Kenya court charges tycoon in huge graft scam

NAIROBI - A Kenyan court charged businessman Kamlesh Pattni on Monday with conspiracy to defraud the government and theft of 5.8 billion shillings ($132.95 million) in the east African country's biggest corruption scam.

Pattni is accused of masterminding the 1990s Goldenberg scandal in which $1 billion in public funds were stolen in a bogus gold and diamond export scheme.

"I am not guilty to the charges," Pattni told Chief Magistrate Aggrey Muchelule who read out the charges in court.

Last week Pattni obtained a court order blocking proceedings against him on grounds that an inquiry into the affair was unconstitutional.

But on Monday, Director of Public Prosecutions Keriako Tobiko asked the court to take Pattni's plea.

Muchelule ordered Pattni to be released on a bond of 10 million shillings and two sureties of a similar amount until May 24 when his case will be heard with five other suspects.

The former senior officials who held their posts under former President Daniel arap Moi were charged last week in the same case.

Three Kenyan ministers have resigned this year over accusations of involvement in Goldenberg and the more recent Anglo Leasing scandal, in which fake tenders worth at least $200 million were awarded to a fictitious firm.

- REUTERS