Kenyan ministers linked to multimillion dollar fraud

KENYA: The government is in crisis over a report on a hoax company, writes Rob Crilly in Nairobi

KENYA: The government is in crisis over a report on a hoax company, writes Rob Crilly in Nairobi

Kenya's former anti-graft "czar" is planning a return to the country to reveal the details of an investigation that implicates four senior ministers in a multi- million dollar procurement fraud.

John Githongo has lived in England for the past year after being forced out by death threats. He passed the results of his investigation into a deal with a non-existent company, Anglo Leasing, to the Kenyan government last year.

However, details of the inquiry have appeared in the local press during the past week plunging president Mwai Kibaki's administration - elected on a manifesto committed to driving out corruption - into crisis.

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Now, the country is waiting to see whether the former corruption ombudsman will dish more dirt on the government.

Mr Githongo, in a statement released to Kenyan media, said he had agreed to return home from exile in Britain to testify before a parliamentary committee.

He said that he had accepted an invitation by the national assembly to appear before its public accounts committee to "give further evidence as the issues were raised when I served as permanent secretary for governance and ethics".

The investigation centres on a deal between Anglo Leasing and Kenya's department of finance to provide a terrorist-proof passport system and forensic laboratories. The government paid out €4.5 million but cancelled the contract when the company was found not to exist at the addresses given.

Mr Githongo's leaked report links four ministers - Kiraitu Murungi, energy minister, Moody Awori, vice-president, David Mwiraria, finance minister and sacked transport minister Chris Murungaru - with the contract.

Furthermore, the 31-page dossier alleges that cash paid to the fictional company was to be used by President Kibaki's allies in next year's general election campaign.

The president knew about the scam, according to Mr Githongo, but did nothing to stop it.

Church leaders, human rights campaigners and opposition politicians have united in urging the president to suspend the accused ministers until a full investigation is complete.

Uhuru Kenyatta, opposition Kanu leader, said: "This is clear evidence that the government can no longer be trusted to conduct detailed and honest investigations into this saga."

The revelations are the latest crisis to hit the government of President Kibaki.

He was elected at the end of 2002, ending years of dominance by Daniel Arap Moi's Kanu party which had been repeatedly accused of looting public coffers.

Instead, President Kibaki's rainbow coalition was supposed to root out corruption and rebuild confidence in the country's politicians.

Since then, widespread optimism has been shattered by almost weekly allegations of corruption within the government, police force or other public institutions.

Chris Murangaru, for instance, was banned from travelling to Britain last year while transport minister because of his alleged links with a series of suspect contracts.

In November the government was heavily defeated in a referendum on a proposed new constitution, a result widely interpreted as a vote of no confidence in President Kibaki himself.