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Kenya`s Finance minister quits over hotel saga
2008-07-09 09:46:44
By Kasembeli Albert, in Nairobi
Kenya`s Finance Minister Amos Kimunya has quit over the controversial sale of a luxury hotel at the centre of Nairobi.
Kimunya yesterday morning convened a press conference and issued a brief statement, saying: ``I have requested President Kibaki to be allowed to step aside so as to facilitate an inquiry into this matter.``
``I`ve held several consultations with President Kibaki, my family, friends and colleagues on Grand Regency. My conscience is very clean on the role of the Treasury, specifically myself, on this matter. I am open to an independent inquiry to prove my innocence,`` he told reporters.
Earlier, police stormed a Nairobi restaurant and arrested a number of activists who were planning demonstrations against Kimunya over the sale.
The group, meeting under the aegis of Name and Shame Coalition Against Corruption, had gathered at the city’s Garden Square Restaurant adjacent to the Kenyatta International Conference Centre when riot and regular police in full gear stormed the venue.
It was upon seeing the uninvited guests in uniform that those in the meeting scampered for their safety.
They ran in all directions as those who were not so lucky to escape were rounded up by the police, roughed up before being bundled into a police and taken to the Central Police Station.
About ten members of the civil society were arrested.
Kimunya`s resignation comes amid mounting pressure by MPs, cabinet ministers and the civil society for the president to sack him over the controversial sale of Grand Regency Hotel.
Before Kimunya`s resignation yesterday, a parliamentary committee had threatened to stall debate on the Budget until the minister either resigned or was sacked.
The parliamentary committee on Fiscal Analysis and Appropriation chaired by Martin Otieno Ogindo said it would frustrate debate on the Budget at the committee of supplies stage.
Debate at this stage is crucial in validating taxation measures proposed by the Finance Minister. Without that, government revenue collection through taxation can be severely compromised.
The row raged as the Libyan firm that bought the Grand Regency Hotel said it owned 23 hotels in other African countries, including South Africa, Rwanda, Tanzania and Uganda.
``We would like to make it clear to the people of Kenya, all MPs and the government of Kenya that all our investments are people and environment friendly, free of any ulterior motives and are done in support for inter-African cooperation and mutual development,`` said the Libya Africa Investment Portfolio chairman, Alhaj Bashir Saleh.
He added: ``We would also like to confirm that the purchase of Grand Regency Hotel at USD45 (KSh2.9 billion) was done with the utmost professional.``
Earlier, Agriculture minister William Ruto had asked President Mwai Kibaki to break his long silence on the issue and sack Kimunya as parliament passed a vote of no confidence in the finance minister.
He said the matter should not be used, or seen, as a feud between the two major parties in the coalition, PNU and ODM.
The parliamentary committee renewed the threat to boycott business brought to Parliament by the Finance ministry as Attorney-General Amos Wako responded to accusations that he too was aware of the sale of Grand regency by Central Bank of Kenya.
Kimunya, subject of a vote of no confidence by Parliament, on Sunday said he would rather die that resign, accusing Wako, Prime Minister Raila Odinga and Kenya Anti-Corruption Commission boss Aaron Ringera of having knowledge of the sale and then turning round to blame him.
Responding yesterday Wako posed: ``Why should I step aside yet I am the aggrieved party here? The bank`s board of governors indicated that I should be involved but this decision was ignored.``
He called for investigations into why he, as the government’s legal adviser, was by-passed by Kimunya and Central Bank of Kenya governor, Prof Njuguna Ndung’u.
He also stressed that the sale of Grand Regency to a Libyan state corporation was irregular because it flouted Central Bank privatisation laws.
Following Kimunya`s assertion that he would not step aside despite the no-confidence vote, there were increasing calls on Monday for the President to take action.
But the president faced a dilemma because by sacking Kimunya, his supporters might see him buckling to pressure and sacrificing a loyal ally; but if he failed to act, he could be accused of condoning the Grand Regency deal.
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