Muchemi Wachira
19 August 2008
Nairobi — A lawyer who appeared for Goldenberg scandal mastermind Kamlesh Pattni during meetings to explore recovery of his Grand Regency Hotel by the Government also represented a Libyan firm that eventually bought the hotel, it emerged on Tuesday.
The lawyer, Mr Ahmed Adan, held brief for the Libyan Arab African Investment Company during the meetings organised between January and April this year to discuss how the Central Bank of Kenya could recover the hotel from Mr Pattni and his Uhuru Highway Development Ltd (UHDL), the Cockar Commission heard.
The meetings involved a representative from the Kenya Anti-Corruption Commission (KACC) and the CBK. The third person was Mr Adan, who appeared for Mr Pattni and UHDL.Hotel's recovery.
Although, KACC deputy director Fatuma Sichale -- the key player at the meetings -- knew that Mr Adan also acted for a Libyan firm besides his clients, she said it was not significant at the time.
This is because the commission was concerned about recovery of the hotel, not the sale.
"I got to know he (Mr Adan) was acting for a Libyan company out of a casual talk," Ms Sichale, who is in charge of legal affairs at KACC, said during cross examination by CBK lawyer Waweru Gatonye.
It is during the cross examination that revelations were made about Mr Adan acting for the Libyan firm during discussion meant to recover the hotel.
Mr Gatonye had asked Ms Sichale whether during their meetings Mr Adan told her he was acting for the "Libyan company that later bought the hotel."
Ms Sichale is the commission's tenth witness. The commission was appointed by President Kibaki to investigate the controversial sale of the Grand Regency Hotel.
Ms Sichale told the Commission chairman, Mr Justice Abdul Majid Cockar that the Governor of CBK, Prof Njuguna Ndung'u in January called a meeting in his office, where he sought the assistance and cooperation of KACC in recovering Grand Regency Hotel from Mr Pattni and his company. The two owed CBK Sh2.5 billion.
Ms Sichale said also at the meeting were Mr Kennedy Abuga, the CBK's director of legal services, and Mr Adan.
The three continued to hold meetings to discuss how Grand Regency Hotel could be transferred to CBK.
The meetings were between January and April, when the commission pulled out after disagreeing with CBK on what method was to be used in disposing of the hotel.
She further said that it appeared that CBK had already identified a buyer because when she said that the hotel could not be disposed of using the public and procurement law, CBK was not happy with her proposal to use the Privatisation Act.
It is out of the meetings that Mr Pattni and his UHDL were brought on board, with the former eventually agreeing to hand over Grand Regency Hotel to CBK.
This was done through a consent that was later registered in court.
She said KACC was not party to the sale since it was not done legally.
But Mr Gatonye pointed out that CBK was not party to the consent Ms Sichale had drafted with the assistance of another KACC lawyer, Mr Jairus Ngaah.
The consent, the commission heard, was signed by Mr Adan on behalf of Mr Pattni and UHDL. Mr Abuga who represented the CBK during the meetings did not sign the document.
Ms Sichale said that even though CBK was not a signatory to the consent, Mr Abuga was present in court to represent the CBK.
Cross-examination of Ms Sichale by Mr Gatonye continues on Wednesday.
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