CORRUPTION TRAILS END AT STATE HOUSE

[miguna]

CORRUPTION TRAILS END AT STATE HOUSE DOOR STEPSBy MIGUNA MIGUNA* - © 22 January 2006

WE now know – thanks to the spectacular public disclosure by the Sunday Nation (and previously by John Githongo and Sir Edward Clay) - that the multi-billion shillings grand corruption trails in the Kibaki government that have been rumoured both locally and internationally lead directly to the doorsteps of president Kibaki’s State House. With the naming of the president’s private/personal secretary, Alfred Getonga, as the primary ubiquitous coordinating money-man at the end of all the murky trails, the unmistakable smoke of evidence that has been swirling around the corridors of power has slowly settled atop the seat of our chief executive. It has become virtually impossible for the thick smoke to clear without the entire house of government being hung up to air and dry – publicly, through criminal trials. The stench of corruption, fraud and despicable criminal looting must be dealt with openly, legally and swiftly. But the prosecutions cannot be conducted or supervised by the same culprits that have been accused of this spectacular looting spree.

According to the Sunday Nation, Getonga sat at the head of this corruption-blood-splattered table with David Mwiraria, Moody Awori, Kiraitu Murungi and Chris Murungaru. With Mwiraria heading the Ministry of Finance, Murungaru then the chief of Internal Security and Defence portfolios, Murungi taking care of Justice and Constitutional Affairs and Awori sitting as the “official” deputy of President Kibaki as well as being the Leader of Government Business in Parliament and the then Minister of Home Affairs, the government was involved in the corruption schemes from top to bottom. It was drenched into this thing up to its neck. But Getonga was holding brief for his Boss.

No one can reasonably or legitimately claim that Mr. Getonga was coordinating the shady acquisitions and disbursements of billions of shillings alone. No; Getonga could not have been acting solely out of his personal or private interests. After all, Mr. Getonga is not officially a government employee; he is president Kibaki’s personal secretary. He answers directly and only to president Kibaki. One wonders how a mere private secretary was coordinating senior Cabinet ministers. I guess money talks.

Mr. Getonga’s terms of employment are not known to the public. Neither are we aware of his remuneration. Although not publicly admitted, Mr. Getonga’s true job is to run financial errands for the president. In more developed democracies, President Kibaki’s financial affairs would be handled through an arms-length professionally run blind-trust. In such an arrangement, the president is not allowed to have any chummy relationship with the person responsible for managing the blind trust. Hence, in a functioning democracy like Canada, for example, Mr. Getonga cannot operate from State House, leave alone being able to act as the president’s “private secretary.” There are more than enough highly paid busy bodies at both State House and Harambee House to prepare the president’s correspondence, statements and organize his diary.

It is a bizarre arrangement like the one between Getonga and Kibaki that creates, encourages and perpetuates grand corruption in Kenya. Without true and accurate information on how Mr. Getonga was appointed to his job, what his functions are, where his office draws its budget and how he can be called to account for any real or perceived wrongdoings, it is almost impossible for the public to monitor and address any allegations of financial improprieties on the part of either the president or his private secretary. Kenyans need and deserve to know more.

In fact, it is not clear whether the Office of the Auditor General has any effective mandate and mechanism of supervising spending not just at the Office of the President (PO), but also of the president personally. Again, without an effective way of calling into account the OP and the president, it will be very difficult to adequately wrestle down the corruption ogre in Kenya.

Recently here in Ontario, a Provincial Minister, Frank Sorbara, had to resign from the Cabinet because he was alleged to have failed to disclose some financial land deals his private family business had executed before he was named a minister. He resigned even before investigations (which later cleared him) were called. The minister resigned immediately the whiff of suspicion of financial impropriety was raised. The financial disclosure rules in Canada for public officials are so comprehensive, wide-ranging and sweeping that one cannot get around them through some phony loopholes or technicalities. The minister could not protest that these were only mere allegations. He did not ask for evidence before resigning. And he has not been re-instated even after being cleared.

At the Canadian Federal level, the outgoing Finance Minister, Mr. Ralph Goodale, has faced stiff challenge over rumours that there were some leaks (from his ministry) over the government’s decision to lower taxes over Income Trusts. The rumours were generated by the unusual trading patterns and volumes just hours before the government announced the change in taxation over income trusts. Previously, it was widely expected that Mr. Goodale would either retain the tax levels or increase them. Because his decision to lower the taxes was unexpected, analysts questioned how those who had heavily traded in income trusts just before his announcement had learnt of the decision. Essentially, because some “fortuitous” investors appear to have reaped huge financial windfalls following the minister’s announcement, the Royal Canadian Mounted Police (RCMP) Fraud Squad was called in to investigate. Although the RCMP investigation is ongoing, the force has released a preliminary report that suggests that Mr. Goodale was neither the source of the alleged leaks nor was he aware of them. The RCMP’s unusual disclosure was done in order to blunt the damage its involvement might have caused in the Liberal Party’s re-election fortunes in view of the fact that the Conservatives have been making mileage out of the rumours.

However, what is clear is that the RCMP started their independent investigations almost as soon as the first romour was off its mills. They did not seek or wait for the Prime Minister’s permission before acting (like our Aaron Ringera apparently did). In Canada, the government has no direct control over the police forces. Apart from the fact that the local police is governed by independent civilian municipal boards (each Canadian city or town has its own police force and Board), the RCMP (which is a federal police force), is not controlled by the government. As such, the police are mandated and have power to investigate and prosecute even government officials without any regard to the party in power. While not perfect, this independence of the police ensures that there are no sacred cows in society. That is the way it should be even in Kenya.

When this whole grand corruption brouhaha started in Kenya in July 2004, both President Kibaki and members of his kitchen cabinet smugly challenged the former British Ambassador to Kenya, Sir Edward Clay, and other Kenyans to “forward evidence” of the allegations to the government so that those allegations could be investigated. Not only was the government’s challenge outrageous, it was also tantamount to passing the buck to the complainants.

Firstly, the Kenya Police – and any other anti-corruption agency worth its salt - was supposed to have immediately launched thorough investigations over the allegations without regard to who the complainants were. Secondly, there is no requirement in law that a complainant must have “evidence” before making a complaint and requesting for a police investigation. All that the police require to initiate an investigation is a “reasonable belief” that a crime has been committed. The “reasonable belief” can be derived from “reasonable suspicions” or actual credible evidence that a crime has been committed. Thirdly, it is the police who are supposed to pursue leads and investigate allegations with a view to suing out evidence for purposes of possible prosecutions. Asking complainants to “produce evidence” is akin to stating that the complainants are also responsible for conducting investigations. In other words, it relieves the police of its statutory and mandated role. And fourthly, even if the complainants have evidence, they should not be asked or taunted by the government to produce the same. Lots of productive criminal investigations in the world have been conducted on the basis of tips from anonymous “informants” or complainants. Invariably, these tips constitute mere telephone calls and not written statements, as routinely unreasonably demanded by the Kenya Police.

To imagine that the government of Kenya has incestuously looted billions of public money in order to fund president Kibaki’s petty political projects such as the “countering of opposition at the Bomas Constitution Review process”, the Banana/Yes referendum campaign and the 2007 re-election – as well as for personal gain - is as close to a political lunacy as one can get. This government does not deserve to remain in power for even one more day. Kenyans cannot wait for 2007 to remove this government from power. For to wait that long might mean allowing the looters to steal more billions that Kenyans do not have. We have enough evidence to put these thieves in prison for the rest of their lives. We don’t need yet another useless judicial inquiry; for that will only be transformed into a government white-wash. These criminals do not qualify to be in any government. They cannot be trusted to take care of the people’s money the same way that hyenas cannot be trusted to look after sheep.

______________________________________________________________________

*The writer is a Barrister & Solicitor in Toronto, Canada

[miguna]

They are trying to scratch the surface in order to protect the chief looter; but they will never succeed.
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COMMENTARY

What did Kibaki know and when?

Story by MACHARIA GAITHO
Publication Date: 01/24/2006
What did the President know, and when did he know it?

That was the most frequently asked question about President Nixon in the wake of the Watergate scandal. The American president went down, not just because of the scandal, but because of his role in the subsequent cover-up.

What did the president know, and when did he know it? We could have asked that of our own President Moi in reference to the Goldenberg scandal.

What did the president know, and when did he know it? We are bound to ask that of President Kibaki, a man elected on an anti-corruption platform but now clearly becoming enmeshed in official corruption that could rival any infamy Moi and his band of crooks ever visited on this country.

The Anglo Leasing scandal has put to shame President Kibaki's oft-repeated vows to lead the fight against corruption. Emerging evidence indicates that figures very close to the President happily inherited the corrupt networks of the Nyayo regime and diverted, or tried to divert, public funds into private pockets.

The evidence also shows that a clique of Cabinet ministers and civil servants put in place a very deliberate cover-up effort once the crimes were exposed. They tried to lean on those who were pursuing the investigations. They lied to Parliament, to investigators and to the public.

The evidence also indicates that the President was kept fully briefed on the activities of people close to him who either abetted Anglo Leasing or the subsequent cover-up efforts, but for some reason, chose to do nothing about it.

We still don't know how much money was stolen. We do know that some money was returned to the Treasury when the heat become a little too much. And so somebody contrived the argument that no crime was committed because the money was returned.

Those behind the cover-up have resolutely refused to divulge the identity of who returned the money, and thus expose who was the beneficiary in the first place.

They tried to block investigations on the basis that the money had been returned. They even brought forth the argument that further investigations were not desirable because figures very close to the President would be netted.

What is certain is that a crime was committed. The argument that the money was returned holds no water. If somebody is caught red-handed in the commission of a crime and his mission aborts, does that mean no crime was committed?

A gang of violent bank robbers who pull off a successful heist will not be let free just because the loot is subsequently recovered. One does not need to be a lawyer to understand that attempted robbery is as much a crime as actual robbery.

Like in Watergate, however, we may be dealing with a situation where the cover-up is more serious than the crime. President Kibaki has no option but to take very firm action against those involved in the crime if he wants to rescue his name, which is daily being tarnished by Anglo Leasing and associated scandals.

In the Moi days, the popular refrain from the robber barons of the day was that those making a lot of noise about corruption wanted to bring down the Government.

We are hearing the same kinds of spurious noises today from those who claim to be close to the seat of power. What they are trying to do is save their own skins by hiding behind the President. The President must have none of that. The buck stops with him, and ultimately, it is his presidency under threat.

There is no doubt that President Kibaki is facing serious questions about his commitment to fighting graft. There is no way he will salvage his reputation if the Government, and ultimately he, personally, appears to be shielding those behind Anglo Leasing.

As the situation is now, all that fighting talk from Justice Aaron Ringera is just hot air. The only reason the director of the Kenya Anti-Corruption Commission suddenly woke up from deep slumber and started promising to slay the dragon of graft was because of the knowledge that the exiled former governance and ethics permanent secretary John Githongo was about to make public an explosive dossier.

Now we will be hearing plenty of sanctimonious drivel about the principle of rule of law, innocent until proven guilty, why the fight against corruption must not be a witch-hunt, and why the investigations must be given time to take their course.

Correct. But in the meantime, all the Cabinet ministers, civil service bosses, presidential aides, State House officials and other public servants under investigation must, at a minimum, be forced to step aside. They have already tried to obstruct the course of justice, and no doubt will be desperate enough to destroy evidence as long as they are in positions of responsibility.

The investigations must also look closer at those outside Government who are deeply involved in Narc-era corruption.

Like in the Moi period, we are hearing too many stories about presidential relatives, political activists and others who claim to have an inside track on where there is a quick buck to be made. All the wheeler-dealers happen to derive their influence from their perceived closeness to State House.

It must be demonstrated in no uncertain terms that State House will not, like during the Nyayo era, be the nerve centre of corruption. If he fails to act speedily and decisively, only one conclusion will be drawn - that he is party to all the murky dealings under his watch.

*****
On a lighter note, one of those involved in the cover-up is quoted as saying that "President Kibaki is above money" and "does not touch money". The problem is, he depends on others to worry about how his political projects will be funded. And he asks no questions about the source of funds.

This reminds of an anecdote often told about Mr Kibaki from his days as a regular on the 19th hole at Muthaiga Golf Club. He would be generous in offering drinks all round, but when it came to picking up the tab, there would always be the more youthful businessmen eager to catch his attention by dipping into their wallets.

Some of those fellows are now running some key state corporations, and are also linked to the investment groups that seem to have the inside track on a very opaque privatisation of public corporations.

Mr Gaitho is the managing editor, Sunday Nation

[job]

Miguna,

Your piece and Gaitho's titles : "Corruption trails end at State House", and "What did the President know and when did he know it', can combine into a best seller. Both are excellent pieces, with no beating around the bush.
I hope they will help unravel this fiasco and bring help bring transparency and accountability into governance.

unedited.
job.

[job]

No wonder these folks have engaged in such opulence,....They're now so rich, that the taxpayers (aided by the mortgaging of our children's future) have to dig even deeper into their pockets, to foot their "Rich" lifestyles of expensive Mercs, Mansions, vacations, foreigns trips for doctor appointments, foreign shopping sprees , expensive mistresses etc etc......

(From James Sang, source KOL)
------------------------------------------

Fellow Kenyans,

It was recently reported in the Kenyan press that the German ambassador accused the government of extravagance, especially in regards to the luxury cars it lavishes on its cabinet ministers, amid the debilitating poverty, and the current famine ravaging parts of the country. He also accused it of paying lip service to the war on corruption. He is reported to have advised the government to be prudent in economic management and to ensure effective control of expenditure.
Coming from a foreigner, and a white man at that, this will surely elicit some very loud condemnation from those who benefit directly or indirectly from the government. As sure as the sun rises from the east and sets in the west, we will hear the ambassador being invariably accused of racism, acting in a condescending manner, and being an enemy of Kenya. He will be given all sorts of warnings and told to mind his own business. In fact, at some point in the past, Paul Muite himself, who is not even in the government, had previously accused the ambassador and his fellow diplomats for working to overthrow Kibaki's government.

But lost in all the noise are the actual figures in question. They are usually conveniently ignored.

So I decided to do a little math. Newspaper reports state that each cabinet minister owns a fleet of AT LEAST two top-of-the-range vehicles, each costing about Kshs8.5 million. There are 34 ministers. With two cars each, that totals Kshs.578 million. Assistant ministers get at least one vehicle each. There are 42 assistant ministers in total. At the same price per car, this adds up to Kshs357 million. So, the cost of motor vehicles for the entire cabinet, excluding the president, is a whopping Kshs.975,000,000. Add miscellaneous expenses, such as gas allowance, mileage allowance, and other perks, and you get a conservative figure of Kshs.1,000,000,000. That is one billion shillings! From the Central Bank's point of view, that is a cool EUR11,429,445.80, or US$13,888,888.00 cheque drawn to the Daimler Benz's bank account at Deutshe Bank. With this windfall, you couldn't blame the German ambassador for wearing a smiley face throughout, could you. He would be the happiest man on earth, no doubt. You would think that he would place a direct call to Dieter Zetsche, Daimler Benz's board chairman, to congratulate him for a job well done. He may as well have done that. Who wouldn't. But that's neither here nor there. How about those Kenyans who have no clue where their next meal would come from? Or, how about the workers who have been paying taxes all their lives, but getting nothing in return from the government, in terms of services?

Consider this. If this amount - 1 billion shilllings - were to be shared among all the 212 constituencies, each one would get Kshs.4,761,905.00. Kibaki's government disburses about Kshs5.5 million to each constituency's Constituency Development Fund, (CDF) - a very noble idea in deed. If the ministers were to forgo their perks, this would add almost 100% to the CDF, up to a total of Kshs.10 million per year.

And what about the grains. At Kshs1,200 for a 90-KG bag of maize, the amount would buy 833,333 bags. The population of North Eastern Province, the region worst hit by famine, is 963,143. Every single household would get one bag of corn and spare some for export, or for planting, if the rains come this year.

As for education, the average cost of secondary school education in Kenya per year is about Kshs30,000. If the 74 ministers had to forgo their vehicular luxuries, this money would pay the school fees for 33,333 students per year.
In the academic year 2002/2003, University of Nairobi loans board disbursed Kshs.284,982,500 to 8,426 students. That was Kshs.33,822 per student. If the ministers would ditch their cars, the savings would pay for 29,567 students at UoN for one year. There are 6 public universities and 13 private universities in Kenya with a student population of 50,000. The ministers would have paid tuition for 60% of the entire university student population for a year. Or, since some Kenyan students have opted to attend university in Uganda for Kshs.10,000 per year, why not give the money to Makerere University? It will educate 100,000 Kenyans for one year - or 25,000 Kenyans for four years. A whole bachelor's degree for 50% of the entire university population of Kenya. What an investment in the future of the country!

According to the World Health Organization's statistics, the cost of a hospital stay in Kenya is Kshs.269.44 per person per night. The amount from the ministers would cover the hospital stay for 3,711,401 Kenyans for one night. Or 265,111 Kenyans for two weeks. The same statistics show that the cost of an out-patient visit to a health centre, at the current 50% subsidy is Kshs.118.21 per visit. The amount would cover hospital visits for 8.4 million Kenyans. Or the cost of 3 hospital visits for 2,819,840 Kenyans. Imagine what wonders it would do to all those sick children scattered all over Kenya's hospitals. At 7% HIV+ prevalence, 2 million sufferers would benefit too. But I suppose we will leave such nuances to Bill Gates and Bill Clinton.

And how about shelter. The cost of building a 3-bedroom stone house in the rural area is about Kshs.250,000. Let's assume that this is the median for the entire country. With one stroke, the ministers would have provided decent housing to 4,000 Kenyans.
Finally, since land is the most important asset in Kenya, let's assume that the median cost for one acre of land is Kshs.100,000. Right there, 10,000 Kenyans each would be receiving title deeds.

This, mind you, does not include the salaries and all sorts of allowances, including housing, bodyguards, free phone airtime etc, which amounts to over Kshs.1 million per minister per month. If you are still sane enough to continue, that means a salary of Kshs.12 million per minister per year, (excluding assistant ministers, MPs and permanent secretaries). Add the almost 20 million for the car and you get Kshs.32 million. That's what a single minister consumes per year. He gouges one shilling out of every Kenyan.

With all these perks, you begin to understand why Mr. Bernd Braun is a racist who should mind his country's business.

James Sang
Washington DC.

[job]

NEWS ANALYSIS

Story by DANIEL GACHUKIA /Commentary
*********************************
Publication Date: 1/22/2006

To many people, President Kibaki has turned out to be a big
disappointment. Let's face it, his dismal performance has nothing to
do with his health, his age or his tribal origin. What we are seeing
is quintessential Kibaki; laid-back and lacking any passion for any
cause in life. In short, a Kibaki who is content if the world passes
him by and leaves him alone to enjoy his peace and quiet.

This is the famed text-book economist of Makerere and London School
of Economics. A Kibaki who, in his more than 40 years in politics,
has never written one single paper on Kenya's economic development or
on the development of the Third World. The Kibaki who, in a 40-year
career in politics, has never been able to form or lead a truly
national political party worth the name.

After the terrible 25 years of the Nyayo era, Kenyans were looking
forward not only to a breath of fresh air but to some enlightened and
dynamic leadership in government. What we have seen, however, is a
leadership without any sense of direction or purpose. How
disappointing!

I knew Mwai Kibaki as my senior at Makerere. A star debating student
who enjoyed playing with words whatever side of the debate he chose
to support. Student debates, as we all know, are not a matter of life
and death. They are essentially a form of intellectual entertainment.
It's all a matter of play with words.

Unfortunately, the Kibaki of today seems to have remained the
debating Kibaki of 50 years ago at Makerere. To Kibaki it seems; on
every issue there are three sides: Yours, mine and the truth. No need
to break our bones on it. Tomorrow will be another day. As we all
know, you are not going to succeed in any major undertaking unless
you go into it with a passion. You cannot be a successful politician
unless you have a passion for politics. It is clear to most observers
that Kibaki has no passion for politics. He has no passion for issues
of national development, issues of grand corruption or the scourge of
tribalism.

I like to compare our Kibaki with other Third World leaders like Lee
Kuan Yew of Singapore or Mahathir Mohammad of Malaysia. Same age
bracket, same good education. Read Lee Kuan Yew's book, From Third
World to First or Mahathir Mohamad's Globalisation And The New
Realities or any of his many writings and speeches. See the passion
which drove these leaders. It hits you like the hot Harmmatan. It
sweeps you off your feet. You want to join in and be part of the
action.

No wonder Singapore and Malaysia have got where they are today. One
can quote many more examples. Come back home and ask yourself where
is the leader with a passion to galvanise the collective energies of
Kenyans to move the country forward? Truth be told: Kibaki has been a
terrible let-down to many people, including many of his erstwhile
friends.

Three questions: Does Kibaki have any advisers? If he has, does he
listen to them? If he does, is what we are seeing a reflection of the
advice he has been receiving from them? Of course we all know that
leaders are not made by their advisers. Advisers can only help a
leader fine-tune his ideas and his vision. But the ideas and the
vision must be there in the first place. Above all there must be
palpable consuming passion driving the leader to incessant action;
action which wells up from a deep-seated passion in the heart of the
person. Without this there can be no national leadership. One is
constrained to shout ... "will the real Kibaki please stand up?"

----------------------------------------------------------------------
Mr Gachukia is a director of the Riara Group of Schools and patron of
Kenya Private Schools Association

[job]

Check out a report from the Times (of London) at the link below;

The Times (of London)
January 21, 2006
www.timesonline.co.uk/article/0,,3-2002176,00.html

[aeichener]

I am sooooooo glad that you have learned to hyperlink instead to quote ad nauseam.

Alexander

[miguna]

Job:

You have done great to expose them from all quarters. However, don't worry about "hyperlinks;" they sometimes don't work, like yours above failed. Just cut & paste; it works marvellously.

Back to the main topic - the thieves are sweating. But they have cornered themselves. There will be no escape routes this time. Unlike the Kenyatta days when Kenyans were still green horns on grand corruption, this time around, the wriggle room is gone.

Peace [unedited]
-Miguna-

[job]

Alexander,

Is this your relevant contribution to the thread topic: Corruption trails end at State House ?

Quote:
"I am sooooooo glad that you have learned to hyperlink instead to quote ad nauseam."

Alexander

Ok Professor Computer-Guru (aka Alexander),

Yes, I learnt it, but didn't notice it was such a hallmark or breakthrough in my life,....... you see I learn a lot of these things from MY KIDS,.........meanwhile they really enjoy laughing at me as I fumble through the steps,........What I didn't realize is that it ACTUALLY TICKS YOU TOO, as much as the Kids.

Anyway humor aside, Can you now instead contribute to the topic in question. With 184 posts in Jukwaa so far, you must be a prolific debator here, unless you're just a busybody,..... please enlighten further on this topic.

Nice day,

job

[aeichener]

miguna said:

However, don't worry about "hyperlinks;" they sometimes don't work, like yours above failed. Just cut & paste; it works marvellously.

That would be good for somebody who has no own thoughts, and needs to reproduce those of others, word for word.

Of course, sometimes just reproducing good foreign words, copying entire articles verbatim, can still be more interesting than boring the audience with one's own drivel; but neverthelesse, this is not the purpose of this board, and it is below Job's level, too.

Oh yes, and look up the word marvellous in a good dictionary, lest you wrongly use it; as happened to you with seminally (trying to spice up one's prose with "fancy, big" words is only good if one really knows what they mean).

Alexander

[miguna]

Anglo Leasing: Hens return home to roost

By MBOTHU KAMAU

THOUGH Energy minister Kiraitu Murungi want Kenyans to believe that the government’s perennial political enemies have conspired to scandalize and besmirch the images of President Mwai Kibaki’s allies, he and others implicated in the Anglo Leasing stench should immediately resign or be sacked.

It is ridiculous for Kiraitu and or any other person for that matter to blame members of the Liberal Democratic Party and the Orange Democratic Movement (ODM) for their current predicament.

Revelations by former Ethics and Governance Permanent Secretary John Githongo of involvement by ministers, key government officials and State House operatives in the complex web that compromised taxpayers’ funds into dubious and fictitious security contracts are compelling.

Indeed the one honourable thing for those fingered to do is to step aside to facilitate further investigations. President Kibaki must of necessity sack those involved and thus underscore his government’s commitment to get to the bottom of this financial scam which favourably compares with the Goldenberg scandal that stained the past regime.

It is true that this country has been sucked into endless political bickering over the last three years but this financial rip-off of monumental proportion should not be politicized. The Vice President Moody Awori attempted to defend it in Parliament when it was first exposed by Ntonyiri MP Maoka Maore while Finance Minister David Mwiraria conceded that he assented to its implementation yet inexplicably explained that he had been duped by Treasury technocrats.

Both must now be called to account and acquit themselves lawfully. They must surely at the moment be aware of the verdict in the court of public opinion. Former Cabinet minister Dr Chris Murungaru who held the security docket when the forensic laboratory deal was renewed and a certain firm contracted to make a patrol boat for the Kenya Navy must equally shed light on how the transactions were entered into. The government is clearly on the spotlight with the scope of the scandal emerging barely a week after the president warned his cabinet against involvement in corruption and impropriety.

And he (the president) must therefore clearly demonstrate his commitment in the fight against graft. For three years, this government has been consistent both in rhetoric and lip service to the war on sleaze and graft. Needless to add, it has not marched the same with action.

There should be no sacred cows on issues related to the Anglo Leasing and its architects. It is not enough for Justice and Constitutional Affairs minister Martha Karua to defend the government and its allies against “lynch mob tactics”. The minister must facilitate free and conclusive investigations before making primary allegations that her colleagues are being unfairly lynched or crucified. The Anglo Leasing scandal will continue to hang on the government’s neck like an albatross and be its eventual undoing because of the unending cover-up and complicity games in respect of the individuals involved.

The opposition parties, the civil society and like minded groups must team up and ensure the issue is properly investigated and all details made public. If need be, a team of investigators should visit Githongo in London or wherever he may be, to find out more on the scandal and its initiators. And since the Director of Kenya Anti Corruption Commission (KACC) Justice Aaron Ringera has promised that 2006 will be an action year, Kenyans will be keen to see him justify his awesome Sh2.5 million a month package by hunting and charging those guilty.

It’s shameful that while ministers were involved in the contract signed between the government and Anglo-Leasing and Finance Ltd, a fictitious company was contracted in 2003 to supply passport making equipment at an inflated price of Sh2.7 billion, those in government have consistently and persistently denied knowing who the owners of the firm were.

Former Permanent Secretaries Joseph Magari (Finance) and Sylvestor Mwaliko (Home Affairs) whose ministries approved the projects are facing charges. The new revelations require that the ministers involved be enjoined in the suits.

With its levels of under performance, graft, ethnicity and tribalism, President Kibaki’s government must redeem itself by sacking the affected ministers or dissolving the Cabinet.

The president admitted last week that some of his ministers are ignorant and embarrassing in their words and deeds and should use this opportunity to weed them out. He will otherwise be harshly judged by history is he fails to seize the opportunity to streamline this government.

It is unfortunate that famine and the vagaries of weather are ravaging parts of the country when billions of shillings were being misappropriated. There is need to say it for the umpteenth time that the Narc government came to power with a pledge to zero-tolerance of corruption and the Head of State must be live to this vow. Kenyans feel sorry for Githongo who had to flee his country after being intimidated and blackmailed by key ministers and government officials who wanted him to sweep the corruption dossier under the carpet.

Those who attempted to arm-twist Githongo not to perform his job must now be running scared because their schemes have finally been exposed.

President Kibaki cannot be seen to compromise the good work of his former anti-graft czar by shielding a clique of corrupt, inept and selfish individuals any longer.

[miguna]

Job: It will take some time, but we shall get them. The nonsense about KACC/Ringera being capable of wrestling these thieves is just that - NONSENSE! Ringera is as corrupt as all the people that appointed him. We cannot expect him to do anything. I'm going to post what Makau Mutua (finally) said about this, too. Even their erstwhile friends have begun running away...
_________________________________________________________

Anglo Leasing: MPs to press for Select Committee



By Edwin Mutai

THE ghost of Anglo-Leasing will be unmasked by Parliament if the House adopts a motion seeking to establish a Parliamentary Select Committee to investigate the more than Sh 20 billion scandal.

According to a motion by private notice filed yesterday at the office of the Clerk to the National Assemby by Ndhiwa Member Parliament Orwa Ojode, with the blessings of the Orange Democratic Movement (ODM), the 13-member select committee will be charged with the mandate of investigating the origins of Anglo-Leasing, identify those involved in the scam and trace the whereabouts of the public funds lost through the scandal.

The ODM has questioned the capacity of the Kenya Anti-Corruption Commission headed by Justice Aaron Ringera to conduct investigations into the monumental scam considering that its boss was a former legal firm partner of Energy Minister Kiraitu Murungi who has variously been linked to the scandal.

The House Committee, which is expected to submit its report to Parliament within six months, from the date of its establishment will be required to recommend appropriate measures to be taken to recover the lost funds and concrete action to be meted out on the culprits.

Ojode’s motion seeks to appoint former Planning Minister Professor Anyang’ Ngong’o, MPs Maoka Maore, William Ruto, Prof Christine Mango, Nyiva Mwendwa, Joseph Nkaissery, Mwandawiro Mghanga, Omingo Magara, Waithaka Mwangi, Peter Munya, Kenneth Marende, Yusuf Haji and himself as members of the Select Comittee to probe the scandal.

The former Foreign Affairs Assistant Minister’s motion shall also seek parliamentary approval to have powers to summon witnesses and take evidence in accordance with the National Assemby Powers and Privileges Act Cap 7, Laws of Kenya.

In the motion, Ojode castigates the massive loss of public funds through irregular transactions perpetrated through the shadowy Anglo-Leasing Finance Limited to an amount exceeding Sh20 billion.

“Aware that the government ministers and senior civil servants have been associated with this economic sabotage, appreciating the government efforts to curb corruption at all sectors, noting with deep concern that the government’s commitment to zero tolerance to corruption has offered negligible economic returns, realising the public demand to unravel the perpetrators of the scandal, reaffirming the cardinal duty of Parliament to safeguard public funds, this House resolves to establish a Select Comittee to establish the origins of Anglo-Leasing and unravel the scandal,” read part of the notice filed at the Clerk’s office at Parliament.

The lawmaker said Parliament had a duty to Kenyans to safeguard public resources adding that the select committee would conduct thorough investigations to trace the origins of the scam and identify those involved.

Ojode said the committee would also help Kenyans to trace the public funds looted through the scandal and make appropriate recommendations on how to recover the lost funds and the action to be taken against the culprits.

The MP said the ODM and Kenyans of goodwill will not rest before the culprits involved in the scandal are prosecuted. He said those implicated in the scam should honourably resign and pave way for free and fair investigations into the scam.

So far fingers have been pointed at Finance Minister David Mwiraria, Vice-President Moody Awori and former Internal Security Minister Dr Chris Murungaru from reports compiled by former Ethics and Governance Permanent Secretary John Githongo who apparently fled the country after a series of threats and blackmail linked to cronies and the kicthen cabinet of President Mwai Kibaki.

[miguna]

Why we should not expect much from Ringera team

By Lumiti Cedric Khabuchi

The media worldwide is at the moment awash with news and pictures of how rife graft is in Kenya. The figures involved are just as unbelievable as they are disgusting. However, what baffles the world most is the fact that the suspects involved in the said scam who include top ranking and blue eyed ministers in the government are still deeply rooted in public offices with some even being part of the investigation team. A rare treat indeed.

Many are the times when Kenyans have complained of emergent corruption and runaway sleaze in government corridors and to a good extend right at the seat of power just below the president’s nose with talk that even some of his aides are involved. But on most occasions, those involved have casually dismissed the complains as hallucinations with statements such as ‘a scandal that never was’ and such arrogant phrases like ‘whose mbuzi have you eaten’.

But Kenyans no longer need a weatherman to tell them to which direction the wind is blowing. We now have every reason to believe that the talk about zero tolerance to graft was just a mere public relations gimmick and dirty business in public offices is on the Kenyan way and this time round people are eating big.

Unlike the Goldenberg scam that was intertwined in and intricate web of confusion and well drawn kleptocracy, the Anglo leasing financial gravy train was more of an amateurish deal but with astonishing figures. What makes me think the people behind the scam were amateurs is the talk of money wired back by faceless individuals unknown to even the people in government they indeed signed contracts with. Now, somebody is making a fool of himself thinking that Kenyans are primitive enough to believe central bank received money from an anonymous source.

Kenyans have watched in awe and disbelief as only after three years in office, some key government officials who otherwise were moderately rich now own properties running into billions. State of the art limousines and high-rise houses characterize the latest riches of this fortunate Kenyans. At a time when other Kenyans are starving to death, there is talk of billions stashed in foreign accounts. It is no wonder some elements in this government are hellbent on milking Kenyans dry.

Prior to 2003, most Kenyans will confess that life was somehow bearable. The cost of living was comparably lower. Most people could afford basic needs like food, clothing and bus fare to work, but now the streets are awash with masses trekking long distances not because they wish to do that, but times are getting harder. Where the resources that were meant to help these needy Kenyans went to, the answers are buried in diaries like John Githongo’s.

It is about time Kenyans took back charge of their country. For a long time we have entrusted politicians with this role but always ended up frustrated. That up to now the president still retains some of those mentioned in these scandals in his government just serves to underline our fears. That he knew that his ministers and close cronies were executing a scandal and failed to take action is to say the least unbelievable for a man perceived to liberate this nation from the forces of under-deals and economic strife.

We are equally corrupt when we allow graft-prone leaders to take charge of the affairs of our country. If, therefore, the president is not willing to relieve those adversely mentioned of their duties to pave way for investigations, it is our right to demand and even force him to do so. And if not it is just a matter of time before we bundle all of them out of office through a democratic ballot.

Revelations that certain elements tried to obstruct investigations into the infamous deal are a real manifestation of what happens when suspects are allowed to continue holding office when under probe. They will do everything possible and of course through the same unclean ways to block and influence the truth. To my surprise, the same elements are still in office weeks after their equally incompetent Anti-graft Director announced their summons.

I have this unrelenting fear that no truth into the Anglo Leasing scandal will come out of the Aaron Ringera-led commission. However much I try to convince my conscience otherwise there is this unease with the man that never seems to go away.

First of all, Ringera was an associate partner of Kiraitu Murungi who is one of the alleged key suspects behind Anglo Leasing. It then comes that it was Kiraitu who used his position as the justice minister to push the appointment of Ringera despite spirited efforts to vet and grill other contenders for the post. In the same breath, the independence of the commission is just on paper but practically, permission must be sought from the appointing authority when sacred cows like one Chris Murungaru have to be investigated.

In my opinion, Ringera’s is a political office and to echo George Orwell’s words in the animal farm ‘some animals are more equal than others’.

[miguna]

Even one of Kibaki's chief apologists had this to say. Note how carefully and cleverly he leaves Kibaki out of this mess. But even he couldn't deny the obvious crminality and the fact that the crime was already established and proven by none other than Mwiraria and Alfred Mutua when by both conceded, on behalf of Lt. Keguoya, that some of the had been "wired" back. You know what? I need proof of this "wiring" back as well. I honestly don't trust any of those thieves to tell me anything unless I prove it. Githongo may need to get another legal counsel; someone who has shown "distance" with the wakora...read on
__________________________________________________________________________
Politics, graft and what the law says

Story by MAKAU MUTUA /Commentary
Publication Date: 1/22/2006

The exposure today of the role of President Kibaki's associates in Anglo Leasing-type deals will engulf Kenya in the most spectacular scandal since the Goldenberg Affair.

The fraud attempt, whose birth mark is a fictitious firm called Anglo Leasing and Finance Company Limited, has been perpetrated by senior officials at the heart of the Narc Government of Kenya.

But the truth is that Anglo Leasing is only one of many nearly identical scams that have been specifically designed to loot the public purse. A cardinal and unequivocal characteristic of the notion of the rule of law is that those responsible for such heinous crimes must be punished without favour or prejudice.

This raises a fundamental question for the Government and the people of Kenya with respect to Anglo Leasing and related corruption scandals. Will the Government of President Mwai Kibaki, which Kenyans elected on an anti-corruption and reformist platform, faithfully execute the law against those of its senior officials who have been implicated in these scandals? Or, as some Kenyans fear, will it whitewash the scandals, excuse the suspects, and continue to protect those who are stealing the country’s future?

All civilised legal systems have this in common: No one, no matter how unpopular, should ever be punished for a crime they did not commit. But criminal liability must be imposed where culpability has been established. So the Kibaki state must establish whether any laws have been broken, who is responsible, and what punishment must be levied on the perpetrators. To do so, the state must examine the available evidence in connection with Anglo Leasing and its sister scandals. This is where the reports of Mr Githongo, the anti-corruption czar who resigned in February last year, becomes indispensable. Equally critical will be the investigations, if any, that Mr Justice Aaron Ringera, the Director of the Kenya Anti-Corruption Commission, has carried out in the matter.

When in June 2004 Anglo Leasing and Infotalent mysteriously refunded roughly US$12 million to the Kenya Government via the Central Bank, the entities that made the refunds could not be identified because they were fictitious. After the refunds, various government officials, including Mr Kiraitu Murungi, then Minister for Justice and Constitutional Affairs, argued that Anglo Leasing and related affairs were not crimes or scandals because the "companies" had returned the money.

This was a bizarre, illogical, and illegal position for a government official to take, let alone a minister for justice. In criminal law, the guilty act is not punishable unless it is committed by a guilty mind. Thus an act alone will not make a person guilty unless the mind is also guilty. In other words, the crime of conspiracy was committed once senior officials conspired to defraud the Treasury.

Secondly, the crime of theft of public funds was committed when public officials signed fraudulent contracts with fictitious, non-existent companies and then paid out monies to those companies.

The fact that the fictitious companies refunded the monies to the State does not extinguish the crimes of conspiracy and theft. Once a crime has been committed, it cannot be uncommitted. It is like a bell - one cannot unring a bell once it rings. In fact, the act of refunding the stolen money is an admission of guilt and the money itself is evidence of the crime.

In law, a court may take the refund into account as a mitigating factor in determining the penalty to be imposed on the criminal. But the refund can never wash away the crime. But the buck stops at President Kibaki’s desk: What does he know, when did he know it, and what has he done about it?

Professor Makau Mutua, who teaches law at the State University of New York at Buffalo Law School, is Mr. John Githongo’s Legal and Political Advisor.

[miguna]

Now look at this mess. Where does it start and/or end? They loot, murder, assassinate and now construct sub-standard buildings and end up killing lots of people; for what? Money? Can someone try explaining this madness for us, please? Kamau; are you there? Do you see what we are talking about? Read on.............
________________________________________________________________________

Horror building owned by Kibaki’s man?

Tuesday, 24 January 2006,

By ANDnetwork Journalist

The building that collapsed in Kenya yesterday killing 20 people is allegedly owned by a senior government official in President Mwai Kibaki who has kept his silence on the matter.

A.N.D reporter on the scene in Nairobi said the owner is a very senior member in President Mwai Kibaki government but remains a mystery.

“The owner remains a mystery 24 hours after the accident. Neither the owner nor the contractor has not come forward, the owner is suspected to be one of the big shots in government,” the source said.

The building collapsed in Nairobi due to the low quality material used. The work is also said to have been hurriedly done to cash on the project. Construction of the building began in November and was already 4 floors high.

The death toll is expected to shoot up as hundreds of people are still trapped under the rubble. Police are still looking for the building’s owner and the contractor, whose workmanship has been described by opposition leaders as shoddy.

All roads leading to the crash site have been closed to traffic to facilitate rescue operations.

According to the acting director of Kenyatta National Hospital Dr John Kibosia, 92 victims have been admitted, some of whom require urgent blood transfusion.

An experienced team of Israeli rescuers has joined the American marines who arrived earlier with sniffer dogs and sophisticated equipment as well as the Kenya Red Cross, police and the army.

President Mwai Kibaki has jetted back into the country from Sudan and is expected at the scene soon.

A.N.D Africa


Copyright 2005 © African News Dimension |

[aeichener]

Job: you had asked me for a contribution to the real subject of this thread (a corruption trail ending at State House). I will fulfill this wish, even though I should feel "guilty" (o felix culpa!) to break Miguna's series of not less than 5 regurgitations in sequence (a new record of content-lifting was set here).

What irks me in the present public discussion is not the occasional lynching mentality, as was inferred by Martha Karua (instead of lynching hapless mobile phone snatchers, sukúma wiki thieves and petty shoplifters, as the Kenyan public is ever so ready to do, maybe a few lynched politicians would further the Common Good more effectively, and it might even instill a much-needed sense of resposibility and accountability in the survivors). What I find more annoying is that some well-meaning observers (especially the well-meaning ones) tend to confuse the limits of criminal imputability (e.g. the presumption of innocence, this hallowed principle of legal civilization, which is so unknown in Kenyan police and prosecution reality) with the very different question of political respectability and fitness for office. Especially journalists seem to be unable to differentiate the two issues.

Never mind that a cabinet which comprises almost one third of the members of parliament is more of a comic opera joke than a working and competent entity; the problem is that in any functioning democracy worthy of its name, the weight and substantiality of accusations would alone have sufficed to end the political careers of most inmates in Kibaki's Cabinet of Criminals. But not in Kenya. And I wonder what Mbotho Kamau means when he writes "should not be politicized". Can anything be more political than this affair ?

As to the Kenyan penchant for committees and commissions of enquiry, it's just a national hobby. The English like fish & chips, in Switzerland and in the Black Forest, they make cuckoo clocks, and Kenyans love setting up such bodies (when they don't found new churches). Admittedly, some of these commissions have done good and valid work (there is an endless series of judiciary reports since uhuru), but nothing has ever changed. And anyone who wants to know what is wrong *inside* the collective Kenyan mind that perpetuates all these evils, needs just read Lumiti Cedric Kabuchi's article: he is an excellent study of pathology himself. Zero feeling for the importance of institutions (whatever worked and was fine in Kenya until the late 1970s, early 1980s, was due and owed to these still-running institutions), but rampant bigmanism, which is glueing shut all brain synapses. Can be positive bigmanism or negative bigmanism (as here), but it's the same disease of mind. A good ministry (or office, or commission) will work smoothly and efficiently, no matter which dunderhead is at its top by happenstance. Not that Ringera wouldn't be a good guy, mind you; it just isn't that relevant in the first place.

Alexander

[abdulmote]

Alex,

I did not intend to log in today at all. But your post above prompted to say that was a good and perhaps rare of your true self. Well done! ;D

[aeichener]

You are welcome, Abdulmote. Thanks for the compliment . En revanche, here is a link to an otherwise not "publicized" Standard Article, which I got from Nation Forum. I have saved a copy on harddisk and recommend that you do the same. Truly hot information !

Githongo's Secret Diary

Alexander

[aeichener]

What the HELL is going on with the Standard?! The 26th January edition states:

"Due to unavoidable circumstances, we were unable to run a continuation of Githongo’s secret diary as promised. We apologise for the inconvenience."

Alexander

[miguna]

Please ignore if you don't want to read it...
__________________________________________________________________________

Githongo secret diary
--------------------------------------------------------------------------------

The Sh7 billion Anglo Leasing projects were just a tip of the iceberg of high-level corruption in Government.

In the first eight months in office, the Government had signed Sh20.827 billion ($277.7 million) worth of contracts of the Anglo Leasing kind, says a report prepared by former Ethics and Governance Permanent Secretary, Mr John Githongo.


Mr Githongo

The report, which was delivered to the President in November and also made available to the Kenya Anti-Corruption Commission, chronicles Githongo’s yearlong investigation into these contracts, which culminated in his abrupt resignation in February 2005.

All the deals involved mysterious companies, which could not be traced. They were centred on security projects, with most of them being in the Office of the President.

In each of these, the mode of operation was the same and which Githongo describes in the report: “The Government would enter into a contract with a number of the financing entities that did not exist. This meant that the Government had no legal recourse.

It also implied that there was an effort on the part of the financiers to avoid revealing their true identities — which flew against common practice.

In most of these deals, the Government started repaying for the services before substantive implementation of projects had began.

The implication of this was that the bogus firms used the Government’s money to implement projects, then proceeded to charge interest on what are in truth, fictitious loans by the Government itself.”

It all started with Githongo inquiring about a project to supply tamper-proof passports for the Immigration Department that had been contracted to a firm called Anglo Leasing.

He had learnt that the mysterious firm had been paid Sh90 million, equivalent to three per cent of the total sum of the project.

On March 10, 2004, he informed Vice President Moody Awori about what he had learnt, but the V-P denied knowing anything about the matter. He also informed Awori that he had been informed of the involvement of Deepak Kamani in the deal.

“I called Vice-President Moody Awori on the hotline regarding the Immigration Department contract matters and he denied knowledge of this, saying that he had made a point of not knowing about these things. However, he promised that he “would look into the matter.”

He adds: “On March 27 and 28, during a conference on money laundering conference in Mombasa, Finance minister David Mwiraria pulled me aside during the break and said Hon (Chris) Murungaru had called. Apparently, Murungaru asked whether he had authorised an investigation into the bank accounts of an individual named Anura Perera at Equatorial Bank.”

“Mwiraria informed me that Perera ‘was a strong supporter of the President and had backed him for over 10 years’ and had even paid the President’s medical bills following his road accident in 2002.

“Head of Banking Fraud Department of the Central Bank, Nicholas Kamwende, confirmed that indeed he was conducting such an investigation because his department suspected Equatorial Bank was involved in the setting up of fictitious accounts that were ‘being used for capital flight’.

April 4, 2004

Githongo briefs Kibaki.

May 2, 2004.

“At the end of April 2004, I travelled to the UK with Hon. Kiraitu Murungi to the offices of Kroll Associates. While at Kroll we asked to do a search for the company called Anglo Leasing and Finance Company and found that no such entity existed in the UK or had ever existed there. Upon returning to Kenya, I found the investigations were proceeding expeditiously despite hiccups, and Your Excellency, I updated you on the progress including the fact that senior officials in the Government were possibly implicated in the unfolding saga.”

(Those mentioned by the investigators at this stage included three ministers, three permanent secretaries, a State House aide, a well known wheeler dealer and an Asian businessman).

Githongo briefed the President on April 4 and then wrote to the Kenya Anti-Corruption Commission. The KACC later prepared a report on the anatomy of Anglo Leasing.

By the end of April, when Githongo visited Kroll Associates, that had been contracted to help Kenya track billions of shillings believed to be stashed abroad by politicians in the previous regime, he learnt that Anglo Leasing Finance did not exist.

On May 5, Githongo notes: “The KACC investigations revealed that everything pointed to gigantic attempted fraud.”

In fact, they revealed that an additional Sh300 million (3,750,000 Euros) was being processed for payment to Anglo Leasing.

However, on the same day, Murungaru announced the cancellation of the project. On May 13, KACC and the Controller and Auditor General released conclusive reports implicating Magari, Mwaliko and Sitonik.

The Head of Civil Service, Francis Muthaura, later asked Githongo to find out who Anglo Leasing were through a French firm, FCOF, that had placed advertisements in the Press defending the integrity of the firm.

A prominent Nairobi lawyer, Mr Fred Ojiambo, had placed the adverts.

On May 14, 2004, Githongo handed over to President Kibaki the final report on the matter and advised that a similar project was underway at the Police Department connected with the construction of a forensic laboratory for the Criminal Investigations Department (CID).

(Central Bank sent over transmission sheet that showed that AL (Anglo Leasing), from their bank account as Schroder & Co Bank AG in Zurich had ‘refunded’ 956,700 Euros on 14-05-04. The transaction was certified on 17-05-04 by the Central Bank)

On May 17, 2004, Githongo writes:

“In the afternoon of the same day, Hon. Kiraitu Murungi stepped into my office unannounced. He expressed concern about the way the AL investigation was going. He told me that it was hoped once the AL paid back the money, the investigation would stop. Hon. Mwiraria dropped in on me in the same afternoon. He expressed the hope that the Immigration investigation would stop since the money had now been paid back. He expressed concern that he’d heard I was ‘investigating’ him, Hon. Murungaru and even Brig. Boinett.

May 24, 2004

“After my meeting with the Public Accounts Committee (PAC) I visited a senior politician who had been seeking for us to have a chat. I was aware that he had calculated that being a friend of my father, he might communicate to me messages that perhaps two leaders may have wanted to emphasise to me. His advice to me was to be particularly careful because there was no way senior ministers were not involved in the Anglo Leasing matter. He emphasised repeatedly that my security was now an issue and he hoped I could take more of a back seat in the Anglo Leasing investigation. He also warned me quite logically that if the stability of the regime was threatened by my work then the President would stop backing me.

He sincerely commiserated with me regarding my dilemma – that of finding that the President’s close associates were deeply involved in the corruption that has been uncovered within our administration..

May 27 2004 – Forensic Lab Contract

“The next day, I spoke to Dave Mwangi who told me that he and Amb Muthaura had discussed the forensic Lab Contract and decided to deal with the matter “administratively” because even though the contract had been signed in 2001, no work had actually been done todate. By this time we had already discovered that despite no work being done, roughly $5 million had nevertheless been paid to them. (Briefed Kibaki)

On the night of June 2,2004, Githongo says he met two other ministers at Mwiraria’s office. At this meeting, a minister admitted that he had been surprised to realise just “how high up” the Anglo-Leasing matter reached in the Government”.

He admitted that he had not realised how high up and intricately involved members of “our administration were in Anglo-Leasing”.

Githongo writes that a minister admitted that his greatest fear was that Raila Odinga knew exactly who was behind Anglo-Leasing and would use it to paint the Kibaki government as corrupt – something the Government would never recover from.

“On 3rd June 2004, I wrote to Ambassador Muthaura confirming that the British High Commissioner had in turn confirmed in a letter dated 03-06-04 that the purportedly British Company Anglo-Leasing and Forensic Laboratories Limited did not exist. I rushed the letter off by hand. That evening, Muthaura called me to tell me that the contents of my letter both “shocked” and “frightened” him.

The next day, I wrote to the Governor of the Central Bank asking him to stop all further payments to the entity known us Anglo-Leasing Finance Company Limited until pending investigations were completed.

June 11, 2004

(Fred Ojiambo a senior partner at Kaplan and Strattton refused to honour summons to share the identity of the owners of Anglo-Leasing who were instructing him to put adverts in Kenyan Press and was arrested.)

Githongo says that on the 11th of June 2004, a minister called him and told me that Hon Chris Murungaru had called him while on an overseas trip in the UK to ask him what was happening in regard to the Ojiambo matter.

He says that just as he put down the phone, a minister stepped into his office and announced that Anglo-Leasing had paid back all the money they had paid on the Forensic Lab Contract since 2001.

He “claimed to have spoken to Your Excellency the President and claimed that you felt we needed to “go easy” on the matter since the money had been paid back and if it came to public light that there was another corrupt deal of this magnitude in our administration, this would cause problems.”

Githongo writes that another minister walked into his office and said the same thing. “He emphasised that if we went after Anglo-Leasing our Government would fall especially following the arrest of Ojiambo.

Both ministers pushed me hard to back off or the fight against corruption would undo the Government since it was now clear as we noted “that many of our people were involved”.

The former PS writes that over these days five ministers all directly or indirectly opposed the arrest of Ojiambo ostensibly on the ground that he might implicate senior people in the Government and cause it to fall.

“Your Excellency, that the arrest of a mere lawyer even one of Ojiambo’s stature would bring down the Kenya Government sounded utterly ludicrous to me. The disdain with which Ojiambo treated the KACC, including his refusal even to acknowledge it indicated to me that he enjoyed protection from senior officials in the State.”

June 12, 2004

“Your Excellency, on the morning of Saturday June 2004, we discussed the entire Anglo-Leasing investigation. I advised you Sir that we could charge the suspects in the case and that the only suspect missing was Anglo-Leasing Finance Company, which had returned the “evidence” of 91 million KES.

Githongo says that the President had asked him who was behind Anglo-Leasing and Finance and he named three ministers, a former PS, a sitting PS, a State House aide and a ministry secretary knew who Anglo-Leasing were.

(Also informed Kibaki of “rather odd contracts in the security sector”)

June 13, 2004

“Sunday Standard headlined with the story that the Government had even put Anglo Leasing into their budget. Hon Mwiraria strenuously denied this when I had called to ask him. I later established this was indeed the case when I obtained a copy of the budget estimates book myself. I called Hon. Kiraitu and told him that the Minister of Finance had allocated KES 222,530,000 to be paid to a fictitious company in the coming financial year

“Hon. Mwiraria also informed me that the forensic laboratories “payback” of around 400 million KES had been made only after he had asked Oyula to pick up the phone and call Deepak Kamani. It was after this call that the money was then returned. To me this was a startling admission.

June 18, 2004

“Your Excellency we met and discussed these issues at length. We by now had a clear idea of who was behind the Anglo Leasing deals from all the circumstantial evidence the investigators had obtained. We acknowledge, your Excellency who the key players in the scam were. At the same time Sir, you advised me not to hand over the Magari and Mwaliko files to the AG for prosecution just yet and to delay handing over the Infotalent file to KACC.”

June 21, 2004

Githongo says that on Tuesday, 21 June 2004, he was provided with information to the effect that a top civil servant and minister were key to all the scams he was investigating and his digging around had now gone too far and they were determined to take action against him.

He was informed that senior Government officials had met to discuss “problematic Government projects” at a Nairobi hotel.

“The most worrying project was the on going construction of a Navy ship by a Spanish company called Astilleros Godan on the behalf of Euromarine, which belonged to Anura Perera.

He was briefed that there was going to be a reshuffle and that “Mr. Githongo, PS Governance and Ethics would be transferred from the Office of the President.

He says that on 29th June 2004, he met a minister. “Essentially he (the minister) said that it was now clear that Anglo-Leasing was “us” – our people.

He was blunt and emotional.”

Githongo says the minister admitted that a fellow minister was key to the transactions of Anglo-Leasing and that even though he personally did not have details, the excuse given to him was that the money was needed for political fundraising.

He adds that on September 1, 2004, a minister called on him and shared with him his concerns that “at the rate we were going we would have another Goldenberg type scandal before the elections in 2007 because of the need to fundraise for the elections.

“He said that once a pig got stuck in the mud, one had to jump in and get dirty to extract the pig from the mud and someone would get stuck in the mud themselves. He said that in fact, there would be another Goldenberg style commission and all of us would be “suspects” or “witnesses” at it.

The next day, Githongo writes, he and a minister had a long meeting about political party financing. I expressed to him my disquiet at the contradiction caused by the fact that we were fighting corruption on one side and this fight was in direct contradiction in the supposedly “resource mobilisation” efforts.

Githongo writes that a minister admitted Anglo-Leasing and other such deals were essentially part of “resource mobilisation” carried out essentially by a Cabinet colleague and a State House aide.

“He repeated his fear that he expected another Goldenberg type scandal to be generated from our struggle to hold together the coalition. Both implicitly and explicitly, he had indicated his Excellency the President knew all about these shenanigans.

On Sunday 24 October 2004, Githongo says, he met a minister who had recently returned to the country from Europe where he had undergone an operation. He says they discussed the fact that high-level corruption was everywhere and acknowledged that some ministers were involved in Anglo-Leasing. He explained that a fellow minister was involved in raising 5 billion KES for the next elections through these schemes.

“Naturally, I was deeply frustrated by the limited action despite the evidence available.”

Nov 8 2004

The former PS writes that a senior anti-graft official’s “analysis of my situation was grim and admitted that once graft reaches the President he won’t touch it. He observed that I was now a prisoner of my job cause I knew too much. I was surprised when he told me that if I tried to leave “they” could even try to kill me.

January 17, 2005

Githongo says that he met a minister who told him that Narc elections were in the offing and it was “estimated that they would cost 200 million KES and that this money would come from the contracts that Kinyua and I had stopped.

The minister, Githongo writes, demonstrated no concern that I would report this matter back to His Excellency the President.

January 20, 2005

Once again; Githongo writes, two ministers were clear that the security related projects that were the subject of so much controversy were for political financing purposes all along.

He says they demonstrated no concern that “I would report this matter back to His Excellency the President.”



He adds that the evidence had been building up but with this final approach, they let their guard down. By coming to me, knowing full well I had direct access to the President, meant they were not at all worried that I “would report them to the President”.

Indeed Githongo says that one minister pointed out that His Excellency the President had once been a Minister of Finance and understood how these things were done.”

[miguna]

Friday, January 27, 2006
Exposed: Sh3.7bn set aside for new Anglo Leasing deal

Story by NATION Team
Publication Date: 01/27/2006

An astonishing new financial scandal involving key officials of the Narc Government can be revealed by the Nation today. Mr David Mwiraria's Finance ministry has set aside Sh3.7 billion to give to yet another fictitious Anglo Leasing-style company – this time for a national security computers project.

Senior Budget officials in the Treasury went ahead and earmarked the money for payment in spite of the exposure and investigation of a whole series of previous doubtful contracts, all made with non-existent companies. The allocation was made in the face of a public and donor outcry over corruption and is likely further to dent confidence in the Government's determination to tackle such high level graft.

The latest fortune to be set aside for payment – the Sh3.7 billion – is over and above Sh859 million already paid as a "commitment fee" as part of the contract, for the Office of the President.

Unlike in previous Anglo Leasing contracts, where the initial fees were returned once the fraudulent schemes were uncovered, it appears that the Sh859 million "commitment fee" for the computers contract is still outstanding.

The contract was awarded to a company called Globetel, which investigators believe is linked to the Kamani family, who are also linked to Anglo Leasing's Sh2.7 billion passports projects and the Sh4.1 billion police forensic laboratory scheme, among others.

The payments have been set aside for Midland Securities and Finance, allegedly of 1 Place Des Florientus, at 55 Rue Du Rhone, 1204, Geneva, in Switzerland. But the Daily Nation yesterday confirmed that no such company is registered in Switzerland. -------------------------
Explaining why the money was put in the Budget, the PS said it was done as a precaution so that if some of the contracts were real, then they could be paid, "because you can’t pay something outside the Budget".

The computers project appears to be a classic Anglo Leasing-type secret scheme, this time involving Globetel and Midland, both fictitious companies.

Globetel gave its address as Sheraton House, Castle House, Cambridge, UK. This is the same address given by Silverson Establishment, another fictitious company, which had been given a contract to supply the Office of the President with vehicles in 2001. The company was forced to pay back the $910,000 (Sh66.4 million) it had been paid as "commitment" fees, when the fraudulent deal was unearthed.

The Sh3.7 billion in this latest contract is to build joint national security computer link, but is also referred to as the "Administration Police Dedicated Multi-Channel Networking Project".
The lead consultant in the project was Dr Merlyn Kettering, an associate of the Kamani family, who also played a key role in the passports and laboratory projects, including signing documents on behalf of Anglo Leasing.

By April last year, the Government had paid Sh859 million commitment fee as well as repayment of the loan, according to a document prepared by the Office of the President for a donor briefing.

The contract was signed on Saturday, May 29, 2003, but two years later and in spite the payment of nearly a billion shillings, the only work that had been done was the purchase of some materials consisting of galvanised towers and parts thereof, which were allegedly awaiting clearance at Mombasa in May last year.

In January last year, former Ethics permanent secretary John Githongo wrote to the Treasury, warning that Midland Finance, among other entities, do not exist where they are purportedly registered.

The fact that a number of the financing entities involved in the substantial and security-related contractual agreements with the Government do not exist is in and of itself a serious matter, because one can ask whether the contracts are valid at all. It also means that GoK has no legal recourse in case of non-performance, Mr Githongo warned.

In spite of that, in this year’s Budget, the Government has also set aside Sh2.2 billion to be paid to Schroeder & Co Bank of Switzerland, the same bank that was used by Anglo Leasing to wire back the Sh91 million commitment fee that the Government had paid for the passports projects.

The revelation that payments to fictitious companies and secretive banks have once again been put in the Budget – in the middle of an outcry over corruption – highlights a crisis in the secretive security and defence procurement sector.

It suggests that an inter-ministerial oversight mechanism put in place by President Kibaki in 2004 is either ineffective or complicit in suspicious tenders. ........................

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In 2004, the Government set aside Sh4.8 billion for the repayment of foreign commercial loans, part of which was to go to service fictitious loans such as those from Anglo Leasing.

Under that model of contract, the foreign (fictitious) company would enter into an agreement to lend the Government money to buy security equipment at twice or three times the market price.

The Government would begin repayment long before the project was implemented, meaning it was carried out with the Government’s own money.

In effect, the Government will have lent a fictitious loan to itself – and paid interest on it.

A lot of the fraudulent payments are charged on the Consolidated Fund as foreign debt redemption or supplier’s credits and commercial loan debt service payments.

Some of the deals are not reflected in the Budget because, though the credit is long term, the Government would issue promissory notes for each repayment at the signing of the contract.

When these notes fall due, the creditor will automatically discount them and the Government’s foreign accounts will be debited. In other words, the payment will be made without Kenyans being any the wiser.

For example, in the 2001 project for Office of the President vehicles, awarded to the fictitious Silverson Establishment, the last promissory note was to fall due on August 17, 2014.

It means future generations would have had to pay for today’s corruption.

In 2004, Finance minister David Mwiraria said all the promissory notes issued to Anglo Leasing and Finance in respect of the passports projects had been returned.

But it remains unclear whether Anglo Leasing returned all promissory notes in respect of other projects, and precisely how many promissory notes the Government has issued to Anglo Leasing-type companies.

A meeting at Harambee House on January 14, 2004, was addressed by Dr Kettering – identified as a management consultant – and Mr J.N. Ng’ang’a, identified as a telecommunication consultant. It was chaired by the Administration Police Commandant, Mr Kinuthia Mbugua, and attended by representatives from the Department of Defence, Provincial Administration, the Kenya Wildlife Service, Communications Commission of Kenya and Kenya Prisons.

Making his pitch, Dr Kettering dwelt on the merits of sharing radio frequencies.

Minutes of the meeting show that the departments concerned were being introduced to a project for which they appear not to have expressed a need.

Yesterday, the Treasury PS Mr Kinyua, said of the project: "Not a single cent has been paid". He said the Treasury was waiting for the Kenya Anti-Corruption Commission to finish its investigations and for the Controller and Auditor-General to complete his audit of all suspect security projects.

He went on: "Then we have to sit down and negotiate with human beings and not through letters or correspondence. If contract sums are inflated, we will renegotiate. If there is corruption, it will be dealt with by the relevant authorities." ()

Yesterday, the Nation established that Mr Ng’ang’a was overseeing an AP communications project in the Office of the President.

Last year, the AP received Sh250 million from the Governance Justice, Law and Order Sector (GJLOS) reform programme to, among other things, repair and update its communications network.

The money was meant to buy radios and vehicles for the force.

Mr Ng’ang’a is working on the technical specifications for the AP communications project that is envisaged to run into billions of shillings.

The AP was among the security forces which were to be covered under the united IT link.

The project killed off many other security forces communications projects, including that of the police, Prisons and Kenya Wildlife Services.

Due to public pressure over Anglo Leasing-related fraudulent contracts, the Mbugua committee, which had held seven meetings at which Mr Ng’ang’a and Dr Kettering played a part, appears to have been quietly wound up.

Speaking to the Nation yesterday, Mr Mbugua denied the existence of a new communications project for the Administration Police force and the hiring of Mr Ng’ang’a as a consultant.

He did however confirm that Sh250 million had been received from the GJLOS fund manager, the accounting firm KPMG.

He said APs were in dire need of a communications system since they had reverted to using their "rudimentary" system.

"We had hoped that through normal budgetary process and police reform programme, we would improve our communication system, but this did not happen," Mr Mbugua added.

He said his force would put in a request for a communications system next year.

He appeared unaware that Sh3.7 billion was already in the current Budget to benefit his department.
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blah, blah, blah...as billions are spirited away!

[50cents]

Let the fumbling continue. Ever since the general stepped into that house its ever been like mixing soil with water for building a mud house....................ati the-president-cut-short-his-visit-my-$$$$. When did he ever care about the common man? Wait a minute..... aha the building was his friend's. I see.

And the $$$$$$ world bank giving money to fight.......... With such organisations no wonder we are still neither here nor there.

As for the general.... his actions dont surprise me anymore.

[miguna]

Palaver
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Looking at the amiable David Mwiraria who resigned as Finance minister on Wednesday and the one who was bullish on Tuesday about the World Bank’s suspension of aid, reminded Palaver that a moment’s insight is sometimes worth a life’s experience. Yet, the question remains: What made Mwiraria pull a fast one on everyone, least of all the Kituyi Mukhisa-led holier than thou Patriots Quintet?

****
The more Paul Muite talks about his besieged client, Chris Murungaru, the more Palaver is convinced that no invention came easily to man than indecision. On Tuesday, Muite welcomed anti-graft officers to probe Murungaru’s bank accounts, only to rush to court Wednesday for an injunction. Justice would be served better if Muite stopped wallowing in the miasma of his own confusion.

****

When Trade minister Mukhisa Kituyi claimed that Francis Atwoli had nothing between his ears, many thought that the eloquent minister was being too harsh on the superlative trade unionist. Now, Atwoli has taken to changing positions on public issues like graft faster than a Swiss pendulum. What shall he be accused of next? A mouth for hire?

****

[miguna]

Who’s next?

By Nzau Musau & Mbothu Kamau
......
Those adversely mentioned in the reports on the scam released by Githongo include Vice-President Moody Awori, Energy Minister Kiraitu Murungi, former Internal Security Minister Dr. Chris Murungaru, President Kibaki’s Personal Assistant Alfred Getonga and Head of Public Service and Secretary to the Cabinet Francis Muthaura....

As Mwiraria went home crestfallen, the KACC indicated that it was also investigating Minister Kipruto Kirwa, Dr Mukhisa Kituyi, Murungi and Kieni MP Dr Chris Murungaru.
-------------------------------------------
Add:

Simon Nyachae, Ndwiga, Karume, Michuki, the late Wamalwa, the late Karisa Maitha, George Saitoti, Jimy Kibaki, Mwai Kibaki, Wambui Kibaki, Lucy Kibaki, Magari, Dave Mwangi,...oh my goodness, everyone in this corrupt regime is involved! Yet we have not started counting properly.

[miguna]

The thief is afraid and trying to hide something? Self-incrimination only applies once he has been charged.
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Thursday, February 02, 2006
Murungaru sues to block anti-graft agency's probe

Story by JILLO KADIDA
Publication Date: 2/2/2006
Former Cabinet minister Chris Murungaru wants the court to stop the Kenya Anti-Corruption Commission (KACC) from investigating and prosecuting him.

Dr Murungaru told the High Court that the commission had given him 10 days to give it a statement detailing his property and how he acquired it or be punished.

Failure to disclose the wealth to the commission is an offence punishable by a fine of up to Sh300,000 or imprisonment for not more than three years.

Dr Murungaru says fulfilling the commission's request would amount to self-incrimination.

It is also degrading and demeaning for the commission to compel him to list all his assets and release such demands to the media, he adds.

The suit was filed before judge Joseph Nyamu at the judicial review division of the High Court in Nairobi by Dr Murungaru's lawyer, Mr Paul Muite.

Judge Nyamu declined to rule on the application immediately, but certified it as urgent and set the hearing for this morning.

In the suit, Dr Murungaru described the commission's notice as an intrusion of his privacy and not reasonably justifiable in a democratic society.

The former Cabinet minister questioned the way the commission was carrying out its investigations into his wealth.

He termed the investigation malicious and calculated to aid those who see him in unfavourable light.

The Anti-Corruption and Economic Crimes Act was being used to reverse the burden of proof in a criminal case, which normally rests on investigators, he argues. Dr Murungaru said KACC's action contravened his constitutional rights against self-incrimination.

He is seeking a declaration that it is unconstitutional for the Anti-Corruption Act to reverse the burden of proof.

The former minister also wants the court to rule that sections of the Anti-Corruption and Economic Crimes Act allowing the commission to ask an individual to declare his or her property contravene the Constitution.

Dr Murungaru is also asking the court to grant him orders to stop the commission from violating his rights.

Mr Muite pleaded with Mr Justice Nyamu to temporarily halt the investigations. He said the responsibility to investigate any offence lay with the State and it was unfair for his client to be asked to investigate himself and give reports.

Dr Murungaru served as minister for Internal Security and later Transport before he was dropped late last year.

And now Mr Murungaru will know his fate as to whether the court will allow the commission to compel him to produce a statement detailing his properties or stop the investigations.