Kenya had promised to pay Infortalent Ltd for the supply of security equipment through promissory notes, which then Attorney-General Amos Wako said could not be revoked.
Under the contract, Infortalent was contracted to supply security equipment to the police, and also modernise police operations.
On Wednesday, Joseph Kinyua said the government did not incur any loss from the Infortalent contract, arguing that the firm refunded payments made after the contract was cancelled.
Head of Public Service Joseph Kinyua and the defence lawyers in the Anglo Leasing case on Wednesday differed on when payments were supposed to be made for the contract entered 15 years ago.
The State had promised to pay Infortalent Ltd for the supply of security equipment through promissory notes, which then Attorney-General Amos Wako said could not be revoked.
On Wednesday, Mr Kinyua who was Treasury permanent secretary in 2004, sought to challenge the contract because it did not specify that payments using the notes should be done after the goods and services have been delivered.
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.
“Issuing of promissory notes should be done after the goods have been seen and verified to have the intended specifications,” Mr Kinyua.
Defence lawyer Kioko Kilukumi said that the suggestion by Mr Kinyua that promissory notes are issued after goods are delivered was not expressly stated in the contract and he cannot, therefore, claim the contract was irregular.
The lawyer explained that the contract was lawful because its contents had been negotiated and had the approval of the AG's office under Mr Wako.
Attorney-General’s opinion was that each promissory note constituted an unconditional promise from the government to pay, on demand, the sum stated in the notes.
Under the contract, Infortalent was contracted to supply security equipment to the police, and also modernise police operations.
On Wednesday, Mr Kinyua said the government did not incur any loss from the Infortalent contract, arguing that the firm refunded payments made after the contract was cancelled.
He admitted that the Infortalent contract had been approved by controller and auditor general and budgeted by the government.
Mr Kinyua was testifying in a case where former government officials and local business persons have been charged over the multi-billion shilling Anglo-Leasing contract, which the government later cancelled.
Hearing resumes on Thursday.
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