WEDNESDAY, APRIL 30, 2014

Jubilee split over Anglo Leasing billions

Jubilee legislators walk out of a meeting with National Treasury Cabinet Secretary Henry Rotich at a Nairobi hotel on April 30, 2014. PHOTO | GERALD ANDERSON

Jubilee legislators walk out of a meeting with National Treasury Cabinet Secretary Henry Rotich at a Nairobi hotel on April 30, 2014. PHOTO | GERALD ANDERSON  NATION MEDIA GROUP

In Summary

  • Most MPs from both sides demanded that the faces behind all the companies in the Anglo-Leasing controversy be revealed before Parliament takes any position
  • Attorney General Githu Muigai in a meeting with the MPs last week had advised that the amounts be paid to avoid any further loss
By NATION TEAM
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A controversial proposal to pay Sh1.4 billion to two Anglo-Leasing- related companies sparked a major political backlash on Wednesday, forcing the withdrawal of a motion seeking Parliament's approval to pay the sum in one instalment.

Jubilee MPs rebelled against their leader in Parliament and vowed they would not to be used as rubber stamp to pay billions of shillings to "phantom" companies.

The opposition —Cord — also rallied its members to shoot down the motion, tabled in the National Assembly at the request of the National Treasury. Cord leaders said they would not allow taxpayers' money to be wasted on "faceless people".

The Budget and Finance committees of the National Assembly — which had approved the payments on Tuesday — withdrew the report from the schedule of proceedings after sensing defeat on the floor when members demanded details of the firms involved.

Cord — which had held a parliamentary group meeting at County Hall earlier in the day — had from the onset declared its opposition to the proposal and members maintained the same position with their slogan: "Can't pay, won't pay."

Jubilee legislators had also met at the Panafric Hotel but the talks turned stormy and ended in confusion after protesting members stormed out, ending the meeting prematurely.

Not even the intervention of Deputy President William Ruto on Tuesday night to get the Jubilee members in the National Assembly to back the payment could save the day.

Most MPs from both sides demanded that the faces behind all the companies in the Anglo-Leasing controversy be revealed before Parliament takes any position.

At Panafric Hotel, the meeting organised by Mr Duale, National Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau Thugge failed to win over MPs. The majority of those present rejected the proposal demanding to be first given details of the proprietors of the companies involved. When Mr Rotich failed to name the owners of the companies, the MPs walked out.

Said Lugari MP Ayub Savula: "We do not want to engage in open corruption by giving out billions of shillings to people whom we do not even know. This money belongs to Kenyans," said Mr Savula.

Mukurwe-ini MP Kabando wa Kabando cautioned the government against using them to endorse corrupt deals. He said MPs would only support the government on issues that were of benefit to Kenyans.

"We will not accept to be manipulated by the President and the Executive to legalise corruption," he said.

Laikipia MP Antony Mutahi and Nyandarua County women representative Wanjiru Muhia said the government could not purport that it wanted to pay people it did not know.

"We are opening a window for more fraud and as MPs we do not want to be part of it," said Mr Mutahi.

However, Kiharu MP Irungu Kang'ata supported the decision to pay, saying the government had no choice.

"The companies went to court and a judgment was delivered and we lost. That means that the owners of the companies are known," he said.

At County Hall, Leader of the Minority in the Senate Moses Wetangula said the opposition would not sit as taxpayers' money went to pay "faceless" people.

"Today we are not going to be accomplices and co-conspirators in an effort to loot money from public coffers," he said. (READ: Name Anglo-Leasing architects, says ODM)

On the floor of the National Assembly, Budget and Appropriations Committee chairman Mutava Musyimi withdrew the report, saying the decision was reached after consultations with his Finance and Trade counterpart, Mr Benjamin Langat.

"We have agreed to withdraw this motion as it needs more comprehensive consultations before engaging further on matter," he said.

SOVEREIGN BONDS

The decision followed failed lobbying attempts from Treasury to have the MPs clear the payments to First Mercantile Securities Corporation and Universal Satspace LLC which successfully sued the government of Kenya in Switzerland and UK courts over two contracts. The courts awarded both cases to the complainants to the tune of $10.6 million and $7.8 million respectively, including costs.

First Mercantile was contracted to supply VSAT equipment by Spacenet to connect all the post offices in Kenya. Universal SatSpace signed an agreement with the government for provision of bandwidth and network management for 10 years for all post offices under the First Mercantile project. (READ: Govt warned against Anglo Leasing payout)

Attorney General Githu Muigai in a meeting with the MPs last week had also advised that the amounts be paid to avoid any further loss.

The judgment award coincides with the proposed issuance of Sovereign Bonds which, according to the Treasury, cannot take place unless the government honours all obligations related to court awards internationally. (READ: Pay at your own risk, PAC warns)

—Reports by Caroline Wafula, Ouma Wanzala and Samwel Karanja