Krolling and Trolling: Anglo Leasing on the Kenyan Dole?

https://i0.wp.com/i113.photobucket.com/albums/n216/cbrayton/Stuff/krollinthehole.png
From the Githongo report: The Kenyan government’s former permanent secretary on Governance and Ethics goes to London and has Kroll look into Anglo Leasing. Kroll reports that Anglo Leasing does not exist. Click to zoom.

MORGUE: 1. A place in which the bodies of persons found dead are kept until identified and claimed or until arrangements for burial have been made. 2. A reference file in a newspaper or magazine office.

From humble beginnings in Johannesburg, a listing on the London Stock Exchange in July 2002 was designed to catapult finance group Investec on to the global stage. But now the blue-chip status of the £3.5 billion Anglo-South African giant could be tainted by unintended links to arms deals in Iran and Kenya and an alleged multi-million pound embezzlement. Even worse, Financial Mail can reveal that the UK’s Serious Fraud Office has launched its own investigation into the series of allegedly corrupt deals in Kenya known as the Anglo Leasing affair. It was an unfortunate choice of client by Investec’s Guernsey arm almost six years ago that has dragged the company to the fringe of transactions that would more usually grace the pages of spy thrillers. —Atkinson, Dan, “SFO Probes Kenya ‘Bribes'”, Mail on Sunday, 2006-11-05

Many of the alarms that were raised over the Kibaki regime prior to the amateurishly rigged elections in Kenya just now began with the Anglo Leasing affair and the Githongo report.

The case has a lot of elements that interest me at the moment:

  1. Big enterprise technology contracts in the e-government sector with innovative, no-bid e-procurement procedures
  2. Those controversial “spies” at Kroll Associates — the Homeric epithet that Veja magazine (Brazil) has assigned to the forensic beancounting division of the insurer Marsh & McClennan (and World Trade Center security contractor during that security hiccup in the fall of 2001 that ruined my whole day, back there in New York).
  3. Shell corporations used to enable illegal capital flight.

So what was the Anglo Leasing affair? And what ever happened to that? Agnes — Agnes is my fictional secretary — please open a new file labeled “Anglo Leasing.” And make a fresh pot of coffee. Then take the afternoon off. You work too hard.

Joyce Mulama of Exodus News (run by someone named Millard Hampton III out of San Jose, California, according to a quick whois) ran it down as follows in January 2005:

But, it isn’t only corruption scandals of old that are likely to dog officials this year. Kibaki’s administration also has a sizeable scam of its own to resolve: the so-called Anglo Leasing scandal, which broke in the first few months of 2004.

Two contracts were illegally awarded to Anglo Leasing and Finance — one to supply Kenya with a terrorist-proof system for manufacturing passports, another to set up forensic laboratories for the police. Payments of almost $90 million were subsequently made to the company.

I have read it was actually 90 million Kenyan schillings, or about $1.36 million at current exchange rates. Let me check.

Who was to be hired to produce this terrorist-proof passport-manufacturing system?

(Brazil recently got a new passport with all the high-tech bells and whistles, although here the more realistic menace is the Great Sino-Paraguayan Silk Road: the smuggling of everything under the sun, including but not limited to Bolivian marching powder and gambling machine components, into the country and the smuggling of mountains of money out to offshore banking paradises.)

While little is known about Anglo Leasing and Finance, the firm reportedly has an agent in Britain — Saagar Associates — that has ties to members of the former government.

Finance Minister David Mwiraria and his national security counterpart, Chris Murungaru, have been implicated in the scam but deny any wrongdoing. They also remain in office, despite public pressure for them to resign.

“This country respects the rule of the law, which says someone is innocent until proven guilty. Investigations into these scandals, including the Anglo Leasing (matter), are going on – and within one or two months we will be told who was actually involved,” Assistant Minister for Justice and Constitutional Affairs Njeru Githae told IPS in an interview last year.

Let’s go to the news morgue and see what has been published on the story.

Processing: … The unfortunately named journalist Michela Wrong — she must be sick of hearing the jokes — immediately pops up as someone who has covered the case extensively for the New Statesman.

Side observation: It is bad branding for a political party in a country dependent on Western aide to dub itself the NARC.

Much as the brand name for the “$100 laptop” here in Brazil — the “XO” — was not well thought out. In demotic New World Chugeez, (pronounced something like “show” or “Shaw”) means something like “shame on you.”

ONE BIG MAN AGAINST THE BIG MEN.
Author: Robinson, Simon
Journal: Time South Pacific (Australia/New Zealand edition)
Pub.: 2006-03-06
Issue: 9
Pages: 36(2)
ISSN: 08180628
Subject: PUBLIC contracts; CORRUPTION investigation; PASSPORTS; POLITICAL corruption; KENYA; ANGLO Leasing & Finance (Company); GITHONGO, John
Description: Language : English AN : 23512784 Illustration : , 2c The article focuses on Kenya’s anti-corruption head John Githongo’s probe into a company, Anglo Leasing and Finance, that in 2003 was awarded a contract worth tens of millions to produce tamper-proof passports for Kenya’s immigration department. Githongo says the company was nothing more than the fictitious creation of a few senior Kenyan government officials and their associates.

michela wrong.
Author: Wrong, Michela
Journal: New Statesman
Pub.: 2006-02-20
Volume: 135
Issue: 4780
Pages: 25(1)
ISSN: 13647431
Subject: TAXPAYER compliance; KENYA — Politics & government; SCANDALS; KENYA; KIBAKI, Mwai; PATTNI, Kamlesh
Description: Language : English AN : 19757216 In this article the author examines the diminished tolerance for corruption in Kenya, as illustrated by the Goldenberg scandal, engineered by Kamlesh Pattni, and the Anglo leasing scandal, both of which cost the country billions of shillings. President Mwai Kibaki has vowed to end political corruption. The author notes that Kibaki has been successful in raising tax compliance which had been very low in the past.

world view.
Author: Wrong, Michela
Journal: New Statesman
Pub.: 2005-04-25
Volume: 134
Issue: 4737
Pages: 26(1)
ISSN: 13647431
Subject: POLITICAL corruption; SCANDALS; KENYA — Politics & government — 2002-; KENYA; KIBAKI, Mwai
Description: Language : English AN : 16795734 Focuses on the issues of good governance and political corruption in Kenya. Disillusionment with the administration of President Mwai Kibaki who is collecting campaign funds; The Anglo Leasing scandal involving a British company and kickbacks to Kenya; The advice of the late German banker, Erwin Blumethal, to cut aid when the government is corrupt; View that international agencies are reluctant to recognize the problem in Kenya.

Graft Amnesty Halted.
Journal: Africa Research Bulletin: Economic, Financial & Technical Series
Pub.: 2007-09-16
Volume: 44
Issue: 9
Pages: 17549(2)
ISSN: 00019852
Subject: KIBAKI, Mwai, 1931-; BILLS, Legislative; POLITICAL corruption — Law & legislation; MISCONDUCT in office — Law & legislation; PUBLIC officers — Legal status, laws, etc.; AMNESTY — Law & legislation; POLITICIANS — Legal status, laws, etc.; ADMINISTRATIVE law; KENYA; ANGLO Leasing & Finance (Company)
Description: Language : English AN : 28048448 The article reports that Kenya’s President Mwai Kibaki has rejected a legislative bill on political corruption and requested Parliament to make revisions. The bill stops elected officials from having to declare their assets and grants amnesty to financial crimes by public officers committed before 2003.  Kenya joins other countries in East Africa in scoring low on the global corruption perceptions index. The Goldenberg and Anglo Leasing lawsuits involve corporations that diverted funds from the exchequer into personal finances of politicians. Kibaki has requested empowerment of the Kenya Anti-Corruption Council (KACC) in the prosecution of individuals involved in the Anglo Leasing and Goldenberg scandals.

Opposition Leadership Race Steps Up.
Journal: West & Central Africa Monitor
Pub.: 2006-11
Volume: 7
Issue: 11
Pages: 5(0)
ISSN: 14722038
Subject: POLITICAL corruption; POLITICAL parties; JUSTICE ministers; KENYA; KARUA, Martha
Description: Language : English AN : 22665372 The article reports that the public atmosphere in Kenya is becoming politicized over the issue of corruption with both the Narc-Kenya and the opposition ODM-Kenya parties stepping up the rhetoric. Justice and Constitutional Affairs Minister Martha Karua defended the government’s record by listing the deals that made up the Anglo Leasing affair and the ministers in charge of the government ministries involved.

KENYA.
Journal: Africa Research Bulletin: Economic, Financial & Technical Series
Pub.: 2006-09-16
Volume: 43
Issue: 9
Pages: 17108(2)
ISSN: 00019852
Subject: SCANDALS; POLITICAL corruption; CABINET officers; LISTS; KENYA; AWORI, Moody
Description: Language : English AN : 25972188 The article reports on the release of a list of those considered to be implicated in the Anglo Leasing scandal in Kenya. The list released by Justice Minister Martha Kania names at least 12 former and current cabinet ministers, including Vice-President Moody [“Uncle Moody”] Awori and 13 former permanent secretaries. They were said to have appended their signatures to various Anglo Leasing-type contracts.

Trouble At The Top.
Journal: West & Central Africa Monitor
Pub.: 2006-03
Volume: 7
Issue: 3
Pages: 1(3)
ISSN: 14722038
Subject: RESIGNATION; CORRUPTION; SCANDALS; KENYA; MWIRARIA, David; AWORI, Moody; KIBAKI, Mwai
Description: Language : English AN : 19812973 The article reports that Finance Minister David Mwiraria has tender his resignation on February 1, 2006 after he denied his involvement in the Anglo-Leasing scandal in Kenya. Mwiraria together with Kenya Vice-President Moody Awori and other cabinet ministers are facing corruption allegations and are suspiciously engaging [sic] in high level of graft and corruption. Due to this incident, future revelations will possibly cause more damage to the reputation of Kenya President Mwai Kibaki.

Anglo Leasing Affair.
Journal: Africa Research Bulletin: Economic, Financial & Technical Series
Pub.: 2006-01-16
Volume: 43
Issue: 1
Pages: 16816(0)
ISSN: 00019852
Subject: MISAPPROPRIATION of funds; CONTRACTS; PUBLIC officers; CRIME laboratories; KENYA
Description: Language : English AN : 20616873 The article focuses on the so-called Anglo Leasing Affair in Kenya. It delves into the misappropriation of funds by government officials who were entering into contracts with fictitious companies that involves the two turnkey projects worth 97 million dollar. The sum of money is supposedly appropriated for police forensic laboratories and new passport system.

British Visa Ban Sparks Row.
Journal: West & Central Africa Monitor
Pub.: 2005-10
Volume: 6
Issue: 10
Pages: 4(0)
ISSN: 14722038
Subject: VISAS; CORRUPTION; SCANDALS; GREAT Britain; KENYA; MURUNGARU, Christopher
Description: Language : English AN : 18320456 The article focuses on controversy surrounding the decision of Great Britain in July 2005 to revoke the visa of Kenya’s transport minister Christopher Murungaru. The travel ban, the latest British move aimed at maintaining pressure on the Kenyan government to tackle widespread corruption, was condemned by the government as neo-colonial interference. Murungaru was demoted in February 2005 from national security minister to his current post at the transport ministry, following allegations of involvement in the infamous Anglo-Leasing scandal.

orld view.
Author: Wrong, Michela
Journal: New Statesman
Pub.: 2005-04-25
Volume: 134
Issue: 4737
Pages: 26(1)
ISSN: 13647431
Subject: KENYA — Politics & government — 2002-; POLITICAL corruption; SCANDALS; KENYA; KIBAKI, Mwai
Description: Language : English AN : 16795734 Focuses on the issues of good governance and political corruption in Kenya. Disillusionment with the administration of President Mwai Kibaki who is collecting campaign funds; The Anglo Leasing scandal involving a British company and kickbacks to Kenya; The advice of the late German banker, Erwin Blumethal, to cut aid when the government is corrupt; View that international agencies are reluctant to recognize the problem in Kenya.

RISK SUMMARY: KENYA.
Journal: West & Central Africa Monitor
Pub.: 2005-04
Volume: 6
Issue: 4
Pages: 4(0)
ISSN: 14722038
Subject: RESIGNATION; LEASE & rental services; POLITICS, Practical; CORRUPTION; VOTING; KENYA
Description: Language : English AN : 16613657 This article presents information on matters related to political development in Kenya. Following the resignation of anti-corruption minister John Githongo at the beginning of the month, President Kibaki and his government came under fierce pressure from voters and from foreign donors to take action on graft. In response, Kibaki undertook a limited reshuffle of his cabinet and the attorney general announced that prosecutions would brought in the notorious Anglo-Leasing scandal. While these moves are important, they do not signify a genuine renewal of the government’s determination to tackle corruption, which will therefore continue to plague Kibaki’s Kenya.

INVESTEC AND A VERY MESSY ARMS SCANDAL
Author: Watkins, Simon; Atkinson, Dan
Journal: Mail on Sunday
Pub.: 2007-09-09
Pages: 3(0)
Description: Language : English AN : 26549478 From humble beginnings in Johannesburg, a listing on the London Stock Exchange in July 2002 was designed to catapult finance group Investec on to the global stage. But now the blue-chip status of the £3.5 billion Anglo-South African giant could be tainted by unintended links to arms deals in Iran and Kenya and an alleged multi-million pound embezzlement. Even worse, Financial Mail can reveal that the UK’s Serious Fraud Office has launched its own investigation into the series of allegedly corrupt deals in Kenya known as the Anglo Leasing affair. It was an unfortunate choice of client by Investec’s Guernsey arm almost six years ago that has dragged the company to the fringe of transactions that would more usually grace the pages of spy thrillers.

SFO PROBES KENYA ‘BRIBES’.
Author: Atkinson, Dan
Journal: Mail on Sunday
Pub.: 2006-11-05
Pages: 17(0)
Description: Language : English AN : 23011866 THE Serious Fraud Office is studying allegations of bribery by a British company operating in Africa, with a view to launching a full inquiry. Should the case be adopted, it would become the seventh investigation taken up by the new anticorruption unit of the City of London police. The SFO is looking at Anglo Leasing Finance, an elusive firm that previously had an address in Liverpool.

Allegations of Corruption in the Kenyan Government; Nigeria’s Delta Region Marred by Violence; South African Film Wins Academy Award
Author: Femi Oke; Christian Purefoy; Jeff Koinange; Paul Tilsley
Journal: Inside Africa (CNN International)
Pub.: 2006-03-18
Description: Language : English AN : 32U2617738664CNIA

People power presses Vice-President to quit
Author: Xan Rice in Nairobi
Journal: Times, The (United Kingdom)
Pub.: 2006-02-22
Description: Language : English AN : 7EH2893815898

Corruption scandal claims scalp
Author: Jonathan Clayton
Journal: Times, The (United Kingdom)
Pub.: 2006-02-02
Description: Language : English AN : 7EH4074478462

Kenyan ministers linked to multimillion dollar fraud
Journal: Irish Times
Pub.: 2006-01-30
Description: Language : English AN : 9FY4052345984 KENYA: The government is in crisis over a report on a hoax company, writes Rob Crilly in Nairobi

Corruption scandal claims scalp
Author: Jonathan Clayton
Journal: Times, The (United Kingdom)
Pub.: 2006-02-02
Description: Language : English AN : 7EH4074478462

Regime is told to clean up its act or pay price
Author: Richard Beeston, Diplomatic Editor and Xan Rice
Journal: Times, The (United Kingdom)
Pub.: 2006-01-21
Description: Language : English AN : 7EH2331644758

Kenya Is Buffeted By Graft Scandals
Author: Emily Wax
Journal: Washington Post, The
Pub.: 2005-02-13
ISSN: 01908286
Description: Language : English AN : WPT151227465605

RISK SUMMARY: KENYA.
Journal: West & Central Africa Monitor
Pub.: 2005-02
Volume: 6
Issue: 2
Pages: 4(0)
ISSN: 14722038
Subject: LEASE & rental services; POLITICS, Practical; SURVEYS; ELECTIONS; COMMUNITIES; KENYA
Description: Language : English AN : 16612719 This article presents information on political developments in Kenya. Two recent surveys by international NGO Transparency International found persistently high levels of graft. In one positive development, the completion of the Anglo-Leasing affair investigation was announced in January 2005. Still the implementation of the ‘zero tolerance’ policy on corruption that Kibaki promised when running for election, especially since the ruling coalition remains weakened by deep divisions has been viewed critically. 2005 saw the implementation of the East African Community Customs Union between Kenya, Tanzania and Uganda, which was finally launched on January 1, 2005.

Dissatisfaction Grows.
Journal: West & Central Africa Monitor
Pub.: 2004-09
Volume: 5
Issue: 9
Pages: 4(2)
ISSN: 14722038
Subject: GOVERNMENT policy; POLITICAL development; VIOLENCE; CONSTITUTIONS; DEMONSTRATIONS; KENYA
Description: Language : English AN : 14258130 The constitutional crisis of Kenya continues, and police have clashed with demonstrators protesting the government’s failure to implement the new constitution. Corruption, always a key issue, has returned to the top of the political agenda, as key donors and allies have highlighted their concerns about graft. Key risks come from renewed government action to investigate official corruption, now that the Kenyan Anti-Corruption Commission has been mandated to inquire into suspect payments made to the Anglo Leasing and Finance Company, officially relating to a forgery-proof passport project.

And that is about all the Brooklyn Public Library online articles database has on the affair. Let me start to do my reading now — and a cross-reference check on Investec.

Militarized innovations in high finance “at the speed of the Internet” interest me, especially in the tech and media sectors:

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