5 July 2008
Nairobi — Kenya's chief executive was on Friday shoved to the centre of the irregular sale of Grand Regency Hotel. Lands Minister James Orengo and a government-owned human rights watchdog asked President Kibaki to act on the matter arguing that the buck stops with him.
Mr Orengo asked the President to sack Finance Minister Amos Kimunya, who is at the centre of the scandal.
Speaking at a news conference, Mr Orengo said President Kibaki should act if Mr Kimunya does not resign.
Heads in sand
"The Executive and we, as members of the Cabinet, cannot bury our heads in the sand when there is constitutional crisis. The buck stops with the President," he said.
His call came as police dispersed a demonstration in support of Mr Kimunya in Nairobi.
Deputy Prime Minister Uhuru Kenyatta also defended the Finance Minister saying that he was being subjected to a "lynching mob."
Police used tear gas to break up pro-Kimunya demonstrators led by politician Stanley Livondo.
They accused the MPs baying for the minister's blood of not being in a position to "cast a stone" on the issue of corruption.
But speaking in Mombasa, Anglican Bishop Julius Kalu said the only way thorough investigations could be conducted into the affair was for Mr Kimunya to leave office.
"There is no way conclusive investigations can be carried out when he is in office and that is why we are calling upon him to step aside," the bishop said.
"If he knows that he is clean, then he should not fear stepping aside ... others have done that before and have returned to office once they were cleared," he said.
The bishop was speaking at the Mombasa Memorial Cathedral soon after the funeral service of retired bishop Crispus Nzano.
Mr Kimunya has been steeped in controversy for the past two weeks after Mr Orengo blew the whistle on the sale of the five-star hotel to Libyan Arab African Investment Company Kenya Ltd for Sh2.9 billion.
The pressure for Mr Kimunya's resignation culminated in Wednesday's passing of a no-confidence vote in Parliament.
In another development on Friday, a Malaysian firm, Westmont Holdings SND.BHD, which had offered to buy the hotel 10 years ago for Sh2.2 billion went to court to reinstate a case that was dismissed to pave way for the sale of the hotel to the Libyans.
Stopped the sale
On Friday, Mr Kimunya reported to his office in Treasury Building and insisted that Prime Minister Raila Odinga should have stopped the sale the moment he learnt of it.
"The Prime Minister should say what he did with the information he was given unless that office is toothless," he said.
He told the Saturday Nation on phone that there was no evidence against him and the Cabinet sub-committee formed by Mr Odinga did not summon him before making recommendations that he should resign.
"The recommendations are just in the Press. They have not reached the Cabinet and I wonder who is fooling who," he said.
He accused past Finance ministers who were calling for his resignation of having done nothing during their tenure at the Treasury to resolve the Grand Regency saga that has haunted the government for the past 15 years.
At his news conference, Mr Orengo said the no-confidence vote in Parliament cannot be wished away.
"The ministry is nearly equal to the Presidency, it cannot remain vacant. Now that the minister cannot transact business on behalf of the Government in Parliament and even with donors, I appeal to him to step aside or the executive should crack the whip," said Mr Orengo.
He said the PM acted by seeking the intervention of KACC and the Cabinet committee on Finance and Economic Administration, which indicted Mr Kimunya.
And the vice-chair of the Kenya National Commission on Human Rights, Ms Florence Jaoko-Simbiri, said President Kibaki had promised that none of his ministers would be spared if allegations of graft were levelled against them.
"We remind the President that he said that this would happen whenever allegations of corruption arose," she said.
"Mr Kimunya's conduct in the transfer of the Grand Regency Hotel is in clear breach of the Public Officers Ethics Act and the Anti-Corruption and Economic Crimes Act," she added.
Others who were recommended to step aside include the Governor of Central Bank, Prof Njuguna Ndung'u, the Director of National Security Intelligence Services, Major Gen Michael Gichangi and the secretary of the CBK board, Mr Kennedy Kaunda Abuga.
Mr Orengo said there will be no collective responsibility on matters of corruption. The minister produced letters showing he acted right from the day he was informed the hotel was sold to Libyans up to the time he ordered for the caveat to be imposed on the title - blocking any further transfers or use of the title to secure a loan.
The minister promised to ensure that the transfer of the title is cancelled.
Speaking separately on Friday, Mr Kenyatta said no one has tabled evidence on the wrongdoings Mr Kimunya committed over the sale of the hotel.
The Trade minister said "due process" should be followed to gather evidence against Mr Kimunya to establish whether he was guilty or not before he is accused of any impropriety.
"If money has been stolen, where is the evidence? Mr Kenyatta asked at a news conference at his Nairobi office.
"It is wrong to accuse and lynch someone without evidence. What if facts come out and he is found innocent?"
Reports by Kenneth Ogosia, Kaburu Mugambi, Mathias Ringa and Sam Kiplagat
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