Former Finance minister Amos Kimunya has shed further light into the controversial Anglo-leasing contracts telling a trial court in Nairobi that the promissory undertakings the government made against the supply of security equipment for the police were never cancelled.

A promissory note is a financial instrument that contains a written pledge by one party to the other a defined sum of money, either on demand or at a specified future date.

He said the government signed the Infotalent  contract and acted in “good faith,” and that state actors in the contract had the authority and full  mandate to do so.

Kimunya said  the promissory notes were “irrevocable and unconditional.”

He said he was not aware of any other means of cancellation of the promissory notes, except that he only put a caution on the promissory notes.

“The Caveat was meant to inform the public not to transact but not to vary the terms of the promissory notes,” he explained.

Promissory notes

The former powerful minister admitted in cross examination that  it was an oversight that the caution was put  without protest of notification issued to Infotalent Ltd, a company the government  entered a contract with and without full disclosure.

He clarified that the promissory notes as issued were irrevocable.

The former Finance boss said  the Permanent Secretary  Treasury signed authorisation in “good faith” and within their legally and duly mandated briefs.

He said government officials involved in the transaction acted within their authority as required.

The Kipipiri Mp said he served the Ministry of Finance between 2006 and  2008 and was tasked to review all the 18  contracts entered into by government between 1997 and 2003, and bring the  matter to closure.

Only issued a caution

He said his team needed to know the level of exposure, status of each contract and the manner the contracts were set up viz- a-viz the promissory notes that had been issued.

Kimunya said the promissory notes were not revoked but he “only issued a caution.”

He explained that the promissory notes were an undertaking that they could be en-cashed and that the government had secured credit in these terms.

Hearing continues.