Jillo Kadida And Muna Wahome
24 April 2008
Nairobi — Goldenberg architect Kamlesh Pattni's surrender of the Grand Regency hotel to the Central Bank of Kenya did not include an amnesty of all cases he faces over the scandal.
Though he had requested for the amnesty, it has emerged that the consent registered in the High Court whose order was given omitted three essential clauses in his plea.
This was revealed even as CBK governor Njuguna Ndung'u denied that the five-star hotel had been sold.
On Wednesday, Imenti Central MP Gitobu Imanyara asked Finance minister Amos Kimunya to explain the controversy surrounding transfer of the hotel.
Few government officials were kept in the picture on the deal.
Attorney-general Amos Wako has distanced himself from the transaction saying that he was not consulted.
As the principal legal advisor to the Government, Mr Wako ought to have been kept in the loop on the transfer.
Yesterday, the Nation established that only clauses which dealt with the seizure and transfer of the hotel to CBK were contained in the order issued by the court. Records show clauses in which Mr Pattni wanted amnesty over pending cases were omitted.
According to the court order, Mr Pattni was to relinquish or transfer ownership of hotel to CBK.
He was also required to execute all necessary instruments of transfer of the hotel failure in which the deputy High Court registrar will order execution.
The order also directs that joint receiver managers appointed on May 31, 2004, should vacate and ownership of the hotel be given to bank.
Further, accounts held by any bank and cash in the name of the receivers should transferred to the CBK.
However, the order discontinues case number 1111 of 2003 which touches on the hotel's ownership.
Also omitted is a plea that CBK abandons all its other claims against Mr Pattni and Uhuru Highway Development Ltd.
In addition, the order did not include a clause which says that the consent amounted to a settlement agreement between Mr Pattni and the anti-graft agency on the basis of Anti-Corruption Economic and Crimes Act.
The consent was signed by the law firm of Wetang'ula, Adan and Makokha on behalf of Mr Pattni and Ms Fatuma Sichale on behalf of the commission.
Libyan firm
This arose out of a case filed by the commission on behalf of CBK in October 2003 seeking to recover the hotel.
It has been reported that the hotel had been sold to a Libyan company.
In a statement, the commission said CBK's mandate did not extend to the running of any commercial business.
Prof Ndung'u refuted claims that the Grand Regency had been sold at Sh1.6 billion.
He recalled that a 1997 valuation had put its worth at Sh2.1 billion.
He accused unnamed forces that have allegedly benefited from legal battles surrounding the hotel for misrepresenting the transfer.
He said the CBK will move quickly to sell the hotel under the steerage of a reputable consultancy.
The bank said it had not received a penny from the hotel since 1999 when its appointed receiver manager, Mr Joseph Kittony, was substituted by the High Court.
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