NATION/Lucas Barasa - The government wants to pay a whopping Sh125 billion for the controversial Anglo-Leasing projects.
This, says Attorney-General Githu Muigai, will enable it to borrow money for day-to-day operations.
Prof Muigai told the Budget and Appropriations committee that this was the only way Kenya could access cheap money from abroad.
He said the money should be paid quickly to avoid accruing high interest.
The committee is headed by the Rev Mutava Musyimi .“The payments need to be made, if not they will attract high interest. The assets of Kenya may also be impounded,” the Rev Musyimi quoted the AG as having told his committee on Tuesday.
The payments, the Mbeere South MP said, would also enable the government to access cheap money from overseas through sovereign bonds.
“It would be difficult to access this money if we have this thing hanging on our neck,” the Rev Musyimi said.
KEPT LOSING CASES
Asked on Wednesday why the Anglo-Leasing contracts have to be paid, Prof Muigai said it had to be done because the country kept on losing the cases.
Universal Satspace Company and First Mercantile Securities Corporation had sued Kenya over the contracts.
“The cases ended… we appealed and lost. We went back to the lower court, but lost,” Prof Muigai told the Nation.
However, Prof Muigai said he could not give more details “due to the confidentiality tied with the sovereign bond.”
But the Rev Musyimi questioned why the Executive wanted Parliament’s approval before effecting the payments while it “can pay and then come to Parliament for approval”.
- Next >>