KENYA TO BENEFIT FROM SWISS BANK DECISION TO FREEZE UND UNVEIL LOOTERS' BANK ACCOUNTS

THE STANDARD
NAIROBI, KENYA
April 8, 2009
By Abiya Ochola and Martin Mutua

The veil on the shadowy figures behind the Anglo Leasing-type contracts could soon be lifted following the decision by Swiss authorities to freeze major bank accounts held by fictitious companies.

Deputy Head of Swiss Mission in Nairobi Siri Walt told The Standard her Government was willing to cooperate with the Kenya in unravelling the scam in which about Sh60 billion was stolen between 1997 and 2004 from public coffers through payment fictitious security contracts.

According to the Auditor General’s reports, Sh17 billion was paid and Sh39.6 billion was pending.

Walt said the Swiss Government has new documents that could come in handy in exposing the scam — if and when the Kenya Government seeks the information. "Switzerland has agreed to help the Kenyan government as per the request we got and I can now tell you we are in possession of new documents which we want to hand over ," Walt said.

He went on: "I can assure you we have done a lot of work and the documents are very new and very helpful."

This gives momentum to the push by G20 leaders, led by US President Barack Obama, which unveiled dramatic measures to firmly shut the door on those who loot from their countries and stash the loot abroad.

Overall, an estimated Sh160 billion has been laundered by Kenya’s political elite in cahoots with unscrupulous businessmen.

Other countries where Kenya’s ill-gotten wealth is hidden include United Kingdom, US, South Africa, Namibia, Switzerland and Australia.

Kenya Anti-Corruption Commission Spokesman Nicholas Simani said the move was welcome, positive "and in the right direction".

"However, I wish to keep my comments short because we are yet to see the full communiquÈ and what it entails. We need to study the document before we make any further move," he said.

But Law Society of Kenya Vice-Chairman James Mwamu said Parliament must move fast and amend the Proceeds of Crime Anti-money Laundering Bill, which is before the House.

Rogue investigators

"This Bill should now be reviewed to factor in the new development from the G20 Summit. It should also be amended to protect innocent persons being subjected to unnecessary exposures by rogue investigators. The current laws are inadequate and should be beefed up by the new refurbished Bill," he said.

PAC Chairman Bonny Khalwale termed the move "an Easter gift to Kenya", but doubted the political will to implement the far-reaching resolution.

"There can be several good laws, including the anti-money laundering Bill, but if there is no political will, then the effort will come to nothing," he said.

He added: "The onus is now on the AG (Amos Wako) to move with speed and first ensure the Kroll report is made public. As MPs, we shall do our part to pressure Government. But civil society should come out equally."

Last month, the UK’s Serious Fraud Office said it had dropped investigation into Anglo Leasing for lack of support from Mr Wako.

The Standard could not reach Wako for comment as his phone went unanswered. Sources at his office said he was in the UK following up on the Anglo Leasing issue.

Mr Mwamu said the Constitution must be changed to give KACC powers to investigate international cases.

"There is a legal dilemma because the AG sits on boards where the contracts are signed yet he is the only person authorised to seek mutual legal assistance. This creates a conflict of interest," he said.

Mars Group Executive Director Mwalimu Mati said the crackdown would ensure such transactions are traced easily.

Cold trail

"This is welcome news. KACC has had it rough with the courts tracing the destination of the capital," he said.

According to Mars Group, one businessman (name withheld) behind 13 of the 18 security-related fictitious Anglo Leasing contracts through which more than Sh4 billion was siphoned, was a signatory to at least one of the LBA Systems accounts maintained by Investec in the Channel Islands that received money from the Government.

Through it, Kenya’s wealth was moved to Zurich from where the trail runs cold.