Economy

Wako’s office approved Anglo-Leasing contracts

WAKO

Former Attorney General Amos Wako. PHOTO | PAUL WAWERU | NMG

Former Attorney General Amos Wako on Thursday told a Nairobi court that the Anglo-Leasing contracts and promise to pay for the security deals received approvals from his office.

Mr Wako, now Busia Senator, said his office approved the security contracts with conditions — which were later met by the Treasury and Interior ministries.

He told the court that his office also okayed promissory notes issued to one of the Anglo-Leasing firms, Infortalent Ltd, for the supply of security equipment.

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.

“The Attorney-General’s Office found the agreement to be in order from the legal point of view, and advised Mr Mwangi (former PS Provincial Administration) that they may proceed to conclude the agreement upon compliance with our advice,” said Mr Wako.

He said they later received a letter from Mr Mwangi saying that the suggested adjustments had been incorporated including verifying that Infortalent Ltd was registered in Geneva, the Treasury had ability to pay and an agreed work plan.

Mr Wako was testifying in a suit where former senior government officials and businessmen face charges related to the multi-billion shilling security tenders that the government has termed irregular.

The AG's opinion was that each promissory note constituted an unconditional promise from the government to pay on demand the sum stated in the notes.

READ: Kinyua, defence lawyers clash over Anglo Leasing payments

Mr Wako said his office received a letter from Treasury Permanent Secretary Joseph Kinyua requesting formal termination of the Anglo-Leasing contacts to stop contracted firms from pursing payment.

The former AG however said a legal officer in his office advised that there was nothing to formerly terminate since at the time Mr Kinyua made the request, all the monies paid to Infortalent Ltd had been refunded to the government.

He said the refund of the monies initially paid, as well as the cancellation of the promissory notes, amounted to termination of the contract.

He said one of the clauses in the contract provided that the agreement became effective when signed by parties, in addition to payment of the commitment fees.

The same therefore stood terminated once the monies paid were returned.

“One of the officers in my office advised that there was no contract in existence to terminate because the commitment fees and the first installment to the contract which had been paid, were returned.

“The promissory notes had also been cancelled,” Mr Wako said.