1 July 2008
Nairobi — The controversy surrounding the sale of Grand Regency Hotel took a new turn on Monday when Lands minister James Orengo said it was sold for only Sh1.8 billion and not Sh2.9 billion.
Mr Ahmed Mabrouk, a representative from the Libyan Embassy, which has denied involvement in the Grand Regency saga.
Mr Orengo also said that two of the directors of the Libyan firm that bought the hotel are Kenyans.
The minister gave the name of the company as Libyan Arab African Investment Company (K) Ltd and said the Sh1.8 billion price was contained in the transfer documents, copies of which he gave to journalists.
Libyan investors
A Libyan embassy official, Mr Ahmed Mabrouk, said the mission was not involved in the transaction, adding that the matter was purely between investors from his country and the Central Bank of Kenya.
Mr Orengo, who was addressing a news conference in his office Monday evening, said he would give more details on the sale after Monday's meeting of the Cabinet committee on finance and economy.
Finance minister Amos Kimunya last week said the hotel was sold for Sh2.9 billion.
Professional valuers Monday said it was worth at least Sh4.5 billion.
Earlier, Mr Kimunya and his permanent secretary, Mr Joseph Kinyua, held talks with Prime Minister Raila Odinga ahead of the committee meeting over the controversial sale of the hotel.
Mr Kimunya, who is at the centre of the controversy and the PS went to consult with Mr Odinga shortly after 5pm.
Attorney-General Amos Wako reiterated that he was in the dark over the deal and would get information from the Government before commenting on the matter.
"I am in the process of collecting all the documentation on the sale of Grand Regency and I will make an official statement only after advising the Government," he said.
The Raila-Kimunya talks took place as officials from the Libyan company that bought Grand Regency held a meeting at the five-star hotel.
An identity card number given as that of one of the new directors of the hotel is 6104260, which the Nation traced to the Electoral Commission of Kenya roll as belonging to one Abuga Kaunda.
The ID card shows that Kaunda was born in 1965 and is a registered voter in Lang'ata constituency.
According to the documents released by Mr Orengo, the sale deal was also sealed in the presence of two other people whose passport numbers have been given as 298071 and 001428.
Lawyer Mohamed Aden of Wetang'ula, Aden and Makokha law firm, who were involved in the transaction, defended the deal saying it was done above board.
"I have the documents, which are not going to be held secretively after some time and you will realise that no extra money was received behind the scenes," he told the Nation Monday.
Even as controversy raged on the secret sale, Public Health minister Beth Mugo broke ranks with her Cabinet colleagues to defend Mr Kimunya.
"We should not allow the law of the jungle to prevail in this country by condemning and heaping all manner of accusations against others; we should instead be asking if proper valuation (on the hotel) was done," Mrs Mugo said.
Revocation
Meanwhile, five MPs vowed that they would demonstrate Tuesday to press for the revocation of the sale and the sacking of Mr Kimunya , even after being denied permission by the police to demonstrate.
The deputy officer commanding Central Police Station, Mr Richard Muguia, denied the group permission saying: "It seems like it is the Government protesting against itself, therefore, it is only the President who can grant such authority," he told MPs Cyrus Jirongo (Lugari), Charles Kilonzo (Yatta), Kiema Kilonzo (Mutito), Gideon Koncellah (Kilgoris) and Mithika Linturi of Igembe South.
The MPs also plan to take a Motion of no-confidence against Mr Kimunya to Parliament, in a move reminiscent of the 1989 censure that brought down a former Vice-President, Dr Josephat Karanja, who has since died.
On Monday, the Nation sent questions to Mr Kimunya, and three senior government officials, inquiring about the secret sale of the hotel.
The Nation wanted to know if the officials put pressure on the Commissioner of Lands to effect the transfer of the hotel to the Libyans; why it was not advertised as earlier intended; and why the secrecy surrounding the sale.
The Nation also sought to know if they made several calls to the Ministry of Lands and whether one of them went to camp at the ministry to ensure that the transfer was done.
In particular, the Nation wanted to know if anyone of them invoked the name of the President to make officials at the Lands ministry to oblige.
Government spokesman Alfred Mutua responded on their behalf, only saying:"The matter has been taken up by the Cabinet and a statement on the matter will be issued by the Cabinet once the matter has been addressed."
In another development, the Institute of Certified Public Accountants of Kenya (Icpak) threatened to strip Mr Kimunya of his certificate of practice.
Investigations
The chairman, Mr Steve Lugalia, said if investigations into the sale points at the ministers wrong-doing then, disciplinary action would be taken against him.
Meanwhile, former Trade minister Mukhisa Kituyi Monday said the sale of Grand Regency did not feature in formal talks when President Kibaki visited Libya last year.
However, Dr Kituyi said the deal might have been struck behind his back by some of the officials who were in the President's entourage.
"There was no negotiation of any contract nor disposal of any property... There was also no promise. We only encouraged legitimate interest in line with the Constitution and laws of Kenya," Dr Kituyi said.
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