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"id": 254373,
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"speaker_name": "Mr. Kipchumba",
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"legal_name": "Joseph Kipchumba Lagat",
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"content": "Thank you, Mr. Speaker, Sir. I also have the experience of being in this Committee for the last two terms. It will be very difficult to talk after the Leader of the Official Opposition has given such an eloquent and detailed account of the Report. Mr. Speaker, Sir, in seconding the Motion, I want hon. Members to understand very clearly the genesis of the second Anglo Leasing Scandal. The initial Anglo Leasing Scandal cost an initial sum of Kshs600 million. That is what I would like to deal with mainly. Page 4 of our Report, No.38(c) states very clearly:- \"The request for direct procurement by the Office of the Vice-President and Ministry of Home Affairs and the approval of the same by the Treasury arose as a result of receipt of a proposal from Anglo Leasing and Finance Company and, was 390 PARLIAMENTARY DEBATES April 5, 2006 therefore, meant to ensure that the contract was awarded to the firm.\" Mr. Speaker, Sir, that was the genesis of the problem. That is why I would like to move to the Ministry of Finance. You will realise that most of these problems revolve around the procuring Ministry and the Ministry of Finance. The Minister for Finance is an executive Minister. Single sourcing was approved by the Minister for Finance well aware that the previous project was under restricted tendering. We, therefore, fault the Ministry of Finance and the Minister for Finance for approving single sourcing for this project, while aware that there was restricted tendering on the same. The Minister for Finance cannot escape blame. Secondly, since this financing was approved, no goods or services were delivered. Finance people are aware that in lease financing, goods and services must be delivered before payments are made. To the extent that lease financing was used and the Ministry of Finance was unable to ascertain whether goods and services had been delivered and continued to convert the money into a public debt was, indeed, an abdication of the responsibility of the Ministry. We are all aware that the role of the Treasury is to source for funds on behalf of the Republic of Kenya. However, they abdicated that responsibility and left it to the Ministry of Home Affairs. Therefore, we fault the Minister for Finance in that regard. Mr. Speaker, Sir, this project was given a warranty of only 12 months. You are all aware that even your car which costs about Kshs1 million or Kshs2 million has a warranty of about one year. A project of Kshs2.7 billion being given a warranty of 12 months is an abuse of the systems that exist in the world. The CBK which has experience in financial matters was excluded in negotiating for this contract. Clause 31 of the CBK Act says clearly that, in procuring all debts the CBK must be involved from the beginning to the end. If you look at this case, the CBK was clearly excluded and this to us was probably intentional. To that extent, the CBK subsequently wrote many letters to ascertain whether all the 18 projects were, indeed, payable. The Permanent Secretary and the Minister for Finance never responded to those letters. To that effect, we would like to fault the then Minister for Finance, Mr. Mwiraria, for abdicating his responsibility. Mr. Speaker, Sir, at this juncture, we would like to laud the former Governor of CBK. He went out of his way - we are not even sure what happened to him - and ensured that those letters were, indeed, delivered to Treasury. Mr. Speaker, Sir, I would like to talk briefly about the Attorney-General of the Republic of Kenya. He has never won any case in this country."
}