Grand Regency saga: The verdict

Summary of Findings

Related Stories

• Pattni used links to State House
• Now Pattni plans seven-star hotel
• 15 ministers have resisted calls to quit
• US suspends Kenya education cash
• Address graft for reforms to succeed: US envoy

Mr Amos Kimunya

The Hon Amos Kimunya was not directly involved in the sale of the Hotel. However, he was briefed about what CBK was doing towards the disposal of the Hotel to Laico.

On 29th April 2008, he did not give Parliament and the people of Kenya the true picture of the impending sale of the Hotel to Laico. As the Minister responsible for the affairs of the CBK, he must take responsibility for the questionable disposal of the Hotel.

Prof Njuguna Ndung'u

Prof Njuguna Ndung'u was not truthful to other public institutions, namely the Kenya Anti-Corruption Commission, the Commissioner for Lands, the Public Procurement Oversight Authority and the Prime Minister about the sale of the Hotel.

Even the valuers who were instructed to value the hotel were not told the purpose for which the valuation was being undertaken. At CBK he and Mr Abuga were solely responsible for the disposal of the Hotel.

His conduct was contrary to Section 18 of the Public Officer Ethics Act which provides; “A public officer shall not knowingly give false or misleading information to members of the public or to any other public officer”. The Governor must take responsibility for the disposal of the hotel in a secretive and questionable manner.

Mr Kennedy Kaunda Abuga

Mr Kennedy Kaunda Abuga acted in concert with the Governor to rush the sale of the hotel while at the same time keeping it a close secret. He was only too willing to carry out all the wishes of the Governor relating to the disposal of the Hotel without offering independent professional opinion. His conduct was also contrary to Section 18 of the Public Officer Ethics Act.

The Grand Regency Hotel

The registration of the transfer of the Hotel to Laico appears to have been done within the provisions of the law. However, the Commission finds the entire transaction tainted with misrepresentation and deception to such an extent as to warrant specialized investigation by the Attorney General and other relevant institutions into the bona fides of the purchaser and other aspects of the transaction. The Commission so recommends.

Recommendations

The Public Procurement and Disposal Act: The Public Procurement and Disposal Act, 2005 prescribes procedures and set standards for public entities to ensure the procurements and disposals maximize economy and efficiency, promote integrity, competition, fairness and inspire public confidence.

The Act however has obvious lacunae and various provisions which are mutually inconsistent. These gaps and contradictions undermine certainty and ultimately the good objectives of the Act.