I was misled on hotel deal, says Pattni

Businessman Kamlesh Pattni. Photo/FILE

What you need to know:

  • Grand Regency Hotel sold at Sh2.5 million to recover money Mr Pattni owed CBK

Kamlesh Pattni alleged he was mislead into surrendering Grand Regency Hotel to the Central Bank of Kenya as he thought he would be granted criminal amnesty.

Mr Patnni, who gave his evidence before the Cockar Commission on Monday, said he had expected a global settlement after relinquishing the five-star hotel to CBK, which sold it to a Libyan firm at Sh2.9 billion.

And it was sold to recover Sh2.5 million Mr Pattni owed to the bank.

To him the global settlement meant “starting a new chapter in life”, he told the commission investigating the controversial sale of the hotel.

This, he explained, was to close all the criminal and civil cases filed against him.

Mr Pattni, who is the commission’s 16th witness, said he had been charged in court over theft of money from the CBK and on several occasions he had been taken to Kamiti Maximum Security Prison.

There was also a civil suit filed against him and Uhuru Highway Development Limited (UHDL), of which he is a principal shareholder, in 2003.

Kenya Anti-Corruption Commission (KACC) had filed the suit on behalf of the CBK in an attempt to recover the Sh2.5 billion.

However, Mr Pattni, who was led in giving his evidence-in-chief by assisting counsel Francis Etole, said he was familiar with contents of two consent orders in which he had agreed to surrender the hotel to CBK.

The first consent of April 9 had been entered between him, UHDL and 15 others, and the KACC.

It was intended to set aside the civil suit of 2003. There was also another one in regard to a civil suit of 589/99 entered between him and the CBK.

Consent orders

Mr Patnni said he had before the consent orders discussed the matter with the CBK, KACC and the Attorney-General Amos Wako, who was liaising with the Treasury.

His wish, he said, was to be allowed to pay the Sh2.5 billion to CBK, but decided to surrender Grand Regency Hotel at the insistence of KACC and other Government departments.

To his understanding, the witness said, the consent order regarding the 111/2003 meant that after surrendering the hotel to CBK, he would get the global settlement.

And he said this is what he had instructed his lawyer Ahmed Adan to do, since it is him who was negotiating with KACC on his behalf.

It was the CBK, KACC and the AG who were to give him the global settlement.

While giving her evidence earlier, KACC deputy director Fatuma Sichale had said the issue of criminal amnesty had been mentioned to her by Mr Adan during their negotiations. She is the one who had drafted the consent of 1111/2003.

However, she had stated before the commission that since KACC does not have the mandate to issue such an amnesty she told Mr Adan that it was not possible for his client to get it.

Mr Patnni told Mr Justice (rtd) Abdul Majid Cockar, who is chairing the commission, that his wish was not for the money CBK would get after selling the facility go into a consolidated fund.

“The money to come out of the sale would be distributed to the poor in all the 210 constituencies (the constituencies in the country),” the witness said.

Apart from the two consents mentioned before the commission earlier, Mr Pattni talked of a settlement agreement he had signed with KACC over the same matter of setting aside all cases CBK had against him.

On Wednesday, Mr Patnni will be cross-examined by lawyers appearing for various clients at the commission.