Goldenberg scam case resumes
Former KCB general manager Elijah arap Bii (left), former Treasury PS Wilfred Koinange and businessman Kamlesh Pattni (right) in a Nairobi court on April 16, 2012 when the trial of Sh5.8 billion Goldenberg case begun. Hearing continues. Photo/PAUL WAWERU
The hearing of the Sh5.8 billion Goldenberg case has finally began, six years after the suspects were formally charged in court and 19 years since the scandal was exposed in 1993.
Former Kenya Commercial Bank funds manager Stephen Ngethe Ngari was the first to testify, revealing how KCB transferred Sh5.8 billion from its accounts at the Central Bank to various commercial banks.
Mr Ngari said he acted on the orders of then KCB general manager Elijah arap Bii, who informed him that the transactions had been sanctioned by the government.
“Mr Bii told me to look for inter-banks cheques to transfer the amounts to commercial banks. I asked why KCB was crediting other accounts, yet CBK could do the same, but I was informed it was a government instruction,” he said.
Mr Bii is charged alongside businessman Kamlesh Pattni and former Finance permanent secretary Wilfred Karuga Koinange with conspiracy to defraud the government and illegal payment of Sh5.8 billion to Goldenberg International between April and July 1993.
Dr Koinange and Mr Bii are facing additional counts of abuse of office and breach of trust in contravention of government financial regulations.
The case has been dogged by many delays and adjournments since 2006 when the three alongside former CBK Governor Eric Kotut, his former deputy Eliphaz Riungu, and former Special Branch director James Kanyotu were charged in court.
The six were charged upon the recommendations of Mr Justice Samuel Bosire-led commission of inquiry into the Goldenberg scandal, which also directed the Attorney General to carry further investigations over alleged involvement of Internal Security minister George Saitoti in the scandal.
Prof Saitoti went to the High Court arguing that there was no evidence linking him to the Goldenberg scandal and obtained orders blocking the AG from investigating or bringing up charges against him in relation to the scandal.
The case hit snag in early 2008 when former spy chief and one of the accused in the scandal Kanyotu died. Mr Riungu died last Septermber.
Hearing continues with the state expected to call 30 more witnesses.
