Goldenberg scandal

In the so-called Goldenberg scandal, which took place in Kenya in the early 1990s, it came to a sum of foreign corruption, which comprised 10 percent of the gross national product of the country with about 700 million euros. Obviously, in addition to corrupt captains of industry, many members of the former government of President Daniel arap Moi, but also some of the new government of President Mwai Kibaki ( since 2002/ 03) were involved. In both governments, the presidents were not even involved in Moi but his children and various backers.

Tax exemption and subsidies

Just as most countries also, the government of Kenya guarantees large international accounting firms tax exemption to certain exports and subsidizes this occasionally. Exporters who took after selling their goods on the world market for hard currency ( U.S. dollars ) and these proceeds to invest with the Kenya Central Bank in Kenyan Shilling ( KES), received by the Bank on the vice exchanged sum subsidy of 20 percent. Now Kenya has hardly high-quality export goods such as diamonds or oil. However, in Kenya, there is a tiny gold mine near Kakamega, which contributes only minimally to the gross national product of the country. Thus, once one performs gold from this mine and sold on the world market, one can reap by the government a tidy profit. However, the gold in this amount is non-existent. Here begins the scandal.

The trick

The transactions began in 1991 immediately after the Kenyan government had started under Moi, to tackle economic reforms and the land was open for the world market and international investments. The masterminds in business and government found a way to promote gold in large quantities: it was simply smuggled into the chaos of war from neighboring Congo and sold legally as Kenyan gold on the world market. On the side of the Congo by the local war was financed. Because Kenya it was indeed hard currency, the government paid a certain number of percentage to the company Goldenberg International as commission. Goldberg received by the government 35 percent higher than the world market price. How much or even if gold was exported, is still not entirely clear. In any case, the government paid the commission.

The profiteers

A lucrative business in which many partners were rich as later became known also almost the entire government team of President Moi. Architect of the big deals but was Kenyan businessman Kamlesh Pattni with a relative. Pattni was with Kanyotou, a bank director of First American Bank and head of the "special branch" ( a special unit of the paramilitary police), director of Goldenberg International. Pattnie named ex-president Moi as a shareholder of the company. Involved in the Goldberg Gravy Train were also the two sons and the daughter of Moi. Similarly, the corruption had penetrated to the highest judicial circles. Twenty-three of the higher judge of Kenya lost their posts after these have been proven corruption. Probably also gone hush money to journalists.

1993, Goldberg transactions were stopped because they had been betrayed by the testimony of David Munyakei. Both Moi and Kibaki under the affair was investigated. Since then, the Goldenberg scandal was a daily companion of mass media and the population. Thus, the TV showed, for example, daily hours of interrogations of Pattni.

Bosire Report

Under Kibaki, the judge Bosire examined the Goldenberg scandal. On 3 February 2006, he put his so-called " Bosire Report" before. The report recommended that the former Education Minister George Saitoti to accuse and interrogate former President Moi. Saitoti was both vice president and finance minister under Moi. President Kibaki announced on 13 February 2006 the voluntary resignation of his long-serving minister.

The report noted that the company had received Lima Ltd. , Which belonged among other son Gideon Moi Moi and Nicholas Biwott, his feared and hated in the population ex-minister, Goldberg 6.3 million KES ( 80,000 EUR ) and none of the business owners could also make a statement for which performance. Approximately 160 billion KES ( EUR 2 billion ) of government money had been distributed to 487 companies and individuals. At the top of the corruption list Goldberg stood with KES 35 billion ( EUR 440 million ).

On 31 July 2006, the Supreme Court of Kenya, Saitoti ruled as an accomplice in the Goldenberg scandal not to indict. This had a negative reaction from the media ( Kenyan Times, the Daily Nation) result.

On 15 November 2006 he was appointed by President Kibaki as education minister again.