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.

Former Finance minister Amos Kimunya and Central Bank Governor Njuguna Ndung’u Monday appeared before a parliamentary committee to answer questions on their roles in the controversial sale of the Grand Regency Hotel.

Mr Kimunya who stepped aside as Finance minister early this month to pave way for the investigations, was questioned in the afternoon while Prof Ndung’u had appeared before the MPs in the morning.

Sources said the Governor was asked to confirm if CBK had received the full amount of Sh2.9 billion for the sale of the hotel. He confirmed that the bank had indeed received the cash.

Libyan company

He gave the history of the Grand Regency saga from 1994 up to the time of the sale to a Libyan company and argued that the deal was above board.

The committee asked Prof Ndung’u to table all documents relating to the sale. The governor confirmed to the committee that the 90 per cent payment which had been deposited in an escrow account at the NIC Bank had been sent to Central Bank.

The three lawyers appearing for CBK — Mr Philip Murgor, Mr George Oraro and Mr Waweru Gatonye — told the committee that the bank followed every law when concluding the sale.

Mr Kimunya and Prof Ndung’u are some of the principals in the sale of Grand Regency because of their official roles.

A commission of inquiry appointed by President Kibaki will start public hearings into the deal on Monday. The commission is chaired by a former Chief Justice Abdul Majid Cockar.

Mr Kimunya, who had been questioned by the committee earlier this month, was recalled to shed more light on the controversial transaction.

The Kipipiri MP arrived at County Hall, Nairobi, venue of the committee’s hearings at 2pm but it was not until 3.25pm when he walked into the building.

Mr Kimunya had arrived in a private vehicle but did not alight. He then drove to the nearby Continental Building where MPs have offices and stayed there briefly before returning with his lawyer, Prof Githu Muigai.

Mr Kimunya got into trouble with his Cabinet colleagues and MPs who claimed that the Finance Ministry had secretly sold the hotel to a Libyan firm.

When the question was first asked in Parliament last April, Mr Kimunya denied that the hotel had been sold dismissed the claims as “bar-talk”.

A fortnight later, he confirmed that indeed the hotel had been sold for Sh2.9 billion ($45 million).