Grand Regency: What does Kibaki know?
By Sunday Standard TeamPresident Kibaki is in the eye of the storm stirred by the controversial sale of Grand Regency Hotel to the Libyan Government.
The question is, “What did the President know?” And he is not alone; the winds of accusations are also swirling around Finance Minister Amos Kimunya and Foreign Affairs Minister Moses Wetangula.
Calls for Kimunyas resignation rose on Saturday as the nation began confronting the latest storm to jolt the Kibakis administration in the second and last term.
Cabinet ministers Martha Karua and Charity Ngilu said the way the sale was executed was suspect and those involved should disclose what they know.
Cabinet Ministers William Ruto and Najib Balala also spoke out against the sale, saying collective Cabinet responsibility did not mean “sitting down and working with crooks.
Kimunya did not produce copies of the sale agreement and valuation reports, amid claims by a parliamentary committee the hotel is worth more than the Sh2.9 billion the minister said the Libyans paid. This has also opened up the President and his subordinates, to claims there is more than meets the eye.
They will all be hard put, especially the President, because of his oversight and Executive powers, to allay fears even within the Cabinet that the Libyans could have paid more, which was not factored in the Government records.
Even if he was not briefed, and since the Cabinet was not involved, the President and his ministers may also have to field questions, including whether businessman Kamlesh Pattni, who put up the hotel on public funds, was paid US$18 million (around Sh1 billion) in two instalments to play ball.
Questions
But the trickiest claim doing the rounds in Government and legal circles is that the Libyans could have paid, and which Kimunya has denied, Sh7.5 billion. With this comes the question, if it is true: Where did the Sh4.6 billion go?
Kimunya, under whom the vendor, Central Bank falls, and who shrugged off the hotel was sold to a single-sourced merchant, has a date with the relevant committee of the House.
There will also be questions on reported sale of a plot lying between the hotel and Kenyatta Avenue, which is also said to have been sold by the National Social Security Fund, for Sh1.6 billion, to Libyans. If it were true, again the question why there was no bidding, as well as publicised independent valuation, would be asked.
On Saturday, Kibaki met Prime Minister Raila Odinga at his Harambee House office, but though their discussions were not made public, the coincidence of it coming hot on the heels of the latest controversy in which Kimunya said he was personally involved, fuelled speculation it could have been the agenda.
Wetangula, because of his docket in the Cabinet, is also believed to be familiar with the process it took the Government to hand over the hotel to the Libyans following the deal between Presidents Kibaki and Muammar Gaddaffi.
There were also reports a law firm with which he is associated, undertook professional work of conveyance, for which is earned millions of Shillings.
The latest controversy rekindles memories of the Sh7 billion Anglo Leasing scandal in Kibakis first term, which were vehemently dismissed as “scandals that never were” by ministers, until the denials could no longer hold, given the evidence that kept popping up locally and internationally.
Ngilu, who unlike Karua comes from the Orange Democratic Movement wing of the ruling Coalition, said the deal was shady, should be investigated and those involved dealt with.
Karua joined Lands Minister James Orengo who lifted the lid on the sale denied as non-existent by Kimunya until Friday.
AG in the dark
Attorney General Amos Wako has also said he was not part of the amnesty deal that saw businessman Kamlesh Pattni reciprocate by surrendering the hotel to the Kenya Anti-Corruption Commission and Central Bank.
The probing eyes are also riveted on the Kenya Anti-Corruption Commission director Justice Aaron Ringera. He entered into a barter trade with Pattni, who built the hotel he has been fighting to keep for 15 years, on skimmed public funds.
In return for dropping cases KACC lined up against the architect of Goldenberg scandal, Pattni signed away the hotel to the Central Bank.
Also on the crosshairs in so far as the hard questions are concerned is CBK Governor Prof Njuguna Ndungu whose institution, which falls under the Treasury, was the theatre of the shady transaction.
The flurry of questions revolve around how much they knew, their contributions to the deal now threatening to split the Grand Coalition, and the reason it was executed stealthily, with some key offices being by-passed.
Even if the sale was by Treaty, the AG ought to have known. The AG also needed to have approved the amnesty deal with Pattni as the Governments chief legal adviser.
The Grand Regency scam is a test for the Kibaki presidency that said on May 9 that, any minister, assistant minister and permanent secretary cited adversely in corruption would have to step aside to allow for investigation.
Grand Regency: What does Kibaki know?
Published on June 29, 2008, 12:00 am
By Sunday Standard Team
President Kibaki is in the eye of the storm stirred by the controversial sale of Grand Regency Hotel to the Libyan Government.
The question is, “What did the President know?” And he is not alone; the winds of accusations are also swirling around Finance Minister Amos Kimunya and Foreign Affairs Minister Moses Wetangula.
Calls for Kimunyas resignation rose on Saturday as the nation began confronting the latest storm to jolt the Kibakis administration in the second and last term.
Cabinet ministers Martha Karua and Charity Ngilu said the way the sale was executed was suspect and those involved should disclose what they know.
Cabinet Ministers William Ruto and Najib Balala also spoke out against the sale, saying collective Cabinet responsibility did not mean “sitting down and working with crooks.
Kimunya did not produce copies of the sale agreement and valuation reports, amid claims by a parliamentary committee the hotel is worth more than the Sh2.9 billion the minister said the Libyans paid. This has also opened up the President and his subordinates, to claims there is more than meets the eye.
They will all be hard put, especially the President, because of his oversight and Executive powers, to allay fears even within the Cabinet that the Libyans could have paid more, which was not factored in the Government records.
Even if he was not briefed, and since the Cabinet was not involved, the President and his ministers may also have to field questions, including whether businessman Kamlesh Pattni, who put up the hotel on public funds, was paid US$18 million (around Sh1 billion) in two instalments to play ball.
Questions
But the trickiest claim doing the rounds in Government and legal circles is that the Libyans could have paid, and which Kimunya has denied, Sh7.5 billion. With this comes the question, if it is true: Where did the Sh4.6 billion go?
Kimunya, under whom the vendor, Central Bank falls, and who shrugged off the hotel was sold to a single-sourced merchant, has a date with the relevant committee of the House.
There will also be questions on reported sale of a plot lying between the hotel and Kenyatta Avenue, which is also said to have been sold by the National Social Security Fund, for Sh1.6 billion, to Libyans. If it were true, again the question why there was no bidding, as well as publicised independent valuation, would be asked.
On Saturday, Kibaki met Prime Minister Raila Odinga at his Harambee House office, but though their discussions were not made public, the coincidence of it coming hot on the heels of the latest controversy in which Kimunya said he was personally involved, fuelled speculation it could have been the agenda.
Wetangula, because of his docket in the Cabinet, is also believed to be familiar with the process it took the Government to hand over the hotel to the Libyans following the deal between Presidents Kibaki and Muammar Gaddaffi.
There were also reports a law firm with which he is associated, undertook professional work of conveyance, for which is earned millions of Shillings.
The latest controversy rekindles memories of the Sh7 billion Anglo Leasing scandal in Kibakis first term, which were vehemently dismissed as “scandals that never were” by ministers, until the denials could no longer hold, given the evidence that kept popping up locally and internationally.
Ngilu, who unlike Karua comes from the Orange Democratic Movement wing of the ruling Coalition, said the deal was shady, should be investigated and those involved dealt with.
Karua joined Lands Minister James Orengo who lifted the lid on the sale denied as non-existent by Kimunya until Friday.
AG in the dark
Attorney General Amos Wako has also said he was not part of the amnesty deal that saw businessman Kamlesh Pattni reciprocate by surrendering the hotel to the Kenya Anti-Corruption Commission and Central Bank.
The probing eyes are also riveted on the Kenya Anti-Corruption Commission director Justice Aaron Ringera. He entered into a barter trade with Pattni, who built the hotel he has been fighting to keep for 15 years, on skimmed public funds.
In return for dropping cases KACC lined up against the architect of Goldenberg scandal, Pattni signed away the hotel to the Central Bank.
Also on the crosshairs in so far as the hard questions are concerned is CBK Governor Prof Njuguna Ndungu whose institution, which falls under the Treasury, was the theatre of the shady transaction.
The flurry of questions revolve around how much they knew, their contributions to the deal now threatening to split the Grand Coalition, and the reason it was executed stealthily, with some key offices being by-passed.
Even if the sale was by Treaty, the AG ought to have known. The AG also needed to have approved the amnesty deal with Pattni as the Governments chief legal adviser.
The Grand Regency scam is a test for the Kibaki presidency that said on May 9 that, any minister, assistant minister and permanent secretary cited adversely in corruption would have to step aside to allow for investigation.
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API/Standard.ke
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