KENYA: WHY GOVERNMENT WON’T PUNISH CULPRITS OF GOLDENBERG SCANDALS

From: Ouko joachim omolo
The News Dispatch with Omolo Beste
TUESDAY, NOVEMBER 19, 2013

Adede Omondi writes via email: “I read one of your blogs on corruption and I would wish you share your ideas with me on these questions: one-is parliament now immune from manipulations of transactions like Goldenberg International limited? Two- compare the parliament that existed before the 2010 constitution and the parliament after the 2010 constitution. I would be grateful for your help”.

Yes, you are absolutely right Adede Omondi and the reason why parliament is immune from manipulations of transactions like Goldenberg International Limited is because Goldenberg refers to a series of monumental financial scandal involving chains of very important and influential officials in the government.

The firm, according to testimony during the Goldenberg Commission of Inquiry (2004 – 2005) was co-owned by Pattni, former President Daniel arap Moi and the chief of intelligence at the time, the late James Kanyottu.

When Goldenberg money corrupted the political system during the 1992 General Elections, involving the launch of a new currency note to deal with unprecedented inflation in its aftermath, there was a youthful movement known as Kanu for youth 92 (YK92) to campaign for Moi come back.

One of the members in the movement was William Ruto who is currently the deputy president for the Republic of Kenya. In its wake Goldenberg caused the collapse of dozens of banks precipitating a banking crisis.

The careers of civil servants who helped expose Goldenberg were ruined. Journalists who exposed the story disappeared into oblivion. Chief executives of companies doing business with Goldenberg either fled into exile or died quietly.

During the scandal, former minister for Internal Security, Prof George Saitoti was Finance Minister. Deputy Prime Minister Musalia Mudavadi was appointed to the Finance Ministry in 1993 while payments to Goldenberg continued.

Kalonzo Musyoka was a minister in the Moi government while this was happening at that time and he knows very well about the scandals. Raila’s father, the late Jaramogi Oginga Odinga, confessed in 1993 that his political party received Goldenberg money.

Because it involves untouchables, is why the 2004 Commission of Inquiry into Goldenberg set by Mwai kibaki has since been accused of ignoring evidence in order to protect powerful personalities such as ex-President Moi and his cronies.

According to evidence presented before the Goldenberg Inquiry, Mr Pattni formed Goldenberg International with Moi and Kanyottu for the purpose of making money from gold and diamonds smuggled from the Congo (at the time called Zaire).

When Kibaki came under pressure from the opposition party to form yet another commission in July 2008 to investigate the sale of Grand Regency Hotel, the Commission comprising of five members led by Justice (rtd) Majid Cockar, Charles Kirui and Kathurima M’ Inoti as commissioners while Messrs Anthony Oteng’o Ombwayo and Wilfred Nyamu Mati as the secretary and counsel to the Commission, Kibaki was accused by the opposition party leaders that he formed his team to cover up.

The Commission was mandated to recommend any legal and administrative measures that it may deem necessary with regard to the case and hold the inquiry in public or conduct private hearings where necessary.

The hotel was allegedly sold for about $45 million instead of its recorded valued of $115 million. This took place shortly Kibaki had signed an exclusive trade pact with the Libyan government, which gave its companies a head start over other investors when competing for lucrative government contracts.

The trade pact was signed after a meeting between President Mwai Kibaki and his host Muammar Gadaffi. The Grand Regency was recovered from Kamlesh Pattni, the man behind the Goldenberg scandal, in which the government compensated him millions of dollars in a fake gold export scheme.

Recently The Kenyan Daily Post reported that Laico Regency (originally Grand regency Hotel) was reportedly bought by Mwai Kibaki at a throw away price. The hotel which was initially owned by Kamlesh Paul Pattni, was taken by Central Bank of Kenya after Pattni negotiated immunity from prosecution for his role in Golden berg in exchange for the transfer of the Grand regency to the Central Bank of Kenya.

It is said Amos Kimunya colluded with Central Bank Governor, Njuguna Ndungu, in selling the hotel to alleged “foreign investors” who will be later established to be Kibaki’s proxies.

Goldenberg cost the country over Ksh 158 billion according to a Judicial Commission of Inquiry appointed by President Kibaki in 2003. Although George Saitoti was named as one of the beneficiaries, instead of asking his aside from his ministry pending investigation, in 2008 he was promoted from the Ministry of Education to take over as Minister for Internal Security. He was in the same PNU party with Kibaki.

This can answer your second question whether there is different from 2010 parliament and current one when it comes to corruption and impunity. They are the same people who were there since Moi was removed from power in 2002- So what next?

Fr Joachim Omolo Ouko, AJ
Tel +254 7350 14559/+254 722 623 578
E-mail omolo.ouko@gmail.com
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Twitter-@8000accomole

Real change must come from ordinary people who refuse to be taken hostage by the weapons of politicians in the face of inequality, racism and oppression, but march together towards a clear and unambiguous goal.

-Anne Montgomery, RSCJ
UN Disarmament
Conference, 2002

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