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Economy

Treasury owes Anglo Leasing firm Sh4bn

Lawyer Ahmednasir Abdullahi (right) cross-examines Treasury PS Kamau Thugge during the hearing of the Anglo Leasing case in Nairobi yesterday. PHOTO | PAUL WAWERU | NMG
Lawyer Ahmednasir Abdullahi (right) cross-examines Treasury PS Kamau Thugge during the hearing of the Anglo Leasing case in Nairobi yesterday. PHOTO | PAUL WAWERU | NMG 

The High Court yesterday heard that Kenya still owes one of the Anglo Leasing firms more than Sh4 billion through promissory notes.

The State had promised to pay Sound Day Corporation $40 million (Sh4.15 billion) for the supply of security equipment through the notes, which then Attorney General Amos Wako said they could not be revoked.

Upon being shown the Attorney General’s advice and the promissory notes, Treasury PSKamau Thugge said yesterday on the face of it, they were indeed irrevocable.

He, however, said that “The Treasury’s position was that the promissory notes were cancelled.”

Mr Wako’s opinion was that each promissory note constituted an unconditional promise from the Government of Kenya to pay on demand the sum stated in the notes to Sound Day Corporation.

A promissory note is a financial instrument that contains a written pledge by one party to the other a defined sum of money, either on demand or at a specified future date.

Court documents show that Sound Day had supplied security equipment worth $8 million (Sh824 million).

President Uhuru Kenyatta was forced in 2014 to authorise the payment of $16.4 million (Sh1.7 billion) to two companies which had secured court orders in Geneva and London requiring the government to settle unpaid debts, even though they had not delivered contracted goods and services.

Defence lawyer Ahmednasir Abdulahi for the accused put Dr Thugge to task questioning why the Treasury ignored the advisory opinion from the Attorney General, who had affirmed that the promissory notes were irrevocable.

Dr Thugge was testifying in court where former senior State officials and businessmen have been charged in connection with multi-billion shilling security tenders that the government has termed irregular.

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