Goldenberg Commission of Inquiry Report - Mars Group Kenya

Owayo appears to us to have been making up a case for Aurum Ltd as he
concluded the letter thus:
“If you approve, then the contents of this letter should be
used to brief the Hon. Minister as well as the Office of the
President on the matter.”
87. In his evidence before us he conceded the point. It is also clear
from his letter to the Minister For Lands and Settlement Ref.
CONF.N/5/X/55(Exht. 35B pg.20) that Mr. Owayo was close to the
company as he wanted it assisted to get a plot of land in Nairobi.
88. The Minister For Finance was the authority who could deal with
the issue of enhanced export compensation. The Permanent Secretary
Ministry of Natural Resources did oblige. By his letter dated 2 nd March,
1988 he briefed Mr. J.T. arap Leting, Permanent Secretary/Secretary to
the Cabinet, Office of the President. Thereafter Mr. Leting addressed a
letter to each of the Permanent Secretaries in the Ministries of Finance,
Office of the President, Environment and Natural Resources, Commerce
and the Solicitor General, requiring them to meet and discuss problems
facing the Gold Industry in Kenya. The meeting was held on 12 th May,
1988 and came up with three suggestions which clearly were in line with
Mr. Owayo’ proposal. Ministry of Environment and Natural Resources,
the Attorney General’s Chambers and Ministry of Commerce were
mandated to work towards suitably amending the law to accommodate
the proposed changes. No action was taken on those recommendations.
The law has remained unchanged in that regard.
89. In early 1989, Hon. John Keen, who was then an Assistant
Minister of State in the Office of the President addressed an undated note
to Saitoti, in effect suggesting that gold exporters be granted a subsidy in
order to compete favourably with smugglers. It was curious that he
showed interest in this field since the issue was not within his docket as
Assistant Minister. In his evidence before us he testified that he was
provoked to do the note because he had read a newspaper article on the
matter. He also stated that he wrote after he had had a chat with Mr.