Storm over sale of Grand Regency
By Sunday Standard Team
Finance Minister Amos Kimunya came under siege and isolation by Cabinet colleagues over the sale of the Grand Regency Hotel to Libyan investors.
They accused him and other Government officials involved in the deal of impunity.
Justice and Constitutional Affairs Minister Martha Karua said Kimunya must disclose who bought the hotel and on whose authority.
In a terse statement released in Naivasha Simba Lodge where she attended a Narc-Kenya retreat, Karua said transparency and accountability must be sustained.
“We should uphold integrity when dealing with public affairs. We therefore encourage a full disclosure to the public of the disposal of the hotel,” she said.
Tourism Minister Najib Balala castigated the move, saying collective responsibility did not require one to sit quiet when all is not well.
“I will not sit and get lumped with crooks. I will raise the alarm. We have an obligation to protect the Government and the public by ensuring the Government does not enter crooked deals,” he said.
Housing Minister Soita Shitanda warned leaders and Finance Departmental Committee of Parliament to stop playing politics with the issue.
“This is a serious issue, which people should not play politics. The Okemo committee should ask professional groups to conduct a professional valuation of Grand Regency to establish its true value,” stated Shitanda.
Kenya National Commission of Human Rights chairman, Maina Kiai said the move was a breach of Public Procurement Act. “This is impunity. Any moment when anything lacks transparency, it produces a bad smell. We do not know the true value of Grand Regency. The fact the deal is announced by a shocked Lands Minister shows lack of transparency,” stated Kiai. He called for the deal to be investigated and those responsible punished.
Ford-Kenya chairman Musikari Kombo said he was shocked by the revelations. “It is shocking, especially after the minister told the Finance Committee that everything will be done above board, things were being done in the dark,” said Kombo.
“It smells grand corruption committed by the Grand Coalition Government, using the Grand Regency Hotel,” stated Kombo.
Law Society of Kenya Chairman Okong’o O’mogeni and council member Evans Monari absolved the Government of wrongdoing and delved into the technicalities of the Title deeds Act Cap 281 and the Public Procurement Act 2005.
However, Monari noted that although they are the “charge,” the law allows for independent valuation of the property to protect the public.
And Buret MP Franklin Bett wondered why Finance Minister ignored competitive bidding. “What they are engaged in is single-sourcing. Why the secrecy? It is in secrecy that fraud occurs. I am shocked that the Finance Minister is defending an illegality,” stated Bett.
Vihiga MP Yusuf Chanzu said Kimunya should tell Kenyans whether the decision to dispose of Grand Regency was a Cabinet decision. The minister, he said, should explain why he opted for single sourcing instead of competitive bidding. “If the value of the hotel was Sh7.3 billion, who pocketed the difference after the sale?” he asks.
Nominated MP Mohammed Affey said the minister and CBK Governor had sold a public asset for a song. “I am really saddened by the turn of events. Kimunya owes Kenyans an explanation,” said Affey.
Nominated MP Amina Abdalla said Kimunya’s actions were deceitful.
Agriculture Minister William Ruto said the sale should either be cancelled or the hotel sold at the current market rates. Ruto said the sale of the hotel was from the beginning shrouded in mystery and Kimunya just confirmed the worst.
Water and Irrigation Minister Charity Ngilu termed the suspicious sale as open theft of public resources.
“This is grand theft of public resources by public servants entrusted by Kenyans to manage public resources”, said she. She said there is need for the country to know what exactly transpired, who was involved and what exactly was exchanged. “Since the Sh2 billion was a throw away price, the individuals who received the difference must be exposed,” she said.
In a related development, the International Commission of Jurists acting Executive director Priscilla Nyokabi expressed concern about the secrecy and lack of transparency surrounding the sale, saying the move undermined the fight against corruption and the recovery of State property.
She also questioned how recovery of stolen assets could be done in total secrecy among a few individuals.
Meanwhile, police officers have now been mobilised and stationed at a piece of land next to the hotel to guard it.
The officers said they are under instructions not to allow any motorist into the plot, which belongs to the National Social Security Fund. The plot served was a private parking before it was closed. Sources at the NSSF say the land might have been sold and demanded scrutiny of the deal.
“The piece of land can fetch up to Sh4 billion given its location, but I do not think that is what NSSF got. It needs to be questioned,” said the source who requested not to be named.
In Mombasa, seven MPs calling themselves the grand opposition in Parliament called for Kimunya’s resignation.
“We want to alert the people of Kenya that grand corruption has resurrected in a grand wave and is riding high,’’ Budalang’i MP Ababu Namwamba said.
— Reports by Stephen Makabila, Marion Wambugu, Morton Saulo, Joel Okwayo, Alex Kiprotich, Kepher Otieno, Mangoa Mosota, Cyrus Ombati.
Courtesy of:http://www.eastandard.net/news/?id=1143989311&cid=159
2 users commented in " Kimunya must disclose who bought the Grand Regency hotel and whose authority, demands Hon Martha Karua "
Follow-up comment rss or Leave a TrackbackNo amount of explanation,Kimunya,Ndungu,and Ringera are going to convince kenyans that there was no corruption in their underdealing. These are people whose morality is being questioned.
For how long are kenyans going to be taken for aride on financial issues which affect them directly.Moi created Goldenberg which brought poverty to mojority of kenyans. The inflation
and cost of living which kenyans experienced because of goldenberg matter is still have effect on the general public.
Again,Kibaki ,whom kenyans thought ,was a rescue to their many problems which Moi created
is repeating the same economic crimes.How can Kibaki sell Grand Regency secretly at low price? Why is he punishing the poor ? Kimunya seems to be a high class liar who is not shamed
of cheating the entire nation.
Professionally ,as an Accountant,Kimunya’s name should be deleted as a member of the association.He should be arrested immediately.
He is somebody without moral and ethics to be a leader. He is born thief. While practising
as Accountant,Kimunya might have messed professionally.He should resign from politics.
His closeness with the president as a former secretary of Muthaiga Golf club which not make
him trusted.
Ringera who was elected to investigate corruption in kenya is now being investigated.
Why did parliament elected Ringera whose moral standing was not known? There is something wrong with our mps.They are not concern with moral issues,and that why they always elected
people without checking their background.
Dominic,
You have a very excellent point about Kimunya and Accounting.
In accounting there is Ethics. I don’t know how the Parliamentary Accounts committee treats this issue.
This is outrageous and so sad to the Accounting Association of Kenya if any.
They must also come out and comment on this matter arising every time in the government on public funds every election year.
Do we have (Professionals ) people who monitor this people to account for such economical crimes?
Does Kimunya and the entire wing of PNU government understand who has been harmed still being harmed hard economically?
This Finance Ministers from the last three regimes (whom most of them come from the same ethnic tribe) and the current one are not ethical.
They have lied in record when not needed to disclose the correct partners of the scams ranging from Goldenberg, Anglo leasing,Safaricom and now the Grand regency scandal.
Am sure the Parliamentary Accounts Committee has no internal control system.
Since I lived in Kenya, I have never seen any finance minister/s, publicly publishing management report on internal control over financial reporting activities of the government.
Also, how comes another minister estranges into the matter of another ministry to cover their backs?
I suggest Hon/Dr.OBURU ODINGA as an assistant minister-Finance to come out and tell Kenyans if he knows or understand anything about unethical financial issue in his ministry.
He should also help the Accounts Committee to publish a bill that will review critical Accounting Policies and significant changes with judgments, underlying the loopholes of scandals and mismanagement of public funds and to approve if possible, bring ethical sanity through harsh economical punishments on the people behind it whether the president or junior accountants.
Khaguli Maurice Nandwa
Toronto-Canada
Western Kenya, Movement for Change
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