Njeri Rugene And David Mugonyi
30 June 2008
Nairobi — Lands minister James Orengo Sunday said he was considering revoking the controversial sale of the Grand Regency Hotel.
The minister said he would sift through all the documents related to the transfer of the prestigious hotel to its new Libyan owners with a view of taking an "appropriate" decision.
"For public interest to be protected, nothing short of revocation or cancellation would suffice unless those involved want to pay the full amount," he told the Nation.
Prime Minister Raila Odinga said he had called a Cabinet committee meeting for Tuesday to discuss the Grand Regency saga.
"It is only after that meeting that I can say publicly how far the investigations have reached," he said in Kiambaa, Kiambu District, Sunday.
Addressing a gathering during a home coming party for Kiambaa MP Stanley Githunguri, Mr Odinga said all leaders were answerable to Kenyans and none was indispensable.
He promised full investigations into the saga.
Addressing the same function, Cabinet ministers Anyang' Nyong'o, and Dalmas Otieno called for full investigations, saying the law needed to be followed to the letter.
Kenyans have expressed outrage at the revelation that the five-star city hotel was recently sold secretly.
Cabinet minister Mutula Kilonzo said he was the lawyer in the Sh4 billion sale of the hotel to Goldenberg scandal chief architect Kamlesh Pattni in 1994.
But Mr Pattni last evening denied he bought the Grand Regency in 1994 at Sh4 billion. He said the hotel, whose contruction was incomplete at the time, plus four others cost less than Sh1 billion.
Mr Pattni said in an interview with NTV, that being granted amnesty for both criminal and civil cases was part of the deal to surrender the hotel to the Central Bank of Kenya and that his lawyer was still following the issue.
But Sunday Mr Kimunya defended himself saying he did the right thing in disposing of the hotel.
"Even when you do a good thing people will always castigate you," he said at a function in his Kipiripiri constituency.
His Cabinet colleague Beth Mugo, speaking in Mwingi, supported the sale saying there was nothing fishy about the sale of the hotel.
Speaking during Vice President Kalonzo Musyoka's homecoming party, the Public Health and Sanitation minister said the transaction was regular.
On Sunday, Mr Orengo said he was also considering placing a caveat and/or restriction on any transfer of the hotel and the land it stands on so that its buyers don't transfer it.
"I have not seen the documents but will be calling for them. I will study them carefully, and get proper advice because anything based on fraud is null and void and should be declared such," he added.
The Grand Regency saga has split the Cabinet, with ministers Martha Karua, Mutula Kilonzo, William Ruto, Mohamed Kuti, Charity Ngilu and Sally Kosgei calling for thorough investigations into the transaction.
In Mombasa, seven MPs agitating for formation of an opposition said they would lead Kenyans in mass action from this week, to force Mr Kimunya's resignation and others involved in the saga.
Led by Mr Gitobu Imanyara of Imenti Central, the MPs also asked the Libyan government to surrender the title deed for the hotel until its sale, which they said was shrouded in mystery, was streamlined.
Mr Imanyara also announced he would sponsor a motion in Parliament to censure Mr Kimunya.
As Mr Orengo spoke, the Nation learnt of behind-the-scenes manoeuvres and intimidation of senior ministry of Lands officials to sign transfer documents.
An influential Cabinet minister, a senior Permanent Secretary, a Central Bank of Kenya official and a senior security adviser coerced ministry of Lands officials to transfer the hotel without involving the minister.
Sources familiar with the transactions said two senior lands officials received several telephone calls from the four powerful government officials directing them to ensure a speedy transfer of the documents to the new owners.
Insiders said in their conversation, the four invoked the name of a powerful individual in Government. Eventually on Wednesday, one of them walked into the Lands office and camped there until the civil servants signed the transfer.
"The four were not hiding anything and threatened the lands officials with demotions and transfers," our sources said.
On Sunday Mr Orengo said: "There are certain powers in law which are vested in the Registrar and Commissioner of Lands and can be exercised in one way or another," the minister said in the interview.
Saying he was ready to put his job on the line over the controversial sale, Mr Orengo talked of powerful individuals behind the deal, adding he would expose them once he got the full details.
He described the transaction surrounding the sale of Grand Regency as "fraudulent from the beginning".
"I am prepared for anything even if it takes my sacking or resignation. Extraordinary measures must be taken to deal with problems at the Lands office," he said.
The minister also doubted that the hotel was actually sold for the Sh2.9 billion, saying its value was higher and taxpayers were bound to lose at least Sh7 billion.
The ministry, he announced, would send valuers to determine the hotel's real value so that the Government could be paid adequately.
According to Mr Orengo, the Grand Regency deal involved a more powerful cartel than Kenyans knew.
"I believe the Finance minister could not have acted alone. More people were involved in the negotiations, drew the agreement determining how much, how and where to be paid."
The Lands minister also said he believed the deal with the Libyans must have been sealed earlier and the buyers have now moved in to take their property.
He said he would seek audience with the President to discuss the irregular' transfer.
Mr Orengo said he learnt of the sale through a junior employee after all the transactions and transfers were complete. He also said the plot next to the hotel had been sold secretly for Sh1 billion and was being guarded by the police.
Mr Kimunya has been on the spot since the story broke out. Initially, he denied that there were plans to sell the hotel, saying it would only be done through competitive bidding.
However, on Friday, he backtracked on his earlier denials when Mr Orengo revealed that the hotel had been sold.
Mr Kimunya described the deal as having been too sweet to be resisted. He commended Mr Orengo for "blowing the whistle" but the Lands minister Sunday dismissed the praise as "a mockery'.'
On Sunday, Kenyans were grappling with questions on why the property was undervalued and who the beneficiaries of the transactions were.
Additional reporting by Caroline Wafula, Mazera Ndurya and Patrick Muthuri
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