THE ANGLO LEASING AFFAIR UPDATE!

Kenya gold scam charges delayed.

Mr Murungaru was sacked following corruption allegations. Kenyan officials say an inquiry into the $600m Goldenberg gold fraud will not necessarily lead to prosecutions. Critics fear that the decision could be an attempt to protect senior government officials implicated by the inquiry. Meanwhile, former Transport Minister Chris Murungaru has denied new allegations of corruption. The claims against him and three ex-cabinet colleagues have threatened to bring down President Mwai Kibaki, elected on pledges to tackle graft. The Goldenberg scam involved licences and credits for fictitious gold and diamond exports in the early 1990s.

Sleaze hits 'clean' rulers

The investigation led by Judge Samuel Bosire was originally expected to lead to the prosecution of those involved. But a meeting chaired by Justice Minister Martha Karua decided new investigations were necessary before any charges could be brought. Education Minister George Saitoti - who served as finance minister under then President Daniel arap Moi - is believed to have been implicated by the Bosire report. The meeting on Monday said new investigations should begin at once, led by the CID director Joseph Kamau, the Daily Nation newspaper reports. The paper quoted officials close to the justice minister as saying the CID team should question those named in Judge Bosire's report and interview witnesses who could back up the prosecution cases in court. Ex-President Moi denied any links to the Goldenberg scam.

The Bosire report comes as Mr Moi's successor, Mr Kibaki, is threatened by a separate corruption scandal: a multi-million dollar scam linked to bogus security contracts, known as the Anglo Leasing affair. Some commentators believe the release of the Bosire report may have been timed to deflect attention away from the later scandal, which has the potential to damage the present administration. Mr Murungaru has broken his silence to deny links to Anglo Leasing affair, or that he blocked attempts by former anti-corruption tsar John Githongo to investigate it. "I never asked John Githongo or anyone else to slow down any investigations into Anglo Leasing... It is a fabrication and a figment of his imagination," he said.

Mr Murungaru was sacked after the UK and US revoked his visa last year. Mr Kibaki was elected in 2002, promising to fight corruption that had become endemic during Mr Moi's 25-year presidency, but correspondents say the Anglo Leasing scandal has already tarnished his reputation. On Tuesday, Mr Kibaki said all members of his cabinet would be put under "performance contracts" to improve public service.

BBC NEWS REPORT