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NAIROBI, Mar 15 (Reuters) Kenya today announced fraud charges against five high-profile figures linked to its biggest graft scandal, in the most concrete move yet by a government under heavy fire for tolerating corruption.

Attorney General Amos Wako's decision to charge the men over the long-running Goldenberg case followed pressure from Kenyans and Western donors alike for President Mwai Kibaki to make good on his election promise of zero tolerance for corruption.

By charging four former senior government officials and Kamlesh Pattni -- a businessman accused of masterminding the scam -- Kibaki's government will hope to restore some of its fading credibility.

Pattni has denied any wrongdoing in the case, in which $1 billion was siphoned from state coffers through fake gold and diamond exports in the 1990s under President Daniel arap Moi.

His 24-year rule until 2002 became synonymous with graft.

A statement by Wako said those to be charged included James Kanyotu, Moi's powerful spy chief, former central bank governor Eric Kotut, his deputy Eliphaz Riungu and ex-Treasury permanent secretary Wilfred Koinange. The five could not be reached for comment.

MAJOR SCANDALS Missing from the list was former Education Minister George Saitoti, who resigned last month after an inquiry named him as one of 14 people whom Wako should decide whether to charge.

The case is one of two major scandals dogging Kibaki's administration, angering Kenyans and Western donors because of lack of action against the culprits.

Two other ministers resigned in February over the more recent Anglo Leasing scam, which started under Moi but continued after Kibaki took power in 2002 on pledges to clean up graft.

That scandal involved fraudulent tenders for at least $200 million to a fictitious firm for forgery-proof passports, a naval ship and forensic laboratories.

University of Nairobi political science lecturer Ludeki Chweya said the government was taking cosmetic action to ease pressure, and no one was likely to end up in jail.

''The people who authorised the fraudulent payments and actually received the money, the politicians, are not among those charged. It is a joke,'' he said.

''Knowing our legal system, a verdict of insufficient evidence will be brought forth.'' The official inquiry also recommended further investigation against Moi, who has not faced any charges and denies any role.

It also said Saitoti, then the finance minister, had approved millions in payments to Pattni's Goldenberg International gem company.

Saitoti has denied any wrongdoing.

All five Goldenberg suspects named today are to be charged with fraud and conspiracy, while the ex-government officials would also face charges of abuse of office and breaching the public trust, Wako said.

REUTERS SHR RN1859