Nairobi — The Government has given the clearest hint of what it wants to do with Nairobi's five-star Grand Regency Hotel that has been in the news over claims that it had been sold secretly.

Finance minister, Mr Amos Kimunya, said a reserve price of Sh2.5 billion has been set and it could be sold in a month's time.

In an apparent response to the many claims over recovery of the hotel at the heart of the Goldenberg scandal by the Kenya Anti-Corruption Commission (Kacc), Kimunya said the Government hoped to get the highest price possible from the hotel.

Kimunya also spoke about Attorney-General, Mr Amos Wako's remarks that he was not involved in the deal between the Central Bank, Kacc and the hotel owner, Mr Kamlesh Pattni. He explained that the bank and Finance ministry's concern was to get security for the Sh2.5 billion debt Pattni owed CBK by taking charge of the hotel and disposing it.

"We are not in the business of running hotels, appointing receivers or going to court," he said.

The minister said the AG could pursue criminal or civil cases against Pattni separately.

"CBK and the Ministry of Finance are not courts. We are not bothered about the criminal or civil cases as they can be handled by the courts," said Kimunya.

Last week, during the handing over of the hotel from Pattni to CBK, Kacc Director, Justice Aaron Ringera, said the move was in line with the commission's new mandate to recover public property acquired through dubious deals.

"To date, we have recovered lots of public properties, but what we have achieved today is the greatest asset that had been improperly obtained," Ringera told a news conference at the Grand Regency.

Buyers ready

Kimunya's announcement comes in the wake of speculation that the hotel had been sold secretly to undisclosed international investors.

Of interest is the minister's admission that potential buyers had already lined up to buy the Grand Regency, including a Libyan company, although the property has not been advertised.

Kimunya said the Government intended to dispose of the hotel immediately and would not keep it in the hands of the receiver manager for long.

"We don't want the disposal of the hotel to take more than a month.

Several people have expressed interest in the hotel and paper work has been done. Sale through auction will be the last resort," he said.

He dismissed as "too high" a Sh7.5 billion valuation of the hotel by some experts.

"If the Grand Regency is worth that much, we could buy several of them with such amount. That figure is exaggerated," he said.

Speaking at Sarova Whitesands Resort on Thursday, the minister said the Government was determined to reap "maximum benefits" from the transaction.

The minister, who was accompanied by CBK Governor, Prof Njuguna Ndung'u, opened the 10th International Monetary Fund East Africa Technical Assistance meeting at the hotel.

IMF experts and representatives of central banks from seven countries, including Kenya, Tanzania and Uganda, are reviewing economic reforms and management policies.

At the same time, Kimunya defended the controversial Grand Regency deal between Pattni and CBK. He said Pattni only handed over the management of the hotel to CBK, which appointed Ernest and Young as receiver managers and not the actual surrender of the hotel.

The minister said the deal involved taking over the hotel management from Pattni's and Kacc's receivers to CBK over recovery of Sh2.5 billion debt.

"We are happy that something that started 15 years ago has been brought to an end," said Kimunya.

The take-over of the posh hotel brought to an end the long but unresolved dispute between Pattni and CBK over ownership of the multi-billion shilling edifice.

Grand Regency, Nairobi's top hotel, was built in the early 1990s and has been the subject of a lengthy legal duel between Pattni and Government.

Its construction has been linked to the Goldenberg scandal, the country's mega scam that is estimated at tens of billions of shillings.

The 220-bed hotel was under Central Bank receiver managers for more than a decade.

Until its hand-over, the sale of the Grand Regency Hotel has been linked to international investors.

Former Trade and Industry minister, Dr Mukhisa Kituyi, last year said Libyan investors wanted to buy it.

Kituyi said the investors had begun talks with the Government to buy the facility.

The Libyans had made their intentions known during President Kibaki's visit to Tripoli last year.