Anglo-leasing payout is questionable
21 May 2014, 21:53
Nairobi - The government is lining up billions of shillings to pay off companies that happened to sue them in foreign courts for contracts not performed by either party.
Kenya has no forensic lab, no hi-tech surveillance equipment or a full-proof passport issuing system. That simply means the contracts entered to under the banner, ‘Anglo-leasing’ were not performed.
So then how comes we are taken to court and subsequently defeated? Who represented the Kenyan government in court? Who did the work of arguing out before the judge? Why is it that the Attorney General’s office is pointing a finger at some state-appointed counsels? Isn’t the AG’s office the one responsible for selecting state counsel?
Prof. Githu Muigai has recently come out defending the payout calls saying that it was the only reasonable way of getting out of the whole melee. Ever since he started preaching the cancerous message that Kenya should pay out the monies, the reasons have kept on changing depending on the audience.
At first, concern was that the country might face more harsh conditions especially from the courts of law. Senior government officials led by the AG held common reason that the government would double its troubles were it to defy the orders from the courts. Heavy English mixed with smart suits and the story could easily be bought for the gospel truth.
Fast forward a few days later and the tune went from harsh conditions to probability of the government losing its properties abroad. How many properties does Kenya own in Europe? Most of the properties in Europe that are owned by African-based entities belong to either corrupt government officials or extremely shrewd businessmen.
Later on and the Solicitor General is selling a whole new idea that in fact the proposed euro bond to be issued by the Kenya government will be heavily affected negatively if the government fails to pay out the debts. What credit facility did we acquire to be rated in the first place? We entered into lease financing deals and they were subject to the completion of specific deals. These deals were not completed and therefore I don’t see the point of paying for unfinished contracts.
All in all whether the failure to honor the payout orders or not the point is there is likelihood of loss of monies in excess of billions. Such a loss will heavily dent our economy that is already ailing from budget deficits. The president needs to stand by his word while he was still minister for finance.
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