/ 30 March 2006

Kenya suspends bank chief

The Kenyan government said on Thursday it had suspended the country’s central-bank governor, who last week was charged with four counts of abuse of office in a corruption scandal.

Government spokesperson Alfred Mutua said Central Bank of Kenya chief Andrew Mullei, who had refused to leave office despite calls to do so, had been formally suspended by President Mwai Kibaki on Wednesday pending his trial.

”I can confirm that he was issued a letter … on behalf of the president to tell him ‘You need to step aside’,” Mutua told reporters at a news conference.

”’You need to step aside to allow for the court case to be over’,” he said, paraphrasing from the letter.

”He was not fired, but told to step aside,” Mutua added.

Authorities last week charged Mullei with inappropriately using his office to illegally award a $125 000 consultancy contract to four individuals, including his son.

Mullei pleaded not guilty and was released on a cash bond of five million Kenyan shillings ($69 000 dollars) pending his trial, which is due to start on June 8.

However, he refused to leave office, arguing that he enjoys security of tenure and could not be removed.

Kibaki’s government, which came to power in 2003 on a reform platform, is currently beset by several corruption scandals, including one that pre-dates its administration.

The so-called Goldenberg Affair in the 1990s, involved the theft of at least $573,6-million through a credit scheme for fake exports of gold and diamonds.

It is also grappling with another scandal called ”Anglo Leasing,” which involved an attempt to defraud the government of $250-million through payment of money to spurious firms over the security and defence contracts. — Sapa-AFP