LSK moves to court to stop Anglo Leasing payments

The Law Society of Kenya has gone to court to block payment of Sh1.4 billion to two companies linked to the Anglo Leasing scandal.

Lawyer James Mwamu representing LSK wants the court to suspend the decision of Treasury Secretary Henry Rotich to pay Universal Satspace (North America) through First Mercantile Securities.

The LSK argues that the huge payments would interfere with the economic freedom and rights of Kenyans.

Justice David Majanja certified the matter as urgent but did not grant orders as payment of the magnitude of USD 12 million is not imminent. He said the matter be mentioned tomorrow for further orders while the LSK serves all the other parties.

“The government is about to ask Parliament to approve large amount of money through a consent judgment from London. The judgment was foreign. It was given on 13 December last year,” Mwamu told the court.

He said Rotich and Attorney General Prof Githu Muigai failed to appreciate the existing law on enforcement of foreign judgments based on fraudulent and illegal contracts.

“The decision to pay is baseless and based on untenable grounds. It is a breach of constitutional principles as enshrined in the constitution,” said the LSK.

They sought an order staying Rotich's decision to pay first Mercantile Securities Corporation after a consent judgment in Geneva. The LSK wants the court to order the AG to deposit the signed consent in court within seven days.

Apollo Mboya, CEO the LSK, said in an affidavit that a judgment that forces Kenya to pay for corrupt deals is contrary to the public interest.

“A close perusal of the judgment reveals that the learned judge granted a summary judgment for a figure which was not in the application and was never proved,”he says.

According to court documents, in September 2006 Universal Satspace sued the Kenyan government in London claiming US$12,366,816 ( Sh1.05 billion).

The then AG Amos Wako abandoned going for trial and instructed both Wambugu Motende and Dwin Coe to go for mediation. AH Malik Advocates andSenior Deputy Solicitor General then appointed William Wood as the arbitrator.

However the AG failed to pay the lawyers' fees so that matters could be determined expeditiously.

Investigations conducted by the KACC in May 2007 revealed that Universal Satspace does not exist and was a fake company with no offices or telephone lines.

"We seek a declaration that the judgment in the High Court of Queen’s Bench was obtained by fraud, misrepresentation and connivance and was tainted with corruption and falsehoods and therefore cannot be enforced in Kenya," says LSK.