Grand Regency Tip Of The Iceberg – Kenya’s Finance Minister Should Be Sacked
Jun 28th, 2008 by Mars Group Kenya
The recent confirmation, by James Orengo (Minister of Lands) and Amos Kimunya (Minister of Finance) that the Grand Regency Hotel has been sold has convinced Mars Group Kenya that it is necessary to urgently revisit the issue of amnesty for grand corruption, and in particular the need to delete from our statutes two amnesty provisions (sections 25A and Section 56B of the Kenya Anti Corruption and Economic Crimes Act) which were irregularly brought into force by Presidential Assent on October 10th 2007, as part of the Statute Law (Miscellaneous) Amendments Bill of 2007. These two amnesty clauses are being used to perpetrate acts against the public interest and to compromise investigations into grand corruption, and the recovery of corruptly acquired Kenyan assets worth hundreds of billions of shillings.
Section 25A authorizes the cessation of investigations, and the granting of conditional amnesty to corruption suspects, by the Director of the Kenya Anti Corruption Commission, in consultation with the Attorney General and the Minister for Justice, in certain cases, despite the President having explicitly rejected proposals for amnesty contained in the Statute Law Miscellaneous Amendment Bill of 2007, including the infamous proviso to section 7 which purported to establish a cut-off date for the KACC’s exercise of its powers.
A further section 56B was also introduced and formed the basis of recent transactions related to the Goldenberg scandal and the Grand Regency Hotel, Nairobi. The inclusion of Anglo Leasing debts in the Budget of the Government of Kenya shortly after the return to Kenya of Deepak Kamani and the Kenya Anti Corruption Commission’s opaque conduct and responses to press revelations of Mr. Kamani’s presence in Kenya highlights the need for immediate action to ensure that the public interest is not compromised by the Executive branch.
Kenyans have been aware for some time of the terms of the Kamlesh Pattni settlement of April 9th 2008 in which he “surrendered” the Grand Regency Hotel to the Kenya Anti Corruption Commission, which gave it to the Central Bank of Kenya who held a charge over this Goldenberg property. What they may not have known is that the settlement was grounded in an illegal law namely section 56B of the Anti Corruption and Economic Crimes Act. The trouble is that this provision and another (section 25A) were sneaked into the Act after they had been deleted by Parliament.
If you read the report of the Committee on the Administration of Justice on the amendments to the Anti Corruption and Economic Crimes Act, which were contained in the Statute Law Miscellaneous Amendments Bill, and this statement by the Kenya Anti Corruption Commission it is clear that all the amnesty amendments proposed by the KACC (including the amnesty provisions s.25A and s.56B) were deleted – and instead the Committee recommended its own provisions which were subsequently refused assent by President Kibaki on September 27th 2007. At the time he said: “Amnesty is however a major policy and public interest issue which cannot be addressed within the context of this [Statute Law Miscellaneous Amendments] Bill and which can only be addressed through a separate comprehensive Bill.”
The Kenya Anti Corruption Commission complained that Parliament deleted all its proposed amendments including section 56 B which was subsequently used to immunize Kamlesh Pattni. How therefore did it end up being inserted in the Anti Corruption and Economic Crimes Act? It was never debated by Parliament. The President’s Memorandum shows that section 25A and section 56 B were not part of the Bill which he sent back to Parliament. So how did these sections end up in the Anti Corruption and Economic Crimes Act?
Who inserted these provisions into our laws? There is no record in Hansard of the Parliament (or any committee of Parliament) that shows any debate on these clauses. Nevertheless these clauses are today being used with alacrity to “settle” corruption investigations to the disadvantage of the Kenyan public interest and entrenching impunity by offering criminals statutory immunity from justice and asset recovery.
THE GRAND REGENCY SALE AND THE PATTNI IMMUNITY ARE BOTH ILLEGAL:
Kamlesh Pattni’s handover of the Grand Regency Hotel and the subsequent settlement of the civil cases against him are both based on these two illegal provisions. Mars Group Kenya complained about this and the Kenya National Commission on Human Rights adopted our complaint in letters to the Attorney General which state the facts as follows: there are laws on our books which were not properly enacted by Parliament as required by the Constitution of Kenya. These laws should be struck off as the Constitution does not allow any institution other than Parliament to amend our Acts of Parliament.
Incredibly since December 2007, the Attorney General has not responded to the Kenya National Commission on Human Rights. The question is why won’t the Attorney General respond to these letters? Is he unconcerned?
As to the sale of the Grand Regency Hotel to the Libyan Arab African Investments Company which has been confirmed by Finance Minister Kimunya at a price of Ksh 2.9 billion, the evidence will show that this hotel was worth Ksh 2.5 billion way back in 1994. Who conducted the valuation of the Grand Regency Hotel in 2008? Valuations are required before any public asset can be privatized, and the Minister of Finance knows this. What role, if any, has the Privatisation Commission played in this sale?
The Libyan role in this transaction is something our Parliament should investigate. They have been in the shadows for at least a year. In the early drafts of the Pattni settlement (allegedly drawn last year by Wetang’ula, Adan, Makokha & Company) it is apparent that the plot by Kamlesh Pattni and the Kenya Anti Corruption Commission to “handover” the Grand Regency Hotel was hatched only to allow the Central Bank’s plan to sell to an identified Libyan company. In June 2007, then Trade & Industry Minister Mukhisa Kituyi said “I cannot release details regarding the interest expressed by Libyans to purchase Grand Regency. The hotel is under receivership and any interested buyer should speak with the Central Bank, who is the official receiver.”
Kenyans should know that everything we have seen this year, from the April “Handover Ceremony” at the Grand Regency has been choreography to regulate illegal acts. Kenyans should know that we have been duped again by the Kenya Anti Corruption Commission which touts the recovery of the Grand Regency Hotel as its greatest ever gift to Kenyans – and the 6th greatest asset recovery in the history of the world. Our position is actually rather bleaker, and the KACC Director knows it. After spending over Ksh 5 billion funding the KACC these past 4 years, Kenyans need to know that their Government has effectively allowed the abandoning of the case against the architect of Goldenberg; allowed the shot-gun sale of a substantial asset for a song in breach of our privatization laws; and to add insult to injury has evinced absolutely no intention to recover anymore of the Ksh 158 billion that was stolen from us by Goldenberg International Limited and its official accomplices. Worse there is every reason to expect that the Anglo Leasing scandal which cost us Ksh 56.33 billion according to the Controller and Auditor General is to be dispensed with shortly using the same modus operandi.
Kenyans also need to know that it is exactly 691 days since Attorney General Amos Wako directed the Director of Public Prosecutions to file an appeal against the court judgement which immunized George Saitoti, now the Minister for Internal Security, from prosecution for criminal offences on the basis of the Goldenberg Commission of Inquiry Report. The Minister for Internal Security is the political head of the Criminal Investigations Department which was instructed by the Attorney General to follow up the Goldenberg Commission of Inquiry with investigations of those adversely named.
The cycle of impunity that allows public officers to act as if Kenya is a nation without law must be broken.
The sale of the Grand Regency Hotel is really a resignation issue for Amos Wako (the Attorney General), Amos Kimunya (the Minister of Finance), Aaron Ringera (the Director of the Kenya Anti Corruption Commission) and Njuguna Ndungu (the Governor of the Central Bank of Kenya). If these public officers won’t resign, let’s demand their immediate investigation and sacking. Finally, all public officers adversely named in reports of the Kenya Anti Corruption Commission, Judicial proceedings, and reports of the Parliamentary Watchdog committees about the Goldenberg affair must immediately stand interdicted if there is to be any justice in Kenya. Demand accountability and end impunity now.
Mwalimu Mati
IS KIMUNYA GUILTY?
If Kimunya did sell the Grand Regency Hotel, he committed no crime to warrant all the yucky-yucky from the traditional yokels who can not stand the test of integrity. Kimunya does not make the laws but the parliament does. All that he did is to apply the same laws that our hogwash parliament passes. Indeed Kimunya was right in his dealing; he is the minister of finance in whose portfolio the lump some task lied upon. What had the sale to do with the poker lands minister any way? If any body has a valid claim, it is important to distinguish Kimunya as a person from the illegality of the law applied. Should any sane person condemn the law or Kimunya as a person? This is unwarranted projection.
The Orengos and accomplices should stop their callous street litigation if at all they have they have a genuine case. Orengo could be suffering from identity crisis that is eating from his false self presumed assumption. His out burst does not earn him any prestige but a display of pride and arrogance if any thing. At the same time, it could amount to incitement if not empty noises with a hidden purpose to impress his master. As much as it would be unfair to underestimate the prudence of Orengo, and without minimizing his course for alarm, Orengo should be fairly viewed as a busy body in the affairs of another; the central Bank and the ministry of finance. The question is: Does Orengo has a genuine complaint to present to Kenyans; a case that can stand the reason for argument leave alone the presumptuous outrage. Again, the issue of Grand Regency rested squarely on central bank and the ministry of finance. Hence it is absurd in the judgment of many for a cabinet minister worthy any salt to pedal any alarming accusations against his colleague for only doing what is right. There are also other ways to look at it. First, who is Orengo any way? What authority does he have over Kimunya, a cabinet colleague? With all respect, Orengo should stop his cheap propaganda and concentrate with Arthi house issues.
This notable accomplishment is worthy praise worthy if any thing and not all the condemnation hipped by jealousy, malice, and back door maleficent campaign aimed at antagonizing the unity of the general public at the expense of political mirage. Surely, should the sale of Grand Regency be an issue? And if it is, why should it be so overblown?
Great thanks goes to Pattni who has gone beyond admitting his wrong doing, but has given up the proceeds of his corrupt deals. How many more and grabbers; some with cases pending in court are in the cabinet with the full knowledge of their masters and the so called whistle blowers; yet they can’t point a finger at them? What about those war mongers who were the brain child and financed the genocide in the name of fighting for democracy that almost grounded our social and economic life line and yet they are flying ministerial flags? What about those shielding the perpetrators of the just concluded violence that claimed the lives of the most vulnerable; innocent women and children, yet they are bragging about it, and demanding the unconditional release of the criminals in prisons?
The list goes on and on…And finally and not least; why didn’t any one comment on Orengo’s lucid anti IDPs settlement campaign vigorously mated against the genuine and innocent Kikuyus as though they were being settling on his father’s land and not on their own land? Why couldn’t Orengo’s vicious campaign be captured by the sharp eye of the press? Think about it!!!
Guys, give us a break or give us an agenda. We are tired of these hullabaloos in the corridors of power. This is not an issue at all; and if it is, it is meant to deviate our minds from the real issues burning in our hearts, our minds and in our neighborhoods.
Stanley.
Stanley, get serious.
The arrogance and disdain with which Kimunya, Ndungu and Ringera are handling queries about the Grand Regency saga are totally unacceptable from public servants. Kibaki and Raila need to demonstrate leadership and stop fannying about like they’re overwhelmed by their charges. We must remind them at every turn that they are doing a pretty awful job so far and they need to shape up or take us back to the ballot tomorrow. Four and half more years of this impunity is potentially more dangerous.
It is sad for Kimumya and his like minded cronies to defend the sale of Grand regency Hotel.From basic logic the public can see there is more than meets the eye and as a tax payer thats what i want to know.I think we have had enough with Goldenberg,Anglo-leasing and the like.We should deal decisively with the perpetrators. For his role in the sale of the Grand regency Kimunya must do the honourable thing and resign.
Mwalimu, you are right on the spot about this thievery. Of course it now happens we know that Kimunya had listed 1.8b as the sale price and not the 2.9B. Which raises the Q, might it be that it was sold for more and Kimunya and his thieving friends stole the difference only to list a lower figure?
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Muhera either you have not read carefully the reports or your post election anger is getting the best of you. Orengo as the Land Minister MUST sign off on the deed that transfer the land to the new owners. I wont even go in to long list of who else should have BUT did not sign off on the thievery.
Fellow Kenyans – we are seeing the tip of the iceberg.
Kennedy Kaunda Abuga, named in today’s press and by James Orengo, Minister of Lands, as one of the new “owners” of the Grand Regency Hotel is the newly appointed Board Secretary of the Central Bank of Kenya. The organisational chart of the CBK speaks for itself.
Conflict of interest – OR – SMOKING GUN?
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Two directors of ‘Libyan’ firm are Kenyans: Orengo
Daily Nation Story by LUCAS BARASA
Publication Date: 2008/07/01
Lands minister James Orengo Monday said that two of the three directors in the firm that bought Grand Regency Hotel in a secret deal are Kenyans.
The minister gave the name of the firm as Libyan Arab African Investment Company (K) Ltd.
A number given as that on the identity card of one of the directors is 6104260, which the Nation traced to the Electoral Commission of Kenya roll as belonging to Mr Abuga Kennedy Kaunda.
Details of the ID card show that he was born in 1965 and is a registered voter in Lang’ata constituency.
The deal was also sealed in the presence of two other people whose passport numbers were given as 298071 and 001428.
“The Grand Regency Hotel certificate of title and transfer by the chargee is dated June 20, 2008. The declared value and purchase price was not Sh2 billion as has been said… It is Sh1,850,000,000, far below what has been the talk in public,” he said.
Mr Orengo said Attorney General Amos Wako, who is the legal government adviser did not sign the deal, and that the buyers represented by three directors meant “the transfer was not between the Government of Kenya and Government of Libya.”
Wetang’ula, Aden, Makokha and Company advocates represented the vendor — the Central Bank of Kenya — in the transactions. Mr Orengo said the same law firm that acted for CBK in the deal had acted for the bank before.
The fact that the three directors who represented the said Libyan firm did not indicate their names in the transfer document was suspicious, he added.
“The directors’ pictures are on the document. Their faces do not seem like Libyans to me. Two of the characters are Kenyans,” said Mr Orengo.
The firm’s name shows it was incorporated and registered in Kenya, said the Ugenya MP, while the transfer document indicates that its registered office is in Nairobi.
Prime city area
Mr Orengo said the registrar of lands had erred in the transfer document and first put the price of the land and the hotel building as Sh2.5 billion but later cancelled and put Sh1.85 billion “without endorsing the cancellation”.
The Sh1.8 billion for the land, he added, was too little as it lay in a prime city area.
Mr Orengo said he would be appearing before a ministerial committee formed by Prime Minister Raila Odinga and a parliamentary committee headed by Nambale MP Chris Okemo Tuesday to shed more light on hotel deal.
The Finance and Administration committee comprises ministries of Finance and Justice and Constitutional Affairs and the AG’s office.
Mr Okemo heads the Finance, Trade and Tourism committee, which has been investigating the hotel’s status.
However, Mr Orengo said he would only make a final decision after consultations with the Government.
“I will not act on my own. I have taken some steps which I will disclose after appearing before the committees,” he said.
It is Mr Orengo who first blew the whistle last Thursday on the sale of the prestigious hotel.
A day later, Mr Kimunya, who had all along denied that the hotel had been sold, announced that Grand Regency had been sold to the Libyan Government at Sh2.9 billion, a figure he said, that was too good an offer to be refused.
Kenya oh Kenya…………from frying pan to fire
Stanley WAKE UP FROM FROM YOUR MIGHTY SLUMBER. KENYANS AREN’T FOOLS. CORRUPTION IS CORRUPTION STOP INVOKING TRIBAL SYMPATHY. MWIZI NI MWIZI………..ASHIKWE ! AKAMATWE! ARUSHWE KOROKORONI KAMA WEVI WENZAKE.
Wekk Hon kimunya on T .V hesitated a bit when giving the sale price a clear sign of a guilty mind or body language Hon kimunya with due respect should know that Kenyans are smarter than he thinks no wonder even ICPAK has raised a finger against him . The LSK should move in court to block the sale or put a caveat on the sale as it were buyer beware or caveat emptor .untill all the requirements of the public procurement and disposals act are put in place . There must be an advertisement placed for the sale in the local and international media with the vendor reserving all rights and price for the sale . . ideally the Hotel should have been handed to the Utalli college or ven sold to a group with some experience in running a hotel or even chain of hotels . The other issue to be considered is what jobs have been preseved or retained is it the jobs for the homeboys . I recall former Justice Ogulk raising dust and blowing hot hair over the saga of the hotel that he would blow the whistle or lift the can of worms but then went very quite or silent about it . It is even alleged that he even had his cronies employed in the hotel talk of the pot calling the kettle black .Hon Kimunya should come out clean on the deal for instance was any goodwill paid and if so to who and who is the ulimate benefeciary is it the Kenyan people or the Libyans sine Mobil was sold to oillibya does Kenya receive any cheap oil from Libya . Where we went wrong and the rain started beating us is when we removed Githongo from office without a replacement and the LSK chair resigned from the advisory board of KACC . We also did not find a replacement of ICPAK for Dr Julius Rotich in KACC are we really serious in fighting corruption . Mr Githongo role could easily be played by the KACC advisory board as it is now there is no one to advise the President on matters relating to corruption , The chair of the LSK should also be the chair of the KACC advisory board and ICPAk should as a matter of urgency find a relacement for Dr Rotich otherwise our efforts against corruption will not bear fruits for the monster of grand corruption fights back according to Justice Ringera and we cannot have a toothless dog or one that just barks chase it away but one with teeth and can bite
OOOOOOOOOOOh my Kenya!!
The history for all the kind of grand corruption in Kenya cannot be gainsaid.This kind of graft as always dogged this part of the world for a very long time.Is it can be true that the fund that are now taken from the Central bank or has been taken are for working out th3e cash that was used to bribe the voters before last years general election.If for sure this sale had been do about mid last year,then from the line of events then the cash loooted from our pot ware put to election.
This is what one time minister had said that they will use FUNDS that shake every part of the Kenya.You remember that Mr.Stanley……just before the referendum and what followed net was the Grand Anglo scandal.
So in view of the foregoing and the coming of the operation of the political parties Act,I can me sure that such laws that are now in place will be used to monitor the funding of political parties.In a nut shell,the cash that was transacted from the Central bank was use to fund the the election campaign of PNU.
We cannot say that Kimunya is the man that was placed for that posiytion after the formation of the Grand Coalition,but what is evident is that the man was to cver the bad footprints that they had left behind just before the election.
Kimunya should follow tracks of what Mwiraria did…………
Well stayed I up late till 2.oo a.m watching the debate live on parliament and I found Hon Kimunya defense quite wanting at least Hon Mwiraria had the courage to admit that some mistakes had been done and he may have signed some documents blindly having had total confidence in his juniors . But according to Hon Kimunya nothing seems to have gone wrong and he sees no evil does no evil and probably does not even hear any evil .but the all deal seems to stink of high level corruption . his defense reminds one of former justice Oguk outburst that he may open up a can of worms or spill the beans at great cost to his detractors . It is high time that some of our leaders learnt to eat humble pie and realise that since we are all human mistakes are bound to happen only mistake is to repeat a mistake as a friend used to say to commit a mistake is not wrong only to repeat a mistake for which one should put on the guillotine as for Hon Kimunya I do wish that he could have the humilitity and courage to admit that during his watch on the Nation coffers some serious mistakes may have been commited either with or without his knowldege and trying to pass the buck will simply not wash . He may be a smart accountant with a very impressive C. V and impeccable credentials but these do not make one immune to error and what annoys the M.Ps is that he does not seem to realise that some of the errors may as well pass for impunity if not immunity where one feels that he or she is a above the law and can do as he or she pleases without caring for the repurcassions or reprisals and the era of sacred cows is long gone and as hon Saitoti once said everyone must carry his cross.