Date: Wed, 2 Jul 2008 15:08:39 -0700 (PDT)
From: Judy Miriga
Subject: KIMUNYA PONDERING NEXT MOVE AFTER VOTE OF NO ONFIFENCE-EH!!! MCHEZO KANDO
Member of parliament passed a motion of no confidence against Finance Minister Amos Kimunya. President Mwai Kibaki and Prime Minister Raila Odinga are expected to make a decision on the matter after a cabinet meeting today.
Date: Wed, 2 Jul 2008 15:19:05 -0700 (PDT)
From: Judy Miriga
Subject: Step aside, says Wako team
The Standard Online | Jul 02 2008
Step aside, says Wako team
Published on July 3, 2008, 12:00 am
By David Ohito
Finance Minister Amos Kimunya, Central Bank Governor Njuguna Ndung’u and Director-General of the National Security Intelligence Service … Gichangi should be directed to step aside — that is the verdict of a probe team constituted by Prime Minister Raila Odinga over the sale of the Grand Regency Hotel.
The other public official who should also step aside to allow for investigation is the Secretary of the Board of Directors of the Central Bank, Kennedy Abuga.
The committee report also recommends the repossession of the hotel at the heart of the grand scam.
A source close to the one-day Wako committee of prominent lawyers told The Standard that the Central Bank could be ordered to cancel the sale of the hotel reached on May 5.
The team said the transaction over the sale of the Grand Regency Hotel was fraudulent and designed to deceive.
It should, therefore, be declared null and void, the team resolved, according to the source.
And the team was told of how the Registrar of Titles and the Commissioner of Lands were intimidated into assenting to the deal, said the source.
And in even more confounding revelations, the source said that the team was told of how the parties in the deal evaded payment of stamp duty.
The report of the Wako team was being presented to the Prime Minister last night, and was to be forwarded to President Kibaki.
When presenting the dossier, Attorney-General Amos Wako told a media conference last evening that the team had unearthed information much more than what was in public domain.
The team of legal experts, chaired by Wako comprised Cabinet ministers James Orengo and Mutula Kilonzo, Kenya Anti-Corruption Commission Director Aaron Ringera and Mr Caroli Omondi of the PM’s office, tabled the report that sources said recommended the recovery of the five-star hotel.
Sources claimed salvos are now directed at the Central Bank of Kenya Governor Njuguna Ndung’u for allegedly flouting the rules and laws of Government.
Kenyans will now see which public officer packs and leaves office over the Grand Regency saga.
The findings, the impeccable source said, pointed an accusing finger at a top National Security Intelligence officer who allegedly proposed a settlement on the matter.
In a Press briefing last night, the PM said the fate of the report would be made public after a crucial Cabinet meeting to be chaired by President Kibaki today.
A source privy to the details of the day-long meeting said the sale contravened the Privatisation, the Public Procurement and Disposal and the Government Lands Acts.
The source said it is believed that the Government may revoke the controversial transaction that stirred a storm across the political divide and threatened the three-month old grand coalition.
Sources said Ringera, a member of the committee, wrote a letter advising Central Bank to follow due process of the law in disposing of the hotel.
“A lawyer, Ms Muthoni Gichohi, the advocate who drafted the sale agreement on and behalf of CBK, is understood not to have done any work for the Bank and her inclusion in the panel was not okayed by the Attorney-General as required by law,” a source said.
It is believed the Lands minister may stop the transaction or cancel the title all together.
Last night Orengo declined to comment, saying: “I am under instruction not to divulge any information until the principals, Kibaki and Raila, give direction. But I can assure the public that we did a splendid job within one day.”
As the details of the transaction filtered through, it was understood that no due diligence was done on the purchasers and no written records of offer and acceptance were available.
A search at the Registrar of Companies for the file containing incorporation documents of the Libya Arab African Investments Company Kenya Ltd did not disclose a relationship with the Libyan government.
Date: Wed, 2 Jul 2008 15:20:57 -0700 (PDT)
From: Judy Miriga
Subject: kIMUNYA SAYS HE HAS A WIFE A DAUGHTER AND PARENTS
I’m totally clean on this, says Kimunya
Published on July 3, 2008, 12:00 am
By Ben Agina
The Finance Minister has defended himself against any wrongdoing in the sale of the Grand Regency Hotel.
“My hands are totally clean on this transaction,” said Mr Amos Kimunya while flaunting his CV as an indication of his integrity.
And he said Prime Minister Raila Odinga and Attorney-General Amos Wako were in the picture regarding the sale.
Speaking in Parliament, Kimunya told members that if only they would remove the politics surrounding the sale, they would appreciate that the Government had salvaged the hotel that was on the verge of being taken away.
Kimunya said the hotel was disposed of at what they believed was the best price of $45 million (Sh2.9 billion)
“I get really disturbed when people challenge this figure,” he said.
Kimunya accused the Ministry of Lands of not telling the truth when it said it was not aware of the transaction. “Distinguish the facts from the politics of ‘bring him down’. I owe it to myself, my family and the people of Kipiriri and Kenyans to say the truth,” he said.
Saying he was serving his second term in the House, the embattled minister said: “I have a wife, a daughter and parents. I have people who care for me. I must thank those who have stood for me.”
And for the first time, Kimunya revealed that the millions of shillings are in an account at NIC waiting a transfer agreement.
The minister said on April 29, he had gone to the floor of the House and informed members of progress on the sale. The minister said lawyers representing Mr Kamlesh Pattni and the hotel — Wetangula, Adan and Makokha Advocates — had met Wako at least six times on the issue relating to Grand Regency.
He said the Governor of Central Bank of Kenya, Prof Njuguna Ndung’u, has also been briefing the Prime Minister on the issue.
The minister talked about how during his tenure in office, revenue collection had improved and that during his days as the chairman of the Institute of Chartered Accountants of Kenya, he was a crusader for integrity in the country.
He said in the 1980s, he had an opportunity to investigate fraud on behalf of the United Kingdom acclaimed Serious Fraud Office.
The minister also said when the Kenya Anti-Corruption Commission Board was formed, he served as a member of the interviewing panel that ultimately recruited the current boss, Justice Aaron Ringera.
Date: Wed, 2 Jul 2008 16:43:46 -0700 (PDT)
From: PAUL ODERA
Subject: Re: kIMUNYA SAYS HE HAS A WIFE A DAUGHTER AND PARENTS
Can you imagine what could have happened if PNU formed the government on its own!!!!!!!! Even HELL couldn’t have coped with the wanton thieving and arrogance displayed if it happened.
God bless Kenya
Paul
UK
Date: Wed, 2 Jul 2008 15:21:49 -0700 (PDT)
From: Judy Miriga
Subject: Parliament passes censure motion against Kimunya
Parliament passes censure motion against Kimunya
Written By: Graham Kirwa ,
Posted: Wed, Jul 02, 2008
Parliament Wednesday passed a censure motion against finance minister Amos Kimunya and demanded his immediate resignation over the controversial sale of the Grand Regency hotel.
During the motion moved by Ikolomani MP Dr. Boni Khalwale, members of parliament also accused the finance minister of disregarding the provisions of the privatization act in the sale of Safaricom shares.
In his defence, Kimunya said he had acted in good faith to protect the interests of Kenyans and that the procedure followed during the sale was above board.
Khalwale said the Finance minister had disregarded all laid down laws of the republic in conducting privatization of public assets.
According to Khalwale, there were more questions than answers in the privatization of Telkom, Safaricom and the currency printing contract with De la Rue Company and accused the minister of being a wheeler-dealer at Treasury.
Kimunya was also accused by Khalwale of disregarding the advice of the parliament and his fellow cabinet colleagues.
Foreign Affairs minister Moses Wetangula was also associated with a law firm that represented Centarl Bank, Kamlesh Pattni and the Libyan company that is purported to have purchased the Grand Regency Hotel.
Leader of government business Kalonzo Musyoka sought in vain to postpone the debate to Thursday saying the government needed time to prepare volumes of information in defence against Khalwale’s accusations.
The Prime minister was also mentioned in parliament with Central Imenti MP Gitobu Imanyara saying he had been summoned by Raila Odinga and urged to defer the motion till Thursday.
Supporting Khalwale MPS urged Kimunya to step aside and allow investigations to determine if he should retain his job.
In his defence Kimunya maintained that he was clean.
The passing of the censure motion does not automatically strip Kimunya of the finance portfolio.
He is still the finance minister unless he resigns on his own volition or is fired by the president.
But going by Tuesday’s precedent, MPs are likely to pile pressure for his resignation by blocking motions by the finance ministry.
Similar motions have been debated against two former vice presidents, the late Dr. Josephat Karanja and Prof. George Saitoti. The latter survived the onslaught but Dr. Karanja bowed out.
Date: Wed, 2 Jul 2008 16:05:05 -0700 (PDT)
From: Judy Miriga
Subject: Resign, MPs tell Kimunya over sale
Folks,
This 10th Kenyan Parliament when it comes to business on fire in the house, jokes aside. They claim that Government had suffered a confidence crisis; Kimunya got lambasted by angry Members, although he put up a spirited defense. Khalwale moved the motion, and in 20-minutes stinging address, condemned Kimunya sarcastically as the “Prince of Impunity” Wow!!!!
I think, in my opinion they displayed seriousness at the business, because they were working to ensure justice is done.
Follow the story……. and thank you all.
Judy Miriga
USA
Resign, MPs tell Kimunya over sale
Published on July 3, 2008, 12:00 am
By Standard Team
The Grand Regency saga went to the floor of Parliament as furious members censured Mr Amos Kimunya over the sale of the hotel even as he put up a spirited defense of his actions.
By adopting the censure motion, Parliament was asking that either the Finance Minister resigns or the President picks the cue and fires him.
However, the President is not under obligation to go by Parliament’s decision.
Wednesday’s debate was quite animated as Kimunya sought to convince members that the transaction was above board and that he had no interest in the transaction.
Kimunya said the hotel sale deal was never done in secret as has been alleged and was categorical in saying that Attorney General Amos Wako was in the picture and had met the lawyers doing the transaction “not less than six times.”
But the Attorney General, speaking on the telephone to The standard last evening, insisted that he had not been given any official brief on the matter and accused Kimunya of trying to pull him into his troubles.
“When a man is drowning, he clutches at any straw,” he said.
Raila has findings
Attempts by the Government, led by the Leader of government business and the Vice President Kalonzo Musyoka to postpone the censure motion were frustrated on the floor of the house to allow the members ventilate their anger on the minister.
The Grand Regency Hotel in Nairobi. The controversial sale of the hotel has put Finance Minister Amos Kimunya on the spot with MPs and a cross section of leaders calling for his resignation. Picture by Boniface OkendoAlthough the motion to censure Kimunya is not enforceable under the law, its adoption by the house leaves the minister in an awkward position in his future business transactions in the house and technically put the budget proposals at stake.
Kimunya’s censure came on a day that the five-member team that was named to investigate the controversial sale of the hotel presented their findings to Prime Minister Raila Odinga and a day before a full cabinet meeting that will be chaired by President Kibaki.
The probe team was to find out whether there was a breach of any law when Central Bank sold the prestigious hotel at Sh2.9 billion.
The Cabinet meeting Thursday morning is likely to be tense even as ministers from the coalition parties look forward to seeing the recommendations of the probe team.
During the daylong meeting, members of the probe team had to variously consult with both Kibaki and Raila.
Tension remained high during the entire probe exercise as the team, comprising Wako, ministers James Orengo, Mr Mutula Kilonzo, Kenya Anti-corruption Commission Director Mr Aaron Ringera, and Mr Caroli Omondi identified the wrongs and rights committed in the transaction.
A source said a powerful minister who should have been in the technical team opted out and was not included in the list named by Raila.
His conduct questionable
Sources privy to the meetings said the Government had suffered a confidence crisis and remedial measures needed to be taken.
One of the resolutions of the probe team is an independent team of valuer must now urgently get the right value of the hotel
In Parliament, Kimunya lambasted by angry Members even as he defended himself that he had acted above board in the sale.
The censure motion against the minister was moved by Ikolomani MP Boni Khalwale. The motion read:
“That, being deeply concerned with the conduct of the Minister for Finance in the manner he has handled the sale of Hotel Grand Regency; the Initial Public Offer for Safaricom in total disregard of the provisions of the Public Procurement and Disposal Act and related regulations governing sale and disposal of public property; and non adherence of the provisions of the Privatisation Act in the sale of Safaricom shares; this House censures the minister and resolves it has no confidence in him and demands his immediate resignation”.
Vice President Kalonzo Musyoka twice unsuccessfully tried to block the motion, pending the outcome of the probe by a Cabinet sub-committee.
He sought to have the motion deferred to this afternoon to allow the probe team chaired by Attorney General Amos Wako to conclude its work.
But Members protested that the House could not be held hostage by ad hoc committees outside Parliament.
Kalonzo said this would allow members an opportunity to interrogate its findings “so that if we have to crucify the minister we can do so with the benefit of facts.”
But the VP ran into trouble when he said that Raila had spoken to Imenti Central MP Gitobu Imanyara — who was on the Chair on Tuesday when notice for the censure motion was given — to defer it.
Imanyara rose on a point of order and denied that any such agreement was reached between him and Raila.
Imanyara clarified that he had protested to the PM that it was unconstitutional for the executive to arm twist Parliament.
“The PM agreed he couldn’t summon the Chair on matters pending before the House. It is therefore not true that the PM requested the motion to be deferred,” asserted Imanyara.
At this point deputy Speaker Maalim Mohammed declined Kalonzo’s request to shelve the motion, saying: “the Chair was not going to exercise discretion to distort the tradition of House.”
Rogue minister
Khalwale took to the floor at 4pm and delivered a 20-minute stinging address in which he roundly condemned the minister whom he (Khalwale) sarcastically crowned the “Prince of Impunity.”
The chairman of Public Accounts Committee listed a catalogue of ills allegedly committed by the minister including the controversial sale of the Grand Regency, privatization of Telkom and Safaricom in disregard of the Public Procurement and Disposal Act.
Khalwale also accused Kimunya of complicity in a questionable multi-billion shillings money-printing deal awarded to De La Rue, arrogance demonstrated by his disrespect for fellow Cabinet members and misleading the House.
“I beg MPs to support this motion and send the not so honourable Kimunya packing like the Ninth Parliament did with (David) Mwiraria,” Khalwale remarked referring to Kimunya’s predecessor who was forced to step aside in the wake of the Anglo Leasing saga.
The MP said time was of essence because there was the need to “contain a rogue finance minister who like a leopard has broken into the sheep’s pen and is currently mauling them.”
The remark prompted Maalim to caution against the use of unparliamentary language and appealed to members to exercise “decorum and dignity.”
Khalwale claimed the minister had hoodwinked Kenyans into buying a stake in Safaricom, the most profitable company in East Africa, during the recent Initial Public Offer without informing them the firm had a Sh68 billion liability.
He said it was ironical for the minister to claim success of the IPO by paying off debts incurred by the Kenya Post and Telecommunications Company through funds raised by investors while those who had plundered the State firm were enjoying their ill-gotten wealth.
Khalwale said by allowing two foreign firms — Alcazar and Mobitelea — to own a substantial stake of the telecommunications firm, the minister had compromised Kenya’s security since the vital sector was in the hands of foreigners.
On top of this, added the MP, the minister had sold the Grand Regency “for a song for only Sh1.8 billion”.
In doing so, the minister had kept the AG and Planning minister in the dark, Khalwale said.
The MP launched a scathing attack on Kimunya over the $51 million (Sh3.2 billion) money printing deal, which he claimed had cost two Central Bank officials their jobs for raising a red flag.
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sbj: Kimunya, Sale, MP reactions;