Some details Githongo shared:
1. First Mercantile Securities Corporation is the company the GoK wants to pay. It was registered in 2005
AFTER Anglo investigations started. Refer to this registration document -
http://ge.ch/hrcintapp/e...05-1&ofrcLanguage=4
2. Satpace was contracted by the Transport and Communications Ministry, through the Treasury, on July 11, 2002, to provide 10 years’ worth of managed bandwidth for post offices across Kenya at a cost of $28.1 million.
According to PwC, the government paid Satspace $16 million, which far exceeded the value of services and bandwidth provided, estimated by the consultants and by another firm, Global Communications, to be worth only $3.6 million.Its registered office address is the same as that of a large number of companies for which Corp America Inc is also the registered agent. Universal Satspace’s annual tax assessment is ONLY $200.
The legal advice from the lawyers engaged by the government of Kenya to fight a claim by Satspace — after investigations on both sides of the Atlantic — was that the government could reasonably contest it and even counterclaim for $15million.
However, Satspace has no assets that the government can sell to recover its money.
The battle with Satspace started in the United Kingdom when it filed a case to be paid the balance of its contract sum in mid-2006 after payments had been frozen.
The payments were blocked due to questions raised by the then PS of Governance and Ethics, John Githongo.
In September 2006, the CEO of Universal Satspace, Ziv Tal, obtained an exparte judgment since the Attorney General FAILED to represent the government of Kenya in the case.
In a hearing in late 2006, the government of Kenya challenged the exparte judgment.
Michael Whitton visited Kenya in 2007 and obtained documents and interviewed witnesses to draft a counterclaim and defence in late 2007.
However, the draft case management proposal prepared by the lawyers in November 2007 was never executed as the lawyers were UNABLE to obtain instructions from the AG’s Office.
A revised case management proposal was put together in May 2008 on the basis of instructions from the then Minister of Justice and Constitutional Affairs, Martha Karua, and “NOT the AG’s office” as the PwC report notes.
There appeared to be a determined reluctance on the part of the AG’s office to support the government on this case. Instructions to lawyers are not being given, lawyers are not being paid, access to PwC and KACC forensic work is not being granted, and so on.
On the same day in July 2002 that the Transport Ministry entered into the Universal Satspace contract, it also contracted with Spacenet Inc (a US registered company that was a wholly owned subsidiary of the Gilat Satellite Networks Ltd linked to a foreign-based businessman intimately associated with the Anglo-Leasing saga) for the provision of VSAT communication equipment.
And at the Ministry of Finance, a deal was signed with First Mercantile Securities Corporation of Geneva, Switzerland, to guarantee the government’s payments to Spacenet Inc.
The government then made payments of $6.9 million to First Mercantile prior to the latter making any payment to Gilat, and while it was charging interest to the government.
The PwC report notes:
“Thus, GoK provided financing to First Mercantile for a two-year period during which First Mercantile was charging interest to GoK...”The contract between the Ministry of Transport and Spacenet was signed by Michael Alan.
The vice president and general counsel of Spacenet, a Mr Bresnanan, stated that Mr Alan was not an employee of Spacenet and suggested that he was probably an employee of Alldean — a company controlled by the businessman linked with Gilat Satellite Networks. Mr Bresnanan added that the copies of Mr Allan’s Spacenet business card and letterheads were false.
Even more curious,
“though the contract was signed by someone masquerading as an employee of Spacenet with falsified business cards and letterheads, Mr Bresnanan does not deny that Spacenet Inc entered into the contract with the GoK,” the PwC report points out.
RINK -
http://www.theeastafrica.../-/xsckvuz/-/index.html