George Saitoti - Goldenberg Scandal

Goldenberg Scandal

Saitoti was both Vice President and Finance Minister at the height of the 1991-1993 Goldenberg scandal. Even though his own culpability in the mega fraud has never been established, for decades the Goldenberg has become the proverbial Sword of Damocles used against Saitoti in intra-elite power wars. In early 1999, Raila Odinga as a presidential contender to succeed Moi as President, sued Saitoti and others over alleged role in the Goldenberg scandal. Three months after his re-appointment as Vice-President on 2 April 1999, Otieno Kajwang’, a Raila ally, moved a private member’s motion of no confidence in the Vice President for his alleged role in the Goldenberg fraud. Saitoti survived the onslaught.

The Goldenberg specter returned to haunt Saitoti in the wake of the fierce political infighting between the LDP/KANU faction and Kibaki supporters in NARC that followed the 2005 referendum. On 3 February 2006 a report by the Goldenberg Commission of Inquiry, chaired by Justice Samuel Bosire, recommended that George Saitoti should face criminal charges for his involvement in the Goldenberg scandal. On 13 February 2006, Saitoti voluntarily stepped aside from his ministerial docket to pave way for investigations into the allegations. However, on 31 July 2006, a three-judge bench headed by Justice Joseph Nyamu issued a certiorari order clearing Prof Saitoti of any wrongdoing, expunging his name from the Bosire Commission Report and issuing an order on permanent stay of prosecution against Saitoti.

In dismissing the 23- paragraphs of the report, the High Court bench citing three inter-related errors of commission and omission by the Bosire Commission:

• The inquiry into the Goldenberg fraud had created a pyramid of noticeable bias, discriminatory treatment of evidence, submissions and factual errors that undermined the pursuit of justice and fairness.
• The factual flaws, biased and unprofessional handling of evidence by Inquiry led to wrong findings. The Inquiry’s claim that Prof Saitoti illegally approved the 15 per cent ex-gratia payments as additional payment over and above the 20 per cent export compensation allowed at the time under the law were factually wrong. Indeed, the customs refunds, which Saitoti was accused of approving, were actually passed by Parliament.
• Long delay and wrong findings by the Goldenberg inquiry denied Prof Saitoti any conceivable chance fair trial and justice.

On 15 November 2006, President Kibaki reappointed Saitoti back to Cabinet. In April 2012, the vetting board found Justice Samuel Bosire unfit to serve in the judiciary citing fails as the Chairman of the Goldenberg Commission of Inquiry. He ignored a High Court Order to summon retired President Daniel arap Moi, Musalia Mudavadi and Nicholas Biwott as witnesses. The vetting board also accused Justice Nyamu of undermining public confidence in the courts for issuing a permanent stay of prosecution against Saitoti.