"SCRATCH MY BACK AND I WILL SCRATCH YOURS"--MOI'S MARRIAGE TO KIBAKI , BRANDSYD

Politicians and businessmen who stole billions of pounds during the Daniel Arap Moi era in Kenya have effectively been given an amnesty after the national anti-corruption body was stripped of its power to investigate old cases.

Under a new law passed by parliament the Kenya Anti-Corruption Commission (KACC) will no longer be able to investigate offences committed before May 2003, when it was set up. Notorious scandals such as the Goldenberg and Anglo Leasing cases, which involved massive state-sponsored looting through bogus companies, can now only be pursued by the police. And the police consistently rank as the most corrupt organisation in Kenya.

The move comes two weeks after a leaked report by the international risk consultancy Kroll alleged that two of Mr Moi's sons had accumulated wealth of nearly £1bn during their father's reign. Much of it was stashed in foreign countries, including the UK.

Civil society organisations yesterday described the new law as "the formal end of the war on graft", while Aaron Ringera, the head of the KACC, called it "one of the darkest moments in the fight against corruption".

"This makes a mockery of the judicial system," Mr Ringera said. "All our long investigations must now be stopped."

The KACC was established soon after President Mwai Kibaki took power in late 2002. With an annual budget of more than £7m, it was given the task of fulfilling Mr Kibaki's pledge of ending high-level corruption and reclaiming stolen loot. It commissioned Kroll to trace the missing money, and collected evidence on the Goldenberg case, which involved a gold and diamond export scam, as well as the large-scale theft of public land by officials across the country.

But from 2005, when Mr Kibaki's government was revealed to have continued the looting by awarding huge state contracts to bogus companies in the so-called Anglo Leasing scandal, it became increasingly clear that KACC faced an uphill struggle due to political interference and a lack of bite. Mr Ringera's own commitment to tackle corruption was called into question. The Kroll report, delivered in April 2004 and containing details of bank accounts, companies and properties in the names of Mr Moi's inner circle, was never acted upon.

Earlier this year three members of Mr Kibaki's cabinet, who resigned after allegedly putting pressure on anti-corruption officials to drop their investigations, were reappointed to their jobs. Efforts by KACC to force ministers suspected of corruption to declare the source of their wealth were blocked. To date not a single MP or prominent businessman has faced prosecution.

"All these guys who looted must be celebrating now," said Maina Kiai, chairman of the Kenya National Commission on Human Rights. "This shows what a farce the whole war on corruption is."

Mr Moi himself had attempted to push through an amnesty for corruption in 2001, but was defeated in parliament. This time around MPs, including some under investigation by the KACC, not only effectively pardoned all economic crimes since independence, but also blocked an attempt by the anti-corruption body to acquire wider powers to speed up investigations.

The move is likely to anger the international community, which pours tens of millions of pounds of aid into Kenya each year. Britain, the biggest bilateral donor, is likely to be particularly aggrieved.

In the fallout from the leaked Kroll report, the Kenyan government attempted to shift the blame for its inaction by accusing western countries of failing to assist in recovering stolen money. The UK was singled out for criticism, a move that fell flat when it was revealed that no formal request for assistance had been made.

For Mr Moi the new law continued his run of good fortune. Despite leaving office in disgrace he is enjoying something of a rehabilitation, with a recent appointment as the government's peace envoy to Sudan. In turn - or in return, as some say - he came out in support of Mr Kibaki's re-election bid.

A few of his suspected cohorts in corruption are also enjoying a new lease of life.

Kamlesh Pattni, the local businessman at the heart of the Goldenberg scandal who told an inquiry that he used to hand Mr Moi suitcases filled with money, has renounced his Hindu background to become a Christian evangelist. He is also seeking election to parliament.

Backstory

Daniel arap Moi's 24-year rule was so corrupt that a promise to end graft was a big factor in helping the opposition oust his Kanu party. President Mwai Kibaki began well, setting up the Kenyan Anti-Corruption Commission to investigate large-scale looting in the 1990s, recover money and stamp out new corruption. But the new parliament had many MPs who had served and learned from Mr Moi and ministries still had corrupt civil servants. When members of Mr Kibaki's cabinet were accused of covering up fraudulent security contracts any pretence of prosecuting Mr Moi and his cronies disappeared.

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Kenya's elite escape action over corruption