Kimunya was right, says Orengo

Former Finance minister Amos Kimunya was legally correct when he said in Parliament in April that the Grand Regency Hotel had not been sold, Lands minister James Orengo admitted on Friday.

Mr Orengo, who was being cross-examined by Mr Kimunya’s lawyer, Prof Githu Muigai at the Cockar Commission, said he raised the alarm because his colleague had kept the matter secret.

Mr Kimunya made his statement in Parliament on April 29 and the agreement to sell the hotel to the Libyans, the commission heard, was concluded on May 5.

But the final transfer of the hotel was done on June 25 and the next day Mr Orengo blew the whistle.

The minister admitted that officers from the Lands office including Commissioner of Lands Zablon Mabea did not implicate Mr Kimunya when they were quizzed by a parliamentary committee investigating the former minister.

Prof Muigai told Mr Orengo that he was the first person to mention Mr Kimunya’s name in connection with the hotel sale.

Mr Orengo had told the commission that as Finance minister, Mr Kimunya was directly responsible for the hotel’s sale.

Prof Muigai: “So when offloading a public asset, would CBK want to get support or the authority of the minister?”

Mr Orengo: “Ultimately, yes. And in the event of a mess, the minister is accountable.”

Prof Muigai: “When did you become Lands minister?”

Mr Orengo: “On April 30.”

Prof Muigai: “Would you then be responsible for all the transactions that have taken place from the time you took over to June 21 when you told Mabea not to carry out any transactions involving the Grand Regency Hotel?”

Mr Orengo: “I take the responsibility for the mistake but not the transactions.”

The transfer of the title deed of the land on which the hotel is built was done by officials at the Lands ministry without the minister’s approval.

On cross-examination by Mr Waweru Gatonye, a lawyer for the CBK, Mr Orengo maintained that hotel is worth more than Sh4 billion.

All the valuers who have testified have valued the hotel at a lower amount than it was sold. “Kenyan valuers are not reliable in most cases,” Mr Orengo said.