State paid Sh120m com­mit­ment fee to An­glo Leas­ing firms, court told

The Star (Kenya) - - Politics -

The gov­ern­ment paid Sh120 mil­lion com­mit­ment fee to An­glo Leas­ing com­pa­nies 12 years ago, a wit­ness told a Nairobi court yes­ter­day.

Pro­duc­ing vouch­ers show­ing the pay­ment, Mon­ica Muthoni, the chief ac­coun­tant at the Kenya Po­lice depart­ment, said the €1.2 mil­lion (Sh120 mil­lion) was paid to Apex Fi­nance Cor­po­ra­tion through their ac­count at the Schroder’s Bank in Geneva, Switzer­land. She said this was desribed as a three per cent ar­range­ment, com­mit­ment and man­age­ment fee.

Muthoni said two com­pa­nies – Sound Day Cor­po­ra­tion and Apex Fi­nance Cor­po­ra­tion – which signed the con­tract to sup­ply se­cu­rity equip­ment to the Po­lice Depart­ment, were di­rect ben­e­fi­cia­ries of the money, which cost Kenya €40 mil­lion (Sh3.8 bil­lion). She said she au­tho­rised the pay­ments for sup­ply of po­lice equip­ment and ac­ces­sories in Jan­uary 2004. Muthoni said part of the con­tract was signed by two for­mer PSs, Joseph Ma­gari and David Ony­onka.

An­other wit­ness, Ken­neth Mwangi, who was the pro­cure­ment di­rec­tor at the Of­fice of the Pres­i­dent, told trial mag­is­trate Felix Kombo that for­mer Fi­nance min­is­ter David Mwiraria (pic­tured) gave spe­cial au­tho­ri­sa­tion to Ma­gari to sign the con­tract on be­half of the gov­ern­ment. He said Mwiraria fur­ther au­tho­rised use of di­rect pro­cure­ment of a con­tract to mod­ernise po­lice equip­ment and ac­ces­sories.

Mwangi also tabled cor­re­spon­dence show­ing that on De­cem­ber 17, 2003, the di­rec­tor of debt man­age­ment re­ceived a let­ter from Trea­sury PS Dave Mwangi that the €40 mil­lion was to be split in two since the money was not bud­geted for in the 2003-04 fi­nan­cial year.

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