The Standard 20.05.2014

STANDARDTHEKenyas Bold NewspaperTuesday, May 20, 2014

No. 29592 www.standardmedia.co.ke KSh60/00 TSh1,500/00 USh2,700/00

Blame game renewed; Battlelines redrawn

Online applications open for university admissions, P.812 police of cers killed in Mandera, P.32

Blame game renewed; Battlelines redrawnANGLO LEASING

SEE STORIES ON PAGES 2, 3, 4, 6 & 7

Leading LSK to press for removal of the AG and prosecution by EACC for allegedly fl outing the Constitution by putting up weak defence. Accuses AG of not defending country on grounds that there was bribery.

He is putting up his biggest fi ght to defend his position after Uhuru warned he must up our game. LSK accuses him of bungling Kenyas legal defence and wants him prosecuted, while CORD has also put him on the spot.

The battle by Kenyan lawyers to stop Treasury from paying the two companies has moved to the Court of Appeal. LSK argues a judgement that forces the people of Kenya to pay for corrupt deals is contrary to public policy.

On the radar of inquiries into how Kenyas defence was sabotaged during his tenure as Chief Legal Advisor to President. He complicated his situation by declaring the contracts legally binding.

He is the lead articulator of Government policies and programmes in National Assembly and, having whipped Jubilee MPs to defend the decision to pay Anglo Leasings Sh1.4 billion, his next duty to President is to keep CORD in check in House.

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Damned if he pays, damned if he doesnt. Agony of defending Sh1.4 billion payments for contracts he described as a scam in 2006 as Leader of Offi cial Opposition. Sh174 billion Sovereign Bond at stake if Anglo Leasing ghosts are not paid off.

TNA accuses him of signing the deal involving First Mercantile and Universal Satspace in July 2002 when he served as Transport minister. But UDF leader tells TNA off for fl ogging a dead horse and peddling bogus rumours.

His CORD team has opposed the payments, claiming offi cials have cut deals.CORD threatens to lead mass action to block the payments and condemn general corruption and tribalism in public appointments.

President Uhuru Kenyatta

Amos Wako

Aden Duale

Githu Muigai

Musalia Mudavadi

Willy Mutunga

Raila Odinga

Eric Mutua

By PAMELA CHEPKEMEI

The battle by Kenyan lawyers to stop Treasury from paying two com-panies involved in the Anglo Leasing scandal has found its way to the Court of Appeal.

The move comes days after Presi-dent Uhuru Kenyatta directed Trea-sury to pay the cash. The Law Society of Kenya (LSK) wants the court to stop Treasury from making any payments because doing so would interfere with the enjoyment of economic and social freedom and rights of Kenyans.

LSK has faulted a judgement en-tered against the Government of Ke-nya by a London court last year.

A judgement that forces the peo-ple of Kenya to pay for corrupt deals is contrary to public policy, said LSK lawyer James Mwamu.

LSK lodged an appeal against a decision by the High Court declining to temporarily halt payments until their case is heard and determined.

LSK is contesting a decision by Justice David Majanja declining to stop Treasury from initiating a process that will result in payment of Sh1.4 billion to First Mercantile Securities Corporation and Universal Satspace.

The society is opposed to the Gov-ernment making any payments be-cause the contracts were based on questionable deals and were tainted with corruption.

LSK says it has fi led the case in pursuit of public interest to protect the taxpayer from meeting expenses for corrupt deals.

LSK argues that the proceedings in the London Court were conducted in

a manner that suggests there was no natural justice and the Kenyan Gov-ernment was not given a chance to argue its case.

The society fi rst moved to court on May 5 seeking interim orders against Finance Cabinet Secretary Henry Rot-ich and the Attorney General. Justice Majanja declined to issue conserva-tory orders stopping the payments, saying the payments were not likely to be made soon.

Following the decision, LSK made a second urgent application last Thursday, seeking orders to halt any payments. It also sought to be al-lowed by the High Court to move to the Court of Appeal.

LSK wants to appeal against a de-cision by judge Majanja declining to issue temporary orders stopping the payments.

By WAHOME THUKU

The Law Society of Kenya (LSK) has now taken its fi ght with Attorney General Githu Muigai to Parliament over the multi-billion shilling Anglo Leasing scandal.

The lawyers body has petitioned the National Assembly to start the process of removing the AG from of-fi ce over alleged violation of his con-stitutional mandate in regard to the handling of cases against the Kenyan Government in the United Kingdom.

In the petition signed by the chair-man Eric Mutua (pictured) and secre-tary Apollo Mboya, the LSK asked the National Assembly to advise President Uhuru Kenyatta to initiate the process of removing the Prof Muigai.

The AG is on the spot over the han-dling of a case between the Govern-ment and the Universal Satspace (North America) LLC fi led in London and another with First Mercantile Securities Corporation in Switzer-land.

The process of removing an AG may, however, raise a legal debate due to a gap in the law. Article 132 (2) pro-vides that the President may dismiss the AG in accordance with Article 156. However, Article 156 does not men-tion anything about the removal of the AG. It establishes the offi ce, spells out the qualifi cations and the man-

Lawyers body wants National Assembly to advise the President to re the AG over handling of cases

LSK petitions Parliament to remove

Page 2 / NATIONAL NEWS Tuesday, May 20, 2014 / The Standard

LAWYERS CALL FOR PUNISHMENT OF MUIGAI The Law Society of Kenya wants the National Assembly to institute proceeding towards the removal of Attorney General Githu Muigai from of ce The process of removing an AG may, however, raise a legal de-bate due to a gap in the law be-cause articles 132 (2)and 156 are not in harmony

Lawyers move to court of Appeal after judge throws petition on payments out

plication partly read.The lawyers body pointed out that

the AG failed to instruct a competent advocate with expertise in complex commercial litigation matters to rep-resent Kenya in the London court.

LSK also criticised the AG for in-structing the Solicitor General Njee Muturi to represent Kenya in the case, knowing that he did not have a license to practice law in England and Wales.

Effectively the Government did not have legal representation and the proceedings in the court are a nullity, the application read in part.

The LSK claims prof Muigai failed to advance the defence of corruption and bribery in the case, saying he in-stead recorded consent to take the matter for mediation and subse-quently entered into a consent to pay $7.6 million (about Sh666.9 million as per current exchange rates).

This was despite the fact that re-ports by the Ethics and Anti-Corrup-tion Commission, the Public Accounts Committee, PricewaterhouseCoopers and the Auditor General indicated the contracts were procured through cor-ruption.

UNPROFESSIONAL OPINION The AG failed to appeal against the

court decision of December 20 last year even with an avenue to do so, the society argued in the petition sent to the Clerk of the National Assembly.

LSK claims the AG gave the Gov-ernment unconstitutional, illegal, fraudulent and unprofessional legal opinion that the government had no other option than to pay the company. The LSK said though President Uhuru Kenyatta had reprimanded the Offi ce of the AG over the manner in which the cases were handled, no disciplin-ary action was taken.

SIGNATORIES FOR SECURITY (ANGLO LEASING ) CONTRACTS - OCTOBER 2013 CONTRACT NAME DATE SIGNED PROJECT VALUE CONTRACTOR/FINANCIER GOVERNMENT

Forex Ksh Line Ministry Treasury

CANCELLED CONTRACTS KAMANI FAMILY

1 Forensic Sciences Laboratory for CID 16 Aug. 2001 $54.6 4,095 L-Mrs Ludmilla Katuschenko Z. K. A. Cheruiyot PSI M. Mwachofi Export Supplier Internal Security PS/Treasury

2 Security Vehicles for Kenya Police 16 Aug 2001 $90.0 6,750 David Dunkley for Lessor and Z. K. A. Cheruiyot PS M. Mwachofi

(Silverson Established) InderSingh Brar for Export / Internal Security PS/Treasury

Supplier

3 Kenya Police. Law & Order (E-Cops) 19 Nov 2003 58,7 5,224 Bradley Birkenfeld, Director, Dave Mwangi Joseph Magari

/lnfotalent Infotalent Ltd PSI Internal Security PS/Treasury .

4 Immigration Security & Document 4 Dec 2003 31.9 2,839 Colin Flynn on behalf of Anglo Slyvester Mwaliko Joseph Magari

Control System (ISDC) Leasing & Finance Ltd -PS/ Vice-President's PS/Treasury

& Ministry of Home Affairs . Office

Sub-total 18,908

FULLY PAID CONTRACTS KAMANI FAMILY

5 Kenya Prisons Security & 30 Oct 1997 $24.6 1,845 Andrew Macgill on behalf Mosses Abudo; Simeon Lesrima

Telecommunication - Project Phase I of LBA Systems Ltd PSI Home Affairs and PS /Treasury 6

National Heritage

6 Kenya Police Airwing Support 8 June 1998. $36.0 2,700 Brian Mills for Sound Day Z. K: A. Cheruiyot M. Chemengich

Project I Corp. and J. Manshing for PS/Internal Security PS /Treasury

Apex Finance Corporation

7 Kenya Police: Supply of 9 April 2002 $30.0 2,250 Brian Mills for Sound Day Z. K. A. Cheruiyot S. K. Bundotich

Security Equipment Addendum 2 Corporation PS/ Internal Security Financial Secretary

Sub-total 6,795

PARTLY COMPLETED CONTRACTS

KAMANI FAMILY

8 Kenya Police: Supply of Security. 14 June 2002 31.8 2,385 Brian Mills on behalf of Sound Z. K. A. Cheruiyot S. K. Bundotich

Equipment Addendum 3 Day Corporation PS Internal Security Financial Secretary

9 Kenya Police Aiming Support 12 July 2002 $12.8 960 J. Manshing for Apex. Z. K. A. Cheruiyot S. K. Bundotich

Project Finance Corporation PS Internal Security Financial Secretary

10 National Early Warning

Security System (NEWSS) for 12 July 2002 $35.0 2,625 Andy Macgill on behalf of LBA Sammy Kyungu S. K. Bundotich

Meteorological Department PS, Transport Financial Secretary

and Communications

11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 Andrew Macgill on behalf Ali. Koran & PSI S. K. Bundotich

and telecommunication of. LBA Home Affairs and Financial Secretary

Project Phase 2 . National Heritage

12 Multi-Channel Security 29 May 2003 49.7 4,423 Dave Doyle for Globotel Dave Mwangi- Joseph Magari

Telecommunication System and David Dunkley- for PS Internal Security PS/Treasury

for Administration Police Midland Finance Ltd.

13 Modernization of Police Equipment 17 Dec 2003 40.0 3,569 Brian Mills on behalf of Dave Mwangi Joseph Magari and Accessories both Sound Day and PSI Internal Security PS/Treasury

Apex Corporation

Sub-total 16,605

ANURA PERERA

14 Broadband Network PCK. VSAT 11 Jul 2002 $11.8 885 Michael Allan on behalf of Sammy Kyungu S K. Bundotich

Equipment / Fir-StMercantile Spacenet Inc, the supplier PSI Transport and Financial Secretary

Securities Corporation (FMSC) and A Gusman for First Communication

Mercantile Securities Corp

15 Bandwidth Spectrum and 11 July, 2002 $28.1 2,108 AvramZivTal, on behalf Sammy Kyungu S. K. Bundotich

Network Operation/ of UniVerSal Satspace PS/Transport and Financial Secretary

Universal Satspace (USS) Communication

16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 Anurath Gunarwadena on Sammy Kyungu S. K. Bundotich

Command Centre behalf of Nedermar Technology PS, Transport and Financial Secretary witnessed by Micheal Allan Communication

17 Naval Ship (Oceanographic 15 July, 2003 51.9 4,619 J. K Marrio for Euromarrine; Sammy Kyungu

Survey Vessel) Christopher Kompasa PS/ Defence Joseph Magari

for Navigia Capital; Hairis PS/Treasury

for Empressa Financas

18 Project Fragstaff (National

Counter Terrorism Control Centre) 20 Jan, 2004 $40.7 2,053 Harry Smith Flenkirsen on Brig(Rtd) Wilson Boinett Joseph Magari

behalf of Clara Systems Ltd Director-General, NSIS PS/Treasury

Sub-total 13,949

Grand Total. 56,257

dates of the offi ce holder.The President may, however, un-

der the law remove the AG only for serious violation of the Constitution, gross misconduct, incompetence, mental or physical incapacity or bankruptcy.

In their petition, the LSK claims Prof Muigai failed to respond to fi ve letters by the foreign advocate in Eng-land, who had been hired by the State to defend the suit.

He failed to give instructions to the said Kenyan foreign advocate to fi le a reply to the application by the claimant, which sought to strike out the defence and counterclaim by the Kenyan Government. The application for striking out was therefore not con-tested in terms of the facts, the ap-

THE RETURN OF ANGLO LEASINGANGLO LEASINGANGLO LEASING

Captains see the ship through the crews eyes







Supplier






Sub-total 18,908




National Heritage






Sub-total 6,795


KAMANI FAMILY








and Communications








Apex Corporation

Sub-total 16,605

ANURA PERERA

















Sub-total 13,949

Grand Total. 56,257

FAIR SETTLEMENT VALUES AND RESOLUTION STRATEGIES FOR SECURITY CONTRACTS - OCTOBER 2013 CONTRACT NAME Date Signed Project Value Fair RESOLUTION Settlement STRATEGY Price Forex Ksh m Kshm

I CANCELLED CONTRACTS KAMANI FAMILY

1 Forensic Sciences 16 Aug 2001 $54.6 4,095 - Funds returned and Laboratory for CID contract cancelled

2 Security Vehicles for 16 Aug 2001 $90.0 6,750 - Funds returned and Kenya Police contract cancelled (Silverson Establishment)

3 Kenya Police Law 19 Nov 2003 58.7 5,229 Funds returned and & Order (E-Cops) contract cancelled /Infotalent

4 Immigration Security 4 Dec 2003 31.9 2,839 - Funds returned and & Document Control contract cancelled System (ISDC)

18,908

II FULLY PAID CONTRACTS

5 Kenya Prisons Security 30 Oct 1997 $24.6 1,845 (3,375) Recovery not & Telecommunication feasible. Close file Project Phase I

6 Kenya Police Airwing 8 June 1998 $36.0 2,700 (3,472) Recovery not Support Project 1 feasible. Close file

7 Kenya Police: Supply 9 April 2002 $30.0 2,250 (1,388) Recovery not of Security Equipment feasible. Close file

Addendum 2

Sub total 6,795 (8,235)

Ill PARTLY COMPLETED CONTRACTS

Kamani Family

8. Kenya Police: Supply 14 June 2002 $31.8 2,385 (1057) Cancel contract and of Security Equipment recover funds Addendum 3

9. Kenya Police Airwing 12 July 2002 $12.8 960 (126) Cancel contract and Support Project 2 recover funds

10 National Early 12 July 2002 $35.0 2,625 (1050) Cancel contract and Warning Security recover funds System (NEWSS) for Meteorological Deptment

11 Kenya Prisons Security 19 Nov 2002 29.7 2,643 (522) Cancel contract and and telecommunication recover funds Project Phase 2

12 Multi-channel Security 29 May 2003 49.7 4,423 (1,071) Cancel contract and Telecommunication recover funds System for Administration Police

13 Modernization of Police 17 Dec 2003 $40.1 3,569 (1.84) Cancel contract and Equipment and recover funds Accessories

Sub total 16,605 (4,010)

Anura Perera

14 Broadband Network 11 July, 2002 $11.8 885 421 Judgment 10.1m PCK VSAT Equipment/ (Ksh 868m) First Mercantile Negotiation Securities Corporation recommended (FMSC)

15 Bandwidth Spectrum 11 July, 2002 $28.11 2,108 (1,272) Mediation 7.6m and Network Operation (Ksh 653m) /Universal Satspace Negotiation to (USS) proceed

16 Project Nexus (Defence 19 Nov, 2002 36.9 3,284 2,310 Successfully Command Centre) negotiated paid 14m (Ksh1.54 bn)

17 Naval Ship 15 July, 2003 51.9 4,619 4,180 Successfully (Oceanographic Survey negotiated 34m Vessel) (Ksh 3.74bn ) paid

18 Project Flagstaff 20 Jan, 2004 40.7 3,053 N/A Not Valued. (National Counter Negotiation Terrorism Control Centre in progress

Sub total 13,949 - -

GRAND TOTAL 56,257

NOTE: 1) The fair settlement value is based on fair value of deliveries less the GoK pay-ments adjusted by interest due to either party. The amounts were computed in 2007 but were updated during negotiations of contracts Nos 14-17

2) Exchange rate $1= Ksh 75 1 =Ksh 89. The exchange in the early reports is applied so that the shilling value of contracts does not keep changing







Supplier






Sub-total 18,908




National Heritage






Sub-total 6,795


KAMANI FAMILY








and Communications








Apex Corporation

Sub-total 16,605

ANURA PERERA

















Sub-total 13,949

Grand Total. 56,257







18,908





Addendum 2

Sub total 6,795 (8,235)


Kamani Family







Sub total 16,605 (4,010)

Anura Perera







GRAND TOTAL 56,257









18,908





Addendum 2

Sub total 6,795 (8,235)


Kamani Family







Sub total 16,605 (4,010)

Anura Perera







GRAND TOTAL 56,257



Tuesday, May 20, 2014 / The Standard NATIONAL NEWS / Page 3


Deputy Solicitor General Muthoni Kimani and Attorney General Githu Muigai at a Press conference in Nairobi yesterday. [PHOTO: JOHN MATUA]

AG defends his offi ce on Anglo Leasing, says payment legally done

By GEOFFREY MOSOKU

Besieged Attorney General Githu Muigai yesterday came out to defend himself and the State Law Offi ce over the controversial payment of Sh1.4 billion to Anglo Leasing contracts.

Prof Githu convened a press con-ference and gave a chronology of events leading to the payments, as he sought to distance himself from blame, adding that the State sought legal opinion from experts.

He dismissed the argument that his offi ce compromised the case thereby exposing the country to mas-sive losses in dubious payments. He also challenged the notion that the Government failed to defend the cases both in Switzerland and the UK.

A visibly agitated Githu said the Government sought opinion from one of the most prestigious law fi rms in London and globally on the cases.

Although he did not directly men-tion names, the AG pointed an accus-ing fi nger at his predecessor and current Busia Senator Amos Wako, and former ministers Musalia Muda-vadi and Chris Obure (Transport and Finance ministers in 2002) and former Postmaster General Francis Chaho-nyo who were in offi ce when the mega deals were signed.

IT WASNT METhe man you see before you is a

mortician. The patient died on the operating table long time ago. Githu Muigai is the mortician. If you think the patient should have lived, ask the surgeons, Githu said.

The AG, who is constitutionally the chief legal advisor to the Government, further sought to distance the State

Law Offi ce from any blame saying their role was only restricted to advi-sory.

Its not for the AGs offi ce to say what has been supplied or not but the relevant ministry, and PWC have con-stantly admitted that broadband was supplied. The AG makes legal opin-ions and as to what the persons ad-vised has to do, its upon them, Prof Githu said.

He added: It has been said that the Government paid ghost compa-nies, I have particulars of the people paid and the fi les are completely up to date. It has been said these are con-tracts where air was supplied. It is not for the AG to say what has been sup-plied or not. The Ministry of Commu-nication and PWC have consistently admitted that Kenya received broad-band capacity from this company.

Speaking moments after the Law Society of Kenya (LSK) moved to court and petitioned Parliament to eject him, Githu told journalists that he had called them to respond to unwar-ranted attacks in the media, public places and funerals by people target-ing his offi cers, his offi ce and him-self.

About LSKs move to strike him off the roll of practicing lawyers in the country, Githu added; The treatment they have meted out on me in the past 72 hours is totally unjustifi ed, regret-table and motivated by other consid-eration. I regret that LSK has moved that way and I have been in the public long enough to know when articles appear constantly in the media by the same people, then those people have a strategy.

He argued that the decision on Anglo Leasing was made before he assumed offi ce on August 29, 2011

IN AGS WORDS The Government sought opin-ion from one of the most pres-tigious law rms in London and globally on the cases Its not for the AGs of ce to say what has been supplied or not but the relevant ministry, and PWC have constantly admit-ted that broadband was sup-plied. The AG makes legal opin-ions and as to what the persons advised has to do, its upon them My of ce acted within law and did not use any dodgy proce-dures in the handling of the An-glo Leasing contracts, as it has been widely alleged

explaining that at no time was Kenya unwilling to pursue the matter save for the fact that all attempts for appeal were blocked.

Githu said contrary to accusations of laxity, his offi ce had put up a spir-ited fi ght to defend the public by sending the Solicitor General, Njee Muturi, to a London court to seek an adjournment and leave to appeal,

which all went against Kenya.At the court, Githu said Mr Njee

was asked to either accept a $7 million arbitration ward or the original award of $28 million where he made a tele-phone call home to seek fresh instruc-tion on way forward.

Its then that the AG invited Trea-sury boss Henry Rotich and his PS Kamau Thuge and Deputy Solicitor General Muthoni Kimani and had a telephone conversation that resolved to enter consent of settling the arbi-tration award.

GOVERNMENT APPROVALIts a judgmental call that every

lawyer has to make. We told the So-licitor General to accede to the pay-ment of the $7 million, Githu told journalists.

Accompanied by Ms Kimani, the AG displayed documents to the me-dia, which he said were available for scrutiny, insisting that Kenya acted

procedurally and transparently as it made informed decisions after wide consultations with legal experts be-fore taking any action in handling the matter.

He explained that his offi ce acted within law and did not use any dodgy procedures in the handling of the Anglo Leasing contracts, as it has been widely alleged.

Any allegation therefore, that these cases were being mediated or handled in England under the table, under wraps in a quick fashion to achieve ulteriornothing could be further from the truth, nothing could be more libelous of my offi cers, of my offi ce and of myself, Githu retorted.

The AG revealed that a Kenyan lawyer John Wambugu has also taken the Government to court claiming Sh100 million as legal fee after he was appointed by the then AG Wako on the request of former Information Minis-ter Mutahi Kagwe.

Githu, as it appeals against court ruling

Tuesday, May 20, 2014 / The StandardPage 4 / NATIONAL NEWS

Anti-graft agency starts probe into 18 contracts following directive

By MOSES MICHIRA

The Ethics and Anti-Corruption Commission (EACC) has re-started investigations into the 18 Anglo Leas-ing contracts following a presidential directive issued last week.

The anti-graft agency will work with the Director of Public Prosecu-tions to fi nd and charge Government offi cials involved in the scandal that was fi rst exposed 10 years ago.

We have now partnered with the DPP in the fresh investigations with a focus on the legality of all the con-tracts, EACC spokesman Yassin Amaro told The Standard.

It is the fi rst time the DPP will be directly involved in the decade-long probe that has largely been futile.

The move comes days after Presi-dent Uhuru Kenyatta ordered fresh investigations into the scandal, with a view to recovering funds that have been lost in the shoddy contracts.

Uhuru directed EACC to do ev-erything they can to ensure that this portion of money is recovered and Kenya gets restitution. Amaro says the new probe will seek to expose the architects of the scheme, who would then be prosecuted by offi cers from the DPP. The anti-graft agency does

Commission is set to work with the DPP to nd and charge Government of cials implicated in scandal

addressed to the anti-corruption commission.

The said evidence Mutua is refer-ring to is an earlier correspondence dated December 2013 and the actual proceeding of the claim by Universal Satspace. LSK had earlier threatened to sue the AG, Solicitor General Njee Muturi and Senior Deputy Solicitor

General Muthoni Kimani over their position in the payment of the con-troversial claims worth Sh1.4 billion.

The three advised the State that there was no chance for Kenya to contest the controversial court rul-ings, and settlement on the claims would be in the best interest of the country.

THE ATTORNEY GENERALS DEFENCE Githu has defended himself severally, including at a press confer-ence he called yesterday, where he claimed there was nothing he could have done to save Kenya in the litigation that has staggered in the courts for 10 years The AG claims that the patient was already dead by the time he was appointed AG, alluding to the proposition that Kenya had already lost all chances to win in suits led by First Mercantile Securities Cor-poration in Geneva, and Universal Satspace in London

By MOSES MICHIRA

President Uhuru Kenyatta has said he feels terrible that his Government is about to pay Sh1.4 billion to Anglo Leasing fi rms but that he had no choice because it is in public interest.

Uhuru spoke about his agony during a press conference at State House on Friday when he said his view about the scandalous con-tracts, which he described as a scam in 2006 when he was Offi cial Leader of the Opposition, hasnt changed.

The President explained the controversial payments stand in the way of Kenyas planned Euro bond that is expected to raise Sh132 billion to plug a shortfall in the national budget.

There was no way we could go for this particular bond without fi rst having cleared our interna-tional obligations. So I gave that directive, said President Kenyat-ta.

Attorney General Githu Muigai has said that Kenya should just pay up, because it has exhausted the avenues for appeal for the suits it lost in Geneva and London. Uhuru, who had investigated the scandal back in 2006 when he was the opposition leader, found it to be a costly scam.

Eight years ago, President Ke-nyatta then Gatundu South MP, asked Parliament to stop archi-tects of the Anglo Leasing scandal because they would continue to haunt even future governments and even terming the scheme as a scam.

Uhuru pained by Sh1.4b payment

not have prosecutorial powers, but would typically fi nish its investiga-tions before the fi ndings are handed over to the police as evidence.

EACC and its predecessor agen-cies have been unable to crack and expose the scandal that is feared to cost the county tens of billions.

Already, President Kenyatta had directed the national Treasury to pay Sh1.4 billion to two of the fi rms against disapproval by Parliament while blasting the State Law Offi ce for failing to defend Kenya properly in foreign courts.

It is for the legal council that rep-resents our republic to up their game and to ensure that we dont lose any more cases going forward because as we lose them they cost us on issues that we do not believe are correct.

UNFAVOURABLE JUDGEMENTAfter the Presidents criticism on

Friday, the Law Society of Kenya yes-terday accused Attorney General Githu Muigai of procuring an unfa-vourable judgement in the British court in an Anglo Leasing case where the State lost.

LSK Chairman Eric Mutua said Githu had conspired to ensure Kenya lost in the case, before the State was ordered to pay Sh667 million to Uni-versal Satspace in December last year. Mutua, who says there is evidence to back his claim, now wants EACC to investigate the AGs conduct in han-dling of the case.

The following documentary evi-dence points to a possible offence of conspiracy to defraud public fi nances through procurement of an irregular judgment, Mutua said in a letter


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Tuesday, May 20, 2014 / The Standard Page 5Tuesday, May 20, 2013 / The Standard

P.M. NgugiChairman

E.N. NgugiDirector

E.M. KimemiaDirector/ Principal Ofcer

STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2011

Head Of ce: Chester House, 1st Floor, Koinange Street, P.O. Box 30170-00100, Nairobi, KenyaTel: 2216792, 2241620-6, 2216450, Cell Phone: 0722-205286, 0733-600462, Email:[email protected]

The above statements of Comprehensive Income and Financial position are extracts from the Financial statements of the company for the year ended 31 December 2013 which were audited by Ernst and Young and received an unqualied opinion. The nancial statements were approved by the Board of Directors on 29/04/2014 and signed on its behalf by:

P.M. Ngugi E.B.M Chele E.M. KimemiaChairman Director Managing Director/ Principal Ofcer

STATEMENT OF MOVEMENT IN DEPOSIT ADMINISTRATION & INVESTMENT CONTRACT LIABILITIES FOR THE YEAR ENDING 31 DECEMBER 2013

AMOUNTS PAYABLE UNDER DEPOSIT ADMINISTRATION CONTRACTS2013 2012

KSHS KSHSAs at 1 January 475,319,021 359,092,833 Pension Fund Deposits Received 106,209,752 77,548,201 Surrenders and Annuities Paid (39,679,046) (21,407,696)Interest Payable to Policy Holders 67,500,174 83,717,484 Administrative Expenses (4,638,249) (2,894,487)Increase in Un-Appropriated surplus (37,283,306) (20,737,314)As at 31st December 567,428,346 475,319,021

INVESTMENT CONTRACT LIABILITIES 2013 2012KSHS KSHS

As at 1 January 10,934,001 8,076,047 Pure Investment Funds Received 5,334,760 3,896,433 Surrenders and Annuities Paid (1,664,175) (1,929,319)Interest Payable to Policy Holders 1,787,069 2,382,252 Administrative Expenses (2,594,177) (1,440,004)Increase/(decrease) in Un-Appropriated surplus 30,459,882 (51,408)As at 31st December 44,257,360 10,934,001

KEY RATIOS Long term business General business 2013 2012Capital Adequacy Ratio 100% 100% 100% 100%Solvency Ratio 1033% 526% 584% 638%Claims Ratio 70% 45% 37% 41%Expense Ratio 16% 43% 37% 44%

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2013

Long term business General business Total 2013 Total 2012 Shs Shs Shs Shs

Gross Written Premiums 199,232,497 1,199,048,043 1,398,280,540 1,033,147,455 Less: Outward Re-Insurance Premiums 152,475,115 110,607,628 263,082,743 182,746,683 Net Written Premiums 46,757,382 1,088,440,415 1,135,197,797 850,400,772 Gross earned premiums 199,232,497 1,078,060,167 1,277,292,664 938,980,256 Less: reinsurance premium ceded 152,475,115 104,565,516 257,040,631 174,628,507

Net earned premiums 46,757,382 973,494,651 1,020,252,033 764,351,749 Investment income 71,217,327 122,276,271 193,493,598 208,095,843 Commissions earned 37,845,289 24,978,850 62,824,139 41,257,765 Other income 163,461 756,401,733 756,565,194 30,027,691

Net income 155,983,459 1,877,151,505 2,033,134,964 1,043,733,048 Claims and policy holder benets payable 217,370,042 536,194,047 753,564,089 462,180,498 Less: Reinsurers share of incurred claims 122,161,220 116,316,885 238,478,105 93,345,568

Net claims payable 95,208,822 419,877,162 515,085,984 368,834,930 Operating and other expenses 33,776,123 399,145,889 432,922,012 381,392,805 Commissions payable 16,481,706 112,207,691 128,689,397 108,440,558 Statutory levies 238,944 14,587,134 14,826,078 11,593,766

50,496,773 525,940,714 576,437,487 501,427,129 Prot/ (loss) before tax 10,277,864 931,333,629 941,611,493 173,470,989 Income tax expense - (35,491,967) (35,491,967) (59,236,302)Prot for the year 10,277,864 895,841,662 906,119,526 114,234,687 Earnings Per Share (Basic & Diluted) 39.82 3.91

STATEMENT OF PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

Prot for the year 10,277,864 895,841,662 906,119,526 114,234,687 Other Comprehensive Income, net of taxGain/(Loss) on revaluation of land and buildings 56,854,000 56,854,000 Gain/(Loss) on available for sale assets (805,790) (805,790) 39,272,310 Total Comprehensive Income, net of tax 10,277,864 951,889,872 962,167,736 153,506,997

STATEMENT OF FINANCIAL POSITION AS AT 31ST DECEMBER 2013

Long term business General business Total 2013 Total 2012CAPITAL EMPLOYED Shs Shs Shs ShsShare capital 150,000,000 300,000,000 450,000,000 450,000,000 General reserve 6,000,000 6,000,000 6,000,000 Revaluation Reserve 76,194,000 76,194,000 19,340,000 Available-for-sale reserve 129,265 129,265 935,055 Statutory reserve 45,335,380 45,335,380 35,057,516 Retained earnings 955,595,725 955,595,725 765,753,661

SHAREHOLDERS FUNDS 201,335,380 1,331,918,990 1,533,254,370 1,277,086,232 ASSETSProperty and equipment - 132,947,290 132,947,290 78,556,295 Intangible Assets 79,271 1,502,081 1,581,352 4,464,451 Prepaid operating lease rentals - 582,000,000 582,000,000 203,577,205 Investment property - 672,848,551 672,848,551 986,737,809 Investment in the Kenya Motor Insurance Pool - 43,351,334 43,351,334 31,589,701 Deferred tax - 6,535,846 6,535,846 Receivables arising out of reinsurance arrangements 3,371,576 119,783,807 123,155,383 65,107,138 Receivables arising out of direct insurance arrangements 36,953,932 324,837,570 361,791,502 235,529,024 Deferred acquisition costs - 60,810,612 60,810,612 40,390,430 Reinsurers share of insurance liabilities 46,695,653 256,602,180 303,297,833 256,329,733 Other receivables 31,036,842 58,753,146 89,789,988 108,249,964 Held to maturity investments 88,100,000 150,000,000 238,100,000 223,861,708 Available for sale nancial Instruments 23,040,405 23,040,405 94,440,555 Deposits with nancial institutions 681,951,081 624,083,082 1,306,034,163 1,145,456,934 Tax recoverable - - 10,303,811 Cash and bank balances 7,005,790 14,835,860 21,841,650 34,022,359

TOTAL ASSETS 895,194,145 3,071,931,764 3,967,125,909 3,518,617,117 LIABILITIESInsurance contract liabilities 75,974,211 1,047,910,254 1,123,884,465 1,152,728,925 Payable under deposit administration contracts 567,428,346 - 567,428,346 475,319,021 Payable under investment contracts 44,257,360 - 44,257,360 10,934,001 Provision for unearned premium - 555,111,054 555,111,054 434,123,178 Deferred income tax - - - 25,550,082 Income Tax Payable 5,400,999 5,400,999 - Creditors arising from reinsurance arrangements - 35,109,584 35,109,584 41,531,220 Cash and bank balances - Over Draft - - 29,671,592 Other payables 6,198,848 96,480,883 102,679,731 71,672,866

TOTAL LIABILITIES 693,858,765 1,740,012,774 2,433,871,539 2,241,530,885 NET ASSETS 201,335,380 1,331,918,990 1,533,254,370 1,277,086,232

By RAWLINGS OTIENO

CORD leaders have argued there is no justifi cation for payment of Sh1.4 billion to Anglo-Leasing companies.

They said the contracts were illegally procured and that Kenya should not commit to fraudulent dealings.

The Opposition also threat-ened to impeach President Uhuru Kenyatta over his direc-tive to the Treasury to pay the debt. Kakamega Senator Bonny Khalwale asked why the Jubilee government is not implement-ing what was in the report when Uhuru chaired the Par-liamentary Accounts Commit-tee (PAC).

FLEECE TAXPAYERSIn 2006, Uhuru, then the

Opposition leader, chaired the PAC, which authored the re-port that described the more than Sh50 billion contracts as a system hatched by a few in-dividuals to continually fl eece taxpayers.

Khalwale claimed Anglo Leasing companies were owned by two Indians and two Kenyans, whose names are in

the report which Uhuru sub-mitted when he was the PAC chairman.

We are the representatives of the people, and if he goes on doing this he will be the fi rst President in Kenya to be im-peached, warned Khalwale.

In particular, the Opposi-tion coalition dared the Na-tional Treasury Cabinet Secre-tary Henry Rotich to authorise the payments and face censure Motion in Parliament and Sen-ate.

Deputy Minority Leader Jakoyo Midiwo castigated the move to pay the two compa-nies, terming Uhurus authori-

sation to pay as unconstitu-tional.

This is will be the fi nal onslaught to bad governance. Our people cannot keep on suffering because of a few in-dividuals at Harambee House. If Rotich pays this Anglo-Leas-ing money then, we will jail you, humiliate you and recom-mend that you are hanged at Uhuru park in public, because this is peoples money and you are the accounting offi cer, said Jakoyo.

He went on; The President has money; if he wants to pay with his own money then he can go ahead and pay, but not

the public money.In a parked political rally at

the famous Kamkunji grounds in Kibera, Jakoyo tore into Uhurus declaration that Kenya has no option but to pay, say-ing the President does not have any mandate in law to autho-rise the release of money with-out passing through the Parlia-ment.

Awendo MP Jared KOpiyo asked how Kenyans can be sure that the money Uhuru is directing to be paid would not benefi t some few people in the Government if the faces be-hind the Anglo Leasing are not made public.

KOpiyo argued that the Jubilee government had failed to be transparent and is not keen on fi ghting the ghost of corruption and impunity.

His counterpart Suna East MP Junet Mohamed claimed that the Government was re-warding those who politically helped Jubilee fund its cam-paigns ahead of last years General Election.

Mohamed accused the Ju-bilee administration of launch-ing aggressive attacks on re-forms.

Tuesday, May 20, 2014 / The Standard

Jakoyo: This will be the fi nal onslaught to bad governance. Kenyans must stop suffering.

Khalwale: We are the representatives of the people and we have to stop this.

By WILFRED AYAGA

The National Alliance (TNA) re-sponded to weekends call for mass demonstrations over the controversial Anglo Leasing payments by rival party CORD and promised to shoot down impeachment Motion against President Uhuru Kenyatta.

TNA also blamed former Attorney General Amos Wako and former min-isters Musalia Mudavadi and Chris Obure for the dubious Anglo Leasing contracts.

The deals involving First Mercan-tile and Universal Satspace were signed in July 2002 by Transport and Finance ministries. Mudavadi was Transport minister, Obure was Fi-nance minister and Amos Wako was the Attorney General. Any attempt to take over the Government other than through lawful means amounts to treason. We are not paying because we like it, but we would like to save Kenyans the pain of paying an extra Sh25 billion as accrued interest, TNA Chairman Onyango Oloo told a press conference yesterday.

MPs and political leaders allied to the party called separate press confer-ences during which they poured cold water on CORD leaders who last Sun-day threatened to call people out into the streets to protest the payments, which have the backing of President Kenyatta.

During the Sunday rally, CORD

TNA tells rivals off over mass actionParty claims some members of CORD were in of ce when deals were initiated, promise to shoot down impeachment Motion

Director of Liaison at State House Patrick Ngatia, TNA Secretary General Onyango Oloo and party Executive Director Joseph Mathai address the Press at the TNA headquarters in Nairobi, yesterday. [PHOTO: PIUS CHERUIYOT/STANDARD]

threatened to impeach the President, stating that his decision to make the payments was against the wishes of majority.

The leaders promised to start a series of countrywide rallies after their leader Raila Odinga, currently in the US, returns to the country.

READY FOR MOTIONCORDs sentiments, however, ap-

pear to have rubbed TNA the wrong way with the Senate Majority Leader Kithure Kindiki and House Majority Whip Katoo ole Metito leading 14 MPs and senators in denouncing the calls by the Opposition.

The MPs, who included Kimani Ichungwa (Kikuyu), Mithika Linturi (Igembe South), Mary Wambui (Otha-

Page 6 / NATIONAL NEWS

CORD threatens to impeach Uhuru as payment row rages

Chris Obure

Amos Wako

Musalia Mudavadi

MUDAVADI DEFENCEUDF leader Musalia Mudavadi has told off TNA for attempt-ing to blame him for the Anglo Leasing scandal. Inquiries were made on the matter at which point Mudavadis position was known innocent, Mudavadi said in a press statement issued yesterday by his private secre-tary Kibisu Kabatesi.

TNA BLAMES FORMER STATE OFFICERS

ya), Jude Njomo (Kiambu Town) and senators Charles Keter(Kericho) and Naisula Lesuda (nominated) dared the Opposition to table the impeach-ment Motion.

We are ready to debate the Mo-tion if it comes. However, they should know that in the law it is impossible to impeach the President. This is be-cause they have no grounds to do so and also because the President is not just the chairman of some football club which they can just remove. He has members in both houses, said Kindiki.

What we saw in Kibera was a comedy show. What we are telling them now is that we are ready for the Motion and they can bring it on, Ichungwa said.

The sentiments were made at the same time that Oloo was addressing another press conference at the TNA headquarters, accompanied by a State House offi cial Patrick Ngatia. Ngatia is the Director of Liaison at State House. Also present was the partys executive director, Joseph Mathai.

They turned the heat on CORD saying the people close to the Opposi-tion were in Government when the payments were signed. It also claimed that utterances made by the CORD leaders that they plan to take over the government bordered on treason.

Amid the back and forth between CORD and TNA, leaders allied to the URP, which is an affi liate of the Jubilee coalition, have kept a studious slice over the matter.


By MOSES NJAGIH

The controversial proposed Sh1.4 billion payout to Anglo Leasing com-panies is already the subject of a probe by two committees of Parlia-ment.

MPs are focusing on unmasking the shadowy fi gures associated with the two companies that sued Kenya for non-payment. The Senate Com-mittee on Finance, Commerce and Budget and the National Assemblys Public Accounts Committee (PAC) are investigating the saga.

Parliament waded into the contro-versy after Treasury moved to the Na-tional Assembly to seek concurrence on Attorney General Githu Muigais advice that Kenya settles the debt.

Meanwhile, the joint committees of Budget and Finance in the Nation-al Assembly, after meeting with offi -cials from both Treasury and the AGs offi ce, gave the green light for the pay-ments to be honoured.

The report was due to be tabled in Parliament on the same day that Trea-sury offi cials met Jubilee MPs to lobby

House teams probe Anglo Leasing payThey want to know individuals linked to the two companies that sued Kenya for non-payment

them to support the report. But it was quietly removed from

the order paper after the legislators walked out on the Treasury offi cials, chanting Cant pay, wont pay.

In a report tabled in the National Assembly before it went on recess and which was presented by Budget Com-mittee chairman Mutava Musyimi, the joint teams recommended to the House to allow the Government to pay so that in return Kenya would be eligible to fl oat its euro bond.

But PAC and the Senate commit-tees have insisted that the payments should not be made until all conten-tious issues are addressed by their re-spective probes.

Both Muigai and Treasury Cabinet Secretary Henry Rotich are expected to appear before the Senate commit-tee chaired by Mandera Senator Bil-low Kerrow this week to give details of the proposed payments.

The committee also indicated it would be probing the court processes that led to the awards against Kenya, looking at the defence the AGs offi ce made before the judges in both cases in the United Kingdom and Switzer-land.

When they come, they must be prepared to tell us who the directors of these companies are. They should not come telling us that they would need to go back and conduct a search, said Kakamega Senator Boni Khal-wale, a committee member. The Parliamentary Accounts Committee meets at Parliament buildings. [PHO-

TO: FILE/STANDARD]

NATIONAL NEWS / Page 7Tuesday, May 20, 2014 / The Standard

By NDERITU GICHURE

Three Jubilee MPs have asked President Uhuru Kenyatta to unmask the faces behind the Anglo Leasing scam before Sh1.4 billion is paid out to two fi rms.

Njogu Barua (Gichugu), Julius Ndegwa (Lamu West) and James Bett (Kesses) said they supported the Sh1.4 billion payout but demanded that the Head of State fi rst reveals those in-volved.

Speaking at Kiamugunda Catholic Church in Gichugu constituency on Sunday, the legislators said it was im-perative for the country to know who was being paid the money.

The Government should go ahead and reveal those behind Anglo Leas-ing, and we will marshal support in Parliament to ensure the President has our support, Barua said.

They noted that most of the con-tracts worth Sh5.6 billion had already been paid by the previous regime.

It is hypocritical for CORD lead-ers to keep on criticising everything the President does in relation to the scandal yet they were part of the Gov-ernment that paid billions, Ndegwa said. Bett said the opposition was de-liberately trying to embarrass the President.

Unmask those behind scandal, MPs tell Uhuru


By RAWLINGS OTIENO

The body charged with university admissions has asked students who have qualified to study degree and diploma courses to review their ap-plications online.

Kenya University and Colleges Central Placement Services (KUCCPS) Chief Executive John Muraguri said 58,000 students would be admitted study degree courses. An additional 39,000 would be enrolled for diploma courses.

Yesterday, KUCCPS launched its online application system, which will close at midnight on May 31. Through the online platform, candidates can review their choice of courses and validate their applications.

The body has set the cut-off point for admission to bachelors degree programmes at B (60 points) for male candidates and B- (58 points) for fe-male candidates.

This is based on the total declared capacity for programmes under Gov-ernment sponsorship, and the perfor-mance analysis of the 2013 Kenya Certificate of Secondary Education Examination results released this year.

Muraguri said that candidates must apply online to be admitted and those who had applied, should check, and if need be, revise their cluster subjects.

All applicants including those who may have submitted their appli-cations earlier, either directly to uni-versities and colleges or through their respective schools, and would wish to revise their choices can do so, said

Placements body gives candidates up to May 31 to apply, review choices and validate their applications

Prospective varsity, college students told to review applications online

By FAITH RONOH and KAMAU MUTHONI

Former Chief Registrar of the Judi-ciary (CRJ) Gladys Boss Shollei yester-day told the High Court in Nairobi that she no longer needed her job back.

Through her lawyer Donald Kipko-rir, Mrs Shollei said she has no inten-tions of becoming the CRJ even after the Industrial Court earlier quashed her dismissal terming it unconstitu-tional.

You will recall that she wanted to

come back but allow me to make it clear that she (Shollei) has no inten-tions of becoming the Chief Registrar of the Judiciary, Kipkorir told the court.

Mrs Shollei had through her law-yer in March written to Chief Justice William Mutunga asking him to ad-vice on when she can resume office.

Kipkorir had argued that the im-plication of the judgment was that Sholleis dismissal from office was a nullity and her constitutional rights were violated.

But Kipkorir, who made submis-

sions during a hearing of an appeal by the Judicial Service Commission (JSC) challenging the Industrial Court rul-ing, was categorical that Shollei was no longer interested in her previous job.

He further submitted that the pur-pose of the petition at the Industrial Court challenging the ousting of her client was purely based on the process followed by JSC in dismissing her.

JSC lawyers Paul Muite and Issa Mansur argued that the Industrial Court was not a High Court and there-fore could not interpret the Constitu-

tion. But Kipkorir responded by say-ing that such an argument was absurd since JSC had not raised the issue at the Industrial Court or before Justice Mumbi Ngugi who transferred the matter to the Industrial Court.

Furthermore the Constitution sets article 162 establishing the Su-preme Court, Court of Appeal and High Court. The High Court includes Labour Relations and Environment Court which are high courts, not lesser courts. All High Courts can de-termine questions of the Constitu-tion, Kipkorir argued.

Mrs Shollei tells court she isnt keen on reinstatement

Gladys Boss Shollei

Candidates wait to be taken through the process of applying for selection to universities and colleges at University of Nairobi Ngong Road campus yester-day. [PHOTO: BEVERLYNE MUSILI/STANDARD]

Tuesday, May 20, 2014 / The StandardPage 8 / NATIONAL NEWS

Muraguri. Speaking to The Standard yesterday at the Placement Head-quarters at the Kenya Science College, Muraguri said that all candidates with a minimum overall grade of C- and above are eligible to apply for diploma programmes in various government institutions.

Such candidates can apply to Ke-nya Medical Training College (KMTC), Teachers Training Colleges (TTCs) and Technical, Industrial and Voca-tional Training Colleges (TIVET).

Muraguri said that candidates who meet the cut-off point set by the Placement Service for admission to bachelors degree programmes may in addition apply for diploma pro-grammes of their choice.

Those below the bachelors degree cut-off point but with a minimum of

overall grade of C- can only apply for diploma programmes.

According to the rules and guide-lines, the minimum placement re-quirement for bachelors degree for candidates who schooled for both their primary and secondary educa-tion in counties classified as margina-lised areas by CRA 2012 policy is B- (55 points).

OvERALL GRAdE Those with an overall grade of

grade B (60 points) for male candi-dates and grade B- (58 points) for Female candidates will be allowed to make a total of eight choices of both degree and diploma programmes.

Candidates with an overall grade of C- and above but below grade B (60 points) for male and grade B- (58 points) for female students will be al-lowed to make a maximum of six di-ploma programme choices.

Candidates choices 1(a), 1(b) and

1(c) clusters must be similar pro-grammes while choices 2, 3 and, 4 can be any other programmes for both degree and diploma programmes.

If a candidate qualifies to apply for a bachelors degree, they may choose diploma choices as choice 5 and 6.

According to Muraguri, candidates with disabilities will download and fill the Disability Application Form and return the dully filled form to the Placement Service.

But to apply, all applicants will have their KCSE index number, birth certificate number and a valid email account. Candidates wishing to revise their applicationsthose who had applied in schoolwill be charged Sh1,000 while those who had not ap-plied in school will pay Sh1,500.

Applicants who will have problems with their application have been ad-vised to seek assistance from any of the listed universities and colleges close to them.

THE CHOICES The body has set the cut-off point for admission to bach-elors degree programmes at B (60 points) for male candidates and B- (58 points) for female candidates Candidates with a minimum overall grade of C- and above are eligible to apply for di-ploma programmes in various government institutions

By FAITH RONOH

All common cadre staff serving in various government ministries will, starting July 1, 2014, report directly to their respective Cabinet Secretaries.

This follows the recently launched policy on Decentralisation of Human Resource Management that will see an overhaul in the functioning of hu-man resource departments in various ministries.

Public Service Commission (PSC) Chairperson Margaret Kobia said lack of control by cabinet secretaries over staff, increased inefficiency and dual reporting relationship in support functions prompted the overhaul in the human resource department.

We have had cases where a mem-ber of staff working under a certain ministry is required to report to a dif-ferent cabinet secretary depending on their job description. The new policy will ensure that we have staff directly answerable to their ministry CS, Ko-bia said.

dESTINATIONKobia explained that the new pol-

icy will ensure that employees are more focused in their respective des-ignations thus boosting perfor-mance.

The PSC chair said the new or-ganisational structure for ministries will be based on strategic plans man-date of the respective ministries add-ing that it will reduce workload for the CSs and other senior ministry staff.

Cabinet secretaries at times leave a gap especially when they have to travel outside the country for work-related issues. However, if they can surround themselves with people who say belong to this ministry and I re-port to this CS then their job will be almost purely delegating duties, Ko-bia explained.

With the new structure, Kobia said, there might be reshuffling of employ-ees in various ministries to ensure they are well-placed in line with their strengths and ability to deliver.

New civil service policy

unveiled

Captains look for results not salutes

Tuesday, May 20, 2014 / The Standard NATIONAL NEWS / Page 9

By Irvin Jalango

Education Cabinet Secre-tary Jacob Kaimenyi has dis-missed claims that he ordered fees increment in all public universities.

In a meeting with student leaders from across the coun-try in his Jogoo House office, Prof Kaimenyi said he never is-sued such a directive.

Government directives are

communicated officially through memos and circulars. No statement or directive, or any documentation has been written to that effect. We are all surprised by the strike notice, he said.

While referring to a speech he delivered at Bomas on April 23, Prof Kaimenyi said the Government was only consid-ering a differentiated unit cost, where different courses would

cost differently.We cannot increase Uni-

versity fees without consulting stakeholders, of which stu-dents are the major players. That responsibility is with the universities councils, he said.

Leaders from the National University Students Organisa-tion led by George Bush of Moi University distanced them-selves from the strike notice

and told Prof Kaimenyi they had called for calm.

Notably missing was the Babu Owino-led Kenya Uni-versity Students Organisation which the Principal Secretary Belio Kipsang said he had met. Kaimenyi said the matter may have been politicised. He urged the student leaders to give dialogue a chance.

Babus group had called for a strike today.

I didnt order fees increment, Kaimenyi tells students

Avoid city, Sonu says on strike plans

By ISAAC MESO and ELEANOR NANDWA

University of Nairobi stu-dent leaders have warned mo-torists to keep off major roads leading to the city centre due to todays nationwide students demonstrations.

Students Organisation of Nairobi University (Sonu) chairman Babu Owino urged motorists to keep off Universi-ty way, Nairobi CBD, Moi Ave-nue, Parklands, Kikuyu Road and Thika Superhighway.

If you are working within Nairobi and you own a vehicle, please leave it at home. We are further warning motorists to stay away from major roads leading to town since they will be flocked by demonstrators he said.

Education Cabinet Secre-tary Jacob Kaimenyi has re-mained silent over this matter and we strongly feel that the only way we can get his atten-tion is through paralysing learning in our institutions., he said.

We have also received in-formation that one of our stu-

Student leaders want vehicle owners to keep off University Way, Thika Road and Kikuyu Road

Students Organisation of Nairobi University (Sonu) chairman Babu Owino at a past Press conference. Public university stu-dents are planning to stage demonstrations along certain roads today. [PHOTO: FILE/STANDARD]

dent leaders received a bribe to snub the demonstration. This will not work as all the stu-dents in public universities are behind us, he added.

The Sonu chairman said the nationwide demonstra-tions by students from the sev-en public universities will con-tinue until the Government addresses their grievances.

Sonu secretary general Jim Akach said it was unfair for the Government to increase uni-versity fee and lower the maxi-mum loan awarded to students by the Higher Education Loans Board.

The student leaders ques-tioned the Governments mo-tive to raise university fee at a time when it was being haunt-ed by the Anglo Leasing scan-dal.

TASk fORCEWe wont allow the Gov-

ernment to raise our fee so as to use part of the money to fund Anglo Leasing, said Akach.

Among the grievances they want addressed are reduction of current fee by half, increase of HELB loans and provision of grants to students.

The student leaders had earlier given Prof Kaimenyi 14 days to establish a task force to review university fees, insisting they had not been consulted.

According to the student leaders, the Government is planning to double the fee for regular students, which cur-rently stands at Sh28,000 per year.

/ NATIONAL NEWS Tuesday, May 20, 2014 / The Standard

By Michael Wesonga

Public university unions have ad-vised their members to commence in-dustrial action from May 30 over Sh3.76 billion allegedly misappropri-ated by vice chancellors.

The national officials of the Uni-versities Academic Staff Union (Uasu) and the Kenya Universities Staff Union (Kusu) told their more than 25,000 members to proceed with the strike without further reference to the Gov-ernment in case it fails to honour a re-turn-to-work formula.

Speaking in Eldoret, Kusu Secre-tary General Charles Mukwaya vowed to stage a massive and protracted withdrawal of services.

adequate tiMeWhat is coming out clearly are in-

nuendos to the effect that the chan-cellors are now speaking with impu-nity that they will not pay for lack of funds, he said.

He insisted that the argument was inexcusable given they had granted the vice chancellors adequate time to

Varsity staff to strike in 10 days timeUasu and Kusu tell their members to down tools from May 30 should State fail to honour agreement

make up for the members salary raise, house allowances and arrears they had duly negotiated for.

We are telling our members to go out and seek their money to the last penny without further reference to the Government or universities if they would not have been fully paid by 30th of this month, he advised.

Article 5 of the agreement between Kusu, Uasu, Kenya Union of Domes-tic, Hotels, Educational Institutions, Hospitals and Allied Workers and the

University Academic Staff Union Secretary General Musalia Edebe (left), Kenya University Staff Union Secretary General Charles Mukwaya and National Chairman Anthony Nyakoni address the Press in Eldoret, yesterday. [PHOTO: MICHAEL WESON-GA/STANDARD]

By eRic Wainaina

President Uhuru Kenyatta has re-quested best-performing secondary schools to engage in academic ex-change programmes in order to help improve education standards.

The Head of State said national schools like Alliance High, which per-form excellently, should share the se-crets behind their success with other schools.

Dont keep what you hold dearly. Let other people learn from what you have, Uhuru said during a thanks giving ceremony at Alliance.

The President was supporting the request by Kiambu Senator Kimani Wamatangi and Governor William Kabogo to Alliance School manage-ment to start such programmes as a way of improving education stan-dards in the county.

They raised concerns that despite the county hosting the best perform-ing school, majority of other schools in the area have been performing poorly. Wamatangi had asked the school management to start an ex-change programme where the stu-dents from the school can visit others schools in the county.

Kiambu Womens MP Anna Nyok-abi said MPs from the area have formed a caucus to address education issues in the county.

President calls for schools

exchange plan

Inter Public Universities Councils Consultative Forum demands the payment be effected not later than May 30 this year. Payment to eligible members of staff in JG 1-15 shall be effected in full on a date not later than May 30 2014, states the agreement.

Article 6 of the agreement signed on March 12 stipulates that there shall be no victimisation of either party and no employee shall suffer loss of earn-ings over the period of work stoppage. Mukwaya accused the university vice

chancellors of holding irregular meet-ings with the universities Senate teams which he said have no mandate in administrative, human resource and financial management.

Uasu National Secretary General Musalia Edebe said they were at pains explaining to members the delay in payment offered by the Government.

We gave the VCs the benefit of doubt but now we are waiting for them to act in the spirit and commit-ment of this document, he said.

Tuesday, May 20, 2014 / The Standard Page 11Tuesday, May 20, 2013 / The Standard

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/ NATIONAL: PARLIAMENT Tuesday, May 20, 2014 / The Standard

By ALPHONCE SHIUNDU

MPs yesterday asked security chiefs to reveal the details of the Sh12.3 billion deal that was awarded to Safaricom for surveillance and communication equipment.

The lawmakers sought assurances from Interior co-ordination Cabinet Secretary Joseph ole Lenku, his Prin-cipal Secretary Mutea Iringo and the Inspector General of Police David Ki-maiyo that the deal between the Gov-ernment and Kenyas largest mobile service provider, Safaricom, was above-board.

The Parliamentary Committee on Administration and National Security said the questions about the procure-

Security bosses told to explain Sh12.3b Safaricom dealment of the multibillion project have to be addressed before it is imple-mented.

The committee told Lenku, Iringo and Kimaiyo, plus other senior offi-cers in the Interior docket that they want all queries answered, so that the matter does not get stuck in court the same way the previous exercise was stuck in court in a tussle between two Chinese companies Huawei and ZTE.

Are you sure we are on the safe side? If it is an issue of single sourcing, people are going to raise issues. Or else we are going to be embroiled in the same issues that have been in court for the last two years. We need these surveillance equipment like

yesterday, said the committee chair-man Asman Kamama.

Video surveillance (CCTV), digital radios, video conferencing system, central command for the communi-

By ALPHONCE SHIUNDU

Interior Cabinet Secretary Joseph Ole Lenku, his Principal Secretary Mutea Iringo and the Inspector Gen-eral of Police David Kimaiyo yester-day came face to face with the ugly side of their officers, when an MP gave them details of an attempted ex-tortion and corruption.

Rongo MP Dalmas Otieno narrat-ed how police officers arrested three young men at the Kencom Bus Station over the weekend, took them to Cen-tral Police Station in Nairobi, and ex-torted money, in exchange for their freedom.

They were put in a police vehicle together with suspected criminals. When they reached the police station, the officers reversed the vehicle. They let the criminals go, but detained these young men. They said they wanted to book them for idling, said the Rongo MP.

They told the young men that they would be released if they paid Sh2,000 each. Between them, the men had Sh1,000. The police officer escort-ed one of them to an automated teller machine, where they withdrew Sh5,000 to buy their freedom, Otieno added.

POLICE OrDEALThe arrested youths called the MP

and narrated their ordeal. The MP told the security chiefs that he got in-to his car and drove all the way to the Central Police Station.

He called the young men back to the station and they identified the of-ficers who had taken the money.

Otieno said he pleaded with the Officer Commanding Station to disci-pline his officers to make sure that the vice was stopped.

However, when the MP called the OCS to find out if he had acted on the errant officers, the OCS told him he was in court.

I told him I will report him to the minister, said Otieno as he looked at Ole Lenku, Mr Iringo and Mr Kimaiyo, at a meeting of the House Committee on Administration and National Se-curity.

These officers must be disci-plined. I dont want them sacked, but they must know that what they did is worse than corruption. It is extor-tion, the Rongo MP said.

This is very sad. It is a case where I am innocent, yet the police arrest me. I am driven with other criminals to a police station where I should feel safe, but then, I am extorted, Otieno added.

When Lenku heard the ministers story, anger was written all over his face. They must be sacked! he snarled. Otieno said sacking wont help, because, it seemed corruption was well entrenched in the police ser-vice.

MP tells Kimaiyo, Lenku, Iringo how officers extorted

three men

per litre of fuel, this amount can only provide seven litres per day for use by the deputy county commissioners and assistant county commissioners, the trio told the parliamentary com-mittee.

They added that the allocation of Sh143 million to the divisional head-quarters means that the 1,200 vehi-cles in the police posts, stations and divisions will have to make do with just two litres of fuel a day.

This is grossly inadequate, the security bosses noted in their brief that is poised for the Budget and Ap-propriations Committee, which will have the final say on the budget.

Kimaiyo was angry that the Na-tional Treasury had reduced money that had been agreed in the Cabinet retreat in Nanyuki.

The National Authority for the Campaign against Drug Abuse the body mandated to fight illicit alcohol is also in the red.

Waikenda said she needed Sh700 million for tamper-proof passports, but her request was denied. She said she wanted to hire 600 new employ-ees, but the National Treasury gave Sh50 million for 100 new staff.

She also said she wanted Sh150 million for a system to track foreign-ers, but the Treasury mandarins re-jected the whole idea.

The MPs were livid. They in turn harassed the official of the National Treasury, senior assistant Director of Budget Kasembeli Nasiuma, and told him to explain why money was not available when the country is under siege.

wItHIN mEANSNasiuma told the MPs that the

budget resources were finite. We must live within our means as a coun-try. We cannot just print money. If in the wisdom of Parliament, our distri-bution of resources is not good enough, well be guided with the po-sition that you (MPs) take, just as we have done before, said Nasiuma.

He reminded MPs that the budget-

Treasury blamed for cutting security budget despite rising terror attacks

Security chiefs say they had submitted a budget of Sh146.8 billion which was cut to Sh83.2 billion

By ALPHONCE SHIUNDU

Top security chiefs yesterday turned the heat on the National Trea-sury over Sh63.6 billion shortfall in their budget.

This comes at a time when securi-ty threats in the country are at an all-time high. The security chiefs said they had submitted a budget of Sh146.8 billion, but the National Trea-sury had cut it to Sh83.2 billion.

Interior Cabinet Secretary Joseph Ole Lenku, Principal Secretary Mutea Iringo and Inspector General of Police David Kimaiyo trooped to Continen-tal House and told MPs that efforts in fighting crime had floundered and the situation was likely to get worse be-cause of budget cuts.

The trio at the helm of the coun-trys security machinery said they put in requests for more money, but every time their budgets are submitted, the National Treasury reduces the alloca-tions.

They said about 400 vehicles in the ministry are grounded.

Lenku, Kimaiyo, plus Director of Immigration Jane Waikenda, together with the directors in charge of regis-tration and disaster manageme

The Standard 20.05.2014

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