Story by MUGO NJERU and LUCAS BARASA
Mr Orengo
The prestigious Grand Regency Hotel in Nairobi has been sold for Sh2 billion, Lands minister James Orengo said on Thursday. The minister said the deal was sealed on Wednesday despite the hotel being the subject of investigations by a parliamentary committee.
Businessman Kamlesh Pattni, who had been fighting over the hotel’s ownership with the Central Bank of Kenya handed it over to the bank in April as part of a deal in which he claims he was offered amnesty from prosecution over the Goldenberg scandal.
Mr Orengo said that the Central Bank, which had placed a charge over the property, removed it to pave the way for Wednesday’s sale. However, the minister was yet to establish who had bought the hotel although sources said it is now in the hands of Libyan investors.
“I am embarrassed and ashamed that a deal of this nature and magnitude can take place under my nose as neither I nor my PS was meant to know,” he told a press conference in his Ardhi House office.
Pattni’s lawyers
Sources at the ministry disclosed that one of Mr Pattni’s lawyers was seen at Ardhi House on Tuesday in the company of a CBK lawyer. It is believed this was the time the charge was removed.
“I have to talk to the President and the head of the civil service because things like these should really not happen,” Mr Orengo said.
He did not disclose how he would deal with the officers in his ministry who facilitated the deal, only saying he had demanded an explanation within the next seven days. “I am worried that even the AG was not consulted and within the next seven days, I hope to make a full disclosure in the interest of the public,” Mr Orengo said.
The minister, who called the press briefing at 6pm said he could not wait “for a whistle blower or any officer to make the disclosure.”
He put on notice officers in his ministry who conduct government affairs without consulting him.
The five-star hotel has been in the news since March after reports that tycoon Kamlesh Pattni had returned it to the Central Bank of Kenya and sold it in exchange of amnesty. The deal was struck with the blessings of the Kenya Anti-Corruption Commission.
Mr Kimunya and CBK governor Njuguna Ndung’u have since appeared before a parliamentary committee investigating the hotel saga. Both denied that the Grand Regency had been sold.
The committee headed by Nambale MP Chris Okemo also raised questions about the true value of the hotel, how the handing over was conducted and whether proper Government procedures were followed.
The Attorney-General, Mr Amos Wako, is on record saying he was not consulted over the deal.
Transaction
The team also wanted to know how the hotel will be disposed of so that taxpayers do not lose even “a penny” in the transaction.
The committee had directed Mr Kimunya and the CBK to suspend all attempts to sell the hotel until the questions have been answered by Government officials, Mr Pattni, Uhuru Highway Development Limited and other shareholders of the hotel.
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API/Nation.ke