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LSK will sue government over Anglo Leasing payments

29 April 2014, 19:04 Victor Tinto

Nairobi - The government risks being sued by the Law Society of Kenya LSK if it goes on to make the planned KES 125 billion payment to Anglo Leasing firms.

In a statement to media houses, the LSK insisted that the government will be out of line if it effects payments to ghost companies and has said it will sue them for making the payment.

" The Law Society of Kenya is concerned that the government intends to pay to ghost companies (Universal Satspace Company and First Mercantile Securities Corporation) a sum of about Shs125 billion on grounds that the government lost the case filed by the said firms in London and Switzerland, the statement signed by LSK chair Eric Mutua said.

He did however insist that there would be time for the government to declare the truth about the situation.

" Whereas we are yet to see the pleadings and awards, it is suspect that despite the precedent set by the arbitration in World Duty Free Company Limited (where the tribunal held that a contract entered into through corrupt means cannot be enforced in an international or domestic tribunal or court) at the International Centre for Settlement of Investment Disputes (ICSID) Washington D.C, the statement added.

" If this payment is made then the Law Society of Kenya shall take out private prosecution against all the persons who contractually committed the country to such payments, the statement continued.

The government through Attorney General Githu Muigai has previously said that the cases have been lost and that there is no other option than paying.

The decision has been met with anger by members of the opposition and civil society and the move by the LSK will add to the voice of concern over the government's intended move.

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