Ex-Swiss envoy to be probed after Anglo Leasing bribery claim

The Swiss government has ordered investigations on its former top diplomat in Nairobi to unravel an alleged bribery scheme involving controversial billionaire businessman Deepak Kamani during the former’s five-year stint in Kenya.

The Switzerland Attorney-General’s office yesterday confirmed to the Business Daily that it had instructed the country’s police to investigate former Swiss ambassador to Kenya Jacques Pitteloud on claims that he solicited a bribe from the Kenyan businessman.

Mr Kamani has claimed in court papers filed in Kenyan and Swiss courts that Mr Pitteloud tried to extort money from him at his Nairobi Kyuna residence in May last year.

In his suit papers, the tycoon attached copies of text messages between him and Mr Pitteloud, alleging that the Swiss ambassador threatened to initiate money laundering investigations against him if he did not pay up the billions he was asking for.

“The Office of the Attorney-General of Switzerland (OAG) has taken note of the decision made by the Appeals Chamber of the (Swiss) Federal Criminal Court on 29 June 2016 in relation to the no-proceedings order issued by the OAG on 7 March 2016,” said the Swiss AG on Monday in a statement.

“The Appeals Chamber of the Federal Criminal Court upheld the appeal in respect of the offence of attempted coercion. The OAG has therefore requested the (Swiss) Federal Department of Justice and Police for authorisation to bring a prosecution in respect of this particular offence.”

Mr Kamani and his brother Rashmi Kamani had claimed in court documents filed in both Swiss and Kenyan courts that Mr Pitteloud tried to extort $55 million (about Sh4.8 billion) from him in exchange for assistance to terminate money laundering investigations by Swiss authorities.

Last May the Kamani brothers filed a complaint before the Swiss Federal Prosecutor claiming Mr Pitteloud attempted to force them into giving him the money in exchange for the case being dropped.

The brothers alleged Mr Pitteloud had abused his authority and violated his duty of secrecy. On June 29, the Swiss Federal Criminal Court ordered that the diplomat be investigated for the alleged crime.

“Pitteloud intervened without having received a mandate from the Swiss authorities to do so. This intervention is also illegal. Therefore, it has to be admitted that he requested from the appellants an action which he was not entitled to obtain. The exercised coercion therefore seems illegal,” the Swiss Federal Criminal Court ruled on June 29.

READ: Kamani fights Swiss plea for Anglo-Leasing files

ALSO READ: Kamani sues Swiss envoy in extortion claim

The Swiss AG’s office said it had initially decided not to take any proceedings against the diplomat “as the elements of the offence concerned” had clearly not been fulfilled after analysing the complaint.

Following the fresh ruling by Swiss Federal Criminal Court, however, the Swiss AG has now ordered investigations on the diplomat with the specific accusation of coercion.

Swiss AG spokesman Anthony Brovarone told the Business Daily that they would not make further comment on the development at this time as criminal proceedings are pending.

Reacting to the development, Kenyan Attorney-General Githu Muigai said the government would cooperate in the investigations.

“We have not received any request from the Swiss Government yet, if we do, we shall cooperate in full,” Prof Muigai said in interview from New York where he is on an official visit.

Mr Pitteloud did not return a request for comment sent to his email yesterday.

The high-flying diplomat who has since been appointed in a crucial docket at the Swiss Foreign Affairs Ministry had in earlier interview with Business Daily admitted to asking the controversial businessman, Mr Kamani, to pay $55 million (Sh5 billion) over his Anglo Leasing-type cases.

READ: Swiss envoy denies Sh5bn demand from Kamani was for bribe

Mr Pitteloud, however, in the September 12 2014 disputed Mr Kamani’s claim that this was an attempt to extort money from the billionaire businessman, who is under investigation by Swiss and Kenyan authorities over suspected money laundering and irregular dealings.

In the exclusive interview, the ambassador told the Business Daily then that he privately approached Mr Kamani and asked him to pay the sum, about Sh4.8 billion, to Swiss federal authorities.

He said the money was not a bribe, but was a settlement to help Mr Kamani avoid prosecution for offences arising from irregular contracts between the tycoon’s companies and the Kenyan government.

Mr Pitteloud alleged then that Kenyan and Swiss authorities had sanctioned the offer.

The $55 million is a small fraction of the over $600 million (more than Sh50 billion) involved in the Anglo Leasing scandal.

The scam relates to 18 security-related contracts awarded to firms that either did not render services or deliver goods paid for, or supplied substandard equipment at highly inflated prices.

The scandal unearthed in 2004 saw key officials in former President Mwai Kibaki’s government adversely mentioned. They included former Vice-President Moody Awori, former Internal Security minister Chris Murungaru and former Finance minister David Mwiraria. They all denied the accusations levelled against them.

Mr Kamani and Sri Lanka-born billionaire Anura Perera were reported to be the key players in many of the contracts.

Mr Kamani, whose Anglo Leasing-type companies allegedly moved proceeds from the contracts through Swiss banks, is under investigation by Swiss authorities for money laundering.

The Kenyan government is also investigating him for other offences related to the irregular deals and has requested mutual legal assistance with Switzerland.

Mr Pitteloud maintained in the earlier interview that he had been directed by then Switzerland’s Attorney-General to ask Mr Kamani to return the funds he is alleged to have acquired from the Anglo Leasing contracts in exchange for immunity in the investigations.

Mr Pitteloud claimed then that it was common practice for Swiss authorities investigating economic crimes to offer plea bargains once they had enough evidence to charge suspects.