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US ‘to hand over key Anglo Leasing suspect’, Kenya says
Former UBS employee Bradley Birkenfeld. Kenya’s Director of Public Prosecutions says his office is seeking the extradition of the American whistleblower. PHOTO | BLOOMBERG
An American national suspected of involvement in the multi-billion shilling Anglo Leasing scandal will soon be arraigned in a Nairobi court, the Director of Public Prosecutions Keriako Tobiko has said.
Mr Tobiko said the extradition papers of Bradley Birkenfeld were being finalised and that he is expected to appear in a Kenyan court soon.
“We have obtained an international warrant of arrest and are just finalising the extradition papers,” Mr Tobiko said without revealing further details.
Contacted for comment, the United States government remained tight-lipped on extradition proceedings for the high-level whistle-blower, a former employee of Swiss bank UBS. It said it is a sensitive matter in which it only wants to deal with the Kenyan authorities.
“We do not publicly comment on pending cases or investigations involving US citizens, or comment on US support to foreign governments on pending cases or investigations. We refer all inquiries on Kenyan activities to the Kenyan government,” the US Embassy Press Office in Nairobi said.
Mr Birkenfeld, 50, is accused of hatching a scheme with others to defraud the Kenyan government of Euros 40 million (Sh3.8 billion) through a supplier’s credit contract agreement for the modernisation of police security equipment and accessories project.
The crime was allegedly committed between October 30, 2003 and April 14, 2004 in Nairobi, according to the charge sheet.
News of Mr Birkenfeld’s extradition proceedings came ahead of an expected first ever court appearance by former Finance minister David Mwiraria to answer charges relating to the scam, which comprised a series of security related contracts in which the public lost more than Sh40 billion.
The former minister is expected to appear in a Nairobi court on Wednesday morning.
Mr Mwiraria was initially expected to take a plea on March 4 alongside 13 other individuals for their role in the multi-billion shilling scam but his lawyer, Kioko Kilukumi, told the magistrate’s court that he was unwell and had been admitted at the Karen Hospital.
Mr Mwiraria faces four counts of conspiracy to commit an economic crime and to defraud the government of Sh4.08 billion. A separate count accuses him of engaging in a project without prior planning.
Mr Mwiraria resigned from office in 2006 after he was adversely mentioned in a report by John Githongo, the then advisor to President Mwai Kibaki on ethics and integrity.
The former minister is accused of authorising the financing of a project intended to upgrade police and other security systems dubbed ‘E-Cops’ valued at $59.6 million (Sh6.08 billion).
Mr Tobiko claims Mr Mwiraria did not engage in prior planning before authorising the project.
Charged alongside Mr Mwiraria before Chief Magistrate Hannah Ndung’u are former provincial administration PS Dave Mwangi, former head of debt management at the Treasury David Onyonka and former Finance PS Joseph Magari.
Mr Mwangi, Mr Onyonka and Mr Magari have denied the charges and were released on Sh10 million bond and Sh3 million cash bail. The two PSs got the same bail terms for separate charges of abuse of office and failure to comply with procurement laws.
Controversial businessman Deepak Kimani his father Chamanlal and brother Rashmi have also been charged over the Anglo Leasing scandal. The trio has, however, filed a fresh application seeking to stop criminal proceedings against them.
In the High Court petition filed on Monday, Mr Kamani argued that the family’s prosecution is a diversionary political scheme engineered by the government.
The Kamanis filed the suit barely two days before the hearing of a criminal case in which they have been charged with fraudulently acquiring public property in contravention of procurement laws. They have sued Mr Tobiko.
Justice George Odunga declined to stop Wednesday’s proceedings, but said he would determine whether to temporarily call off the criminal case against the Kamanis after hearing both parties.
“The issues raised by the applicants cannot be termed as frivolous, but it is unlikely that the matter will be heard and determined on the same day. This court has the power to stop proceedings at any stage. The decision to stop proceedings shall be made at a hearing with both parties on March 26,” he said.
The Kamanis have claimed in court papers that the Anglo Leasing trial is aimed at distracting the public from the rising cases of corruption within several organs of government.
Mr Kamani holds that three companies owned by his family — Apex Finance Corporation, Infotalent Limited and Sound Day Corporation — performed their obligations as per the security contracts signed with the government. The companies have also been charged alongside their owners.
Kisii senator Chris Obure has also been charged over the scandal. He faces two counts of abuse of office and two counts of breach of trust as a public officer while serving as the Finance minister in 2002.
The Ethics and Anti-Corruption Commission (EACC) investigators claim Mr Obure authorised the Transport ministry to directly contract Spacenet Incorporated to supply Very Small Aperture Terminals — a two-way satellite communication system — without following public procurement procedures. The equipment was purchased for Postal Corporation’s rural Internet services project.
Mr Obure is also alleged to have granted special authorisation for the execution of a supplier’s credit financial agreement between the government and Universal Satspace, Joint Venture Company and First Mercantile Securities for the Postal Corporation project without following the law.
The three firms are associated with Irish businessman Anura Perera, who was last year awarded Sh1.4 billion after he secured a court order from the United Kingdom compelling the government to pay him for the contracts signed during former President Daniel arap Moi’s era.
Also charged with abuse of office are former Information and Communication PS Sammy Kyungu, former Postmaster General Francis Chahonyo and former accounting secretary at the Treasury Samuel Bundotich.
Mrs Ndung’u on March 4 agreed to release Mr Kyungu, Mr Chahonyo and Mr Bundotich on a Sh1 million cash bail each and Sh5 million bond. She further granted a request by the DPP to have the suspects surrender their travel documents.
All suspects out on bond were ordered to alert the authorities in the event they intend to travel outside the court’s jurisdiction.
