Mwiraria in hospital as Anglo Leasing suspects are charged

Former Finance minister David Mwiraria was taken ill on Wednesday as key suspects in the multi-billion shilling Anglo Leasing scandal were arraigned in a Nairobi court.

Mr Mwiraria was expected to take a plea alongside 13 other individuals for their role in the multi-billion shilling scam but his lawyer, Kioko Kilukumi, told the court that the former minister was unwell and had been admitted to Karen Hospital.

Mr Mwiraria will now appear in court on March 18 to take a plea on his alleged role in the Anglo Leasing scandal — the series on security related contracts in which the Kenyan public lost more than Sh7 billion.

“Mr Mwiraria will appear before the court for plea taking on March 18. The matter will be mentioned on the same day for setting of a hearing date,” Hannah Ndung’u, the magistrate hearing the case, said.

The former minister faces four counts of conspiracy to commit an economic crime and to defraud the government of Sh4.08 billion. A separate count accuses him of engaging in a project without prior planning.

Mr Mwiraria resigned from office in 2006 after he was adversely mentioned in a report by John Githongo, the then advisor to President Mwai Kibaki on ethics and integrity.

The former minister is accused of authorizing the financing of a project intended to upgrade police and other security systems dubbed ‘E-Cops’ valued at $59.6 million (Sh6.08 billion). Keriako Tobiko, the Director of Public Prosecutions, claims Mr Mwiraria did not engage in prior planning before authorising the E-Cops project.

Charged alongside Mr Mwiraria are former provincial administration PS Dave Mwangi, former head of debt management at the Treasury David Onyonka and former Finance PS Joseph Magari.

Mr Mwangi, Mr Onyonka and Mr Magari denied the charges and were released on Sh10 million bond and Sh3 million cash bail.

READ: Court charges seven suspects over Anglo Leasing scandal

The two PSs got the same bail terms for separate charges of abuse of office and failure to comply with procurement laws.

Billionaire businessman Deepak Kamani, his father Chamanlal and brother Rashmi also failed to show up in court for plea taking, but are expected to do so this morning.

The Kamanis had asked Justice Luka Kimaru-to postpone their arraignment on grounds that they were not in the country but would be jetting into Nairobi this morning. Their lawyer, Ahmednasir Abdullahi, however, did not disclose where they were.

Justice Kimaru directed that the Kamanis appear before Ms Ndung’u today to take a plea. The trio is however expected to report to the Ethics and Anti-Corruption Commission before heading to Milimani Law Courts for plea taking.

“In regard to the Deepak, Chamanlal and Rashmi Kamani, they will Friday appear before the EACC for processing then proceed to court for plea taking,” the judge added.

The Kamanis face three counts of fraudulent acquisition of public property on behalf of three companies they own - Sound Day Corporation, Apex Corporation and Infotalent Limited. The three firms have also been charged with the same offences.

They are accused of receiving Sh701 million for the security contracts through Infotalent, Sound Day and Apex Corporation without delivery of services.

At the request of the DPP, Mrs Ndung’u also issued arrest warrants for two foreigners — Brian Mills and Bradley Birkenfeld — facing conspiracy charges in the award of the security contracts.

“Nobody knows where Mr Mills is but Mr Birkenfeld is in the United States. We apply for a warrant of arrest so that Interpol can assist in their extradition,” Mr Tobiko said.

The EACC investigations have also implicated Kisii Senator Chris Obure who served as Finance minister under President Daniel Moi.

He was charged with two counts of abuse of office and two counts of breach of trust as a public officer while serving as Minister of Finance in 2002.

EACC investigators claim Mr Obure authorized the Transport ministry to directly contract Spacenet Incorporated to supply very small aperture (VSAT) products without following public procurement procedures. The equipment was purchased for Postal Corporation’s rural internet services project.

Mr Obure, the Kisii Senator, is also alleged to have granted special authorization for the execution of a suppliers credit financial agreement between the government and Universal Satspace, Joint Venture Company and First Mercantile Securities for the Postal Corporation project.

The three firms are associated with Irish businessman Anura Perera, who was last year awarded Sh1.4 billion after he secured a court order from the United Kingdom compelling the government to pay him for the contracts signed during President Moi’s era.

Also charged with abuse of office are former Information and Communication PS Sammy Kyungu, former Postmaster General Francis Chahonyo and former accounting secretary at the Treasury Samuel Bundotich.

Mrs Ndung’u agreed to release Mr Kyungu, Mr Chahonyo and Mr Bundotich on a Sh1 million cash bail each and Sh5 million bond. She further granted a request by the DPP to have the suspects surrender their travel documents.

Suspects out on bond will also have to alert the authorities in the event they intend to travel outside the court’s jurisdiction.

Hearing dates will be set on March 18 after Mr Mwiraria has been charged.