Former head of Public Service Francis Muthaura yesterday testified in the ongoing hearing of Anglo Leasing case
Muthaura who was led in his testimony by senior state counsel Evah Kanyuira told Milimani senior principal magistrate Martha Mutuku the government suspended 18 Anglo Leasing contracts after realising they were ghost projects.
“Issues were raised that the 18 police security projects were not being handled properly. The government referred to them as ghost projects and ordered an audit,” Muthaura said.
He said all the contracts received the necessary state approvals, including the green light from then Attorney General Amos Wako.
Muthaura was testifying in a case where former Finance Minister David Mwiraria, three former Permanent Secretaries Joseph Magari, Dave Mwangi and David Onyonka, and businessmen Deepak Kamani, Rashmi Kamani and Chemanlal Kamani have been charged with conspiracy to defraud the government of Sh6.8 billion.
The contract was for the computerisation of security, law and order system. One of the 18 projects, E- cops, had not taken off when the government realised it was a ghost project. Payment which had been deposited was refunded, Muthaura said.
Procurement procedures were not adequately complied with because the pricing of some equipment were hiked, Muthaura said.
He said the funding of the projects was done through a Cabinet paper that authorised the procurement of priority security projects.
The projects were forensic laboratory, vehicles, housing and those in the Anglo Leasing contracts. He said that the E-cops contract was executed after Cabinet approval.
Muthaura said it is the PS and not the minister who was mandated to approve government contacts.
Muthaura said he learnt about the E- cops project during an audit. He said he was not aware of the tender and how it was executed.
He told the court the controversial contract was authorised by the minister, approved by the AG and monies set aside for the project released from the Treasury.
“Security projects do not require open tendering as it is a guarded procurement,” Muthaura said.