24 April 2008
Nairobi — The controversy surrounding the acquisition of the Grand Regency Hotel by the Central Bank of Kenya Wednesday moved to Parliament when an MP sought clarification on whether it had been sold.
Mr Gitobu Imanyara (Imenti Central, CCU) said Kenyans must be made aware of the deals said to have led to the hotel's change of ownership from Goldenberg architect Kamlesh Pattni to CBK.
The MP said Finance minister Amos Kimunya owed the public an explanation.
"The minister should tell us whether Uhuru Highway Development Limited (UHDL) and the Central Bank of Kenya have sold Grand Regency Hotel to a Libyan company called Libya Arab Investments Limited," he said. Mr Pattni is the major shareholder of UHDL.
The MP also wants the Government to say whether it has withdrawn all cases involving Mr Pattni.
"Has the Government agreed to withdraw all cases concerning one Kamlesh Pattni?" he asked.
Deputy Prime Minister Uhuru Kenyatta, who stood in for Mr Kimunya, promised a statement on Tuesday.
Mr Imanyara's move has raised more questions on the hotel saga.
On Tuesday, attorney-general Amos Wako disclosed that he was not consulted over the reported sale of the hotel by the CBK to a Libyan company. He was categorical that neither the CBK nor the Kenya Anti-Corruption Commission (KACC) sought his advice.
"I am waiting. And when the explanation comes, I will bring it to the public domain," Mr Wako said.
However, KACC, headed by Mr Justice Aaron Ringera, and the CBK are yet to explain why they failed to inform the AG about the sale.
Mr Justice Ringera said the acquisition of the hotel by CBK was above board. He said that Mr Pattni surrendered the hotel to CBK after the anti-graft agency registered a consent in the High Court on April 9 to seize it from UHDL.
"The recovery process was completely above board," he said.
"It is, therefore, possible that CBK may exercise its discretion to dispose of the property by way of sale (and) the commission expects such a sale will be in strict compliance with the law," he said.
The CBK denied at the weekend that the hotel had been sold.
Mr Wako was also non-committal on whether his office would pardon Mr Pattni following the hotel's surrender.
He said that either KACC or CBK should have sought his opinion on whether the intended handover would require dropping charges against Mr Pattni.
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