Appeals Court halts Anglo Leasing payments

National Treasury Cabinet Secretary Henry Rotich has been named as a respondent in the case. PHOTO | FILE 

By NATION REPORTER
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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.