National Treasury Cabinet Secretary Henry Rotich has been named as a respondent in the case. PHOTO | FILE
The Court of Appeal has issued an order stopping the government from paying money to Anglo Leasing-related contracts.
Appellate
Judges Philip Waki, Patrick Kiage and Lady Justice A.K. Murgor stopped
the payments following an application filed in the public interest by
the Law Society of Kenya (LSK).
“Pending the hearing
and application of the applicants' intended appeal and petition, there
will be conservatory orders staying payment of Sh3.5 billion and any
other monies resulting from the 18 Anglo Leasing-type contracts,” the
Court of Appeal ordered.
LSK, through lawyer Mr James
Aggrey Mwamu, argued that the Treasury risked losing billions of
shillings if further payments were made through an executive order to
pay the Anglo Leasing firms.
'UNTENABLE GROUNDS'
“We
are arguing that taxpayers risk losing billions of shillings, if there
is another Executive order to pay money allegedly owed to Anglo
Leasing-type contracts,” Mr Mwamu said.
Treasury Cabinet Secretary Mr. Henry Rotich and Attorney General Prof. Githu Muigai are enjoined as respondents in the case.
LSK
appealed against an earlier ruling by High Court Judge Justice David
Majanja refusing to grant conservatory orders, leading to payment of
Sh1.4 billion to Universal Satspace (North America) LLC.
The firm later demanded payment of a further Sh3.5 billion in relation to other Anglo Leasing-type contracts.
“The
decision to pay is baseless, based on untenable grounds and the company
being paid was neither registered nor allowed to do transactions of
such big amounts,” Mr. Mwamu argued.
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