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The Goldenberg scandal was a scam where the Kenyan government subsidised exports of gold, paying exporters in Kenyan Shillings 35% over their foreign currency earnings. In this case, the gold was smuggled from Congo. The Goldenberg scandal cost Kenya the equivalent of more than 10% of the country's annual GDP[1]. General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ...
The Kenyan shilling is the currency used in Kenya. ...
Background
Kenya encourages exports (as do most countries) by granting tax-free status to businesses involved in the export of goods and sometimes subsidize the exports. The Goldenberg scandal was based on the fact that exporters deposited US dollar earnings from the export in the Kenya central bank, and in turn received in exchange the equivalent in Kenyan shillings plus 20 percent.
If one could export gold, the Kenyan government would be obliged to pass back a percentage of the hard currency generated by the export. Mining is a very small portion of Kenya's GDP with only one open gold mine (at Kakamega), so any gold export would first have to be imported or smuggled. In a nutshell, Goldenberg involved smuggling gold from Congo into Kenya, then legally exporting it and claiming 35% above the export price from the Kenya government. The inspections were supposed to be done at the port, but were arranged to be at company facilities. Thus it is not certain that the gold was actually exported at all. General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ...
The El Chino Mine located near Silver City, New Mexico is an open-pit copper mine This article is about mineral extraction. ...
Kakamega is a town in western Kenya. ...
Goldenberg International The Kenya Central Bank also lost a substantial amount of money from cheque kiting. The project chief architect was a relative of Kamlesh Pattni. However, it was Pattni who in fact started a company named Goldenberg International to implement the scam [2] resulting in Pattni being the centre of the scandal. The amount involved (600 million dollars) would not have occurred without Kenya government knowledge. It later emerged that the scandal involved almost all the politicians in the Moi government and a considerable percentage of the current Kibaki government[citation needed]. A notable politician to be implicated in the scam is former president Daniel arap Moi, and his sons and daughter who held senior positions in Kenya government[citation needed]. The judicial system was not much better and most Judges were happy to assist. Twenty three of Kenya's top judges resigned after evidence implicated them to the scam [3]. Journalist also benefited by receiving money in return of being silent. Kamlesh Mansukhlal Damji Pattni (born 1962) is a controversial Kenyan businessman. ...
Mwai Kibaki during an official state visit to the United States Mwai Kibaki (born November 15, 1931) is Kenyas third president, an economist, and a political leader. ...
President Moi and US President Bush at the UN headquarters in New York on November 10, 2001. ...
The scam started in 1991, almost immediately after Kenya government executed an economic reform intended to open up the Kenyan economy to globalization. The scam seems to have stopped in 1993 after it was exposed by a whistle blower, Mr David Munyakei, and have since been a daily part of Kenyan politics. There have been two investigations on the scam, one under the Moi government and the other under the current government. The gold was likely imported from Democratic Republic of the Congo, and therefore probably helped finance the war that still rages in that country. Globalization (or globalisation En. ...
On February 3, 2006 an inquiry [4] recommended that current Education Minister George Saitoti should face criminal charges for his actions and that former President Daniel arap Moi should be investigated further, the report said. Saitoti was both vice president and finance minister under Moi in the early 1990s when the scandal took place. On 13 February Saitoti's resignation was announced by President Kibaki in a television address.[5] February 3 is the 34th day of the year in the Gregorian Calendar. ...
2006 (MMVI in Roman) is a common year starting on Sunday of the Gregorian calendar. ...
George Saitoti is a mathematician, politician, and former Vice President of Kenya. ...
President Moi and US President Bush at the UN headquarters in New York on November 10, 2001. ...
February 13 is the 44th day of the year in the Gregorian calendar. ...
Bosire report A report by Mr Justice Bosire report said that records presented at the inquiry showed that Lima Ltd, which is associated with Mr Gideon Moi, Mr Nicholas Biwott, and two other people received Sh6.3 million from Goldenberg and that none of the four had explained to the commission what the money was meant for. Nicholas Kipyatur Kiprono arap Biwott (born 1941) is a Kenyan politician. ...
The Bosire report said Sh158.3 billion of Goldenberg money was transacted with 487 companies and individuals. A list of exhibits compiled by the commission puts Goldenberg International Ltd at the top of the primary recipients of the money, at Sh35.3 billion. The directors of Goldenberg were named as Mr Pattni and Mr Kanyotu. Although Mr Kanyotu was the director of the Special Branch and a director of First American Bank, he described himself as a farmer in Goldenberg documents. President Moi was named by Mr Pattni as having been a shareholder of GIL by nominee.
Travel restrictions Shortly after, Saitoti along with 20 several others suspected to be involved in the scandal were prohibited from leaving the country and ordered to surrender any weapons they posessed. Among the others were sons of former president Moi and various MPs.[6]
Travel restrictions have been imposed on: [7]
- Gideon Moi, Retired President Moi's son, also the Baringo Central MP
- Mr Philip Moi Retired President Moi's son
- Mr Moi's lawyer, Mr Mutula Kilonzo
- Mr Moi's former personal assistant, Mr Joshua Kulei
- former Central Bank of Kenya governor Eric Kotut
- former Central Bank of Kenya deputy governor Eliphas Riungu
- former Central Bank of Kenya employee Job Kilach.
- former Central Bank of Kenya employee Tom Werunga
- former Central Bank of Kenya employee Michael Wanjihia
- Philip Murgor, the former director of public prosecutions
- Mr Murgor's law firm represented the Central Bank of Kenya during the two-year public inquiry headed by Mr Justice Bosire.
- Former Treasury permanent secretary Charles Mbindyo
- former Treasury permanent secretary Wilfred Karuga Koinange
- former Treasury permanent secretary Joseph Magari
- Prof George Saitoti, who resigned as Education minister.
- Goldenberg architect Kamlesh Pattni
- former commissioner of Mines and Geology Collins Owayo
- Mr Arthur Ndegwa, senior mining engineer in the Commissioner of Mines Nairobi office
- former commissioner of Customs and Excise Francis Cheruiyot.
- former Kenya Commercial Bank general manager Elijah arap Bii
- former Special Branch chief James Kanyotu
Former president Moi himself was not listed. George Saitoti is a mathematician, politician, and former Vice President of Kenya. ...
Kamlesh Mansukhlal Damji Pattni (born 1962) is a controversial Kenyan businessman. ...
The Law Society of Kenya chairman Tom Ojienda criticised Police Commissioner Hussein Ali’s move to seize travel documents. He described the decisions as "a total violation of the law and the Constitution". Ojienda regretted that individuals had been charged, tried and convicted by the court of public opinion and the media or through political statements. He commended three Cabinet ministers who resigned to pave way for investigations into the Anglo Leasing and Goldenberg scandals. "The resignation of three members of Cabinet signifies the maturity of our democracy, where leaders whose reputations are besmirched would opt to resign pending investigations to clear their names rather than hold the Government hostage. Such resignations are no pointers to guilt." [8]
See also The post-colonial Kenya government has had a long history of corruption, spanning Daniel arap Mois KANU government and Mwai Kibakis NARC government. ...
The Anglo Leasing Scandal, also known as Anglo-fleecing, is the popular name for a corruption scandal in Kenya. ...
John Githongo is a former Kenyan journalist who investigated bribery and fraud in his home country and later, under the presidency of Mwai Kibaki, took on an official governmental position to fight corruption. ...
Nicholas Kipyatur Kiprono arap Biwott (born 1941) is a Kenyan politician. ...
External links
References - ^ BBC News: Moi 'ordered' Goldenberg payment
- ^ East African Standard Faces behind the Goldenberg scam
- ^ Corruption conventions lack clout
- ^ Moi 'knew about' Kenya gold scam
- ^ BBC News: Kenyan 'graft' ministers resign
- ^ BBC News: Travel ban in Kenya scam inquiry
- ^ Daily Nation: Moi sons and five others surrender passports
- ^ East African Standard: LSK criticises minister on graft assets
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