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Kenya: Now KACC Explains Regency Deal
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The Nation (Nairobi)
11 May 2008
Posted to the web 12 May 2008
Dominic Wabala
Nairobi
The Kenya Anti-Corruption Commission has explained the circumstances in which it repossessed Nairobi's Grand Regency Hotel from businessman Kamlesh Pattni.
The suit arose in 1993 when Mr Pattni and his companies defaulted in the delivery of $210 million (Sh12.8 billion) in contracts he had entered into with the Central Bank of Kenya.
He was supposed to make the deliveries in dollars although he had received Sh13,525,211.000 as the value.
Under a legal charge, CBK had the option of realising its security and sell the hotel in the event that Mr Pattni defaulted in settling the acknowledged debt.
Forced to enter
But KACC said in a statement that it was forced to enter into an out-of-court settlement after a suit it filed in court four years ago against Uhuru Highway Development Ltd and Mr Pattni to transfer LR No. 209/9514 (Grand Regency Hotel) to KACC took too long.
"Looking at the delays in the determination of the cases that preceded the commission's suit, it was imperative for the commission to find some practical and effective means of having its case finalised expeditiously, taking into account the interests of the public," the statement said.
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The Central Bank, KACC, Mr Pattni and Uhuru Highway Development Ltd agreed to settle the suit under Section 56B(2) & (4) of the Anti-Corruption and Economic Crimes Act, it adds.
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