Kenyan finance minister to be axed

NAIROBI – A Kenyan government report into the secretive sale of a luxury Nairobi hotel has recommended the finance minister and central bank governor step down to allow a full investigation into the “fraudulent” transaction.

The report, from a five-member team led by Attorney General Amos Wako, followed a no-confidence vote by Kenya’s parliament against Finance Minister Amos Kimunya. Anti-graft watchdogs and some ministers have slammed the sale of the Grand Regency to a group of investors, including Kenyans and Libyans, as the latest example of high-level corruption in east Africa’s largest economy.The dispute has also deepened tensions in factions of Kenya’s already fragile coalition government, trying to keep the peace after a bloody post-election dispute earlier this year.Prime Minister Raila Odinga called ministers of the cabinet’s finance committee together yesterday to further discuss the fast-moving controversy that is filling Kenya’s front pages and provoking outrage among its people.Odinga said he had no indication Kimunya was on the verge of resigning.”He remains minister until otherwise announced.”The prime minister added, however, that the government would deal “very, very effectively” with any cases of misuse of public funds.”Any kind of breach is not going to be tolerated.”Kimunya, who said the hotel went for US$45 million (2,9 billion shillings) last week, told parliament on Wednesday “my hands are totally clean”.But critics say he sold the government asset in secret at a knockdown price.Analysts have estimated the value of the multi-storey hotel in downtown Nairobi at around 4.5-6.0 billon shillings.”The uproar is not necessarily about Grand Regency.It is about the integrity of public office holders,” Kenya’s leading financial newspaper Business Daily said.”Secrecy and arrogance do not pay.”Despite the no-confidence vote, it will be up to President Mwai Kibaki to decide whether his minister stays in office.Nampa-ReutersAnti-graft watchdogs and some ministers have slammed the sale of the Grand Regency to a group of investors, including Kenyans and Libyans, as the latest example of high-level corruption in east Africa’s largest economy.The dispute has also deepened tensions in factions of Kenya’s already fragile coalition government, trying to keep the peace after a bloody post-election dispute earlier this year.Prime Minister Raila Odinga called ministers of the cabinet’s finance committee together yesterday to further discuss the fast-moving controversy that is filling Kenya’s front pages and provoking outrage among its people.Odinga said he had no indication Kimunya was on the verge of resigning.”He remains minister until otherwise announced.”The prime minister added, however, that the government would deal “very, very effectively” with any cases of misuse of public funds.”Any kind of breach is not going to be tolerated.”Kimunya, who said the hotel went for US$45 million (2,9 billion shillings) last week, told parliament on Wednesday “my hands are totally clean”.But critics say he sold the government asset in secret at a knockdown price.Analysts have estimated the value of the multi-storey hotel in downtown Nairobi at around 4.5-6.0 billon shillings.”The uproar is not necessarily about Grand Regency.It is about the integrity of public office holders,” Kenya’s leading financial newspaper Business Daily said.”Secrecy and arrogance do not pay.”Despite the no-confidence vote, it will be up to President Mwai Kibaki to decide whether his minister stays in office.Nampa-Reuters