The Anglo Leasing scandal has long been synonymous with corruption in Kenya. A shadowy network of offshore companies and secretive business deals has made it a hallmark case for international corruption. Recently leaked documents from the Pandora Papers have reignited interest in the case, shedding new light on Anura Perera, a Sri Lankan-Irish businessman at the center of the scandal. This article examines how offshore secrecy helped obscure Perera’s involvement and how this complex web of shell companies has hindered accountability.

In the early 2000s, a series of government contracts in Kenya caught the attention of anti-corruption officials. These contracts, ostensibly for critical government services such as passport production and internet provision for the postal service, were awarded to 13 shell companies with no verifiable business records. John Githongo, Kenya’s then-anti-corruption chief, became concerned about inflated contract prices and began investigating.

By 2005, Githongo had made his findings public, exposing what would become known as the Anglo Leasing scandal. Named after one of the shell companies that won a major government contract, the scandal reverberated far beyond Kenya’s borders. The case soon became a cautionary tale for global anti-corruption organizations such as the World Bank. Yet, despite Githongo’s efforts, accountability was slow to follow, and much of the wrongdoing remained obscured by the secretive nature of the companies involved.

One of the individuals named in Githongo’s exposé was Anura Perera, a Sri Lankan-Irish businessman who had long been doing business in Kenya. Though suspected of being a key player in the scandal, Perera was never formally charged, and his connection to the offshore companies involved remained hidden-until now.

The Pandora Papers, a massive leak of documents from offshore service providers, have revealed new evidence linking Perera to at least six companies involved in the Anglo Leasing scandal. These documents show that Perera was a director, owner, or signatory for the firms implicated in the case. Additionally, the papers reveal that Perera and his family were beneficiaries of offshore trusts that moved millions of dollars around the time of the scandal.

Perera’s role in the scandal is now clear, he was not merely a businessman loosely associated with the companies involved but a key figure in their ownership and operation. Corporate records found in the Pandora Papers show that Perera was listed as a director of these companies before the scandal became public. When investigations into the companies began, Perera stepped back, only to reappear as their official owner once international probes were shut down.

This ownership structure was made possible through the use of bearer shares, a notoriously secretive form of corporate ownership. Bearer shares allow companies to be owned anonymously, making it difficult for investigators to identify their true owners. By the time the Kenyan Anti-Corruption Commission was able to piece together the puzzle, Perera had already legally assumed ownership of several of these companies.

One of the most significant contracts awarded during the Anglo Leasing scandal was given to Euro Marine Industries, a company that was contracted to deliver an oceanographic vessel for the Kenyan Navy in 2003. Euro Marine, like other companies involved in the scandal, was owned through bearer shares, making it impossible for investigators to initially tie Perera to the firm. However, after the company successfully sued the Kenyan Anti-Corruption Commission to end its investigation, Perera became the official shareholder, purchasing the company’s shares for a nominal fee of just $1.

The Pandora Papers also reveal how Perera used a network of offshore shell companies and trusts to move millions of dollars while the Anglo Leasing scandal was unfolding. Between 2002 and 2004, the six companies tied to Perera were awarded contracts worth a staggering $140 million. These contracts included providing broadband equipment for Kenya’s postal services and building a counter-terrorism center, though it remains unclear if the contracts were ever fully completed.

Many of these companies were registered in jurisdictions known for their secrecy, such as the British Virgin Islands and Delaware in the United States. By registering the companies in these locations, Perera and his associates were able to shield their identities and make it nearly impossible for investigators to trace the flow of money.

In addition to using shell companies, Perera also engaged offshore service providers to set up trusts for himself and his family. Trusts, particularly those based in secretive jurisdictions, are an effective way to hide assets and beneficiaries. Without the leaked documents from the Pandora Papers, it would have been impossible to know that Perera and his family were the beneficiaries of these trusts.

One of the trusts used by Perera was the Regency Trust, based in New Zealand. Leaked documents show that Perera’s wife and son were beneficiaries of this trust, which was used to funnel millions of dollars between various offshore accounts. In November 2009, for example, $2.5 million was sent from four shell companies in the Cook Islands to the Regency Trust, which then loaned the same amount to Perera’s wife on the same day.

The use of offshore companies and trusts has long been a tool for those seeking to obscure their financial dealings. In the case of the Anglo Leasing scandal, Perera’s use of these structures highlights the challenges governments and anti-corruption bodies face when investigating international financial crimes.

“Trusts provide an extremely secretive method of owning assets-there is no shareholder in a trust, and it is administered by a third party on behalf of the beneficiaries,” said Gavin Hayman, executive director of the Open Contracting Partnership. “Without the leaked documents, it would be impossible to discover that the Pereras were the beneficiaries of these trusts.”

This secrecy has proven to be a major roadblock for investigators attempting to bring those responsible for the Anglo Leasing scandal to justice. Only one person has ever been convicted in connection to the scandal, and most of the stolen money has yet to be recovered. Despite numerous investigations in Kenya, the United Kingdom, and Switzerland, no significant legal action has been taken against the individuals or companies involved.

Despite mounting evidence of corruption, Perera and his associates have largely avoided accountability, thanks to a series of legal maneuvers. Several offshore companies involved in the Anglo Leasing scandal filed lawsuits in different jurisdictions to block investigations and force the Kenyan government to pay out millions in disputed contracts. In most cases, these lawsuits were successful, leading to an end to the probes.

For example, Euro Marine Industries sued the Kenyan Anti-Corruption Commission and won, forcing the government to pay for the Navy vessel contract even after the scandal had broken. Other companies tied to Perera, such as First Mercantile Securities Corporation, filed similar lawsuits in Geneva and Nairobi, winning both cases and securing payments from the Kenyan government.

The legal battles continued even after the Anglo Leasing scandal became public. Between 2012 and 2014, the Kenyan government was forced to settle foreign judgments related to the scandal in order to secure Eurobond financing, which was necessary to fund the national budget.

The Anglo Leasing scandal stands as a stark reminder of the dangers posed by offshore secrecy and the challenges faced by anti-corruption efforts worldwide. Despite the best efforts of investigators like John Githongo, those responsible for the scandal have largely escaped accountability, shielded by a web of offshore companies, trusts, and legal loopholes.

The revelations from the Pandora Papers underscore the need for greater transparency in public procurement and financial dealings. As Gavin Hayman noted, “It is particularly critical to have full transparency of companies that do business with the government, as it is public money-that is meant to be improving citizens’ lives-that is at risk.”

For the people of Kenya, the Anglo Leasing scandal remains an open wound. More than 20 years after the contracts were signed, the country is still waiting for accountability and for the stolen money to be returned. In the meantime, the story of Anura Perera and his offshore dealings serves as a cautionary tale for the global fight against corruption.

Please follow Blitz on Google News Channel