he pays, damned if he doesn’t. Agony of defending Sh1.4 billion payments for contracts he described as a scam in 2006 as Leader of Official Opposition. Sh174 billion Sovereign Bond at stake if Anglo Leasing ‘ghosts’ are not paid off. Amos Wako

On the radar of inquiries into how Kenya’s defence was sabotaged during his tenure as Chief Legal Advisor to President. He complicated his situation by declaring the contracts legally binding.

Aden Duale

Musalia Mudavadi

He is the lead articulator of Government policies and programmes in National Assembly and, having whipped Jubilee MPs to defend the decision to pay Anglo Leasing’s Sh1.4 billion, his next duty to President is to keep CORD in check in House. Githu Muigai

TNA accuses him of signing the deal involving First Mercantile and Universal Satspace in July 2002 when he served as Transport minister. But UDF leader tells TNA off for “flogging a dead horse and peddling bogus rumours”. Willy Mutunga

He is putting up his biggest fight to defend his position after Uhuru warned he must “up our game”. LSK accuses him of bungling Kenya’s legal defence and wants him prosecuted, while CORD has also put him on the spot.

The battle by Kenyan lawyers to stop Treasury from paying the two companies has moved to the Court of Appeal. LSK argues a judgement that forces the people of Kenya to pay for corrupt deals is contrary to public policy.

Raila Odinga

His CORD team has opposed the payments, claiming officials have cut deals. CORD threatens to lead mass action to block the payments and condemn general corruption and tribalism in public appointments. Eric Mutua

Leading LSK to press for removal of the AG and prosecution by EACC for allegedly flouting the Constitution by putting up weak defence. Accuses AG of not defending country on grounds that there was bribery.

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Page 2 / NATIONAL NEWS

Tuesday, May 20, 2014 / The Standard

THE RETURN OF

ANGLO LEASING

LSK petitions Parliament to remove

Lawyers’ body wants National Assembly to advise the President to fire the AG over handling of cases By WAHOME THUKU

The Law Society of Kenya (LSK) has now taken its fight with Attorney General Githu Muigai to Parliament over the multi-billion shilling Anglo Leasing scandal. The lawyers’ body has petitioned the National Assembly to start the process of removing the AG from office over alleged violation of his constitutional mandate in regard to the handling of cases against the Kenyan Government in the United Kingdom. In the petition signed by the chairman Eric Mutua (pictured) and secretary Apollo Mboya, the LSK asked the National Assembly to advise President Uhuru Kenyatta to initiate the process of removing the Prof Muigai. The AG is on the spot over the handling of a case between the Government and the Universal Satspace (North America) LLC filed in London and another with First Mercantile Securities Corporation in Switzerland. The process of removing an AG may, however, raise a legal debate due to a gap in the law. Article 132 (2) provides that the President may dismiss the AG in accordance with Article 156. However, Article 156 does not mention anything about the removal of the AG. It establishes the office, spells out the qualifications and the man-

LAWYERS CALL FOR PUNISHMENT OF MUIGAI • The Law Society of Kenya wants the National Assembly to institute proceeding towards the removal of Attorney General Githu Muigai from office • The process of removing an AG may, however, raise a legal debate due to a gap in the law because articles 132 (2)and 156 are not in harmony dates of the office holder. The President may, however, under the law remove the AG only for serious violation of the Constitution, gross misconduct, incompetence, mental or physical incapacity or bankruptcy. In their petition, the LSK claims Prof Muigai failed to respond to five letters by the foreign advocate in England, who had been hired by the State to defend the suit. “He failed to give instructions to the said Kenyan foreign advocate to file a reply to the application by the claimant, which sought to strike out the defence and counterclaim by the Kenyan Government. The application for striking out was therefore not contested in terms of the facts,” the ap-

plication partly read. The lawyers’ body pointed out that the AG failed to instruct a competent advocate with expertise in complex commercial litigation matters to represent Kenya in the London court. LSK also criticised the AG for instructing the Solicitor General Njee Muturi to represent Kenya in the case, knowing that he did not have a license to practice law in England and Wales. “Effectively the Government did not have legal representation and the proceedings in the court are a nullity,” the application read in part. The LSK claims prof Muigai failed to advance the defence of corruption and bribery in the case, saying he instead recorded consent to take the matter for mediation and subsequently entered into a consent to pay $7.6 million (about Sh666.9 million as per current exchange rates). This was despite the fact that reports by the Ethics and Anti-Corruption Commission, the Public Accounts Committee, PricewaterhouseCoopers and the Auditor General indicated the contracts were procured through corruption.

UNPROFESSIONAL OPINION The AG failed to appeal against the court decision of December 20 last year even with an avenue to do so, the society argued in the petition sent to the Clerk of the National Assembly. LSK claims the AG gave the Government unconstitutional, illegal, fraudulent and unprofessional legal opinion that the government had no other option than to pay the company. The LSK said though President Uhuru Kenyatta had reprimanded the Office of the AG over the manner in which the cases were handled, no disciplinary action was taken.

Lawyers move to court of Appeal after judge throws petition on payments out By PAMELA CHEPKEMEI The battle by Kenyan lawyers to stop Treasury from paying two companies involved in the Anglo Leasing scandal has found its way to the Court of Appeal. The move comes days after President Uhuru Kenyatta directed Treasury to pay the cash. The Law Society of Kenya (LSK) wants the court to stop Treasury from making any payments because doing so would interfere with the enjoyment of economic and social freedom and rights of Kenyans. LSK has faulted a judgement entered against the Government of Kenya by a London court last year. “A judgement that forces the people of Kenya to pay for corrupt deals is contrary to public policy,” said LSK lawyer James Mwamu.

LSK lodged an appeal against a decision by the High Court declining to temporarily halt payments until their case is heard and determined. LSK is contesting a decision by Justice David Majanja declining to stop Treasury from initiating a process that will result in payment of Sh1.4 billion to First Mercantile Securities Corporation and Universal Satspace. The society is opposed to the Government making any payments because the contracts were based on questionable deals and were tainted with corruption. LSK says it has filed the case in pursuit of public interest to protect the taxpayer from meeting expenses for corrupt deals. LSK argues that the proceedings in the London Court were conducted in

a manner that suggests there was no natural justice and the Kenyan Government was not given a chance to argue its case. The society first moved to court on May 5 seeking interim orders against Finance Cabinet Secretary Henry Rotich and the Attorney General. Justice Majanja declined to issue conservatory orders stopping the payments, saying the payments were not likely to be made soon. Following the decision, LSK made a second urgent application last Thursday, seeking orders to halt any payments. It also sought to be allowed by the High Court to move to the Court of Appeal. LSK wants to appeal against a decision by judge Majanja declining to issue temporary orders stopping the payments.

SIGNATORIES FOR SECURITY (ANGLO LEASING ) CONTRACTS - OCTOBER 2013 CONTRACT NAME

DATE SIGNED

CANCELLED CONTRACTS— KAMANI FAMILY 1 Forensic Sciences Laboratory for CID 16 Aug. 2001

PROJECT VALUE Forex Ksh

CONTRACTOR/FINANCIER

GOVERNMENT Line Ministry Treasury

$54.6

4,095

L-Mrs Ludmilla Katuschenko Export Supplier David Dunkley for Lessor and InderSingh Brar for Export Supplier Bradley Birkenfeld, Director, Infotalent Ltd Colin Flynn on behalf of Anglo Leasing & Finance Ltd & Ministry of Home Affairs .

Z. K. A. Cheruiyot PSI Internal Security Z. K. A. Cheruiyot PS / Internal Security

M. Mwachofi PS/Treasury M. Mwachofi PS/Treasury

Dave Mwangi PSI Internal Security Slyvester Mwaliko -PS/ Vice-President's Office

Joseph Magari PS/Treasury . Joseph Magari PS/Treasury

Mosses Abudo; PSI Home Affairs and National Heritage Z. K: A. Cheruiyot PS/Internal Security

Simeon Lesrima PS /Treasury 6 M. Chemengich PS /Treasury

Z. K. A. Cheruiyot PS/ Internal Security

S. K. Bundotich Financial Secretary

Brian Mills on behalf of Sound Day Corporation J. Manshing for Apex. Finance Corporation

Z. K. A. Cheruiyot PS Internal Security Z. K. A. Cheruiyot PS Internal Security

S. K. Bundotich Financial Secretary S. K. Bundotich Financial Secretary

Sammy Kyungu PS, Transport and Communications Ali. Koran & PSI Home Affairs and National Heritage Dave MwangiPS Internal Security

S. K. Bundotich Financial Secretary

2 Security Vehicles for Kenya Police (Silverson Established)

16 Aug 2001

$90.0

6,750

3 Kenya Police. Law & Order (E-Cops) /lnfotalent 4 Immigration Security & Document Control System (ISDC)

19 Nov 2003

€58,7

5,224

4 Dec 2003

€31.9

2,839

Sub-total FULLY PAID CONTRACTS — KAMANI FAMILY 5 Kenya Prisons Security & 30 Oct 1997 Telecommunication - Project Phase I

18,908 $24.6

1,845

Andrew Macgill on behalf of LBA Systems Ltd Brian Mills for Sound Day Corp. and J. Manshing for Apex Finance Corporation Brian Mills for Sound Day Corporation

6 Kenya Police Airwing Support Project I

8 June 1998.

$36.0

2,700

7 Kenya Police: Supply of Security Equipment Addendum 2 Sub-total PARTLY COMPLETED CONTRACTS KAMANI FAMILY 8 Kenya Police: Supply of Security. Equipment Addendum 3 9 Kenya Police Aiming Support Project 10 National Early Warning Security System (NEWSS) for Meteorological’ Department

9 April 2002

$30.0

2,250

14 June 2002

€31.8

2,385

12 July 2002

$12.8

960

12 July 2002

$35.0

2,625

Andy Macgill on behalf of LBA

19 Nov 2002

€29.7

2,643

Andrew Macgill on behalf of. LBA

29 May 2003

€49.7

4,423

17 Dec 2003

€40.0

3,569

Dave Doyle for Globotel Joseph Magari and David’ Dunkley- for PS/Treasury Midland Finance Ltd. Brian Mills on behalf of Dave Mwangi Joseph Magari both Sound Day PSILEASING Internal) Security PS/Treasury SIGNATORIES FORand SECURITY (ANGLO CONTRACTS - OCTOBER 2013 ApexCONTRACT Corporation NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER

11 Kenya Prisons Security and telecommunication Project Phase 2 . 12 Multi-Channel Security Telecommunication System for Administration Police 13 Modernization of Police Equipment and Accessories Sub-total ANURA PERERA 14 Broadband Network – PCK. VSAT Equipment / Fir-StMercantile Securities Corporation (FMSC) 15 Bandwidth Spectrum and Network Operation/ Universal Satspace (USS) 16 Project Nexus (Defence Command Centre 17 Naval Ship (Oceanographic Survey Vessel)

6,795

16,605 11 Jul 2002

$11.8

885

11 July, 2002

$28.1

2,108

19 Nov, 2002

€36.9

3,284

15 July, 2003

€51.9

4,619

CANCELLED CONTRACTS— KAMANI FAMILY 1 Forensic Sciences Laboratory for CID 16 Aug. 2001

S. K. Bundotich Financial Secretary

Forex

Ksh

Line Mi

$54.6

4,095

Z. K. A. C Internal Z. K. A. C / Interna

Michael Allan on behalf of Sammy Kyungu 2 SecurityInc, Vehicles Kenya Police PSI16Transport Aug 2001 and $90.0 Spacenet the for supplier Established) and(Silverson A Gusman for First Communication Mercantile Securities Corp 3 Kenya Police. Law & Order (E-Cops) 19 Nov 2003 €58,7 AvramZivTal, Sammy Kyungu /lnfotalent on behalf of4 UniVerSal ImmigrationSatspace Security & Document PS/Transport 4 Dec 2003 and €31.9 Control System (ISDC) Communication Anurath Gunarwadena on Sammy Kyungu Sub-total behalf of Nedermar Technology PS, Transport and FULLY PAID CONTRACTS — KAMANI FAMILY witnessed by Micheal Allan Communication 5 Kenya Prisons Security & 30 Oct 1997 $24.6 J. K Telecommunication Marrio for Euromarrine; - Project Phase ISammy Kyungu Christopher Kompasa PS/ Defence 6 Navigia Kenya Police AirwingHairis Support 8 June 1998. $36.0 for Capital; Project I Financas for Empressa

L-Mrs Ludmilla Katuschenko S K. Bundotich Export Supplier 6,750 Dunkley for Lessor and FinancialDavid Secretary InderSingh Brar for Export Supplier 5,224 Bradley Birkenfeld, Director, S. K. Bundotich Infotalent Ltd Financial’ Secretary 2,839 Colin Flynn on behalf of Anglo Leasing & Finance Ltd & Ministry of Home Affairs . S. K. Bundotich 18,908

Financial Secretary

1,845

Andrew Macgill on behalf of LBA Systems Ltd

Joseph Magari 2,700 Brian Mills for Sound Day PS/Treasury

Corp. and J. Manshing for Apex Finance Corporation 7 Kenya Police: Supply of 9 April 2002 $30.0 2,250 Brian Mills for Sound Day 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on 2 Brig(Rtd) Wilson Boinett Joseph Magari Security Equipment Addendum Corporation behalf of Clara Systems Ltd Director-General, NSIS PS/Treasury Sub-total 6,795 Sub-total 13,949 PARTLY COMPLETED CONTRACTS Grand Total. 56,257 KAMANI FAMILY 8 Kenya Police: Supply of Security. 14 June 2002 €31.8 2,385 Brian Mills on behalf of Sound Equipment Addendum 3 Day Corporation FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY 9 Kenya Police Aiming Support 12 July 2002 $12.8 FOR960 J. Manshing for Apex. FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES SECURITY SIGNATORIES- OCTOBER FOR SECURITY CONTRACTS - OCTOBER 2013 CONTRACTS 2013 (ANGLO LEASING ) CONTRACTS - OCTOBER 2013 CONTRACTS Project - OCTOBER 2013 Finance Corporation CONTRACT NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER GOVERNMENT CONTRACT NAMECONTRACT NAME Date Signed Project Value Fair ValueRESOLUTION CONTRACT NAME Date Signed Project Value Fair RESOLUTION Fair RESOLUTION 10 National Early Warning Date Signed Project Settlement STRATEGY Forex KshSTRATEGY Line Ministry Treasury Settlement Settlement STRATEGY Price Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Macgill on behalf of LBA Price Price CANCELLED CONTRACTS— KAMANI FAMILY Forex Ksh m Forex Kshm Ksh m Kshm Forex Ksh m Kshm Meteorological’ Department 1 Forensic Sciences Laboratory for CID 16 Aug. 2001 $54.6 4,095 L-Mrs Ludmilla Katuschenko K. A. Cheruiyot PSI M. Mwachofi I CANCELLED CONTRACTS —Z.KAMANI FAMILY I CANCELLED CONTRACTS — KAMANI FAMILY I CANCELLED CONTRACTS — KAMANI FAMILY Export Supplier Internal Security PS/Treasury 1 Forensic 16 Aug 2001 $54.6 and 12 Forensic 16 Police Aug 2001 16 $54.6 4,095 $90.0 Funds returned and Sciences 111Forensic Sciences Aug4,095 2001 $54.6 4,095Funds - returned Funds returned and on behalf Kenya Security 19 Nov 2002 €29.7 2,643 Andrew Macgill SecuritySciences Vehicles for Kenya Aug 2001 6,750 DavidLaboratory Dunkley forfor Lessor and Prisons Z. K. A. Cheruiyot16PS M. Mwachofi CID contract cancelled Laboratory for CID contract cancelled Laboratory for CID contract cancelled and telecommunication of. LBA (Silverson Established) InderSingh Brar for Export / Internal Security PS/Treasury 2 Security Vehicles for 16 Aug 2001 $90.0 6,750 2 Security Vehicles for 16 Aug 2001 $90.0 6,750 Funds returned and 2 Security Vehicles for 16 Aug 2001 $90.0 6,750Funds - returned and Funds returned and Kenya Police contract cancelled Project Phase 2 . Kenya Police contractSupplier cancelled Kenya Police contract cancelled (Silverson Establishment) Establishment) Establishment) 12(Silverson Multi-Channel Security 29 Magari May 2003 €49.7 4,423 Dave Doyle for Globotel 3 (Silverson Kenya Police. Law & Order (E-Cops) 19 Nov 2003 €58,7 5,224 Bradley Birkenfeld, Director, Dave Mwangi Joseph 3 Kenya Police Law 19 Nov 2003 €58.7 3 Kenya Police Law 19 Nov 2003 €58.7 5,229 Funds returned and 3 Kenya Police 19 Nov5,229 2003 €58.7 .5,229 Funds returned and Funds returned Telecommunication and David’and Dunkley- for /lnfotalent Infotalent Ltd (E-Cops) PSILaw InternalSystem Security PS/Treasury & Order contract cancelled & Order (E-Cops) contract cancelled & Order (E-Cops) contract cancelled /Infotalent for Administration Police Midland Finance Ltd. 4 /Infotalent Immigration Security & Document 4 Dec 2003 €31.9 2,839 Colin Flynn on behalf of/Infotalent Anglo Slyvester Mwaliko Joseph Magari 4 Immigration 4-PS/ Dec 2003 - Dec 2003 and Modernization of Police€31.9 Equipment 17 €40.0 3,569 Brian Mills on behalf of Control System (ISDC) 4 Dec 2003 €31.9 2,839 Leasing &and Finance Security Ltd Vice-President's PS/Treasury 4 Immigration Security Funds returned 413Immigration Security 4 Dec 2,839 2003 €31.9 2,839Funds - returned Funds returned and & Document Control contract cancelled Accessories Sound Day and & Document Control contract& Ministry cancelled & and Document Control contractboth cancelled of (ISDC) Home Affairs . Office System System (ISDC) System (ISDC) Apex Corporation Sub-total 18,908 18,908 18,908 18,908 Sub-total 16,605 FULLY PAID CONTRACTS — KAMANI FAMILY II FULLY PAID CONTRACTS II FULLY PAID CONTRACTS IIANURA FULLYPERERA PAID CONTRACTS 5 Kenya Prisons Security & 30 Oct 1997 $24.6 1,845 Andrew Macgill on behalf Mosses Abudo; Simeon Lesrima Recovery not 5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) 5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) Recovery not 514Kenya PrisonsNetwork Security– PCK. 30VSAT Oct 1997 11 $24.6 1,845 $11.8 (3,375) 885Recovery not Allan on behalf of Broadband Jul 2002 Michael & Telecommunication Telecommunication - Project Phase I of Close LBA Systems Ltd & Telecommunication PSI Home Affairs and PS /Treasury 6 feasible. Close filefeasible. Close file & Telecommunication feasible. file Project Phase I Project Equipment / IFir-StMercantile Spacenet Inc, the supplier Project Phase I Phase National Heritage 6 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) 2,700Recovery not Recovery Securities Corporation (FMSC) andnot A Gusman for First 66 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) Recovery not 6 Kenya Police Airwing 8 June 1998 $36.0 (3,472) Kenya Police Airwing Support 8 June 1998. $36.0 2,700 Brian Support Mills forProject Sound Day Z. K: A. Cheruiyot M. Chemengich feasible. Close file 1Support Project Support Project 1 feasible. Close file 1 feasible. Close fileSecurities Corp Mercantile Project I Corp. and J. Police: Manshing for PS /Treasury 7 Kenya Supply 9PS/Internal April 2002 Security $30.0 (1,388) 2,250Recovery 7 Kenya Police: Supply 9 April 2002 $30.0 2,250 (1,388) Recovery not 715Kenya Police: Supply 9 April2,250 2002 11 $30.0 (1,388)not2,108 Recovery not Bandwidth Spectrum and July, 2002 $28.1 AvramZivTal, of Security Equipment feasible. Close filefeasible. Close file on behalf Apex Finance Corporation of Security Equipment feasible. Close file of Security Equipment Network Operation/ of UniVerSal Satspace 2 Day 7 Addendum Kenya Police: 9 April 2002 $30.0 2,250 Brian Addendum Mills for Sound S. K. Bundotich 2 Supply of AddendumZ.2K. A. Cheruiyot Universal Satspace (USS) Sub total (8,235) Security Corporation Financial Secretary Sub total Equipment Addendum 2 6,795 (8,235) Sub total PS/ Internal Security 6,795 6,795 (8,235) 16 Project Nexus (Defence 19 Nov, 2002 €36.9 3,284 Anurath Gunarwadena on Ill PARTLY COMPLETED CONTRACTS Sub-total 6,795 Ill PARTLY COMPLETED CONTRACTS Ill PARTLY COMPLETED CONTRACTS Command Centre behalf of Nedermar Technology Kamani Family Kamani PARTLY Family COMPLETED CONTRACTS Kamani Family witnessed by Micheal Allan 8. Kenya 14 June 2002 $31.8 2,385 (1057) 2,385Cancel contract and FAMILYSupply 8.KAMANI Kenya Police: 14 June 2002 $31.8 2,385 (1057) Cancel contract andPolice: Supply 8.17Kenya Supply 14 June 2002 15 $31.8 (1057) Cancel J.contract NavalPolice: Ship (Oceanographic July, 2003 recover €51.9 K Marrioand for Euromarrine; Security Equipment funds4,619 Security Equipment recoverBrian fundsof ofSound SecurityZ.Equipment recover funds 8 ofKenya Police: Supply of Security. 14 June 2002 €31.8 2,385 Mills on behalf K. A. Cheruiyot S. K. Bundotich Survey Vessel) Christopher Kompasa Addendum 3 ofAddendum Addendum 3 3 Equipment Addendum 3 Day9.Corporation PS Internal Security Financial Secretary Navigia Kenya 12 July 2002 $12.8 (126) 960 Cancel 9. Kenya Police Airwing 12 July 2002 $12.8 960 (126) Cancel contract andPolice Airwing 9. Kenya Police Airwing 12 July960 2002 $12.8 (126)contract and Cancel for contract andCapital; Hairis SupportforProject 9 Support Kenya Police Support 12 July 2002 $12.8 960recoverJ.funds Manshing Apex. 2Support Project Z. K. A.2 Cheruiyot S. K. Bundotich recover funds recoverfor Empressa Financas ProjectAiming 2 funds 10 National 12 2002 $35.0 (1050) contract and Project Early Corporation PSJuly Internal Security Financial Secretary 18 National Project Fragstaff (National 10 National 12 July 2002 $35.0 2,625 (1050) Cancel Finance contract and Early10 Early 12 July2,625 2002 $35.0 2,625 Cancel (1050) Cancel contract and recover funds recover funds recover fundsWarning SecurityWarning 10Warning NationalSecurity Early Warning CounterSecurity Terrorism Control Centre) 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on System (NEWSS) System for System (NEWSS) for (NEWSS) for Deptment Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Meteorological Macgill on behalf of LBA Sammy Kyungu S. K. Bundotich behalf of Clara Systems Ltd Meteorological Deptment Meteorological Deptment 11 Kenya Prisons Security 19 Nov 2002 €29.7 2,643 (522) and Meteorological’ Department PS, Transport Financial Secretary Sub-total 13,949 11 Kenya Prisons Security 19 Nov 2002 €29.7 2,643 (522) Cancel contract and 11 Kenya Prisons Security 19 Nov 2002 €29.7 2,643Cancel (522)contract Cancel contract and recover funds recover funds and telecommunication recover fundsand telecommunication and telecommunication and Communications Grand Total. 56,257 Project Phase 2 Project Phase 2 Project Phase 2 11 Kenya Prisons Security 19 Nov 2002 €29.7 2,643 Andrew Macgill on behalf Ali.May Koran & PSI S. K. Bundotich 12 Multi-channel Security 29 2003 €49.7 (1,071) 4,423Cancel contract and 12 Multi-channel Security 29 May 2003 €49.7 4,423 (1,071) Cancel contract and 12 Multi-channel Security 29 May4,423 2003 €49.7 (1,071) Cancel contract and Telecommunication and telecommunication LBA Home Affairs and Financial Secretaryrecover funds recover funds Telecommunication recoverof.funds Telecommunication System for System System forNational Heritage Projectfor Phase 2 . Administration Police Administration Police Administration Police 12 Multi-Channel Security 29 May 2003 €49.7 4,423 Dave Doyle for Globotel Dave MwangiJoseph Magari 13 Modernization of Police 17 Decof2003 $40.1 (1.84) contract and 13 Modernization of Police 17 Dec 2003 $40.1 3,569 (1.84) Cancel and contract Police 17 Dec3,569 2003 $40.1 3,569Cancel (1.84) Cancel contract and Telecommunication System David’and Dunkley-13 forModernization PS Internal Security PS/Treasury recover funds recover funds Equipment and recover fundsEquipment and Equipment and Accessories for Administration Police Midland Finance Ltd. Accessories Accessories Sub total 16,605 (4,010) 13Sub Modernization of Police Equipment 17 Dec 2003 €40.0 3,569 Brian Mills on behalf of Dave Mwangi Joseph Magari total 16,605 (4,010) Sub total 16,605 (4,010) and Accessories both Sound Day and PSI Internal Security PS/Treasury Anura Perera Anura Perera Anura Perera Apex Corporation Broadband Network — 11 July, 2002— $11.8 421 14 Broadband Network — 11 July, 2002 $11.8 885 421 Judgment 14 €10.1m 14 Broadband Network 11 July,885 2002 $11.8 885 Judgment 421 €10.1mJudgment €10.1m PCK VSAT Equipment/ (Ksh 868m) Sub-total 16,605 PCK VSAT Equipment/ (Ksh 868m) PCK VSAT Equipment/ (Ksh 868m) Negotiation First Mercantile Negotiation First Mercantile First Mercantile Negotiation ANURA PERERA Securities Corporation recommended recommended Securities Corporation recommended Securities Corporation (FMSC) 14(FMSC) Broadband Network – PCK. VSAT 11 Jul 2002 $11.8 885 Michael Allan on behalf(FMSC) of Sammy Kyungu S K. Bundotich 15 Bandwidth Spectrum 11 July, 2002 $28.11 2,108 (1,272) Mediation € 7.6m EquipmentSpectrum / Fir-StMercantile Spacenet Transport and Financial 15 Bandwidth 11 July, 2002 $28.11 2,108 (1,272) 15 BandwidthPSI Spectrum 11 July, 2002 $28.11Secretary Mediation € 7.6mInc, the supplier 2,108 (1,272) Mediation € 7.6m and Network Operation (Ksh 653m) and NetworkCorporation Operation (FMSC) (Ksh 653m) Operation (Ksh 653m) Securities and A/Universal Gusman forSatspace Firstand Network Communication Negotiation to Negotiation to /Universal Satspace Negotiation to /Universal Satspace (USS) Securities Corp proceed (USS) proceedMercantile (USS) proceed 16 Project on Nexus (Defence 19Sammy Nov, 2002 €36.9 2,310 3,284Successfully 15 Project Bandwidth Spectrum July, 2002 2,108 AvramZivTal, behalf Kyungu S. K. €36.9 Bundotich 16 Nexus (Defenceand19 Nov, 2002 11 €36.9 3,284 $28.1 2,310 Successfully 16 Project Nexus (Defence 19 Nov,3,284 2002 2,310 Successfully Command ‘Centre) negotiated Command ‘Centre) negotiated Command PS/Transport ‘Centre) negotiated Network Operation/ of UniVerSal and Financial’ Secretary€14m (Ksh1.54 bn) paidbn) Satspace paid paid €14m (Ksh1.54 €14m (Ksh1.54 bn) Universal Satspace (USS) Communication 17 Naval Ship 15 July, 2003 €51.9 4,619 4,180 Successfully 17 Naval Ship 15 July, 2003 €51.9 4,619 4,180 Successfully 17 Naval Ship 15 July, 2003 €51.9 4,619 4,180 Successfully (Oceanographic 16(Oceanographic Project Nexus (Defence 19 Nov, 2002 €36.9 3,284 Anurath GunarwadenaSurvey on Sammy Kyungu S. K. Bundotich negotiated €34mnegotiated €34m Survey negotiated €34m (Oceanographic Survey

18 Project Fragstaff (National Counter Terrorism Control Centre)

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NATIONAL NEWS / Page 3

Tuesday, May 20, 2014 / The Standard

THE RETURN OF

ANGLO LEASING

Githu, as it appeals against court ruling AG defends his office on Anglo Leasing, says payment legally done By GEOFFREY MOSOKU Besieged Attorney General Githu Muigai yesterday came out to defend himself and the State Law Office over the controversial payment of Sh1.4 billion to Anglo Leasing contracts. Prof Githu convened a press conference and gave a chronology of events leading to the payments, as he sought to distance himself from blame, adding that the State sought legal opinion from experts. He dismissed the argument that his office compromised the case – thereby exposing the country to massive losses in dubious payments. He also challenged the notion that the Government failed to defend the cases both in Switzerland and the UK. A visibly agitated Githu said the Government sought opinion from one of the most prestigious law firms in London and globally on the cases. Although he did not directly mention names, the AG pointed an accusing finger at his predecessor and current Busia Senator Amos Wako, and former ministers Musalia Mudavadi and Chris Obure (Transport and Finance ministers in 2002) and former Postmaster General Francis Chahonyo who were in office when the mega deals were signed.

“IT WASN’T ME” “The man you see before you is a mortician. The patient died on the operating table long time ago. Githu Muigai is the mortician. If you think the patient should have lived, ask the surgeons,” Githu said. The AG, who is constitutionally the chief legal advisor to the Government, further sought to distance the State

Law Office from any blame saying their role was only restricted to advisory. “It’s not for the AG’s office to say what has been supplied or not but the relevant ministry, and PWC have constantly admitted that broadband was supplied. The AG makes legal opinions and as to what the persons advised has to do, it’s upon them,” Prof Githu said. He added: “It has been said that the Government paid ghost companies, I have particulars of the people paid and the files are completely up to date. It has been said these are contracts where air was supplied. It is not for the AG to say what has been supplied or not. The Ministry of Communication and PWC have consistently admitted that Kenya received broadband capacity from this company.” Speaking moments after the Law Society of Kenya (LSK) moved to court and petitioned Parliament to eject him, Githu told journalists that he had called them to respond to unwarranted attacks in the media, public places and funerals by people targeting his officers, his office and himself. About LSK’s move to strike him off the roll of practicing lawyers in the country, Githu added; “The treatment they have meted out on me in the past 72 hours is totally unjustified, regrettable and motivated by other consideration. I regret that LSK has moved that way and I have been in the public long enough to know when articles appear constantly in the media by the same people, then those people have a strategy.” He argued that the decision on Anglo Leasing was made before he assumed office on August 29, 2011

IN AG’S WORDS • The Government sought opinion from one of the most prestigious law firms in London and globally on the cases • It’s not for the AG’s office to say what has been supplied or not but the relevant ministry, and PWC have constantly admitted that broadband was supplied. The AG makes legal opinions and as to what the persons advised has to do, it’s upon them • My office acted within law and did not use any dodgy procedures in the handling of the Anglo Leasing contracts, as it has been widely alleged

explaining that at no time was Kenya unwilling to pursue the matter save for the fact that all attempts for appeal were blocked. Githu said contrary to accusations of laxity, his office had put up a spirited fight to defend the public by sending the Solicitor General, Njee Muturi, to a London court to seek an adjournment and leave to appeal,

Deputy Solicitor General Muthoni Kimani and Attorney General Githu Muigai at a Press conference in Nairobi yesterday. [PHOTO: JOHN MATUA] which all went against Kenya. At the court, Githu said Mr Njee was asked to either accept a $7 million arbitration ward or the original award of $28 million where he made a telephone call home to seek fresh instruction on way forward. Its then that the AG invited Treasury boss Henry Rotich and his PS Kamau Thuge and Deputy Solicitor General Muthoni Kimani and had a telephone conversation that resolved to enter consent of settling the arbitration award.

GOVERNMENT APPROVAL “It’s a judgmental call that every lawyer has to make. We told the Solicitor General to accede to the payment of the $7 million,” Githu told journalists. Accompanied by Ms Kimani, the AG displayed documents to the media, which he said were available for scrutiny, insisting that Kenya acted

procedurally and transparently as it made informed decisions after wide consultations with legal experts before taking any action in handling the matter. He explained that his office acted within law and did not use any dodgy procedures in the handling of the Anglo Leasing contracts, as it has been widely alleged. “Any allegation therefore, that these cases were being mediated or handled in England under the table, under wraps in a quick fashion to achieve ulterior…nothing could be further from the truth, nothing could be more libelous of my officers, of my office and of myself,” Githu retorted. The AG revealed that a Kenyan lawyer John Wambugu has also taken the Government to court claiming Sh100 million as legal fee after he was appointed by the then AG Wako on the request of former Information Minister Mutahi Kagwe.

Page 4 / NATIONAL NEWS

Tuesday, May 20, 2014 / The Standard

THE RETURN OF

ANGLO LEASING

Anti-graft agency starts probe into 18 contracts following directive

Commission is set to work with the DPP to find and charge Government officials implicated in scandal By MOSES MICHIRA

The Ethics and Anti-Corruption Commission (EACC) has re-started investigations into the 18 Anglo Leasing contracts following a presidential directive issued last week. The anti-graft agency will work with the Director of Public Prosecutions to find and charge Government officials involved in the scandal that was first exposed 10 years ago. “We have now partnered with the DPP in the fresh investigations with a focus on the legality of all the contracts,” EACC spokesman Yassin Amaro told The Standard. It is the first time the DPP will be directly involved in the decade-long probe that has largely been futile. The move comes days after President Uhuru Kenyatta ordered fresh investigations into the scandal, with a view to recovering funds that have been lost in the shoddy contracts. Uhuru directed EACC “to do everything they can to ensure that this portion of money is recovered and Kenya gets restitution”. Amaro says the new probe will seek to expose the architects of the scheme, who would then be prosecuted by officers from the DPP. The anti-graft agency does

not have prosecutorial powers, but would typically finish its investigations before the findings are handed over to the police as evidence. EACC and its predecessor agencies have been unable to crack and expose the scandal that is feared to cost the county tens of billions. Already, President Kenyatta had directed the national Treasury to pay Sh1.4 billion to two of the firms against disapproval by Parliament while blasting the State Law Office for failing to defend Kenya properly in foreign courts. “It is for the legal council that represents our republic to up their game and to ensure that we don’t lose any more cases going forward because as we lose them they cost us on issues that we do not believe are correct.”

UNFAVOURABLE JUDGEMENT After the President’s criticism on Friday, the Law Society of Kenya yesterday accused Attorney General Githu Muigai of procuring an unfavourable judgement in the British court in an Anglo Leasing case where the State lost. LSK Chairman Eric Mutua said Githu had conspired to ensure Kenya lost in the case, before the State was ordered to pay Sh667 million to Universal Satspace in December last year. Mutua, who says there is evidence to back his claim, now wants EACC to investigate the AG’s conduct in handling of the case. “The following documentary evidence points to a possible offence of conspiracy to defraud public finances through procurement of an irregular judgment…,” Mutua said in a letter

THE ATTORNEY GENERAL’S DEFENCE • Githu has defended himself severally, including at a press conference he called yesterday, where he claimed there was nothing he could have done to save Kenya in the litigation that has staggered in the courts for 10 years • The AG claims that the “patient was already dead” by the time he was appointed AG, alluding to the proposition that Kenya had already lost all chances to win in suits filed by First Mercantile Securities Corporation in Geneva, and Universal Satspace in London addressed to the anti-corruption commission. The said evidence Mutua is referring to is an earlier correspondence dated December 2013 and the actual proceeding of the claim by Universal Satspace. LSK had earlier threatened to sue the AG, Solicitor General Njee Muturi and Senior Deputy Solicitor

General Muthoni Kimani over their position in the payment of the controversial claims worth Sh1.4 billion. The three advised the State that there was no chance for Kenya to contest the controversial court rulings, and settlement on the claims would be in the best interest of the country.

VACANCY Walvis Bay Medipark (Pty) Ltd t/a Welwitschia Hospital, an Equal Opportunity Employer in Namibia, seeks to employ the following as a member of our dynamic health care team in Walvis Bay.

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Short-listed candidates will be contacted within one week of closing date (31 May 2014) and must be willing to submit themselves to interview and selection procedures.

Uhuru pained by Sh1.4b payment By MOSES MICHIRA President Uhuru Kenyatta has said he feels “terrible” that his Government is about to pay Sh1.4 billion to Anglo Leasing firms but that he had no choice because it is in public interest. Uhuru spoke about his agony during a press conference at State House on Friday when he said his view about the scandalous contracts, which he described as a scam in 2006 when he was Official Leader of the Opposition, hasn’t changed. The President explained the controversial payments stand in the way of Kenya’s planned Euro bond that is expected to raise Sh132 billion to plug a shortfall in the national budget. “There was no way we could go for this particular bond without first having cleared our international obligations. So I gave that directive,” said President Kenyatta. Attorney General Githu Muigai has said that Kenya should just pay up, because it has exhausted the avenues for appeal for the suits it lost in Geneva and London. Uhuru, who had investigated the scandal back in 2006 when he was the opposition leader, found it to be a costly scam. Eight years ago, President Kenyatta – then Gatundu South MP, asked Parliament to stop architects of the Anglo Leasing scandal because they would continue to haunt even future governments and even terming the scheme as a “scam”.

Tuesday, Tuesday, May May 20, 20, 2013 2014 // The The Standard Standard

Page Page 55

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2013 Long term business Shs Gross Written Premiums 199,232,497 Less: Outward Re-Insurance Premiums 152,475,115 Net Written Premiums 46,757,382

General business Shs 1,199,048,043 110,607,628 1,088,440,415

Total 2013 Shs 1,398,280,540 263,082,743 1,135,197,797

Total 2012 Shs 1,033,147,455 182,746,683 850,400,772

199,232,497 152,475,115

1,078,060,167 104,565,516

1,277,292,664 257,040,631

938,980,256 174,628,507

Net earned premiums

46,757,382

973,494,651

1,020,252,033

764,351,749

Investment income Commissions earned Other income

71,217,327 37,845,289 163,461

122,276,271 24,978,850 756,401,733

193,493,598 62,824,139 756,565,194

208,095,843 41,257,765 30,027,691

Net income

155,983,459

1,877,151,505

2,033,134,964

1,043,733,048

Claims and policy holder benefits payable Less: Reinsurers share of incurred claims

217,370,042 122,161,220

536,194,047 116,316,885

753,564,089 238,478,105

462,180,498 93,345,568

Net claims payable Operating and other expenses Commissions payable Statutory levies

95,208,822 33,776,123 16,481,706 238,944

419,877,162 399,145,889 112,207,691 14,587,134

515,085,984 432,922,012 128,689,397 14,826,078

368,834,930 381,392,805 108,440,558 11,593,766

Profit/ (loss) before tax Income tax expense Profit for the year

50,496,773 10,277,864 10,277,864

525,940,714 931,333,629 (35,491,967) 895,841,662

576,437,487 941,611,493 (35,491,967) 906,119,526

501,427,129 173,470,989 (59,236,302) 114,234,687

39.82

3.91

Gross earned premiums Less: reinsurance premium ceded

Earnings Per Share (Basic & Diluted) STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME Profit for the year Other Comprehensive Income, net of tax Gain/(Loss) on revaluation of land and buildings Gain/(Loss) on available for sale assets Total Comprehensive Income, net of tax

10,277,864

895,841,662

906,119,526

114,234,687

10,277,864

56,854,000 (805,790) 951,889,872

56,854,000 (805,790) 962,167,736

39,272,310 153,506,997

General business Shs 300,000,000

Total 2012 Shs 450,000,000 6,000,000 19,340,000 935,055 35,057,516 765,753,661

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2013 Long term business Shs 150,000,000 6,000,000

955,595,725

Total 2013 Shs 450,000,000 6,000,000 76,194,000 129,265 45,335,380 955,595,725

201,335,380

1,331,918,990

1,533,254,370

1,277,086,232

79,271 3,371,576 36,953,932 46,695,653 31,036,842 88,100,000

132,947,290 1,581,352 582,000,000 672,848,551 43,351,334 6,535,846 123,155,383 361,791,502 60,810,612 303,297,833 89,789,988 238,100,000 23,040,405 1,306,034,163 21,841,650

78,556,295 4,464,451 203,577,205 986,737,809 31,589,701

7,005,790

132,947,290 1,502,081 582,000,000 672,848,551 43,351,334 6,535,846 119,783,807 324,837,570 60,810,612 256,602,180 58,753,146 150,000,000 23,040,405 624,083,082 14,835,860

65,107,138 235,529,024 40,390,430 256,329,733 108,249,964 223,861,708 94,440,555 1,145,456,934 10,303,811 34,022,359

895,194,145

3,071,931,764

3,967,125,909

3,518,617,117

75,974,211 567,428,346 44,257,360 -

6,198,848

1,047,910,254 555,111,054 5,400,999 35,109,584 96,480,883

1,123,884,465 567,428,346 44,257,360 555,111,054 5,400,999 35,109,584 102,679,731

1,152,728,925 475,319,021 10,934,001 434,123,178 25,550,082 41,531,220 29,671,592 71,672,866

TOTAL LIABILITIES

693,858,765

1,740,012,774

2,433,871,539

2,241,530,885

NET ASSETS

201,335,380

1,331,918,990

1,533,254,370

1,277,086,232

CAPITAL EMPLOYED Share capital General reserve Revaluation Reserve Available-for-sale reserve Statutory reserve Retained earnings

45,335,380

SHAREHOLDERS’ FUNDS ASSETS Property and equipment Intangible Assets Prepaid operating lease rentals Investment property Investment in the Kenya Motor Insurance Pool Deferred tax Receivables arising out of reinsurance arrangements Receivables arising out of direct insurance arrangements Deferred acquisition costs Reinsurers’ share of insurance liabilities Other receivables Held to maturity investments Available for sale financial Instruments Deposits with financial institutions Tax recoverable Cash and bank balances

76,194,000 129,265

STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2011

681,951,081

TOTAL ASSETS LIABILITIES Insurance contract liabilities Payable under deposit administration contracts Payable under investment contracts Provision for unearned premium Deferred income tax Income Tax Payable Creditors arising from reinsurance arrangements Cash and bank balances - Over Draft Other payables

-

STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2013 AMOUNTS PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS As at 1 January Pension Fund Deposits Received Surrenders and Annuities Paid Interest Payable to Policy Holders Administrative Expenses Increase in Un-Appropriated surplus As at 31st December INVESTMENT CONTRACT LIABILITIES As at 1 January Pure Investment Funds Received Surrenders and Annuities Paid Interest Payable to Policy Holders Administrative Expenses Increase/(decrease) in Un-Appropriated surplus As at 31st December KEY RATIOS Capital Adequacy Ratio Solvency Ratio Claims Ratio Expense Ratio

2013 KSHS 475,319,021 106,209,752 (39,679,046) 67,500,174 (4,638,249) (37,283,306) 567,428,346

2012 KSHS 359,092,833 77,548,201 (21,407,696) 83,717,484 (2,894,487) (20,737,314) 475,319,021

2013 KSHS 10,934,001 5,334,760 (1,664,175) 1,787,069 (2,594,177) 30,459,882 44,257,360

2012 KSHS 8,076,047 3,896,433 (1,929,319) 2,382,252 (1,440,004) (51,408) 10,934,001

Long term business

General business

2013

2012

100% 1033% 70% 16%

100% 526% 45% 43%

100% 584% 37% 37%

100% 638% 41% 44%

The above statements of Comprehensive Income and Financial position are extracts from the Financial statements of the company for the year ended 31 December 2013 which were audited by Ernst and Young and received an unqualified opinion. The financial statements were approved by the Board of Directors on 29/04/2014 and signed on its behalf by: P.M. Ngugi Chairman

P.M. Ngugi Chairman

E.B.M Chele Director

E.N. Ngugi Director E.M. Kimemia

E.M. Kimemia Director/ Principal OfÀcer

Managing Director/ Principal Officer

Head OfÀce: Chester House, 1st Floor, Koinange Street, P.O. Box 30170-00100, Nairobi, Kenya Tel: 2216792, 2241620-6, 2216450, Cell Phone: 0722-205286, 0733-600462, Email:[email protected]

Page 6 / NATIONAL NEWS

Tuesday, May 20, 2014 / The Standard

THE RETURN OF

ANGLO LEASING

TNA tells rivals off over mass action

TNA BLAMES FORMER STATE OFFICERS

Party claims some members of CORD were in office when deals were initiated, promise to shoot down impeachment Motion

Chris Obure

By WILFRED AYAGA The National Alliance (TNA) responded to weekend’s call for mass demonstrations over the controversial Anglo Leasing payments by rival party CORD and promised to shoot down impeachment Motion against President Uhuru Kenyatta. TNA also blamed former Attorney General Amos Wako and former ministers Musalia Mudavadi and Chris Obure for the dubious Anglo Leasing contracts. “The deals involving First Mercantile and Universal Satspace were signed in July 2002 by Transport and Finance ministries. Mudavadi was Transport minister, Obure was Finance minister and Amos Wako was the Attorney General. Any attempt to take over the Government other than through lawful means amounts to treason. We are not paying because we like it, but we would like to save Kenyans the pain of paying an extra Sh25 billion as accrued interest,” TNA Chairman Onyango Oloo told a press conference yesterday. MPs and political leaders allied to the party called separate press conferences during which they poured cold water on CORD leaders who last Sunday threatened to call people out into the streets to protest the payments, which have the backing of President Kenyatta. During the Sunday rally, CORD

Amos Wako Director of Liaison at State House Patrick Ngatia, TNA Secretary General Onyango Oloo and party Executive Director Joseph Mathai address the Press at the TNA headquarters in Nairobi, yesterday. [PHOTO: PIUS CHERUIYOT/STANDARD] threatened to impeach the President, stating that his decision to make the payments was against the wishes of majority. The leaders promised to start a series of countrywide rallies after their leader Raila Odinga, currently in the US, returns to the country.

READY FOR MOTION CORD’s sentiments, however, appear to have rubbed TNA the wrong way with the Senate Majority Leader Kithure Kindiki and House Majority Whip Katoo ole Metito leading 14 MPs and senators in denouncing the calls by the Opposition. The MPs, who included Kimani Ichung’wa (Kikuyu), Mithika Linturi (Igembe South), Mary Wambui (Otha-

ya), Jude Njomo (Kiambu Town) and senators Charles Keter(Kericho) and Naisula Lesuda (nominated) dared the Opposition to table the impeachment Motion. “We are ready to debate the Motion if it comes. However, they should know that in the law it is impossible to impeach the President. This is because they have no grounds to do so and also because the President is not just the chairman of some football club which they can just remove. He has members in both houses,” said Kindiki. “What we saw in Kibera was a comedy show. What we are telling them now is that we are ready for the Motion and they can bring it on,” Ichung’wa said.

The sentiments were made at the same time that Oloo was addressing another press conference at the TNA headquarters, accompanied by a State House official Patrick Ngatia. Ngatia is the Director of Liaison at State House. Also present was the party’s executive director, Joseph Mathai. They turned the heat on CORD saying the people close to the Opposition were in Government when the payments were signed. It also claimed that utterances made by the CORD leaders that they plan to take over the government bordered on treason. Amid the back and forth between CORD and TNA, leaders allied to the URP, which is an affiliate of the Jubilee coalition, have kept a studious slice over the matter.

Musalia Mudavadi

MUDAVADI DEFENCE UDF leader Musalia Mudavadi has told off TNA for attempting to blame him for the Anglo Leasing scandal. “Inquiries were made on the matter at which point Mudavadi’s position was known – innocent,” Mudavadi said in a press statement issued yesterday by his private secretary Kibisu Kabatesi.

CORD threatens to impeach Uhuru as payment row rages By RAWLINGS OTIENO CORD leaders have argued there is no justification for payment of Sh1.4 billion to Anglo-Leasing companies. They said the contracts were illegally procured and that Kenya should not commit to fraudulent dealings. The Opposition also threatened to impeach President Uhuru Kenyatta over his directive to the Treasury to pay the debt. Kakamega Senator Bonny Khalwale asked why the Jubilee government is not implementing what was in the report when Uhuru chaired the Parliamentary Accounts Committee (PAC).

FLEECE TAXPAYERS In 2006, Uhuru, then the Opposition leader, chaired the PAC, which authored the report that described the more than Sh50 billion contracts as a system hatched by a few individuals to continually fleece taxpayers. Khalwale claimed Anglo Leasing companies were owned by two Indians and two Kenyans, whose names are in

Jakoyo: This will be the final onslaught to bad governance. Kenyans must stop suffering.

Khalwale: We are the representatives of the people and we have to stop this.

the report which Uhuru submitted when he was the PAC chairman. “We are the representatives of the people, and if he goes on doing this he will be the first President in Kenya to be impeached,” warned Khalwale. In particular, the Opposition coalition dared the National Treasury Cabinet Secretary Henry Rotich to authorise the payments and face censure Motion in Parliament and Senate. Deputy Minority Leader Jakoyo Midiwo castigated the move to pay the two companies, terming Uhuru’s authori-

sation to pay as unconstitutional. “This is will be the final onslaught to bad governance. Our people cannot keep on suffering because of a few individuals at Harambee House. If Rotich pays this Anglo-Leasing money then, we will jail you, humiliate you and recommend that you are hanged at Uhuru park in public, because this is people’s money and you are the accounting officer,” said Jakoyo. He went on; “The President has money; if he wants to pay with his own money then he can go ahead and pay, but not

the public money.” In a parked political rally at the famous Kamkunji grounds in Kibera, Jakoyo tore into Uhuru’s declaration that Kenya has no option but to pay, saying the President does not have any mandate in law to authorise the release of money without passing through the Parliament. Awendo MP Jared K’Opiyo asked how Kenyans can be sure that the money Uhuru is directing to be paid would not benefit some few people in the Government if the faces behind the Anglo Leasing are not made public. K’Opiyo argued that the Jubilee government had failed to be transparent and is not keen on fighting the ghost of corruption and impunity. His counterpart Suna East MP Junet Mohamed claimed that the Government was rewarding those who politically helped Jubilee fund its campaigns ahead of last year’s General Election. Mohamed accused the Jubilee administration of launching aggressive attacks on reforms.

NATIONAL NEWS / Page 7

Tuesday, May 20, 2014 / The Standard

THE RETURN OF

ANGLO LEASING

House teams probe Anglo Leasing pay They want to know individuals linked to the two companies that sued Kenya for non-payment By MOSES NJAGIH The controversial proposed Sh1.4 billion payout to Anglo Leasing companies is already the subject of a probe by two committees of Parliament. MPs are focusing on unmasking the shadowy figures associated with the two companies that sued Kenya for non-payment. The Senate Committee on Finance, Commerce and Budget and the National Assembly’s Public Accounts Committee (PAC) are investigating the saga. Parliament waded into the controversy after Treasury moved to the National Assembly to seek concurrence on Attorney General Githu Muigai’s advice that Kenya settles the debt. Meanwhile, the joint committees of Budget and Finance in the National Assembly, after meeting with officials from both Treasury and the AG’s office, gave the green light for the payments to be honoured. The report was due to be tabled in Parliament on the same day that Treasury officials met Jubilee MPs to lobby

them to support the report. But it was quietly removed from the order paper after the legislators walked out on the Treasury officials, chanting “Can’t pay, won’t pay”. In a report tabled in the National Assembly before it went on recess and which was presented by Budget Committee chairman Mutava Musyimi, the joint teams recommended to the House to allow the Government to pay so that in return Kenya would be eligible to float its euro bond. But PAC and the Senate committees have insisted that the payments should not be made until all contentious issues are addressed by their respective probes. Both Muigai and Treasury Cabinet Secretary Henry Rotich are expected to appear before the Senate committee chaired by Mandera Senator Billow Kerrow this week to give details of the proposed payments. The committee also indicated it would be probing the court processes that led to the awards against Kenya, looking at the defence the AG’s office made before the judges in both cases in the United Kingdom and Switzerland. “When they come, they must be prepared to tell us who the directors of these companies are. They should not come telling us that they would need to go back and conduct a search,” said Kakamega Senator Boni Khalwale, a committee member.

Unmask those behind scandal, MPs tell Uhuru By NDERITU GICHURE

The Parliamentary Accounts Committee meets at Parliament buildings. [PHO-

TO: FILE/STANDARD]

Three Jubilee MPs have asked President Uhuru Kenyatta to unmask the faces behind the Anglo Leasing scam before Sh1.4 billion is paid out to two firms. Njogu Barua (Gichugu), Julius Ndegwa (Lamu West) and James Bett (Kesses) said they supported the Sh1.4 billion payout but demanded that the Head of State first reveals those involved. Speaking at Kiamugunda Catholic Church in Gichugu constituency on Sunday, the legislators said it was imperative for the country to know who was being paid the money. “The Government should go ahead and reveal those behind Anglo Leasing, and we will marshal support in Parliament to ensure the President has our support,” Barua said. They noted that most of the contracts worth Sh5.6 billion had already been paid by the previous regime. “It is hypocritical for CORD leaders to keep on criticising everything the President does in relation to the scandal yet they were part of the Government that paid billions,” Ndegwa said. Bett said the opposition was deliberately trying to embarrass the President.

Page 8 / NATIONAL NEWS

Tuesday, May 20, 2014 / The Standard

Prospective varsity, college students told to review applications online Placements body gives candidates up to May 31 to apply, review choices and validate their applications

By FAITH RONOH

By RAWLINGS OTIENO The body charged with university admissions has asked students who have qualified to study degree and diploma courses to review their applications online. Kenya University and Colleges Central Placement Services (KUCCPS) Chief Executive John Muraguri said 58,000 students would be admitted study degree courses. An additional 39,000 would be enrolled for diploma courses. Yesterday, KUCCPS launched its online application system, which will close at midnight on May 31. Through the online platform, candidates can review their choice of courses and validate their applications. The body has set the cut-off point for admission to bachelor’s degree programmes at B (60 points) for male candidates and B- (58 points) for female candidates. This is based on the total declared capacity for programmes under Government sponsorship, and the performance analysis of the 2013 Kenya Certificate of Secondary Education Examination results released this year. Muraguri said that candidates must apply online to be admitted and those who had applied, should check, and if need be, revise their cluster subjects. “All applicants including those who may have submitted their applications earlier, either directly to universities and colleges or through their respective schools, and would wish to revise their choices can do so,” said

New civil service policy unveiled

THE CHOICES • The body has set the cut-off point for admission to bachelor’s degree programmes at B (60 points) for male candidates and B- (58 points) for female candidates • Candidates with a minimum overall grade of C- and above are eligible to apply for diploma programmes in various government institutions Muraguri. Speaking to The Standard yesterday at the Placement Headquarters at the Kenya Science College, Muraguri said that all candidates with a minimum overall grade of C- and above are eligible to apply for diploma programmes in various government institutions. Such candidates can apply to Kenya Medical Training College (KMTC), Teachers Training Colleges (TTCs) and Technical, Industrial and Vocational Training Colleges (TIVET). Muraguri said that candidates who meet the cut-off point set by the Placement Service for admission to bachelor’s degree programmes may in addition apply for diploma programmes of their choice. Those below the bachelor’s degree cut-off point but with a minimum of

Candidates wait to be taken through the process of applying for selection to universities and colleges at University of Nairobi Ngong Road campus yesterday. [PHOTO: BEVERLYNE MUSILI/STANDARD]

All common cadre staff serving in various government ministries will, starting July 1, 2014, report directly to their respective Cabinet Secretaries. This follows the recently launched policy on Decentralisation of Human Resource Management that will see an overhaul in the functioning of human resource departments in various ministries. Public Service Commission (PSC) Chairperson Margaret Kobia said lack of control by cabinet secretaries over staff, increased inefficiency and dual reporting relationship in support functions prompted the overhaul in the human resource department. “We have had cases where a member of staff working under a certain ministry is required to report to a different cabinet secretary depending on their job description. The new policy will ensure that we have staff directly answerable to their ministry CS,” Kobia said.

destination overall grade of C- can only apply for diploma programmes. According to the rules and guidelines, the minimum placement requirement for bachelor’s degree for candidates who schooled for both their primary and secondary education in counties classified as marginalised areas by CRA 2012 policy is B- (55 points).

overall grade Those with an overall grade of grade B (60 points) for male candidates and grade B- (58 points) for Female candidates will be allowed to make a total of eight choices of both degree and diploma programmes. Candidates with an overall grade of C- and above but below grade B (60 points) for male and grade B- (58 points) for female students will be allowed to make a maximum of six diploma programme choices. Candidates’ choices 1(a), 1(b) and

1(c) clusters must be similar programmes while choices 2, 3 and, 4 can be any other programmes for both degree and diploma programmes. If a candidate qualifies to apply for a bachelor’s degree, they may choose diploma choices as choice 5 and 6. According to Muraguri, candidates with disabilities will download and fill the Disability Application Form and return the dully filled form to the Placement Service. But to apply, all applicants will have their KCSE index number, birth certificate number and a valid email account. Candidates wishing to revise their applications—those who had applied in school—will be charged Sh1,000 while those who had not applied in school will pay Sh1,500. Applicants who will have problems with their application have been advised to seek assistance from any of the listed universities and colleges close to them.

Kobia explained that the new policy will ensure that employees are more focused in their respective designations thus boosting performance. The PSC chair said the new organisational structure for ministries will be based on strategic plans mandate of the respective ministries adding that it will reduce workload for the CSs and other senior ministry staff. “Cabinet secretaries at times leave a gap especially when they have to travel outside the country for workrelated issues. However, if they can surround themselves with people who say belong to this ministry and I report to this CS then their job will be almost purely delegating duties,” Kobia explained. With the new structure, Kobia said, there might be reshuffling of employees in various ministries to ensure they are well-placed in line with their strengths and ability to deliver.

Mrs Shollei tells court she isn’t keen on reinstatement By FAITH RONOH and KAMAU MUTHONI Former Chief Registrar of the Judiciary (CRJ) Gladys Boss Shollei yesterday told the High Court in Nairobi that she no longer needed her job back. Through her lawyer Donald Kipkorir, Mrs Shollei said she has no intentions of becoming the CRJ even after the Industrial Court earlier quashed her dismissal terming it unconstitutional. “You will recall that she wanted to

come back but allow me to make it clear that she (Shollei) has no intentions of becoming the Chief Registrar of the Judiciary,” Kipkorir told the court. Mrs Shollei had through her lawyer in March written to Chief Justice William Mutunga asking him to “advice on when she can resume office”. Kipkorir had argued that the implication of the judgment was that Shollei’s dismissal from office was a nullity and her constitutional rights were violated. But Kipkorir, who made submis-

sions during a hearing of an appeal by the Judicial Service Commission (JSC) challenging the Industrial Court ruling, was categorical that Shollei was no longer interested in her previous job. He further submitted that the purpose of the petition at the Industrial Court challenging the ousting of her client was purely based on the process followed by JSC in dismissing her. JSC lawyers Paul Muite and Issa Mansur argued that the Industrial Court was not a High Court and therefore could not interpret the Constitu-

tion. But Kipkorir responded by saying that such an argument was absurd since JSC had not raised the issue at the Industrial Court or before Justice Mumbi Ngugi who transferred the matter to the Industrial Court. “Furthermore the Constitution sets article 162 establishing the Supreme Court, Court of Appeal and High Court. The High Court includes Labour Relations and Environment Court which are high courts, not lesser courts. All High Courts can determine questions of the Constitution,” Kipkorir argued.

Captains look for results not salutes

Gladys Boss Shollei

NATIONAL NEWS / Page 9

Tuesday, May 20, 2014 / The Standard

I didn’t order fees increment, Kaimenyi tells students By Irvin Jalang’o

Education Cabinet Secretary Jacob Kaimenyi has dismissed claims that he ordered fees increment in all public universities. In a meeting with student leaders from across the country in his Jogoo House office, Prof Kaimenyi said he never issued such a directive. “Government directives are

Students Organisation of Nairobi University (Sonu) chairman Babu Owino at a past Press conference. Public university students are planning to stage demonstrations along certain roads today. [PHOTO: FILE/STANDARD]

Avoid city, Sonu says on strike plans Student leaders want vehicle owners to keep off University Way, Thika Road and Kikuyu Road By ISAAC MESO and ELEANOR NANDWA University of Nairobi student leaders have warned motorists to keep off major roads leading to the city centre due to today’s nationwide students’ demonstrations. Students Organisation of Nairobi University (Sonu) chairman Babu Owino urged motorists to keep off University way, Nairobi CBD, Moi Avenue, Parklands, Kikuyu Road and Thika Superhighway. “If you are working within Nairobi and you own a vehicle, please leave it at home. We are further warning motorists to stay away from major roads leading to town since they will be flocked by demonstrators” he said. “Education Cabinet Secretary Jacob Kaimenyi has remained silent over this matter and we strongly feel that the only way we can get his attention is through paralysing learning in our institutions.,” he said. “We have also received information that one of our stu-

dent leaders received a bribe to snub the demonstration. This will not work as all the students in public universities are behind us,” he added. The Sonu chairman said the nationwide demonstrations by students from the seven public universities will continue until the Government addresses their grievances. Sonu secretary general Jim Akach said it was unfair for the Government to increase university fee and lower the maximum loan awarded to students by the Higher Education Loans Board. The student leaders questioned the Government’s motive to raise university fee at a time when it was being haunted by the Anglo Leasing scandal.

Task force “We won’t allow the Government to raise our fee so as to use part of the money to fund Anglo Leasing,” said Akach. Among the grievances they want addressed are reduction of current fee by half, increase of HELB loans and provision of grants to students. The student leaders had earlier given Prof Kaimenyi 14 days to establish a task force to review university fees, insisting they had not been consulted. According to the student leaders, the Government is planning to double the fee for regular students, which currently stands at Sh28,000 per year.

communicated officially through memos and circulars. No statement or directive, or any documentation has been written to that effect. We are all surprised by the strike notice,” he said. While referring to a speech he delivered at Bomas on April 23, Prof Kaimenyi said the Government was only considering a differentiated unit cost, where different courses would

cost differently. “We cannot increase University fees without consulting stakeholders, of which students are the major players. That responsibility is with the universities councils,” he said. Leaders from the National University Students Organisation led by George Bush of Moi University distanced themselves from the strike notice

and told Prof Kaimenyi they had called for calm. Notably missing was the Babu Owino-led Kenya University Students Organisation which the Principal Secretary Belio Kipsang said he had met. Kaimenyi said the matter may have been politicised. He urged the student leaders to give dialogue a chance. Babu’s group had called for a strike today.

Page 10 / NATIONAL NEWS

Tuesday, May 20, 2014 / The Standard

Varsity staff to strike in 10 days’ time Uasu and Kusu tell their members to down tools from May 30 should State fail to honour agreement

By ERIC WAINAINA

By Michael WesongA Public university unions have advised their members to commence industrial action from May 30 over Sh3.76 billion allegedly misappropriated by vice chancellors. The national officials of the Universities Academic Staff Union (Uasu) and the Kenya Universities Staff Union (Kusu) told their more than 25,000 members to proceed with the strike without further reference to the Government in case it fails to honour a return-to-work formula. Speaking in Eldoret, Kusu Secretary General Charles Mukwaya vowed to stage a massive and protracted withdrawal of services.

adequate time “What is coming out clearly are innuendos to the effect that the chancellors are now speaking with impunity that they will not pay for lack of funds,” he said. He insisted that the argument was inexcusable given they had granted the vice chancellors adequate time to

President calls for schools’ exchange plan

University Academic Staff Union Secretary General Musalia Edebe (left), Kenya University Staff Union Secretary General Charles Mukwaya and National Chairman Anthony Nyakoni address the Press in Eldoret, yesterday. [PHOTO: MICHAEL WESONGA/STANDARD]

make up for the members’ salary raise, house allowances and arrears they had duly negotiated for. “We are telling our members to go out and seek their money to the last penny without further reference to the Government or universities if they would not have been fully paid by 30th of this month,” he advised. Article 5 of the agreement between Kusu, Uasu, Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers and the

Inter Public Universities Councils’ Consultative Forum demands the payment be effected not later than May 30 this year. “Payment to eligible members of staff in JG 1-15 shall be effected in full on a date not later than May 30 2014,” states the agreement. Article 6 of the agreement signed on March 12 stipulates that there shall be no victimisation of either party and no employee shall suffer loss of earnings over the period of work stoppage. Mukwaya accused the university vice

chancellors of holding irregular meetings with the universities’ Senate teams which he said have no mandate in administrative, human resource and financial management. Uasu National Secretary General Musalia Edebe said they were at pains explaining to members the delay in payment offered by the Government. “We gave the VCs the benefit of doubt but now we are waiting for them to act in the spirit and commitment of this document,” he said.

President Uhuru Kenyatta has requested best-performing secondary schools to engage in academic exchange programmes in order to help improve education standards. The Head of State said national schools like Alliance High, which perform excellently, should share the secrets behind their success with other schools. “Don’t keep what you hold dearly. Let other people learn from what you have,” Uhuru said during a thanks giving ceremony at Alliance. The President was supporting the request by Kiambu Senator Kimani Wamatangi and Governor William Kabogo to Alliance School management to start such programmes as a way of improving education standards in the county. They raised concerns that despite the county hosting the best performing school, majority of other schools in the area have been performing poorly. Wamatangi had asked the school management to start an exchange programme where the students from the school can visit others schools in the county. Kiambu Women’s MP Anna Nyokabi said MPs from the area have formed a caucus to address education issues in the county.

Tuesday, Tuesday, May May 20, 20, 2013 2014 // The The Standard Standard

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MAY 2014 EXAMINATION TIMETABLES KASNEB wishes to inform the candidates sitting for May 2014 examinations that their AUTHORITY TO SIT EXAMINATION (TIMETABLES) have been dispatched through the Post Office. Candidates may also download the same from KASNEB website (www.kasneb.or.ke). Candidates are required to access their account on the student portal in order to download the timetable as follows: 1. On the website click on the student login link then choose the student icon or proceed to click the student icon if you use the direct link (online.kasneb.or.ke) to the student portal. 2. If you had created an account earlier, proceed to step 3. Otherwise click on create account and click the ‘yes’ button to indicate you have a Student Registration Number. Proceed to provide names, preferred email address and a strong password (which will be used for future access to self information) and click save. 3. Provide the email address and password used when creating the account and click unlock to login. 4. Select the “Registration Details” menu. 5. Access the “Course Choice” tab. 6. Select the examination from the dropdown box, click on the “Yes” checkbox and provide the registration number without the prefix (e.g. if your registration number is NAC/68148, provide 68148 as the registration number) and click save. 7. Select the “Examination Timetable” menu to view your timetable and instructions to candidates. 8. Click on “print” to print the pdf version or “Send to email” to send to your email address. The timetable must be presented to the invigilators at each session of the examination. Please pay attention and adhere to the “INSTRUCTIONS TO CANDIDATES” relating to the conduct of the candidates during the examinations. SECRETARY AND CHIEF EXECUTIVE Tuesday, 20 May 2014

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