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{
    "id": 510331,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/510331/?format=api",
    "text_counter": 136,
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    "speaker_name": "",
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    "content": "Universal Satspace in May 2014. Another claim for Kshs3.05 billion by the same firms is in the offing. The Committee also raised serious questions on the way the State Law Office defended the suits by the First Mercantile Securities Corporation and Universal Satspace culminating in the award of Kshs1.4 billion against the Government of Kenya. The quality of the defence and generally the manner of handling the suits raised some fundamental doubts and fears about the State Law Office’s commitment. The Cabinet Secretary informed the Committee that of the 18 Anglo Leasing-related projects, four had been cancelled, seven had been fully paid for and another seven were under investigation. Only one flagship project, also called Ciara Systems, for the NIS, was active. The exact status of completion of the projects could not be conclusively ascertained. The Government had not undertaken any assessment in this respect, but only relied on valuation done in 2007 by the Price Waterhouse Coopers (PWC). That valuation covered 17 projects and omitted Project Ciara, which was considered a high level security project. The latest payment of Kshs1.4 billion was made on 19th May, 2014 and transmitted in two tranches to one Trevor Smith, through JP Morgan Chase Bank, Account No.GB229 NWBK 60001100859184.The payments were ordered by the President himself, but in making the payments, the Accounting Officer had not obtained a signed authorization from the President. He used a written communication signed by the Director of the Presidential Press Service. He, however, had official written authority from the Controller of Budget. The Committee noted that this matter of Anglo Leasing had protracted for inordinately long, and continually involved unending legal tussles. It was not lost on the Committee that even the PWC valuation report relied on by the Treasury to assess status of the various controversial contracts, had itself become a subject of litigation. The Committee expressed disappointment that the Treasury had, as yet, not undertaken their own assessment of these transactions, meaning that there really was no official Government valuation report on the 18 Anglo Leasing related contracts. The Cabinet Secretary was formally notified that in view of the numerous long standing loose ends in this Anglo Leasing saga, the PAC had resolved to conduct closure proceedings to bring this matter to a logical conclusion. The Committee, therefore, recommends as follows in respect of the Anglo Leasing related projects:- (i) The Treasury should freeze any further payments for any Anglo Leasing related pending the conclusive determination of this matter; (ii) The State Law Office, the Office of the Attorney-General, must mount and sustain robust defence in every single case arising from the Anglo Leasing projects;"
}