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Kenya: Wako Disowns Grand Regency Deal
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The Nation (Nairobi)
23 April 2008
Posted to the web 22 April 2008
Sam Kiplagat
Nairobi
The controversy surrounding Goldenberg architect Kamlesh Pattni's hand-over of Grand Regency Hotel to the Central Bank took a new turn on Tuesday when Attorney-General Amos Wako distanced himself from the deal.
Mr Wako said he was not consulted at any stage before the deal was sealed. But the Director of the Kenya Anti-Corruption Commission, Mr Justice Aaron Ringera, who handled the litigation of cases involving Mr Pattni, later issued a statement saying the seizure of the five-star hotel was above board.
According to Mr Ringera, Mr Pattni surrendered the hotel to Central Bank after the anti-corruption authority registered a consent in the High Court on April 9, this year, to seize it from Uhuru Highway Development Ltd, a company associated with Mr Pattni.
The two parties agreed to execute the transfer of the hotel together with improvements and moveable assets.
"The recovery process was completely above board and the terms of settlement have been registered in court," Mr Ringera said.
But yesterday, Mr Wako told the Press that he knew nothing about the deal and that he only learnt about it through the media.
He also said he was not aware of allegations that the five-star hotel had been sold to a Libyan company.
Stranger
Terming himself a "stranger" in the deal, the AG said neither the Central Bank nor the Kenya Anti-Corruption Commission approached him for consultation.
But Mr Justice Ringera said that after the registration of the consent, the hotel was now vested in the CBK, after receiving it at a public function two weeks ago.
He said the commission was aware that the Central Bank's mandate does not extend to running any commercial entity.
"It is, therefore, possible that CBK may exercise its discretion to dispose of the property by way of sale (and) the commission expects that in the event of such a sale, there will be strict compliance with the law," he said.
Last week, CBK lawyer Ken Abuga, while responding to a question from the Saturday Nation, said the hotel was yet to be sold. "As and when it is sold, details of the sale will be released to the public."
The response raised questions over whether the hotel, which was a public asset, was in the process of being sold privately. There are clear legal guidelines to be followed in the disposal of public assets, including valuation, advertisement and bidding.
And the fact that Mr Wako has distanced himself from the deal raises questions over why the Central Bank and the anti-corruption commission kept the principal government legal advisor in the dark.
Mr Wako's denial leaves an unanswered question as to whether the Cabinet was briefed on the details of the terms of the agreement before or after it was executed.
Asked whether the AG's office will pardon Mr Pattni following his gesture to surrender the hotel to Central Bank, Mr Wako said: "I am waiting to be told of the deal. And when that time comes, I will bring it to the public domain."
In a plea to the Government, Mr Pattni, the Goldenberg architect, asked to be pardoned after he surrendered the hotel.
His petition read in part. "I hereby humbly petition the Government... in the spirit of reconciliatory to consider withdrawing all civil and criminal cases revolving around me, my associate companies and the Grand Regency Hotel and any other disputes related thereto affecting my rights and to enable myself adopt a fresh chapter in my life..."
Mr Wako said either KACC or CBK should have asked for his opinion on whether the intended hand-over would require dropping the charges against Mr Pattni.
Take over
Under the law, the AG is the only person with powers to take over cases and terminate them.
In his statement yesterday, Mr Ringera said there had been allegations in the media that Mr Pattni was paid some money in exchange for the hotel.
"As far as the commission is aware, there has been no such payment," he said.
The Law Society of Kenya said it was saddened by the deal and was studying it before deciding its next move.
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Council member Evans Monari said KACC should not use the deal to "pass a clean bill on Pattni".
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