Kenya's judicial system is in chaos

The unexpected halt caught the public, security officers and lawyers - including the country's Director of Prosecutions Philip Murgor - unawares.

Justice Daniel Aganyanya was among the 23 senior judges - half of the total - suspended by President Mwai Kibaki last week while they are investigated for alleged corruption and misconduct.

The Commission of Inquiry into the Goldenberg scandal - in which Kenya lost up to $600m through questionable exports of gold and diamonds between 1990 and 1993 - was appointed by President Kibaki in February.

Goldenberg scandal Kenya lost $600m IMF cut aid worth $500m Commission appointed on 24 February

The adjournment cast a shadow over the fate of the inquiry which has in recent days been thrown into a state of confusion after the assisting counsel called for the resignation of its chairman, Justice Samuel Bosire, alleging that he was "protecting certain people from being adversely mentioned".

The main player in the scandal - which also involved complex bank transactions - was Goldenberg International company owned by millionaire businessman Kamlesh Pattni.

Replacement

A notice issued by the registrar of the High Court, who is also one the Commission's joint secretaries, William Ouko, said that the inquiry would "stand adjourned until otherwise advised".

Mr Ouko said that the Chairman of the Commission had directed him to issue the notice because a replacement for the suspended Justice Aganyanya had not been announced, according to Kenya's Daily Nation newspaper.

Kibaki says there will be no let-up in fighting corruption

Observers say that the adjournment of the inquiry - whose proceedings have been a big crowd puller in the Kenyan capital, Nairobi - is the latest manifestation of the chaos that has gripped the judiciary following last week's move to suspend half of the most senior judges.

The law Society of Kenya (LSK) - which is represented at the inquiry - said it was surprised by the abrupt adjournment.

"The notice may be strange but the manner of presenting it is even stranger," said LSK lawyer Harun Ndubi.

Aid lost

The Goldenberg scandal cost Kenya up to $600m, the equivalent of more than 10% of the country's annual GDP.

The compensation scheme was designed to promote the exports of gold and diamonds, although Kenya has negligible amounts of either.

Powerful politicians in the former government of President Daniel arap Moi - as well as leading figures in the current administration - have been accused of complicity in the Goldenberg scandal.

The International Monetary Fund (IMF) and the World Bank suspended $500m in aid to Kenya in 1997 on the basis that the government was not doing enough to end corruption in the country, citing the Goldenberg scandal as an example.