By David Ochami
and Peter Opiyo
Parliament has demanded a disclosure of the October 23 freeze of Kenya’s 11 accounts in a British bank following a court order.
Nominated MP Mohamed Affey rose on a Point of Order after Question Time on Thursday to demand a ministerial statement from Deputy Prime Minister and Finance Minister Uhuru Kenya over the saga exclusively reported by The Standard on Tuesday.
Mr Affey wants the minister to disclose the amount of money and its purpose.
He also wants to know the genesis of the legal dispute leading to the freeze and the firm or firms that took Kenya to court.
Investigations by The Standard revealed that the accounts with Sh778 million at Crown Agent Bank were frozen by an order of Justice Teare following Kenya’s failure to pay a debt owed to Inspections and Control Services (ICS) Limited. This arose from a dispute over contracts that began in 1998 between the British firm and the Kenya Revenue Authority.
Foreign mission
On Thursday Foreign Affairs PS Thuita Mwangi said none of the accounts belongs to Kenya’s foreign mission in London amid reports creditors were plotting to auction assets (at the mission).
He said an arbitration panel ordered Kenya, last year, to pay company damages arising from a dispute over pre-shipment services offered by ICS. When Kenya failed to pay for a year, the creditor went to court this year to compel payment and the ensuing litigation led to the seizure of accounts. Officials at the State Law Office blame the Treasury for delay in payment leading to the crisis.
At the same time, Housing Minister Soita Shitanda has admitted that people he did not name have grabbed 170 Government houses in Kisumu.
He also disclosed that the ministry collected Sh1.2 billion from the recent sale of its houses.
Named grabbers
Kisumu Town East MP Shakeel Shabbir and Olago Aluoch of Kisumu Town West demanded the seizure of the houses from the unnamed grabbers, but the minister said he was trying to "use due process of law" to nullify their titles.
He asked civil servants staying in the houses "to stay put" during litigation. He said houses occupied by hospital staff were "strategic housing" and were not targeted for sale.
Shitanda was answering to a question by Peris Simam Chepchumba of Eldoret South.
He said 800 houses had been completed and occupied under the scheme and a similar number nearing completion.