25 April 2014

Kenya: Senate Warns Over Sh125 Billion Payout

THE Senate Finance committee has faulted plans by the government to pay Sh125 billion Anglo Leasing type contracts.The team has called for a fresh audit of the payments.

At a press conference at the Senate yesterday evening, the chairman of the committee Senator Billow Kerrow and Senator Boni Khalwale said the decision to pay the money is scandalous. They said they will conduct an audit to determine their true value.

"Our committee has decided to intervene and examine the payments so that the relevant people explain why the Kenyans must pay Sh125 billion to shadowy individuals," Kerrow said.

They warned the National Assembly against approving payment of the funds as this will open floodgates of other shadowy contractors. They said the government through former Finance minister David Mwiraria had assured the country that it will cancel the contracts as they breached procurement law.

"The treasury must not pay the money unless Parliament as a whole is satisfied that the payment is justified," Kerrow said. He said the ninth parliament made recommendations that all the 18 Anglo Leasing type contracts be cancelled.

Among the issues the committee wants clarified is why the government is planning to pay Sh125 billion when the total value of the contracts signed between the government and "some shadowy individuals" amounted to Sh54 billion.

Khalwale particularly took a swipe at president Uhuru Kenyatta for authorizing the payments when he had opposed the same at the time he served as the chairman of Public Accounts Committee in the ninth parliament.

"There is no tangible evidence that has been tabled in the national assembly on why the government wants Parliament to approve the payments," Khalwale said. They also want to know circumstances surrounding the cases.

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.