Kenyan inquiry hears of spying claims

From, The Daily Nation

Goldenberg International established an elaborate intelligence system within the Central Bank to monitor its controversial payment vouchers, it was revealed yesterday.

The bank's chief security officer at the time, Mr Kipsang Cheruiyot, reportedly put pressure on the head of the export division, Mrs Jacinta Mwatela, to clear suspected irregular payments which she had blocked.

Details of the dramatic events of 1991 were recounted by Mrs Mwatela, on the second day of her testimony before the commission inquiring into the Goldenberg affair.

The witness said she was surprised businessman Kamlesh Pattni- Goldenberg's chief architect- would make calls within hours if she rejected his export compensation claims.

Mrs Mwatela, now the Central Bank's director of financial markets, recalled a frightening phone call from Mr Pattni in April 1991 after she had blocked a payment.

Mr Pattni, who claimed to be calling from the office of the then director of Intelligence, Mr James Kanyotu, threatened to report her to State House and accuse her of denying the country foreign exchange, the inquiry heard.

But Mrs Mwatela, in reply, allegedly told Mr Pattni that even if she did not have access to State House, she believed President Moi would be fair to her.

Goldenberg International is owned by Mr Pattni and Mr Kanyotu.

It also emerged yesterday that Mr Kanyotu is linked to First American Bank, said to have opened the fraud floodgates which cost the country billions of shillings.