Anglo Leasing audit done without key papers, says ex-Auditor-General

An audit involving the Anglo Leasing contract in which the government sought to modernise police security systems was carried out without scrutiny of crucial documents relating to the tender, a trial court heard Monday.

Former Auditor-General Evans Mwai said he prepared an audit report on Anglo Leasing contracts without seeing evidence of the due diligence carried out, approval of the procurement process and evidence on delivery of goods worth $8.5 million (Sh862 million).

Mr Mwai told the court that he never saw the Attorney general’s approval of the contract, special approval to single source the purchase of the security equipment and certificate of incorporation of Sound Day Corporation, the company at the center of the suit and which was reported to be a ghost firm.

“We never saw these letters,” he said when shown the documents by defence lawyers.

The Anglo-Leasing scandal refers to 18 contracts signed between the Kenyan government and several domestic and foreign companies for security equipment and services totalling $770 million.

Sound Day Corporation, which the prosecution say is owned by Deepak Kamani, and his brother Rashmi Kamani and father Chamanlal Kamani, handled some of the contracts, including the Sh862 million mentioned in court Monday.

READ: Kamanis 'were to pocket Sh86bn' in Anglo Leasing

Mr Mwai said the audit report he prepared did not take into account the contract details that were not presented to his office and denied that his report was incomplete since it was based on incomplete information.

The documents show deliveries of security equipment worth Sh862 million took place. They also revealed that Sound Day Corporation had been dealing with the government since 1993 and “completed large contracts”.

He was testifying in a case in which former Finance minister David Mwiraria, three former government officials and the Kamanis are charged with corruption over the Anglo-Leasing contract.

The former Auditor-General was also shown a copy of the Supplier Credit Contract Agreement which he said he had not seen when he prepared his report.

Mr Mwai said audit queries were based on how the supplier entity had been identified and its capacity to deliver among other considerations. Hearing continues in October.