Call for your action on Anglo-leasing Promissory Notes

Statement issued by Mars Kenya

The Government of Kenya issued IRREVOCABLE PROMISSORY NOTES valued at more than 56.33 BILLION shillings to GHOSTS. As Kenya’s Controller & Auditor General told Parliament in April 2006, these Promissory Notes were given to various parties - including Anglo Leasing and Finance Limited, for goods and services that did not exist, or if they did, were grossly over-priced. The nature of these illegal contracts and the MYSTERIOUS IDENTITY of the contractors mean that Kenyans will NEVER receive these goods and services nor be refunded for the huge price difference. No serious attempt has ever been made by the Government to redress this 56 Billion shilling rip-off. In fact, even now Kenyans are LEGALLY BOUND TO PAY this sum despite the obvious illegality of these transactions.

Irrevocable Promissory Notes are legitimate debt settlement commitments that allow payments to be made in future or in installments on fixed dates. Issued by a government they represent SOVEREIGN PAPER and cannot be cancelled, unless there is verifiable evidence of FRAUD in the contracts for which they are used as settlement. Irrevocable Promissory Notes like other forms of Commercial Paper can be sold to 3rd parties – typically financial institutions or other open market investors, buying at a discount.

By seeking to withhold payment on certain Irrevocable Promissory Notes linked to Anglo-Leasing type contracts, Kenya has already been SUED locally and overseas. One of our Embassy premises in Europe has already been attached over some of these contracts and we can expect many other INTERNATIONAL LAWSUITS.

Almost half of Kenyans live on less than Kshs 68/=, (1 US$) per day. Every MAN, WOMAN OR CHILD living under this poverty line would have received almost Kshs 4,000 per person –if this money had been simply handed to them. Instead more than 17 Million Kenyans are saddled with a debt of Kshs 4,000 per person, for goods and services that none of us will ever receive.

56.33 BILLION shillings can pay for the proposed HEALTH BILL and give EVERY KENYAN access to FREE MEDICAL CARE for a year. 56.33 BILLION shillings would have paid for 8 YEARS OF NATIONAL CDF ALLOCATIONS. 56.33 BILLION shillings is 28 TIMES THE YOUTH FUND ALLOCATION.

The Government of Kenya has LIED TO KENYANS MANY TIMES that these contracts were cancelled. The TRUTH is that these contracts have not been cancelled. There is no evidence of cancellation. Further, the Government has contractually bound its citizens to pay this illegitimate debt and the Attorney General has given the Ghost Companies a legal Opinion that binds the Government to honour the Irrevocable Promissory Notes.

Kenyans must now ask the Government and their Members of Parliament, to whom they entrusted the mandate of protecting their assets, this question -WHERE ARE THE PROMISSORY NOTES?

GOVERNMENT and PARLIAMENT must ACCOUNT to the Kenyan people. The following questions are in the Order Paper of Parliament today, Wednesday 2nd MAY 2007, scheduled for the afternoon session.

1. What Is The Status Of The Various Anglo Leasing Type Financing Promissory Notes?

2. What Is Their Value?

3. Have You Paid Any Since the Public Announcement That The Government had Stopped Payments For These Type Of Deals?

In our opinion, should the Minister for Finance be willing to be truthful, he can only respond by addressing the following issues:
• According to the Controller and Auditor General as at April 2006 Audit findings were that

1. Paragraph 5.8 Government was committed to spending a total of 56.33 Billion; the commitments were in the form of Irrevocable Promissory Notes which were given to the credit providers on the day the credit agreements were signed. In layman terms the C&AG is saying that as at the date of his report, the Government did not have the Irrevocable Promissory Notes and they had not been cancelled. If they had been returned or cancelled, nothing would have been easier than the C&AG to put that in his report. This suggests that the former Minister of finance could not have been telling the truth in June 2004 and subsequent Government statements that no money has been lost cannot be true either.

2. Paragraph 5.17 The C&AG as of April 2006 was also saying that the following credit providers to whom the Irrevocable Promissory Notes had been given do not exist and are not bona fide registered business firms

Anglo Leasing & Finance Limited – Liverpool England
Sound Day Corporation – Daventry England
Infotalent Limited – Geneva Switzerland
Midland Finance & Securities Limited – Geneva Switzerland
Apex Finance Corporation – Geneva Switzerland
First Mercentile Securities – Geneva Switzerland

In layman terms the Government had committed itself in writing and had issued sovereign paper committing to pay 56.33 Billion allegedly borrowed from companies that do not exist.

3. What evidence does the Minister have as proof that any of these fictitious companies actually advanced or secured any credit for the Government of Kenya in consideration of the Irrevocable Promissory Notes that they were given?

4. In the final analysis the only means by which the Minister for Finance can answer the question on the status of the Irrevocable Promissory Notes as a representative of a purported borrower is if

- The Irrevocable Promissory Notes have been presented and paid and the Minister can report on who has presented and who he has paid

- The Irrevocable Promissory Notes have been presented and not been paid and the Minister can report on why he has not paid them and who has presented them for payment

- The Minister knows who the alleged credit providers/lenders are and is reporting on what they tell him is the status of the Irrevocable Promissory Notes

- The Irrevocable Promissory Notes have been discounted, (bearing in mind that a lender is under no obligation to inform the borrower when he sells a debt) and therefore the Minister would only report on the status of the Irrevocable Promissory Notes, if he is in contact with the current holders of Kenya’s sovereign debt

- The Irrevocable Promissory Notes have been voluntarily returned and the Minister is reporting on who has voluntarily returned the Irrevocable Promissory Notes. In this case Parliament would still require that the Minister table the evidence of such a return and the formal commitment from whoever returned the Irrevocable Promissory Notes that the Government is Irrevocably and Unconditionally discharged of all legal and financial obligations to the alleged lenders or their successors

- The Minister can lastly report that he does not know the status of the Irrevocable Promissory Notes

5. The Irrevocable Promissory Notes are Legal instruments that are enforceable against the Government of Kenya. This is the opinion of the Attorney General which was given to the lenders as security for the Irrevocable Promissory Notes which are themselves a security for repayment for a series of alleged loans worth 56.33 billion contracted in secret and unlawfully by this Government and its predecessors in breach of the External Loans Act which requires Parliament to be informed as soon as practicable. Even the PWC Contract Document in its terms of reference confirms this position

6. The C&AG in paragraph 5.21 said the Government was in effect funding the so called financiers to finance the procurement of the goods and services due under the contracts while also paying interest and other financing costs. For the C&AG to say this suggests that all Irrevocable Promissory Notes issued by the Government on this contracts were fraudulent.

THE IRREVOCABLE PROMISSORY NOTES ARE STILL OUT THERE. WHERE? WHO HAS THEM? DOES GOVERNMENT KNOW WHO HAS THEM?

Kenyans will now want to know where their Member of Parliament stands on the issue of Irrevocable Promissory Notes and whether the Members of Parliament will stand by, watch, witness and oversee this massive looting of the People of Kenya’s hard earned money.

EVERY SINGLE KENYAN CAN MAKE A DIFFERENCE. Call or SMS your Member of Parliament as it is your right and demand that your Member of Parliament protects your interests and ensures that you will not be liable to pay for goods and services that you do not receive. This is a matter of National Importance

Posted by Mzalendo Editor on May 2, 2007

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