Amani National Congress leader Musalia Mudavadi, also the Prime Cabinet Secretary nominee says he was exonerated in the Goldenberg Scandal where the Kenyan government was found to have subsidised exports of gold far beyond standard arrangements during the 1990s, by paying the company Goldenberg International 35% more than their foreign currency earnings.
Appearing before the National Assembly this morning for the Cabinet Secretaries nominees vetting, Mudavadi noted he was appointed the country’s Finance Minister by President Moi when the multibillion shilling scandal was coming to its full-blown situation and was later exonerated as well as lauded for dismantling the scandal’s networks in government.
”I was appointed the Minister of Finance when the Goldenberg saga was coming to its full-blown situation. There was a commission of inquiry under President Mwai Kibaki for two years, I was exonerated and lauded for dismantling the networks,” Mudavadi said.
Between 1991 and 1993 the carefully designed export compensation fraud saw at least 10% of Kenya’s annual Gross Domestic Product (850 million USD in 1991 alone) siphoned into the hands of a small group of investors, politicians, and a few key state officials of the National Bank and the Treasury.
The fraud was so severe that it brought Kenya’s economy to its knees, ironically contributing to a worsening foreign exchange crisis.
The Goldenberg is one of the largest known fraud ever committed against a state exchequer. It was first revealed at the end of 1993 by a whistle-blower, bank official David Munyakie.