Deepak Kamani, the businessman linked to the Anglo Leasing scandal, was set to receive $847.5 million (Sh86 billion), a court heard Thursday, implying that the scam was bigger than initially estimated.
A letter forming part of the evidence in a trial against 10 people including former senior government officials indicated Sound Day Corporation, which the prosecution said is owned by the Kamanis, delivered security equipment worth $847.5 million.
The Anglo Leasing scandal, Kenya’s biggest, refers to 18 contracts signed between the government and several local and foreign companies for the equipment and services said to total $770m (Sh78 billion)—a figure lower than what was quoted in court Thursday.
Some of the entities where later revealed to be phantom firms.
Mr Benson Kariuki, who headed an audit team from the Auditor-General’s office said that a paper trail showed that Sound Day Corporation was owed Sh85 billion.
His position was supported by correspondence between Dave Mwangi, former provincial administration Permanent Secretary, (PS) and then police boss Maj Gen (rtd) Ali Mohamed stating that the police department had received the equipment.
The firms were to provide equipment ranging from tamper-proof passports and forensic laboratories, to helicopters as well as satellite services
Lawyer Ahmednassir Abdullahi who is representing the Kamani’s said that the prosecution had charged suspects with defrauding the government of money which was not paid as attested by the documentation in court.
President Uhuru Kenyatta was forced in 2014 to authorise the payment of $16.4m to two companies which had secured court orders in Geneva and London requiring the government to settle unpaid debts, even though they had not delivered contracted goods and services.
Mr Kamani and nine others including former Finance Minister David Mwiraria, Mr Mwangi and former Finance PS Joseph Magari are on trial for conspiring to defraud the state Sh40 billion through a dubious financing agreement.
The Sh40 billion financing contract is one of the so called Anglo Leasing contracts.
Under a financing agreement Sound Day was to supply security equipment and arrange financing for a three per cent management fee while Apex Finance was to provide cash.
The Director of Public Prosecution said the agreement stated that Finance ministry was to provide financing before supply of equipment, implying that the Kamani firm earned the management fee of Sh120 million on money provided by the government.