Nairobi — President Kibaki was not involved in transactions to dispose of the Grand Regency Hotel to Libyan investors, Central Bank Governor Njuguna Ndung'u said on Thursday.

The governor, who was giving evidence before the Cockar Commission, said although it was government-to-government transaction, the President was not involved in the deal.

He also confirmed to the commission that former Finance minister Amos Kimunya did not authorise the bank to sell the hotel.

He was answering a question from a lawyer, Mr Stephen Mwenesi, who is appearing for Mr Ahmed Adan, a lawyer who represented Kamlesh Pattni and Libyan Arab African Investment (Laico) in negotiations to dispose of the hotel.

A follow-up

The lawyer had asked Prof Ndung'u whether a visit by the Libyan Ambassador to Kenya, Mr Hisham Ali Shariff, to his office on September 11, 2007 was a follow-up on President Kibaki's visit to the North African country.

The Libyan ambassador, according to Prof Ndung'u, visited him in connection with a Memorandum of Understanding signed by the Kenyan and Libyan governments during President Kibaki's Libyan visit.

On Thursday, Mr Mwenesi wanted to know whether Mr Shariff's visit was a follow-up to President Kibaki's trip.

"This is not correct," Prof Ndung'u said. During cross examination by Mr Kimunya's lawyer, Prof Githu Muigai, he said CBK is an independent body with its board of directors.

The governor, he said, is in complete charge and executes the bank's mandate together with the board.

Prof Muigai: "You do not take directives or orders from any other authority as provided in the law?"

Prof Ndung'u: "Yes, I may only take advice."

The witness said he would brief Mr Kimunya on the sale of the hotel not to get instructions but "to seek concurrence, advice and guidance".Mr Kimunya, he said, never sought to substitute the opinion of CBK on the sale of the hotel.

Prof Ndung'u continues on Friday.