The Goldenberg scandal occurred at a time of severe economic austerity in Kenya in the early 1990s. The country’s economy was characterised by long periods of macroeconomic instability and dwindling foreign reserves. The Kenyan government turned to international financial institutions for cheaper loans. These were provided, but were conditional on economic reforms, such as measures intended to stimulate trade. Goldenberg managed to defraud the Kenyan state of between US$600 million and US$1.5 billion in subsidies. Do you think that the Gold Fraud helped the country to avert economic crisis in the 90’s ?
