Six charged over Kenya gold scam

Kunjufu · (#1 (**permalink**))

Pattni told an inquiry he handed suitcases of money over to Moi

Six people have been charged in connection with Kenya's biggest fraud, which cost the government about $600m.

Only one of them entered a plea because their lawyers say the charges are invalid because they are already facing charges relating to the same case.
An arrest warrant was briefly issued for the alleged mastermind, Kamlesh Pattni, after he failed to appear in the morning with the others.
He later appeared in a wheelchair, saying he had been in hospital.
The scandal is one of two huge corruption cases which has put President Mwai Kibaki under pressure to keep his 2002 election promises of fighting graft.

'Malicious'
The six - who also include an ex-spy chief and an ex-central bank governor - were freed on bail. Former Kenya Commercial Bank managing director Elijah arap Bii was the only one to enter a plea - he denied the "false and malicious" charges.

Ex-President Moi denies any links to the Goldenberg scamA report on the scam, in which money was paid for non-existent exports of gold and diamonds, was given to President Kibaki last month.

During the inquiry, Mr Pattni said he had handed suitcases full of money to former President Daniel arap Moi. Mr Moi has denied any involvement.
Mr Pattni's fellow accused James Kanyotu, Eric Kotut, Wilfred Koinange and Eliphaz Riungu were released on bail of 10m shillings ($130,000) each.
The court will rule on Monday whether the new charges brought against them can proceed.

Mr Kanyotu was formerly Kenya's head of intelligence, Mr Koinange the treasury secretary, Mr Kotut the central bank governor, and Mr Riungu the deputy central bank governor. Kenya's former Vice-President George Saitoti, also named in the report given to the president, cannot be prosecuted.

Mr Saitoti served as finance minister as well as vice-president under President Moi during the time the Goldenberg affair took place.
He resigned as education minister from Mr Kibaki's government last month after being named in the report.