afrol News, 8 July - Kenyan Finance Minister has resigned from coalition government today, amid investigation into controversial sale of state owned five star hotel in the country’s capital, Nairobi.

Minister Amos Kimunya is accused of breaking laws that govern sale of state owned assets by not advertising the sale of the Nairobi-based Grand Regency Hotel and failing to announce it had been sold earlier this year. His resignation comes after a vote of no confidence in the Kenyan parliament.

Mr Kimunya told reporters in Kenya that he was stepping aside to allow an inquiry into his involvement in the controversial sale of Grand Regency hotel last month, saying he was open to an independent inquiry to prove his innocence.

"I have requested his Excellency the president to be allowed to step aside to facilitate this inquiry. I have had several conversations with the president on the issue of the disposal of the Grand Regency hotel. As I have indicated before, my conscience is very clear on the role of the treasury and specifically myself in this matter," he said.

Mr Kimunya who for two weeks denied selling the hotel, he eventually 27 June admitted that the hotel had been sold. The establishment was secretly acquired from leaked government documents that the hotel was sold for US$28m, but Mr Kimunya says a price of US$45m was agreed for the sale.

Over the weekend, Mr Kimunya had said he would only step down over controversial sale if three other top government officials, including Prime Minister Raila Odinga, did the same.

Mr Odinga, Lands Minister Mr James Orengo and Attorney General Mr Amos Wako have denied any wrongdoing in the sale of the hotel, with Mr Orengo threatening to sue Mr Kimunya and Mr Odinga over the sale.

Libyan officials say the sale was conducted with the knowledge of the Kenyan government but some cabinet ministers have dismissed that claim, saying the hotel was secured on corrupt grounds.

The controversy over the sale of the hotel has split the coalition cabinet into two factions, threatening stability of a unity government which was formed to end weeks of violence following Kenya's presidential election.

At the same time, police have beat up and arrested a group of activists who were meeting to plan protests against Mr Kimunya’s handling of the Grand Regency 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.

Mr Kimunya is an ally of President Kibaki, who remained president after the general election despite claims by Mr Raila Odinga, his opponent, that he had rigged the vote.

The dispute over the presidency sparked ethnic violence that left at least 1,500 people dead and displaced hundreds of thousands. Kibaki remained in his post in a power-sharing deal, while Odinga was made prime minister.

In 2006, two ministers stepped aside after being linked to a corruption scandal known as "Anglo-Leasing", but were later reinstated by Kibaki.

In the past, donors have accused Mr Kibaki of failing to keep promises to tackle the rampant corruption in Kenya.

By staff writer

© afrol News

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