Kimunya quizzed in hotel probe sale

• Amos Kimunya and Central Bank Governor Njuguna Ndung’u appeared before a parliamentary committee to answer questions on their role in Grand Regency sale.
• Governor was asked to confirm if CBK had received the full amount of Sh2.9 billion for the sale of the hotel, sources said
• Commission of inquiry appointed by President Kibaki will start public hearings into the deal on Tuesday.
• Libyan investors have quietly taken over Grand Regency hotel, even as the inquiry begins.

Later, Lands minister James Orengo said the hotel had been sold for Sh1.8 billion but it emerged this was the price for the land only. The furnishing, machines and other moveables had been sold for Sh1.1billion.

Mr Kimunya’s belated admission of the sale angered MPs, who had accused him of setting them against the public, when he proposed, in this year’s Budget, to have the MPs’ allowances taxed.

The MPs accused the then minister of misleading the House over the sale and passed a vote of no-confidence against him early this month.

They accused him and several other public officials of failing to follow the rules and regulations on the sale of public assets during the sale of the hotel, the Safaricom shares and other transactions involving parastatals like the Kenya Posts and Telecommunications.

In his defence on the floor of the House, Mr Kimunya said that the hotel deal had above-board and that his conscience was clear. According to him, he had not personally profited from the sale. He also maintained that he would be let off-the-hook after investigations were complete and if politics was divorced from the saga.

He has since appeared before the Parliamentary Select Committee investigating the sale of the hotel, under the chairmanship of Nambale MP Chris Okemo.

Before to he declared that he was stepping aside, Mr Kimunya had said that Prime Minister Raila Odinga, Kenya Anti-Corruption Commission director Aaron Ringera, Attorney General Amos Wako and Mr Orengo had received information about the deal.

Speaking at a rally in his Kipipiri constituency after he was censured, Mr Kimunya said that these officials must resign too if he was to resign.

But Mr Odinga said he received information about the sale of the five-star hotel after the deal had been concluded. Mr Kimunya resigned from the Treasury and President Kibaki appointed Environment minister John Michuki to fill the position in an acting capacity.

Mr Kimunya is likely to be called to testify before the Cockar commission once its starts its sessions next week.

Inquiry begins

But even as the inquiry begins, the Libyan investors have quietly taken over of the hotel. On Saturday, the new management held a meeting with the staff and informed them of impending changes.

An employee who attended the meeting said that the sale to Libyan-Arab Investment Company was officially confirmed by the hotel’s general manager, Mr Solomon Adede.

At the height of the controversy, the Libyan embassy defended the deal, saying it had been a “government-to-government transaction” and was above board.