E-Clips:- Business Pictorial - Scandals - Double Headache For Kibaki

All eyes are on President Kibaki as he grapples with how to handle two monumental scandals that touch powerful figures in both his government and that of former President Moi.

The dilemma hanging over President Kibaki is that acting on the Anglo Leasing scandal could cost him key pillars of his beleaguered Government; while prosecuting Goldenberg suspects will create new enemies among groups he needs to placate.

Already, the Government is reeling under the weight of the Anglo Leasing scandal which has led to resignation of Finance minister David Mwiraria and pressure on Vice President Moody Awori and Energy minister Kiraitu Murungi, who are both defying public pressure to resign. Former Cabinet minister Dr Chris Murungaru, who was part of President Kibakis inner circle, was dropped from the Cabinet in December amid the hue and cry over graft in Government.

The Cabinet pulling in different directions as key figures reject calls to speak with one voice on the Anglo Leasing affair, insisting those implicated must bear their own burdens. With the opposition, Kanu and the estranged coalition partner LDP promising to step up the pressure, the Government would be opening up another hostile front if it moved against Mr Moi and other figures from his regime mentioned in the Goldenberg Inquiry report for prosecution or further investigation.

The President on Thursday received the report of the Goldenberg Commission of Inquiry headed by Justice Samuel Bosire which recommended prosecution of his Education minister George Saitoti and further investigations on the role played by Mr Moi. Prof Saitoti served as Mr Mois Vice President for over a decade and is now one of the key figures in the Kibaki government. Whatever actions President Kibaki takes on both scandals could have far-reaching political effects considering the heavyweights implicated and the political constituencies they command.

The Anglo Leasing scandal has presented President Kibaki with one of his severest political tests since the explosive revelations by exiled former Permanent Secretary for Ethics and Governance John Githongo.

The dossier revealed that figures close to the President were deeply involved in the scandal and also exposed their attempts to cover up the fraud which could have cost the taxpayer Sh16 billion. The storm kicked up by the Githongo report called into question President Kibakis resolve to fight graft and emboldened the opposition to call for his impeachment.

Release of the Goldenberg report while President Kibaki was still grappling with the fallout from Anglo Leasing diverts attention, but also presents him with a second dilemma – immediate action against key figures from the former Government would lead to accusations of selective prosecution.

A number of politicians warned of political consequences arising from the two scandals. "Kenyans should not expect any serious action to be taken against culprits of the Goldenberg scam as the Government, out of its own guilt over Anglo Leasing, will go slow for fear that a future government may revenge by pushing them through a similar harsh experience," said Ntonyiri MP, Mr Maoka Maore.

The Kanu MP said that between April 2004 and now, there had been no genuine investigations on Anglo Leasing. The Goldenberg scandal was firmly rooted in the Moi era and some of those with cause to be anxious are faithfully serving the Kibaki regime. The Anglo Leasing scandal, on the other hand, was conceived under Moi but executed under Kibaki.

The two leaders got closer shortly after the referendum. Then, speculation was rife that the president wanted Mr Mois assistance in countering the LDP, whose Mr Raila Odinga has handed the present and former Heads of State major defeats. In 2002, Mr Odinga led a walkout from Kanu that spelt the death knell for the presidential campaign of then President Mois preferred successor, Uhuru Kenyatta.

Last November, Mr Odinga, Mr Kalonzo Musyoka and other LDP figures who were still Cabinet ministers in the Narc Government teamed up with Kanu to deliver President Kibaki a crushing defeat in the referendum on a new Constitution. While welcoming the handing over of the Goldenberg report, some MPs were suspicious about the timing. "This is a callous attempt to remove the Anglo Leasing scam from newspaper headlines," said Mr Maore.

But Local Government minister, Mr Musikari Kombo, dismissed the allegation. "There are no machinations for the President or anybody else to play in this matter. Anyone trying to politicise this issue is himself the one employing diversionary tactics," said the Ford Kenya chairman. Former Planning and Development minister Prof Anyang Nyongo also faulted those opposed to the release of the Bosire document. "The Goldenberg report has been long overdue. Both documents (Goldenberg and Anglo Leasing) are important and Kenyans are pretty interested in their content," he said.

The Kisumu Rural MP was, however, doubtful about the Governments capacity and will to adequately confront the scandals.