Dave Opiyo
4 July 2008
Nairobi — A Cabinet sub-committee has approved the investigation report on the controversial sale of the Grand Regency Hotel.
The decision was reached Thursday after a two-and-a-half hour meeting of the Finance, Administration and Planning Cabinet sub-committee chaired by Prime Minister Raila Odinga at the Treasury building.
The report, which recommended that Finance minister Amos Kimunya steps aside to facilitate proper investigations into the saga was to be discussed at a Cabinet meeting Thursday, which, however, never took place.
Mr Odinga said the meeting, which was to be chaired by President Kibaki, had been postponed due to unavoidable circumstances, but he remained optimistic that it would be convened soon.
The damning report also proposes that the director general of the National Intelligence Services, Maj-Gen Michael Gichangi, Central Bank governor Njuguna Ndung'u and the secretary to the board of directors at the CBK step aside.
Handed over
It was prepared by a sub-committee headed by Attorney General Amos Wako and handed over to the Prime Minister on Wednesday evening.
Other members of the five-man committee were Anti Corruption Commission boss Justice Aaron Ringera, Cabinet ministers Mutula Kilonzo and James Orengo, and Mr Caroli Omondi of the Prime Minister's office.
The report also recommends that the transfer of the title deed from the CBK to the Libya Arab African Investment Company be declared null and void, describing the sale of the hotel as "false, fraudulent and designed to deceive".
"The sale and subsequent transfer of the hotel by private treaty is in contravention of both the Privatisation Act, the Public Procurement and Disposal Act and the Government Lands Act," it read in part.
At a news conference Thursday, Mr Odinga said he was indeed briefed on the sale of the hotel by Prof Ndung'u as disclosed in Parliament on Wednesday.
"It is true I was informed of the saga. But this came at the time when there were conflicting statements being issued by government officials over the alleged sale of the luxurious hotel," Mr Odinga said.
He said it was then he sought clarification from Mr Justice Ringera.
Mr Kimunya told Parliament on Wednesday that the Prime Minister was informed by the CBK governor - Prof Ndung'u - following the sale of the hotel.
"The governor orally and in writing informed the Prime minister on the issue Claims of secrecy should therefore not arise," Mr Kimunya said.
Thursday's meeting at the Treasury was attended by Deputy Prime Minister Musalia Mudavadi and ministers Martha Karua, Moses Wetang'ula, Dalmas Otieno, Amason Kingi, Mutula Kilonzo, Mohammed Elmi and James Orengo.
Mr Wako and Mr Justice Ringera were also present.
Mr Odinga said the Cabinet sub-committee had launched an investigation into past corruption cases that had dogged the Government, including the Goldenberg saga.
Total war
And he directed the AG and the KACC boss to furnish the committee with all the relevant information regarding the cases.
"We want to know the status of these cases; whether they are in court or not and why they have not yet been concluded," Mr Odinga said.
He also declared total war on corruption in the civil service to improve service delivery to Kenyans. A sub-committee on anti-corruption will be meeting regularly for this purpose, he said.
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