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LSK’s bid to block Anglo Leasing payments flops

By PAMELA CHEPKEMEI | May 29th 2014 | 2 min read

The Court of Appeal yesterday refused to stop the Government from making any further payments to companies in Anglo Leasing-related contracts.

The Law Society of Kenya wanted the court to restrain Treasury from releasing a further Sh3 billion but three judges handling the case said the lawyers had not tabled any evidence to prove that the payment was imminent.

Lawyer James Mwamu for LSK said the lawyers were apprehensive that the Government was likely to pay Sh3 billion following recent demands by businessman Anura Perera whose company has already been paid Sh1.4 billion.

“Our fear is that the demand for Sh3 billion arises out of the 18 Anglo Leasing types of contracts. The likelihood of Sh3 billion leaving the coffers of Kenya is very high,” said Mwamu.

The society is opposed to the Government making any payments for reason that the contracts were based on questionable deals and tainted by corruption

LSK moved to the Court of Appeal seeking temporary orders stopping Treasury Cabinet Secretary Henry Rotich and Attorney General Githu Muigai from paying Sh1.4 billion to First Mercantile Securities Corporation and Universal Satspace [North America] LLC. But the money was paid out before the appeal could be heard following orders by President Uhuru Kenyatta.

Yesterday, Mwamu told the court that interim orders should be made to stop the Government from making any further payments because the AG was not ready to proceed with the hearing. State Counsel Waigi Kamau told the court that the Deputy Solicitor General Ms Muthoni Kimani was not available to argue the case because she had been served with the application by LSK on Monday.


He requested the court to give the AG three days to respond to the appeal. LSK opposed the application for adjournment but the court said the AG was not given adequate time to respond.

The judges directed that the AG files the affidavit within three days after which LSK will respond. The case will then be allocated hearing dates on a priority basis.

The Society is appealing against a ruling by High Court Judge David Majanja declining to stop the Government from processing payments to First Mercantile Securities Corporation and Universal Satspace (North America) LLC.

LSK has accused the AG and the Mr Rotich of failure to appreciate the existing statutory and constitutional provisions of law on enforcement of foreign judgments based on fraudulent and illegal contracts.

LSK has faulted a judgement against the Government of Kenya issued by a court in London in favour of First Mercantile Securities Corporation and Universal Satspace (North America) LLC.

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