EACC faulted on Anglo Leasing data

A UK based money laundering expert prepared an incomplete report that erroneously declared one of the Anglo Leasing firms as a ghost company, the court heard Monday.

Jason Campbell Sharman of Cambridge University, who specialises in research on corruption and money laundering, said his reports were based on selective reports received from the Ethics and Anti-Corruption Commission (EACC).

In the report dated 2016, he concluded that Sound Day Corporation, which is one of the firms linked to Anglo Leasing was a ghost company -- a firm without office or employees.

On Monday, Prof Sharman said he would have reached a different conclusion if the EACC had presented him with all documents related to the firm and a chance to interview top officials like the Auditor General.

“Had I been supplied with all the documents, I would have formed a different opinion,” Prof Sharman said.

Prof Sharman was tapped by the EACC in 2015 to give an expert opinion on how shell companies are used in committing corruption and other economic crimes.

Lawyer Ahmednasir Abdullahi for the defence said the don’s opinion was based on partial information and that some documents such as approvals from State departments, including that of the Attorney-General, were not available to him.

Sound Day was one of the firms offered multibillion-shilling tenders that the government cancelled as irregular in 2003 and was depicted in past accounts as a ghost company.

Prof Sharman said among the documents made available to him by the EACC was the Anglo Leasing contract dated December 17, 2003, and that he was not aware that the company had contracts with the government since 1993, to supply weapons to the police.

He also said that part of his finding was informed by the Auditor General’s report.

The witness said he was not supplied with the former Attorney General Amos Wako’s legal opinion, which gave the 2003 contract between the government and Sound Day a clean bill of health.

He said award of the contract lacked competitive bidding.

Kioko Kilukumi, lawyer for the accused, said the law allowed the minister to go for direct procurement, especially on security contracts.

The mention is on February 28.