8 July 2008
Nairobi — The spotlight is on President Kibaki to resolve the crisis sparked by the controversial sale of the Grand Regency Hotel, as a parliamentary committee threatened Monday to stall debate on the Budget until Finance minister Amos Kimunya either resigned or was sacked.
The parliamentary committee on Fiscal Analysis and Appropriation chaired by Mr Martin Otieno Ogindo said it would frustrate debate on the Budget at the committee of supplies stage.
Debate at this stage is crucial in validating taxation measures proposed by the Finance Minister.
Without that, government revenue collection through taxation can be severely compromised.
The row raged as the Libyan firm that bought the Grand Regency Hotel said it owned 23 hotels in other African countries, including South Africa, Rwanda, Tanzania and Uganda.
"We would like to make it clear to the people of Kenya, all MPs and the government of Kenya that all our investments are people and environment friendly, free of any ulterior motives and are done in support for inter-African cooperation and mutual development," said the Libya Africa Investment Portfolio chairman, Mr Alhaj Bashir Saleh.
Break silence
He added: "We would also like to confirm that the purchase of Grand regency Hotel at USD45 (Sh2.9 billion) was done with the utmost professional."
Elsewhere, Agriculture minister William Ruto asked President Kibaki to break his long silence on the issue and step in. He said the matter should not be used, or seen, as a feud between the two major parties in the coalition, PNU and ODM.
Education assistant minister Ayiecho Olweny said the President should act fast and sack Mr Kimunya if he respects Parliament, which passed a vote of no confidence on the minister.
Information and Communications minister Samuel Poghisio said tough decisions have to be made.
Speaking to the Nation from the US, the minister said it is now difficult for Ministry of Finance to transact business in Parliament following a vote of no confidence on Mr Kimunya.
The parliamentary committee renewed the threat to boycott business brought to Parliament by the Finance ministry as Attorney-General Amos Wako responded to accusations that he too was aware of the sale of Grand regency by Central Bank of Kenya. Mr Kimunya, subject of a vote of no confidence by Parliament, on Sunday said he would rather die that resign, accusing Mr Wako, Prime Minister Raila Odinga and Kenya Anti-Corruption Commission boss Aaron Ringera of having knowledge of the sale and then turning round to blame him.
Mr Kimunya said he would only step aside if the three also did.
Responding Monday, Mr Wako posed: "Why should I step aside yet I am the aggrieved party here? The bank's board of governors indicated that I should be involved but this decision was ignored."
He called for investigations into why he, as the government's legal adviser, was by-passed by Mr Kimunya and Central Bank of Kenya governor, Prof Njuguna Ndung'u.
He also stressed that the sale of Grand Regency to a Libyan State corporation was irregular because Central Bank flouted privatisation laws.
Prime Minister Odinga refused to comment on the saga. The PM, who was at Aga Khan Development Network offices in Nairobi during the Imamat Day celebrations did not respond to questions from journalists over the hotel sale.
Following Mr Kimunya's assertion that he would not step aside despite the no-confidence vote, there were increasing calls Monday for the President to take action. But the president faced a dilemma because by sacking Mr Kimunya, his supporters might see him buckling to pressure and sacrificing a loyal ally; but if he failed to act, he could be accused of condoning the Grand Regency deal.
However, even some of the parties in the coalition allied to the president were urging him to take action.
Assistant minister for Medical Services Danson Mungatana, also Narc-Kenya organising secretary, warned of massive street protests which "might ignite chaos and disrupt peace" unless Mr Kimunya resigned.
Regional Development Authorities assistant minister Katoo ole Metito, however, warned that the Grand Regency saga could be a death knell for the Grand Coalition government.
"The Cabinet is divided down the middle. If we do not settle immediately in the spirit of collective responsibility, things will be bad," Mr Metito said.
The Kajiado South MP said an independent parliamentary committee should be formed to investigate whether Mr Kimunya had done any wrong in sale of Grand Regency.
He said a Cabinet sub-committee, which recommended that Mr Kimunya step aside was made up of interested parties because members James Orengo (Minister of Lands), A-G Mr Wako and Prime Minister Mr Odinga are said to have been aware of the sale.
MPs and Cabinet ministers from across the political divide who continued piling pressure on President Kibaki to sack the Finance minister were however, divided on whether the Grand Regency saga would threaten the three-month-old Grand Coalition government.
On Sunday Water minister Charity Ngilu called for the dissolution of the Grand Coalition if Mr Kimunya was not sacked.
But speaking to the Nation from Switzerland Monday, Tourism Minister Najib Balala said the issue would not affect the coalition government.
But he added that the Government should uphold the principle of transparency and accountability in management of public affairs at all times. "Nobody is indispensable. The country is superior than an individual," Mr Balala said.
Wildlife and Forestry Minister Noah Wekesa said the hotel fiasco was not a political issue and that he did not see how it would affect the coalition.
"ODM and PNU coalition ministers were serving under one government. The Prime Minister speaks on behalf of the Government. Ministers do not speak on behalf of PNU or ODM," said Dr Wekesa.
The minister MP said corruption was an issue the Government must address and that individual ministers had been named because of actions within their ministries.
Dr Wekesa said the coalition must succeed because it had brought peace in the country following the post-election violence that left more than 1,000 people dead and 350,000 displaced.
He said Mr Kimunya should step aside to a allow investigations, and if cleared, be reinstated: "It might be found what he says is true. If I were Kimunya I would have stepped aside quickly to allow investigations. He should not be afraid as he has already agreed investigations should be done," said Dr Wekesa.
Cooperatives minister Joe Nyaga also urged Mr Kimunya to step aside. Said the minister: "Once you have been investigated and found clean, you will definitely go back to your old job. Cabinet ministers will come and go but the country will remain. We should therefore put the country's interests first".
He said the coalition government will not fail just because there were divisions among cabinet ministers on some issues.
Nominated MP George Nyamweya said the matter will not divide the Cabinet but had caused discomfort.
"There's tension amongst ministers but the National Accord will still hold," Mr Nyamweya said.
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If this mobster behaviour is what a parliamentary system is all about, I'would rather have a presidential system ten times over! And I'll vote for an Elmolo President come 2012. Just in case many of you dont know, Elmolo is the smallest tribe in Kenya (about a hundred)living on the shores of Lake Turkana and depend largely on fish and crocodile meat.They are the smartest, most handsome/beautiful species on earth-just the way The CREATOR intended Adam and Eve to be!