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RECORD OF EVIDENCE GIVEN TO THE JUDICIAL
COMMISSION OF INQUIRY INTO THE GOLDENBERG
AFFAIR ON THURSDAY 31ST JULY, 2003, AT
KENYATTA INTERNATIONAL CONFERENCE CENTRE
Justice S.E.O. Bosire
Justice D.K. Aganyanya
Mr. Peter Le Pelley
Mr. William Ouko
Mr. Dan Ameyo
Dr. Jolm Khaminwa
Dr. Gibson K. Kuria
Mr. Waweru Gatonye
Mrs. Dorcas Oduor
CORAM
JOINT SECRETARIES
ASSISTING COUNSEL
Chairman
Vice-Chairman
Commissioner
Joint Secretary
Joint Secretary
Lead Counsel
Sur. Assisting Counsel
Assisting Counsel
Assisting Counsel
(The Commission convened at 9.15 a.m)
Dr. Khaminwa: May it please your Lordships, the appearances are as before. My learned
friend, the Attorney-General assisted by the Director of Public Prosecutions, Mr. Murgor,
would like to say something to your Lordships.
Mr. Chairman: Very welL
The Attorney-General (Mr. Wako): Mr. Justice Samuel Elkana Onderi Bosire, Chairman
and Judge of the Court of Appeal, Mr. Justice Daniel Aganyanya, Vice-Chairman and Judge
of the High Court, Commissioner Peter Le Pelley, Senior Counsel, it is my greatest pleasure
and privilege to appear before you for a third time as amicus curiae. When I first appeared
before you at the commencement of the work of your Commission, I submitted and handed
over to you the instruments of issuance and appointment of the Commission and the
instrument of citation setting out your terms of reference. The terms of reference were
mainly confined to enquire into allegations of irregular payments of export compensation
to Goldenberg International Limited and into payments made by Central Bank of Kenya to
Exchange Bank Limited in respect of fictitious foreign exchange claims. In my remarks
then, I gave a brief history and background into what has become known as the Goldenberg
Scandal or the Goldenberg Scam. The Government has learnt very much ITom the
proceedings that you have conducted so far in a very excellent manner. It has become
manifest that to view the Goldenberg affair only in terms of export compensation is but to
3981

[The Attorney-General]
touch the tip of the iceberg. Export compensation was merely one of the vehicles used to
take public funds irregularly and although the existing tenns of reference have the omnibus
clause and I quote:-
"To enquire into and investigate any other matter that is incidental to
or connected with the foregoing, II
it is necessary for the sake of clarity and avoidance of doubt that your terms of reference
be expanded to include these other schemes. These other schemes are interlinked and
intertwined with the export compensation scheme and it is important that the Commission
critically analyses them because they were also catalytic to the scandal. The terms of
reference have therefore been expanded to include amongst others as an area of your
enquiry, the real discounting facility for pre-export bills of exchange popularly known as
pre-shipment finance, convertible foreign exchange bearer certificates popularly known as
Forex C, cheque kiting, insider trading et cetera. All these schemes operated simultaneously
and were managed by Central Bank of Kenya and, therefore, calls into question the
management of the Central Bank of Kenya at that time.
The expansion of your mandate is therefore to fulfil the objective of His Excellency the
President, your appointing authority that you inquire into all issues pertaining to the
Goldenberg affairs and make recommendations to enable the Government and Kenya as a
whole deal once and for all with the ghost that has become Goldenberg. I reiterate that the
Government will give you all the necessary support to ensure that you are not in any way
handicapped in the discharge of your duties.
The Government is also pleased with the interest shown by the public in your proceedings.
Indeed, the public has the right to know, which as has been recognised by the
Commonwealth Law Ministers, plays an important role in strengthening both democracy
and human rights. It is only in this way that Kenyans will learn from their mistakes so that
they do not repeat the mistakes in future.
It is now my pleasure to hand over and lay before you, duly signed by His Excellency the
President on 29th July, 2003 and in my presence the amendment of your terms of reference
specified in Gazette Notice No.1238 of 2003 which has been gazetted as Gazette Notice
No.5 I34 of 2003 contained in the special issue of Kenya Gazette dated 29th July, 2003
which I am handing over to you both the signed copy which was done in my presence and
the Gazette Notice emanating therefrom. The President, the appointing authority has the
powers to amend the terms of reference under Section 4(1) of the Commissions of Inquiry
Act.
(The Attorney-General (Mr. Wako) handed over the
Gazette Notice to the Commission)
I wish also with your pennission to take this opportunity to thank Mr. Dan Ameyo for the
able manner in which he has discharged his duties as a Joint Secretary. Mr. Ameyo has a
wealth of experience in the running of commissions and, indeed, this is the fourth
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[The Attorney-General]
commission that he is running. Mr. Ameyo did write to me last week so that I convey to
the President that he wished to be relieved of his duties as a Joint Secretary following his
appointment as Post Master General. He feels that now is the time when he cannot serve
two masters. He must serve one and that is his work as Post Master General. So, I
congratulate him for the work that he has done for this Commission and I wish him the best
as he focuses on his work as Post Master General.
The President has appointed the Secretary of the Law Society of Kenya, Mr. George
Kegoro to replace Mr. Ameyo. The Governnlent has established a partnership with Kenyans
as a whole and also with the civil society. Mr. Kegoro brings to this Commission the wellknown
high standards of the civil society.
With those few remarks, it is my pleasure to seek permission to leave. Thank you.
Mr. Chairman: Thank you, the Attomey-General. We have taken note of the amendment
of our terms of reference. As Commissioners, we also associate ourselves with your
remarks about Mr. Dan Ameyo. It is regrettable that he has to leave us because he has been
quite useful to us. He has assisted us quite a lot in our work and despite pleas from us that
he rescinds his decision to leave, he has found it fit that he leaves us. We do not have
shackles to hold him with. So, all we can do is to thank him. Wherever you go, we wish
you God's blessings and further success in your endeavours. For the Attorney-General, we
thank you and we trust you not to abandon us. I hope that you will continue supporting us
in our honorary duty which the country has bestowed upon us. As we promised, we have
endeavoured to live to our promise and I trust that hereafter, we will continue doing so.
Thank you very much. You are at liberty to leave.
(The Attorney-General and Mr. Ameyo
left the Commission)
Now, Mr. Smith, you are still on oath and duty-bound to tell the truth.
Dr. Khaminwa: My Lords, before Mr. Smith starts, my learned friend, Mr. Mutula Kilonzo
has an application to make.
Mr. Kilonzo: My Lords, if I may wish you a good morning, I seek your leave and
permission to add another hat to the many collections that I have and represent Kilonzo and
Company Advocates who have been served with an adverse notice.
Mr. Chairman: So, Kilonzo and Company Advocates is different from Mutula Kilonzo?
Mr. Kilonzo: That is the case, my Lords.
Mr. Chairman: We will note that and try to look for the partners in Mutula Kilonzo and
Company.
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Mr. Kilonzo: My Lords, I notice that you have now been given that mandate. So, I wish
you Godspeed.
(Laughtel)
Dr. Khaminwa: My Lords, there is only one problem which I am under duty to point out
to your Lordships. It is true that Mutula and Kilonzo have been served with an adverse
notice but I am not very sure that they can then continue to sit on two benches here in view
of the fact that they have been served the adverse notice. However, this is a matter which
your Lordships can give a direction.
Mr. Chairman: He remains an advocate of a certain party. So, we will note that. When
it comes to talking about him, we will know how to separate the two entities.
Dr. Khaminwa: As your Lordships please. My Lords, if your Lordships would be kind
enough to turn to Volume VIII, Exhibit No.81(G).
My Lords, before I go on, I would like to make a short reference to Exhibit No.79(a). Mr.
Smith, you will recall that I put in evidence, Exhibit No.79(a)?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: That contains the accounts of various individuals?
Mr. Smith: The current accounts.
Dr. Khaminwa: Current accounts with Goldenberg?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Now, since yesterday, you have mentioned some names of recipients of
money from Goldenberg and you will continue to do the same this morning. Were those
individuals having accounts with Goldenberg in Exhibit No. 79(a)?
Mr. Smith: None of the people in Exhibit No.79(a), at my knowledge, are on this list.
This is where payments came from Goldenberg International Limited and not individual
accounts to themselves, my Lords.
Dr. Khaminwa: So, what you mean is that whatever money was received or contained in
Exhibit No.81(g) has nothing to do with Exhibit No.79(a) at all?
Mr. Smith: No, my Lords. If the person had an account there in their own names and
withdrew cash in their own names from their own bank account, it does not appear on this
exhibit, my Lords.
Dr. Khaminwa: My Lords, I just wanted to make that c1arification. Now, will you look
at page 344 then?
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Mr. Smith: Yes, my Lords.
Dr. Khaminwa: On 30th March, 1993, you have there the name of? Can you read that
name?
Mr. Smith: Naran M. Ratna, my Lords.
Dr. Khaminwa: And the account number there is 1001277
Mr. Smith: That is Ipa properties, my Lords.
Dr. Khaminwa: And the amount of Kshs80,500?
Mr. Smith: Yes, it was a cheque that was deposited at the Kenya Commercial Bank
(KCB), my Lords.
Dr. Khaminwa: Yes, and supporting documents are between pages 343 and 344. Is that
correct?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Could you read the next one, please?
Mr. Smith: Also on 30th March, there was a payment to Chris Kirubi. It was made from
the Hansel Investments account. It was a bankers cheque for Kshs5 million. It was
deposited in Barclays Bank of Kenya.
Dr. Khaminwa: Yes. And suppOliing documents are on pages 345 to 347?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: And the next one? Could you read that?
Mr. Smith: On 1st April; 1993, Abraham Kiptanui had a bankers cheque on the KSKP
account for Kshs3 million, which was deposited at Middle East Bank.
Dr. Khaminwa: And the supporting documents are on pages 348 and 349?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: And the next one?
Mr. Smith: There were two cheques on 5th April to Latif Kasim Jiva; one came from the
Goldenberg account and one came from Seville Investments. Both were cashed and the
total was Kshs5,922,000, my Lords.
Dr. Khaminwa: And supporting documents are on pages 350 to 351. Is that correct?
3985

Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Continue!
Mr. Smith: Between 4th September and 5th February, Sarurudin Jiwa received cash
deposits and cheques from Goldenberg main account and from the Goldenberg diamond
account, my Lords.
Dr. Khaminwa: And the total figure is Kshs9,250,OOO?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: And supporting documents are on pages 352 and 3577
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: The next one, please?
Mr. Smith: Between 13th August, 1992 and 26th August, 1993, My. S.K. Jiwa received
in bankers cheques and cash from the Goldenberg main account and Goldenberg diamond
account Kshs14,049,172.
Dr. Khaminwa: And supporting documents are on pages 358 and 363. Is that correct?
Mr. Smith: That is correct, my Lords.
Justice Aganyanya: Is it the same Jiwa; the one we have finished with?
Mr. Smith: No. One was Sarurudin, my Lords, and the next one was Shirari.
Dr. Khaminwa: They are different.
Mr. Smith: Where there are different initials, I have tended to put them separately, rather
than grouping them together to confuse people.
Dr. Khaminwa: The top one is Sarurudin Jiwa. There is no "r" at the end at alL And this
one is S.K Jiwar with "r" at the end. Then, there is the identity card number there.
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: They are definitely different?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa:
correct?
And supporting documents are between pages 358 and 363. Is that
Mr. Smith: That is correct, my Lords.
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Dr. Khaminwa: The next one is?
Mr. Smith: On 8th April, B.S. Shah got from the Goldenberg Diamond Account a bankers
cheque of Kshs400,OO, which was deposited at Prime Ban1e And the documents are
between pages 364 and 365. Is that correct?
Dr. Khaminwa: And the next one?
Mr. Smith: Again, on 8th April, a payment to S.D. Shah from Goldenberg Diamond
Account through a bankers cheque for Kshs160,OOO.
Dr. Khaminwa: And the document is at page 366?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: The next one, please?
Mr. Smith: On 5th April, there was a payment to Harindar Singh Kural from Seville
Investments. It was drawn in cash from Exchange bank and the figure is Kshs157,500.
Dr. Khaminwa: And the document is on page 3617
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: The next one?
Mr. Smith: Again, on 5th April, Mohamed Haji A. Sheikh drew cash of Kshs370,OOO
from Seville Investments.
Dr. Khaminwa: And the document is on page 368?
Mr. Smith: That is correct.
Dr. Khaminwa: The next one?
Mr. Smith: Again, on 5th April, Sarudin Ahmed from the Seville Investments account
drew cash of Kshs512,150.
Dr. Khaminwa: And the document is on page 369?
Mr. Smith: That is correct?
Dr. Khaminwa: Next one?
Mr. Smith: On 6th April, Jelmifer Burger, again from Seville Investments Account drew
cash of Kshs140,OOO.
Dr. Khaminwa: And the document is on page 370?
3987

Mr. Smith: That is con-ect, my Lords.
Dr. Khaminwa: Now, could you turn to page 371, please? You have a name there. Is
that con-ect?
Mr. Smith: Yes. On 7th April, Famo Vico from the Goldenberg Diamond Account drew
Kshs740,OOO in cash.
Dr. Khaminwa: And the document is at page 372?
Mr. Smith: That is con-ect, my Lords.
Dr. Khaminwa: The next one is?
Mr. Smith: Between 9th March, 1993 and 7th June, 1993, Abdul Aziz Mohamed drew in
cash Kshs6,026,325 from the Seville Investments account and Goldenberg Diamond
account.
Dr. Khaminwa: And the total amount is Kshs6,026,325. Is that con-ect?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: And the documents are between pages 373 and 377. Is that con-ect?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: On 8th April, Abdullah S. Mohamed withdrew Kshs150,OOO in cash from
Seville Investments account.
Dr. Khaminwa: And the document is on page 378?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Continue, please.
Mr. Smith: On 7th April, Sefula K. Ginger received a cash amount of Kshs2,800,OOOfrom
the Goldenberg Diamond account, my Lords.
Dr. Khaminwa: And the document is at page 379?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Continue, please.
Mr. Smith: On 14th April, Ibrahim M. Osman received a bankers cheque for Kshsl
million from the Goldenberg Diamond account which was paid to Trust Bank.
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Dr. Khaminwa: And the document is at page 380?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Continue!
Mr. Smith: On 14th April, Mohamed A. Maalim received a bankers cheque for
Kshs949,00O from the same Goldenberg Diamond account. It was deposited at Barclays
Bank.
Dr. Khaminwa: And the document is at page 381?
Mr. Smith: That is cOITect,my Lords.
Dr. Khaminwa: Continue, please.
Mr. Smith: On 19th April, Mohamed O. Abduli had a bankers cheque for Kshs500,OOO,
again from the Goldenberg Diamond account and was banked at Barclays Bank, Garissa.
Dr. Khaminwa: And the document is on page 382?
Mr. Smith: That is cOITect,my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: On 7 May, Mrs. M.M.A.O. Arimi had a cheque which was cashed for
Kshs1,320,OOO from account 145, which is Prestige Motors, my Lords.
Dr. Khaminwa: And the document is on pages 383 to 384?
Mr. Smith: That is cOITect,my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: On 17th May, Mrs. Sovita received a transfer ofKshs137,OOO from Mihar and
Pattni, my Lords.
Dr. Khaminwa: And the document is at pages 418 to 420?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Continue, please?
Mr. Smith: On the same day, Moon Ali also received cash from the same account, Mihar
and Pattni Account for Kshs81,500.
Dr. Khaminwa: The identity card number is there. Is that correct?
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Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And the documents are on pages 421 and 422?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Next?
Mr. Smith: On 20th May, Siftin Shivji had a cheque for Kshs217,800, which was
deposited at the KCB from the Aiba Properties account, my Lords.
Dr. Khaminwa: And the document is at page 423?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: The next one?
Mr. Smith: On 7th June, Jitendra H. Sanghani had a cheque from Mihar and Pattni
account for Kshs112,678.05, which was deposited in his account 10023.
Dr. Khaminwa: And where is the document for this amount? It does not appear to be in
the file!
Mr. Smith: In that case, I think we should retract the last record, my Lords. It is missing
from the evidence!
Dr. Khaminwa: We shall try to provide the documents. It is not there. So, for the
payment of Kshsl12,678.05--- Now, we have finished with that volume. Is that correct?
Mr. Smith: No. That is not right, my Lords. Page 385.
Dr. Khaminwa: Yes. Continue.
Mr. Smith: Between 5th November and 24th May, Baba Haji received payments from
Seville Investments account, Goldenberg main account and Goldenberg Diamond account
in form of five cheques and one bankers cheque. Four of the cheques and the bankers
cheque went to Prime Bank and one cheque went to Prime Capital and Credit, my Lords.
The total take was Kshs375,022,876.
Dr. Khaminwa: And the supporting documents are on pages 386 to 393?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Yes.
Mr. Smith: Between 27th April and 21st June, Manesh K. Dhakan received money from
the GIL Gold Account from the KSKP account from Seville Investments account. Again,
from Goldenberg Gold account and some from R. and Pattni, some from Prestige Motors---
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Dr. Khaminwa: And what is the total amount?
Mr. Smith: The total amount is Kshs6,558,694, my Lords.
Dr. Khaminwa: And supporting documents are between pages 394 and 405?
Mr. Smith: That is conect, my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: Between 11th March and 10th June, 1993, lL. Diriu received money from
Seville Investments and the Goldenberg Diamond account, cash or bankers cheque for
Kshs23,099,500.
Dr. Khaminwa: And the supporting documents are between pages 406 and 410?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Continue, please?
Mr. Smith: The next page, S. Mohamed, between 13th August and 28th August, received
one amount of cash and three cheques. One of the cheques was converted to cash deposits,
a bankers cheque and some cash. The second cheque was cashed and the third and fourth
cheques were straightforward cheques, my Lords. The total for that is continued in the next
volume on the first page.
Dr. Khaminwa: And the documents are between pages 411 and 4177
Mr. Smith: That is conect, my Lords.
Dr. Khaminwa: Have you finished that volume?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: These are, again, cheque payments? We continue with cheque payments
to individuals?
Mr. Smith: Yes, my Lords. This continues with S. Mohamed who was at the end of the
previous page. This covers the payments from September 1990 to September 1992.
Dr. Khaminwa: My Lords, this is the next volume. If you mark it Exhibit No.81E.
Mr. Chairman: It is still G. It is a continuation because you cannot split it. You see Mr.
Mohamed is continued from the other volume?
Dr. Khaminwa: Yes.
Mr. Chairman: And the total appears mid-way on that page.
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Dr. Khaminwa: What documents is Mr. Mohamed by the way?
Mr. Smith: Sony?
Dr. Khaminwa: Look at page 424, please. S. Mohamed continues there. Is that correct?
Mr. Smith: These were payments in September, 1992, from the Goldenberg main account
and the Goldenberg Diamond account.
Dr. Khaminwa: The figure here is KshsI25,700,850. Is that correct?
Mr. Smith: That is correct, my Lord.
Dr: Khaminwa: The documents are between pages 425 and 445?
Mr. Smith: Correct, my Lords.
Dr. Khaminwa: Could you go to the next one, please?
Mr. Smith: Between the 14th of April, 1993, and the 11th of June, 1993, Suresh Kadia(??)
received cheques from Exchange Bank which were cashed from the KSKP account for
Kshs3,281,790.
Dr. Khaminwa: And the documents are between pages 446 and 457.
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: The last one there?
Mr. Smith: On the 14th April, B. M. Kassim received a bankers cheque of Kshs435,OOO
from the Goldenberg Diamond account which was deposited at Barclays Bank.
Dr. Khaminwa: And the documents are at page 458?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Could you look at page 459, please?
Mr. Smith: Between the 13th January, 1993 and the 25th May, 1993, Hassan Haji
Abdullah Dadi received three bankers cheques from the Goldenberg Diamond account for
the amount of Kshs3,676,000.
Dr. Khaminwa: And the documents are between pages 460 and 464. Is that correct?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Please, proceed.
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Mr. Smith: The next entry covers M.S. Mohamed between the 25th August and the 7th
June. They are continued onto the next page. Mr. Mohamed received cheques from the
Goldenberg main account, from KSKP account and the other one is from Prestige Motors.
Dr. Khaminwa: And that is between pages 465 and 499.
Mr. Smith: That is correct, my Lords.
Mr. Chairman: Why did you split this Mohamed as you have done?
Mr. Smith: Because it is carried over to next the page. It was on a computer roll.
Mr. Chairman: You remember earlier when we were dealing with the first volume, the
Kshs125 million, he is continued up to 24th September. Do you notice that?
Mr. Smith: Yes, my Lords.
Mr. Chairman; And in this one?
Mr. Smith: This is M.S. Mohamed, my Lords.
Mr. Chairman: Oh! This is M.S. Mohamed and not S. Mohamed. They are not the same
person?
Mr. Smith: No, my Lords.
Mr. Chairman: Alright.
Dr. Khaminwa: Look at page 500, please.
Mr. Smith: This is the continuation of M.S. Mohamed from the 14th June to the 28th June
1993. The first payment is from the KSKP account and the second payment is from R.M.
Pattni account and the next two payments are from Prestige Motors. Then there is a
payment from KSKP and a last payment from Prestige Motors. The total amount was
Kshs73,720,000.
Dr. Khaminwa: It was Kshs73,723,000 and the documents are between pages 501 and 508.
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: The next ones?
Mr. Smith: Between the 2nd April and the 20th June, Gideon Moi received from the
Goldenberg main account cheques for Kshs8 million which were deposited with Post Bank
Credits or Standard Chartered, my Lords.
Dr. Khaminwa: And the documents are between pages 509 and 516. Is that correct?
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Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Could you look at page 509, please? There is a cheque there in the name
of Gideon Moi. And the signatories are who? Is that Mr. Pattni?
Mr. Smith: Mr. Pattni and Mr. De Gram(??)
Dr. Khaminwa: Could you look at page 510? Gideon Moi, there is Kshsl million. Whose
signatures are those?
Mrr. Smith: It is exactly the same signatures, my Lords.
Dr. Khaminwa: Thank you. Could you look at page 511? Whose signatures are those?
Mr. Smith: It is again, the same signatures, my Lords.
Dr. Khaminwa: Could you look at page 512, please?
Mr. Smith: It is the same, again, my Lords.
Dr. Khaminwa: Could you look at page 513?
Mr. Smith: It is the same again, my Lords.
Dr. Khaminwa: Could you look at page 514?
Mr. Smith: It is the same again, my Lords.
Dr. Khaminwa: And page 515?
Mr. Smith: It is the san1e again, my Lords.
Justice Aganyanya: Ask him about the signatories to page 513? They look like how many?
Four?
Dr. Khaminwa: Look at page 513, please. Could you tell my Lords who are the signatories
there?
Mr. Smith: My Lords, one is Mr. De Gram(??). I am just checking whether it is Mr.
Pattni's because Mr. R.M. Pattni and Mr. K.M. Pattni signed very similarly.
Dr. Khaminwa: Could you look at page 24 of Exhibit No.79, please?
Mr. Smith: It is Mr. R.M. Pattni's signature and not Mr. K.M. Pattni's signature, my
Lords.
Dr. Khaminwa: And page 516?
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Mr. Smith: It is the same signatures, my Lords.
Dr. Khaminwa: Let us go back to page 500. The next one?
Mr. Smith: From 5th October, 1992, to 9th June, 1993, Jitendra G. Rabadia received cash
cheques and bankers cheques from the Durley House account, Golden Diamond account,
Seville Investments, for a total of Kshs 132,702,610, my Lords.
Dr. Khaminwa: And the documents are between pages 517 and 533?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Could you look at page 534 now? The first one?
Mr. Smith: On 24th May, Jitendra Rabadia received cash for Kshs287,640 from the
Goldenberg Diamond account, my Lords.
Dr. Khaminwa: And the document is at page 535? Is that cOlTect?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And the next one?
Mr. Smith: From 8th July, 1992, to 10th June, 1993, Philip K. Moi received cheques to
the value of Kshs1,421,384 from Phikara Holdings Ltd account, my Lords.
Dr. Khaminwa: I see. The documents are at pages 536 to 555? Is that correct?
Mr. Smith: That is correct, my Lords.
Dr. Khaminwa: Would you look at page 536, please? There is a cheque in the name of
Philip K. Moi. How much is that?
Mr. Smith: Kshs26,737, my Lords.
Dr. Khaminwa: And that is a Phikara Holdings Ltd cheque?
Mr. Smith: That is Phikara Holdings Ltd cheque, my Lords.
Dr. Khaminwa: And the signatories?
Mr. Smith: It looks like Mr. Rana's signature, my Lords.
Dr. Khaminwa: Look at page 7 of Exhibit No.79, please.
Mr. Smith: That is what I was looking at, my Lords. It looks like Mr. Rana's signature.
Dr. Khaminwa: Look at page 537. The same kind of signatures?
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Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Look at page 538. The same kind of signatures?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: But they are all Phikara Holdings Ltd?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And page 539, the same signatures; Phikara Holdings Ltd?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Page 540, the same of signatures?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: The amount Kshs50,000? Look at page 541?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: How much amount is that?
Mr. Smith: This is for Kshs244,647 and the cheque is amended on the back, advance
payment for tyres in the name ofMr. Philip K. Moi, P.O. Box 21062, Nairobi, and stamped
Israel Airline Ltd account No.1911.
Dr. Khaminwa: And page 542?
Mr. Smith: Again, it is the same signature, my Lords.
Dr. Khaminwa: Kshs50,OOO?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And page 543?
Mr. Smith: It is the same signature, my Lords.
Dr. Khaminwa: For Kshs200,OOO? Is that conect?
Mr. Smith: That is conect, my Lords.
Dr. Khaminwa: Phikara Ho]dings Ltd again?
Mr. Smith: Yes, my Lords.
3996

Dr. Khaminwa: Look at page 544, Phikara Holdings Ltd?
Mr. Smith: It is the same signatures, my Lords.
Dr. Khaminwa: For Kshs50,OOO?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Look at page 545?
Mr. Smith: It is the same signatures as previous, my Lords.
Dr. Khaminwa: Again, it is Phikara Holdings Ltd. The amount is Kshs14,OOO?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Page 546?
Mr. Smith: Kshs50,OOO again, my Lords.
Dr. Khaminwa: Kshs50,OOOand the same signatures? Is that correct?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And page 547?
Mr. Smith: The same signatures. The amount is Kshs66,00O, my Lords.
Dr. Khaminwa: And page 548?
Mr. Smith: The same signatures and the amount Kshs50,OOO,my Lords.
Dr. Khaminwa: And page 549?
Mr. Smith: The same signatures. The amount is Kshs70,OOO,my Lords.
Dr. Khaminwa: And page 550?
Mr. Smith: It is the same signatures. The amount is Kshs50,OOO,my Lords.
Dr. Khaminwa: And page 551?
Mr. Smith: Again, it is the same signature and Kshs50,OOO,my Lords.
Dr. Khaminwa: And page 552?
Mr. Smith: The same signatures, my Lords.
3997

Dr. Khaminwa: Thank you. Now, look at that signature. Whose signature is that?
Mr. Smith: Daksha Bhupesh Rana, my Lords.
Dr. Khaminwa: And page 553?
Mr. Smith: Again, it is the same man, my Lords.
Dr. Khaminwa: That is Rana?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And page 554?
Mr. Smith: It is the same signature, my Lords.
Dr. Khaminwa: And page 555, there is the attached cheque number so and so?
Mr. Smith: It is a special clearance, my Lords.
Dr. Khaminwa: We will go back to page 534. Which was the next item?
Mr. Smith: My Lords, on 14.8.93 Mr. Ibrahim Haji Walfa was paid Kshs1 million from
Goldenberg International Limited's (GIL's) Diamond Account by a banker's cheque, which
was deposited in the Standard Chartered Bank. The supporting document is page 556.
From 3rd November to 8th March payments were made to Said Aslam Razak from GIL's
Diamond Account. The supporting documents are pages 557 to 573.
Dr. Khaminwa: Let us now look at page 574. Please, continue.
Mr. Smith: From 30.3.93 to 7.5.93 more payments were made to Said Aslam Razak from
GIL's Diamond Account. The total paid over this period was Kshs136,979,490. The
supporting documents are pages 575 to 586. On 15th April, Mr. R.P. Navji received a
banker's cheque for Kshs14,400,OOO from GIL's Diamond Account and the cheque was
deposited in the Bullion Banle The supporting documents are pages 587 to 589. On 30th
March, Mr. S. Krishna was given a banker's cheque for Kshs22,950,OOO from GIL's
Diamond Account. The cheque was deposited in the Trust Bank. The supporting
documents are pages 590 to 595.
Between 6.4.93 and 27.5.93 payments totalling Kshs105,215,00O were made to Mr. N.
Manji from GIL's Diamond Account. The supporting documents are pages 596 to 625.
Between 8.2.93 and 14.5.93 three cheques and a banker's cheque were issued to Farida
Kasuli. Three of the cheques were on GIL's Diamond Account and one cheque was on the
KSKP Account. The total paid was Kshs3,651,OOOand all the cheques went to Trust Bank.
The supporting documents are pages 627 to 632. Between 1.4.93 and 14.5.93 Lemine Caine
received two cheques from GIL's Diamond Account and deposited them in his Current
Account No.100086 at the Exchange Bank. The total amount of these cheques was
Kshs955,500. The supporting documents are pages 633 to 636.
3998

"
[Mr. Smith]
Between 28.1.93 and 21.5.93 :Mr. Malji Devji Gondaria received Kshs36,130,270. The
supporting documents are pages 637 to 642. Between 16th December and 26th May Mrs.
N. Ckaur was paid through four transfers amounting to Kshs63,650,000 from GIL's
Diamond Account to Citi Bank. The supporting documents are pages 643 to 651. On 21st
May Mr. B. Shah received in cash from the GIL's Diamond Account Kshs10 million. The
supporting document is page 652. On 25th May Mr. B.N. Shah was paid Kshs1 million
by way of a banker's cheque, which was put in the Equitorial Bank. The supporting
document is page 653. Between 25th and 28th May Mr. Yusuf Haji Ahmed drew
Kshs2,703,897 in cash from Saville Investments account. The supporting documents are
pages 654 to 657.
On 28th May S.Shariff Ahmed received Kshs394,462 in cash from Saville Investments
account. The supporting document is page 659. On 25th May 1. Kinuthia received
Kshs84,700 in cash from Saville Investments account. The supporting document is page
660. Between 15.5.93 and 15.6.93 Mr. S. Shah received banker's cheques for
Kshs11,432,00O from Saville Investments account. The supporting documents are pages
661 to 673. On 26.5.93 M.P. Shah received Kshs8 million in cash from OIL's Diamond
Account. The supporting document is page 674. Again, on 26.5.93 :Mr. A. Majid received
a banker's cheque for Kshs550,000 from Saville Investments account. The supporting
documents are pages 675 to 677. Between 11.1.93 and 27.5.93 Mr. M.A. Mahamud
received four banker's cheques, three from Saville Investments and one from GIL's
Diamonds Account, two of which were deposited in the Trust Bank while the other two
were deposited in the Orindlays Bank. Their amount was Kshs33,369,711 and the
supporting documents are pages 678 to 689.
On 26th and 27th May, :Mr. M.P. Githani drew from Saville Investments Account
Kshs10,700,00O in cash. The suppOliing documents are pages 690 to 691. Again, on 27th
May Mr. c.e. Shah got a banker's cheque for Kshs250,000 from Saville Investments
Account, which he deposited in the Bullion Bailie. The supporting document is page 692.
Again on 27th May, M.A. Barak received Kshs1,311,956 in cash from Saville Investments
Account. The supporting document is page 693. Still on 27th May, Mr. Karim A. Hussein
received Kshs309,600 in cash from Saville Investments Account. The supporting document
is page 694. On the same date Messrs Haji Ahmed and Mahamud A. Mahamud received
from Saville Investments Account Kshs4,581,096. The supporting document is page 695.
On 28th May, Mr. A. Musa was paid Kshs36 million from OIL's Diamond Account by a
cheque which was deposited in the Prime Bank. The supporting document is page 697. On
the same date Mr. H.I. Hassan received a banker's cheque for Kshs3 million from GIL's
Diamond Account and deposited it in the Barc1ays Bank of Kenya. The supporting
documents are pages 698 to 700. Still on 28th May, Mr. Nishal Shah received
Kshs1,064,500 in cash from Saville Investments Account. The supporting document is page
701.
On 31st May, Mr. K. Kavinji Pattni received a cheque for Kshs4 million from OIL's
Diamond Account. The supporting document is page 702. On 2nd June Dr. 1.1. Thakar
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[Mr. Smith]
received a cheque for Kshs70,000 from the KSKP Account. He deposited the cheque in
the Trust Bank and the supporting document is page 703.
Dr. Khaminwa: Whose signatures are on page 703?
Mr. Smith: I do not know, my Lords. There are no specimen signatures on Account No.
100038.
Dr. Khaminwa: So, they are new signatures?
Mr. Smith: My Lords, I have nothing to compare them with because there are no
authorised signatures on Account No. 100038.
Dr. Khaminwa: Okay; continue.
Mr. Smith: My Lords, on 3rd June Dr. R. Radia was paid Kshs70,000 from the KSKP by
cheque which was deposited in Prime Capital and Credit. The supporting document is page
704. On 7th June, P.G.S. Venora received Kshs92,400 in cash from Saville Investments
Account. The supporting document is page 705. Between 14.1.93 and 1.7.93 there were
two transfers from Mr. Pattni's Savings Account No. 30005, three payments from Saville
Investments and one payment from Manita Holdings. The transfers were for the purchase
of cash deposit bonds and the five cheques, which were all raised on 1.7.93 were deposited
in Prime Bank Limited. The total amount paid was Kshs55,702,041.80.
Dr. Khaminwa: Then you have also made a remark here: "Also see deposits to the
Exchange Bank account number---II?
Mr. Smith: My Lords, when it comes to the sources of funds, like in account No.30005,
it is there. It shows there were various other sources of the funds in that account.
Dr. Khaminwa: And the documents are on pages 706 to 708. Is that correct?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Also, in pages 713 to 719?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Let us now go to 10th June. Could you read out that name, please?
Mr. Smith: Mr. P.K. Mwaura from the KSKP account, banker's cheque for Kshs2,300,000,
which was deposited to the Standard Chartered Bank, my Lords.
Dr. Khaminwa: And the account number is as indicated here?
Mr. Smith: Yes, my Lords.
4000

t
I'
Dr. Khaminwa: And the documents are on pages 720 to 722?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Could we look at those documents, please? The amount on page 720 is
Kshs2,300,000?
Mr. Smith: COITect,my Lords.
Dr. Khaminwa: And those signatures?
Mr. Smith: Again, there are no signatures to compare them with. Only the signatures---
Dr. Khaminwa: Now, what are the comments at the back?
Mr. Smith: "Originally, the cheque was made out to P.K. Mwaura; it has been altered to
yourselves. Please, make a bankers cheque in the name of Mr. P.K. Mwaura for KAA
700A." So, it looks as if it was for a purchase of a car.
Dr. Khaminwa: What about page 721?
Mr. Smith: My Lords, page 721 is the Exchange Bank's authority to raise the bankers
cheque, and page 722 is the actual bankers cheque.
Dr. Khaminwa: And the account is, of course, the KSKP account?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Let us go back to page 96.
Mr. Smith: My Lords, again, on 10th June, Naem Khan from Seville Investments account
drew Kshs916,500 in cash.
Dr. Khaminwa: And the document is at page 723?
Mr. Smith: COITect,my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: On 11th June and 14th June, Anan Intalo Ali received two payments from the
Seville Investments account. One was for Kshs97, 717 in cash and the second was a
banker's cheque for Kshs1,862,425, which was deposited at Standard Chartered, my Lords.
Dr. Khaminwa: And the documents are at pages 724 to 727?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And the next one is what?
4001

Mr. Smith: On 11th January, 1993 and 9th June, 1993, Abdinasir Ali Abdalai; both
payments, in cash, were from Seville Investments account, my Lords.
Dr. Khaminwa: And the amount is how much?
Mr. Smith: Kshs796,826.50, my Lords.
Dr. Khaminwa: And there is his lID card number there?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Documents are on pages 728 to 729?
Mr. Smith: Correct, my Lords.
Dr. Khaminwa: Could you look at page 730, please? Read out the details.
Mr. Smith: My Lords, on 14th June, there was a payment to Asha Harsi and Mohamed
Luhi; a banker's cheque was raised for Kshs800,000 from the Sevi1le Investments account,
and was paid to Standard Chartered Bank.
Dr. Khaminwa: The documents are on page 731?
Mr. Smith: Correct, my Lords.
Dr. Khaminwa: The next one?
Mr. Smith: On 16th June, there was a payment to Yusuf Sharif Abdalai from Seville
Investments account; it was Kshs817,650 in cash, my Lords.
Dr. Khaminwa: And the page is 732?
Mr. Smith: Correct, my Lords.
Dr. Khaminwa: Go on.
Mr. Smith: On 30th June, 1993, there were two cheques raised for Mr. J. Ludrum; both
were from the Goldenberg main account, and were paid to the Bank of India; they totalled
Kshs144,000, my Lords.
Dr. Khaminwa: And the documents are at pages 733 to 734?
Mr. Smith: Correct, my Lords.
Dr. Khaminwa: Continue.
Mr. Smith: On 1st July, Mayor Kagram received a cheque for Kshs82,000 from Ahiba
Properties, my Lords.
4002

.I'
Dr. Khaminwa: And the papers are at pages 735 to 736?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Continue, please.
Mr. Smith: On 31st August, 1993, Mr. Francis K. Maina received three cheques; two from
the Goldenberg main account and one from the Prestige Motors account, totalling
Kshs79,850.60, my Lords.
Dr. Khaminwa: The ID card number is there, and the documents are from pages 737 to
739?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: The next one?
Mr. Smith: On 2nd September, there were two cash payments to Ti1ala Azim Said, both
from the Prestige Motors account, totalling Kshs97,OOO,my Lords.
Dr. Khaminwa: The Driving Licence number is there?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And the documents are from pages 740 to 741?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Please, proceed.
Mr. Smith: From 12th November, 1992 to 8th September, 1993, My. Sanje Kotecha
received three payments. One was from the Sanghani and R.M. Pattni account, one from
the KSKP account in bankers cheque, and one was from Art Crediture Limited, and the
total was Kshs895,000, my Lords.
Dr. Khaminwa: Now, the documents of the first two are from pages 742 to 744, and the
documents for the last one is at page 709?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: The next one?
Mr. Smith: On 8th April, B. Kotecha took a banker's cheque for Kshs2,275,700, which
was deposited at the Kenya Commercial Bank; the money came from the Goldenberg
diamond account, my Lords.
Dr. Khaminwa: The documents are at page 710?
4003

Mr. Smith: COITect,my Lords.
Dr. Khaminwa: Continue, please.
Mr. Smith: On 14th September, 1993, E.K. Tawam/LC. Patocho were paid from Seville
Investments account, a cheque of KshsI19,199.20, my Lords.
Dr. Khaminwa: And the documents are at page 711?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Go on.
Mr. Smith: On 21st September, 1993, Mr. K.K. Kinuthia received a cheque from Seville
Investments account for Kshs210,501.15, my Lords.
Dr. Khaminwa: That is the loan account?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: And the document is on page 712?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: I believe, we have finished with this volume?
Mr. Smith: Yes, my Lords.
Dr. Khaminwa: Thank you.
Justice Aganyanya: Dr. Khaminwa, I am trying to get account No.100l89; I cannot find
it.
Dr. Khaminwa: Which account number, my Lords?
Justice Aganyanya: Account No.100189; that is against Sanje Kotecha.
Mr. Smith: My Lords, if you look at Exhibit No.79A, from the last page; it is there. It is
at page 15.
Justice Aganyanya: Thank you.
Dr. Khaminwa: My Lords, we now come to the sources of funds. There are four volumes,
which we want to put in.
Mr. Chairman: In your own estimate, how long will that take?
Dr. Kbaminwa: It will take a day, my Lords.
4004
(

Mr. Chairman: Will you be able to finish by 1.00 p.m.?
Dr. Khaminwa: No, I will not, my Lords. It is a new subject, if I may say so.
Mr. Chairman: If we cannot be able to finish that subject, I think we better stop it there.
Dr. Khaminwa: As your Lordships please.
Mr. Chairman: Is there anything else which we can be able to finish today?
Dr. Khaminwa: My Lords, I would urge your Lordships that we adjourn at this stage and
then the next time we resume, we start with these documents.
ADJOURNMENT
Mr. Chairman: We are adjourning today for quite a long time, because of several events
that are going to take place here. From next week, we shall be having the Schools Music
Festival, and we could not get an alternative venue to continue with our proceedings. The
festival will continue for two weeks. So, inevitably, we have to adjourn for at least two
weeks. There are other renovation works which are intended for this building, but we hope
that by the end of those two weeks, they will have finished with the area which affects us
or which is likely to interfere with our proceedings, so that we can be able to resume. To
give ourselves a good margin, we will adjourn today's proceedings to 25th August, 2003,
which will be on a Monday. So, until then, I wish you a good break. For the advocates, you
have to study the records, so that when cross-examination starts, it will not be necessary
to ask for more time. For us, we will also do our best to organise ourselves fully, so that
we will be faster in our presentation.
Thank you very much. May God bless you.
(The Commission adjourned at 10.30 a.m. until
Monday, 25th August, 2003, at 9.00 a.m.)
4005