Sh10 billion Anglo-Leasing case ends as court frees two last suspects

Suspects in Angloleasing scandal David Onyonka (left)  who is the  former head of debt management at the Treasury  and former Permanent Secretary in the ministry of interior Dave Mwangi at a Milimani court on February 11, 2021. [Collins Kweyu, Standard]

In July 2003, the late President Mwai Kibaki’s administration began an ambitious multibillion-shilling project to modernise police and security operations in the country.

What promised to be mega face lift of security operations however turned out to be the first big scandal to hit Kibaki’s government where it was alleged that more than  Sh10 billion was lost through the Anglo-Leasing Scandal.

After eight years of trial for former senior government officials and two brothers said to have been behind the scandal, Chief Magistrate Martha Mutuku said the prosecution had failed to prove its case against the accused.

“The prosecution has failed to provide sufficient evidence. All the accused persons have no case to answer,” Mutuku said.

The decision was a relief to former Internal Security PS Dave Mwangi, former finance PS Joseph Magari, former head of debt management at Treasury David Onyonka businessmen Deepak Kamani and Rashmi Kamani.

They were charged alongside former Finance Minister David Mwiraria with conspiracy to defraud the government between July 2003 and June 2004. Mwiraria died before the trial concluded.

The accused faced a total of five counts of conspiracy to commit an economic crime and fraudulent acquisition of public resources totalling Sh10.8 billion, abuse of office and failing to follow procurement rules.

The offences which were allegedly committed between July 2003 and June 2004 also enlisted three companies said to have benefited from huge payments to Anglo Leasing contracts designed to provide modernised security surveillance systems for the police services.

They were charged in 2015 after a protracted investigation by the Ethics and Anti-Corruption Commission and approval by the Director of Public Prosecution.

In the first charge, the Kamani brothers alongside Mwangi, Magari and Onyonka were accused of conspiring to defraud Sh4 billion of public funds.

The charge stated that between October 2003 and April 2004, they conspired to commit an economic crime by engaging in a scheme to defraud the government Euros 40,000,000 (Sh6.3 billion) through a contract for modernization of police security equipment and accessories project.

Another count alleged that on April 14, 2004, the accused alongside Apex Finance Corporation acquired a further €1.2 million (Sh190 million) from the ministry of finance on the pretext that they were able to provide security equipment for the police service.

Deepak, Rashmi and their company Infotalent Limited faced another charge of conspiring to steal over Sh9 billion.

“Between July 2003 and June 2004, you conspired to commit an economic crime by engaging in a scheme to defraud the government €59.6 million (Sh9.4 billion) through an agreement for computerisation of security systems through a project code named E-Cops,” read the charge sheet.

The businessmen were also said to have fraudulently received on January 12, 2004, €1.7 million (Sh284 million) into their company’s account without delivery of financing services.

The final account alleged that they received another €3.5 million (Sh556 million) into their bank account in Switzerland without delivery of services.

Mutuku directed that the cash bail the accused persons had deposited for their release be refunded to them.