Jeff Otieno
2 July 2008
column
Nairobi — As controversy rages over a deal gone sour, JEFF OTIENO sheds light on some of the key players
R.N. Mburu
- Chief Registrar of Titles
The Registrar of Titles holds the key to any issuance of transfer of titles, but with the authority of the Commissioner of Lands.
She verifies that the full amount of stamp duty, based on valuation conducted by the Ministry of Lands, has been paid.
Ms Mburu also ensures that land rent for the property is fully paid to the Ministry of Lands.
She also verifies whether or not land rates have been paid to the respective civic authorities.
She also makes sure that the value of the asset being transacted is recorded on the transfer document. In this case, the recorded transfer of the Grand Regency Hotel is Sh1.85 billion.
However, a registrar at the ministry had initially recorded a figure of Sh2.5 billion, which was later changed to Sh1.85 billion. The reason for this is not known.
Most of the paperwork on behalf of the Lands ministry, according to the document made available by minister James Orengo, was done by a registrar by the name R.N. Mulee.
Amos Kimunya, Finance minister
Mr Kimunya holds one of the most powerful and influential dockets in Kenya. He can easily be referred to as the country's chief accountant as almost all transactions involving public assets must pass through his office. His office organises the Government's budget and approves funding to all ministries. Mr Kimunya is the one who has so far received the lion's share of criticisms levelled against individuals involved in the transaction. He partly got himself in the trap after making contradictory statements on the sale of the five-star hotel.
Mr Kimunya initially denied that Grand Regency had been sold to Libyans, after initial reports emerged that the asset had been disposed of. He only conceded to that fact, after Mr Orengo dropped the bombshell last week. Mr Kimunya said that the hotel had been sold for Sh2.9 billion. Mr Kimunya maintained that the sale was done in the interest of Kenyans, despite his Cabinet colleagues raising questions on the transaction. The Finance minister maintains it was the best deal offered and all procurement procedureswere followed before the sale was concluded.
Prof Njuguna Ndung'u, Central Bank of Kenya governor
The Central Bank was the legal owner of the Hotel after Goldenberg architect Kamlesh Pattni handed it over to the financial institution, ending years of court battles.
Prof Ndung'u was present at the press conference held at the Grand Regency Hotel in April in which Mr Pattni, announced the transfer.
Central Bank then removed a charge which had been placed on the property, to pave the way for its sale.
CBK created the Sh2.5 billion legal charge in 1993 in an attempt to secure funds siphoned through Exchange Bank during the Goldenberg saga. Lands minister James Orengo said senior government government officials coerced lands officials to release the hotel documents. Prof Ndung'u and Mr Kimunya were involved in the sale of the hotel on behalf of the Government to Libyan Arab African Investments Company Kenya Limited. Both men have since appeared before a parliamentary committee investigating the hotel saga.
Aaron Ringera, director of Kenya Anti-Corruption Commission
Mr Justice (Rtd) Ringera was also present at the press conference held at Grand Regency, where the major announcement was made by Mr Pattni.
KACC has been involved in the ownership battle of the Grand Regency with Mr Pattni, in its bid to recover public money misappropriated through the Goldenberg scandal.
In 2004, the KACC and Uhuru Highway Development Limited, by a consent court order, appointed two joint receiver managers for the hotel. The CBK, however, protested that it was not consulted in the appointment. CBK then instructed two valuation firms who have since valued the hotel, (last valued in 1997 at Sh2.1 billion).
KACC, under the leadership of Mr Justice Ringera, was one of the parties involved in four-month negotiations which led to an agreement between Mr Pattni and CBK. In fact, KACC and the lawyers for UHDL recorded a consent order in court for the removal of the joint receiver managers and handing over the management of the hotel to CBK, who were the initial chargee as of 1993.
Mr Zablon Mabea, commissioner of Lands
The commissioner of Lands literary owns the title deed for the entire Kenya.
By the stroke of a pen, the commissioner of Lands issues orders for parcelling out of various pieces of land. He also orders issuances of title deeds and their registration.
With the same pen he or she can revoke a title deed. Holders of the office have been some of the most influential men (so far there has been no woman) in independent Kenya.
They are the most sought after by both powerful and ordinary citizens.
They will give land and also take it away "in the public interest".
The office holder has powers to acquire land through compulsory acquisition and revocation of title deeds.
In the case of the transfer of Grand Regency, the office of the Lands commissioner, gave consent to the transfer of Grand Regency to its new owners.
In a letter No 111621, the office also certified that land rent on which the Grand Regency stands (Plot No 209/9514) had been cleared.
Mr Kamlesh Pattni
Mr Pattni is a household name, not for the good reasons though. He was one of those implicated by the Bosire Commission, appointed by the Narc Government to investigate the Goldenberg scandal in which billions of shillings were lost. Goldenberg still remains one of the biggest financial scandals in post-independence Kenya. Mr Pattni is the owner of the Uhuru Highway Development Limited, the former registered owner of the Grand Regency. His handing over of the hotel to the Central Bank of Kenya attracted scrutiny after the Press made it public.
At the news conference, Mr Pattni said he had handed it over in good faith. It was, however, reported that Mr Pattni agreed to let go of the asset in exchange of amnesty from prosecution by Kenya Anti-Corruption Commission. The ownership of the hotel, has been the subject of costly litigation for the past 15 years involving, among others, KACC, Mr Pattni, Uhuru Highway Development Limited and Central Bank. It had since 1999 been under receiver manager, the first being Mr Joseph Kittony, who was later removed by the High Court and replaced with two court appointed receivers.
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