Controller Of Budget Justifies Anglo leasing Payments

Odhiambo also added that she had initially declined to approve the payments, because Treasury had not sought the approval of Parliament to pay the Anglo Leasing debts.

Appearing before the Public Accounts Committee, the Controller of Budget told the parliamentary probe team that the controversial payment was necessary to avoid paying a higher penalty.

President Uhuru Kenyatta also defended the decision to pay the Ksh1.4 billion debt saying it was a “clear choice” as Kenya had lost the cases in a London court.

The President said it was the only way the country could secure the Euro bond saying that not paying the debt would mean cutting back on government expenditure, service delivery and programmes for Kenyans.

Under the Constitution, there are only two bodies that can authorise payments out of public funds, Parliament and the Controller of Budget who exercises this power through an Act of Parliament.

On December 20, 2013 a Judge in a London High Court entered judgement against the Kenya Government.

The Senior Deputy Solicitor General of Kenya Muthoni Kimani was the advocate representing the country before the High Court in London.

She told the judge that the debt was the result of corruption but the court rejected the argument because Kenya had agreed to pay the debt before a mediator.

This mediation was conducted in February 2013 when a representative from the office of the Attorney General made a promise binding Kenya to pay.

By Beth Nyaga