Libyans acquire hotel
Updated on: Saturday, June 28, 2008
Story by: By Emmanuel Onyango and Valerie Aseto

 Finance Minister Amos Kimunya has finally admitted that the scandal-ridden Grand Regency hotel has been clandestinely sold to the Libyan government at a cost of Sh2.9 billion.But after months of gerrymandering and issuing dodgy statements by government officials associated with the Grand Regency, Kimunya’s admission should occasion no surprise because the deal to sale the property to the Libyans could have been sealed last year when President Mwai Kibaki led a Kenyan delegation on a visit to Libya, and where he signed at least three deals with the Maghreb state.

In a statement of June 6, 2007 after his visit to Libya, President Kibaki said: “I am most encouraged to inform Kenyans that my three-day official visit to Libya at the invitation of the Brother Leader Muammar Qadhafi was very successful and has opened a new chapter of mutually beneficial relations between our two countries.”

He continued: “As many Kenyans may already be aware, my official visit to Libya was a follow up to a wide range of consultations that have been going on between our country and Libya aimed at enabling our two countries to tap the existing huge un-exploited potential for mutually beneficial cooperation. In January this year, my Government dispatched Senior Officials from our Ministry of Energy to Libya, where they held important discussions with their Libyan counterparts…In view of the prohibitive cost of oil and its impact on the continued growth of our economy, my Government has been particularly keen on seeking a cheaper source of oil.

I am delighted to note that the outcome of discussions between our officials in the energy sector and their counterparts in Libya was the signing of a Memorandum of Understanding with Tamoil Africa Holdings Ltd on behalf of Libya. In this Memorandum of Understanding, it was agreed that Libya, will provide Kenya with Petroleum products at concessional rates.”

Kibaki added: “Besides oil, my Government had also submitted a Draft Agreement to the Libyan Government on the establishment of a Joint Commission for Bilateral Co-operation, which will enable our two countries to enhance collaboration in all the sectors of our economies and other important areas of common interest. I am happy to note that during my visit, consultations in this regard were fruitful and our two countries concluded a framework agreement establishing a Joint Commission for Bilateral Cooperation between our two countries that will oversee a wide range of agreements in various areas of common interest…Indeed, I am glad to note that Libyan investors have expressed interest of investing in our country.

Already, the Libyan African Arab Investment Company is now in the process of setting up a 5-6 Star hotel in Nairobi and a Conference Centre in Mombasa. We also expect investments in the real estate sector in our capital city Nairobi. We welcome other Libyan investors to invest in Kenya in the area of their choice.”In view of the foregoing Kibaki speech, it appears that the notion of the Libyan African Investment Company setting up a 5 or 6 star hotel in Nairobi included acquiring an already existing one, and Grand Regency was an ideal catch.

The transaction, which involves the hotel building and the land it stands on was completed in the course of the week and brings down the curtains to a 15-year drama of court battles and political intrigues over the property. A source told Kenya Times that the Libyan government dispatched two lawyers at their Nairobi embassy to seal the deal on its behalf.According to Kimunya, the price exceeded the Sh2.4 billion owed to the Central Bank of Kenya (CBK) by the Kamlesh Pattni-owned Uhuru Highway Development Limited (UHDL). The second best offer posted for the property was Sh1.8 billion.

The sale was conducted through a personal treaty with the Libyan government and will now see the Central Bank bag a total of Sh3.3 billion from the property in view of the Sh464 million it collected from receiver managers in April 1999. “The Central Bank gave interested parties an ample opportunity to make their offers. Eventually we had an offer which we thought was too good to refuse of US$45 million,” Kimunya told a media conference at his Treasury office yesterday.

“If you add the Sh464 million we received, we are talking of Sh3.3 billion while the initial amount owed to the Central Bank was Sh2.4 billion. All the money now goes to the Central Bank and we couldn’t have got anything better than that.” But a source told Kenya Times that when the deal was sealed, the Libyan buyers were asked to pay out the debts that Pattni owed CBK. And the involvement of the Kenya Anti Corruption Commission was meant to secure Pattni amnesty from the numerous criminal cases he was facing with regard to the hotel.

The Finance Minister particularly disputed the Sh7 billion prize tag placed on the hotel by members of the Parliamentary Committee on Finance and Trade. Kimunya cited three independent valuation reports commissioned by the government which placed the value of the hotel at an average of Sh1.7 billion. “I don’t know where they got the impression that the hotel has increased its value. The hotel valuation is low because of the perpetual neglect by the successive receiver managers. They have done no improvements in terms of refurbishments. When people talk, they are likely to say things they do not know,” said Kimunya.

The Finance Minister acknowledged that keeping Lands Minister James Orengo in the dark about the transaction was a mistake, though his ministry was under no obligation to involve Orengo.Said he: “When I was Lands Minister, I never bothered of any transaction so long as it was done within the law. But I can understand where he (Orengo) is coming from. I think he did the right thing in coming public about the deal but he should not be worried.”

Kimunya insisted that the deal adhered to the letter of the law and that the Libyan government will have no local partners in the ownership of the hotel. The transfer of Grand Regency to the Libyan Government does not include the land adjacent to the hotel and which in recent times has been turned into a car park. That land belongs to the National Social Security Fund (NSSF).

According to the details of the deal, all the 400 Grand Regency hotel staff members will retain their employment under the new owners but suppliers and other contractors with the hotel will have to negotiate their business relations with the hotel afresh.

News of the sale of Grand Regency hotel came hours after the Chairman of the Parliamentary Committee on Finance and Trade Mr Chris Okemo had expressed dismay over the deal. According to Okemo, the committee had resolved to summon lands minister James Orengo over his Thursday’s remarks that the hotel was sold for a paltry Sh2 billion. The committee will also summon Central Bank governor Njuguna Ndungu alongside the Finance minister.

Addressing the press at Parliament chambers, Okemo claimed that the public had been given a raw deal over the matter, saying: “We as a committee have confirmed that there is something unethical taking place behind the committee that has been carrying out the investigations over the issue of the five star hotel.”

Kimunya however explained that the committee was more interested in investigating whether an amnesty deal was signed between Pattni and KACC rather than the sale of the hotel. “Amnesty has nothing to do with the asset. We had an opportunity to realise an asset that we had lost. We were seeing that in another couple of days, we will be faced with numerous injunctions to stop the sale.”Okemo said the committee has been making efforts to meet the Finance minister and even writing letters but Kimunya would not turn up.

But the Nambale MP questioned the manner in which the transaction was hurried yet the hotel was claimed to be in the hands of the Central Bank.”Why was the hurry to sell out the hotel yet it was already transferred to Central Bank? Why are other parties interested so much than the owner?” he posed.

According to the committee, Okemo said the hotel ought to be sold at approximately Sh7.5 billion, a matter that those implicated in the deal were not ready to discuss before the committee.

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Date:  Fri, 27 Jun 2008 19:29:34 +0000
From:  Nicholas Mireri
Subject:  Kimunya & Grand Regency sale !!!

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 Majestic People Of Kenya,

Today, I would like to ask my 10th great grandfather Ragem a few questions which I presume, as a spirit-being in the land after, he would be able to answer.

Dear Ancestor,

Are Kenyans fools? Are we idiots? If we are not, then please answer me. Why is it that the scenes cited below happen and continue to happen?

In Nairobi*, the City in the sun*, as I was going to school one morning, I was asked by a stranger to give all my money and he would multiply it. Believe it or not, I did and I lost all my third term school fees.

In Nairobi, *the city of plaster and stone,* Gabriel Omolo helped us to kill time with his lunch time music as the preachers, the beggars and the comedians commanded us to “Toa Pesa,” Believe it or not many of us did and still do regardless or how impolite the requests are.

In Nairobi, *the city Tanzanians believe is London*, Gold & Diamonds were traded before our very eyes while it is very well known by all that no one owned any.

In Nairobi, members of parliament steal, stuff themselves full like in an orgy, then vomit on the donors feet, but still get more donor money to manage.

In Nairobi, *the city of commission of inquiries,* no murder mystery or scandal is ever solved despite all facts lying bare by reputable institutions like Scotland Yard. What happened to the officer who shot a demonstrator in Kisumu. What killed Mugabe Were http://en.wikipedia.org/wiki/Mugabe_Were, David Kimutai Too  http://en.wikipedia.org/wiki/David_Kimutai_Too,

In Nairobery, *the city of* *Anglo Leasing scandal* http://en.wikipedia.org/wiki/Anglo_Leasing_scandal, the culprits went scotch free despite the raw evidence laid bare by John Githongo http://en.wikipedia.org/wiki/John_Githongo

In Nairobi, *the capital of the* *Kenyan presidential election, 2007* http://en.wikipedia.org/wiki/Kenyan_presidential_election%2C_2007, an election is stolen with impunity as the whole world watches, then the victor and the vanquished agree to share power.

In Nairobi, *the city of ‘the better option,’* we are hoodwinked to buy a collapsing business while Mobitelea gets rich with our very own blood and sweat.

 After Goldenberg, Anglo Leasing and Election Fiasco, we thought we’d never be fooled again. But alas, only today, we are informed that despite previous denials by Amos Kimunya http://en.wikipedia.org/wiki/Amos_Kimunya, and Amos Wako  http://en.wikipedia.org/wiki/Amos_Wako, Grand Regency Hotel has been sold to “Libyans” after all.

Ancestor, I once travelled in a matatu that had a sticker which stated ‘when rape is inevitable, lie back and enjoy.’ Other passengers merely laughed when they read it. I was hopeless to effect any change, but I Disembarked in protest, yet the Matatu went ahead to make money for the ill thinkers and right under the noses of other Nairobians?

Is this our culture 10th Ancestor? Are we cursed? Are brainwashed? What must we do to make change? Who is the leader that will change us? Our leaders are telling us that they are united in coalition?  Are they really jointly married, or are they only bed-sharers?

The bad part is that we all know the answer, and the culture of permissiveness is our weakness, a reason why Kivuitu, Kimunya, Wako and others will not resign.

 —
Joram Ragem
wuod Ndinya, wuod Onam, wuod Amolo, wuod Owuoth, wuod Oganyo, wuod Mumbe, wuod Odongo, wuod Olwande, wuod Adhaya, wuod Ojuodhi, wuod Ragem! (Are you my relative?)

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Date:  Fri, 27 Jun 2008 22:10:48 -0400
From:  Joram Ragem
Subject:  Grand Regancy: Are Kenyans fools? Are We Idiots? Are We Cursed? Or Are Brainwashed?