KENYA: Kenya's finance minister under pressure to go

Record ID: 361793

  • Title: KENYA: Kenya's finance minister under pressure to go
  • Date: 3rd July 2008
  • Summary: (BN10) NAIROBI, KENYA (JULY 3, 2008) (REUTERS) KENYA'S PRIME MINISTER RAILA ODINGA WALKING INTO THE CONFERENCE HALL JOURNALISTS WAITING FOR NEWS CONFERENCE TO START (SOUNDBITE) (English) KENYA'S PRIME MINISTER, RAILA ODINGA, SAYING: "We are going to be dealing very very effectively with issues of misappropriation of public funds, issues of indiscretion, issues of wastage,
  • Embargoed: 18th July 2008 13:00
  • Keywords:
  • Location: Kenya
  • Country: Kenya
  • Topics: Domestic Politics
  • Reuters ID: LVADLJI8Q8M6MROX88E1UZFD0R23
  • Story Text: Embattled Kenyan finance minister is under pressure to resign over the controversial sale of a government-owned hotel that critics say went for a knockdown price in a secret transaction 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.
    The 41-member cabinet is Kenya's largest and costliest.
    Prime Minister Raila Odinga called ministers of the cabinet's finance committee together on Thursday (July 3) to further discuss the fast-moving controversy that is filling Kenya's front pages and provoking outrage among its people.

    "We are going to be dealing very very effectively with issues of misappropriation of public funds, issues of indiscretion, issues of wastage, in efficiency and so on which are part of the mandate of this office," he said Odinga said he had no indication Kimunya was on the verge of resigning.

    "He remains as minister for finance until otherwise announced that is until he resigns or he is relieved off his responsibilities by the president," he added.
    The Wako-led report recommended that Kimunya and Central Bank Governor Njuguna Ndung'u step down over a deal that was "false, fraudulent and designed to deceive," according to a version read to Reuters by an aide to the team.
    Kimunya, who said the hotel went for 2.9 billion shillings (45 million U.S dollars) 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 billion shillings.
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