Kenyan finance minister quits over corruption allegations

Africa News

Jul 8, 2008, 18:15 GMT

Nairobi - Kenya's Finance Minister Amos Kimunya resigned Tuesday over claims of corruption involving the sale of a luxury hotel in Nairobi to Libyan investors. A report last week by the attorney general recommended that Kimunya, of President Mwai Kibaki's Party of National Unity (PNU), quit while the sale was probed. Members of parliament (MPs) also passed a motion of no confidence against him. Even as he announced his resignation, Kimunya maintained his innocence, saying he had simply asked his ally Kibaki to let him stand aside while the sale was investigated. Government spokesman Alfred Mutua said the move was only temporary and that the minister would not be replaced, the BBC reported. While MPs were almost unanimous in condemning Kimunya, he was not legally obliged to resign and could only be removed by Kibaki. Prime Minister Raila Odinga welcomed Kimunya's resignation and warned that all people involved in corruption would be brought to account. 'This government will not condone any kind of act of corruption,' Odinga told parliament after the resignation. 'From the president, the prime minister, down to assistant ministers in the government, nobody is indispensable.' The issue is the latest problem for Kenya's grand coalition government, which was formed this year to end months of brutal violence following the disputed December presidential elections. Odinga, who claimed that Kibaki stole the election from him, was appointed prime minister as part of the deal. Odinga's Orange Democratic Movement (ODM) and the PNU have been at loggerheads over several issues, including an amnesty for youths awaiting trial for their part in post-election violence. Kenya's Central Bank sold the Grand Regency Hotel for 2.1 billion Kenyan shillings (44.4 million dollars), but members of parliament claim the true value was closer to 7 billion shillings. Kimunya said that there was only one bidder and the higher valuation was inaccurate. However, the fact that no attempts were made to attract other bidders and thus push up the price has also drawn fire. Kenya and Libya last year signed a trade pact giving Libya a head start on investing in Kenya after a meeting between Kibaki and Libyan leader Moamer Gaddafi. Lands Minister James Orengo, a member of the ODM, has said he wants to revoke the sale, which his ministry apparently pushed through without his knowledge. Corruption is considered rife in Kenya, and both ordinary Kenyans and international donors have welcomed the vigorous response against Kimunya. The Grand Regency is also part of an earlier corruption scandal, in which the government paid businessmen Kamlesh Pattni millions of dollars in a gold export scheme that turned out to be a scam. Pattni gave the hotel to the Central Bank, allegedly in return for an amnesty for corruption charges related to the scandal.

View blog reactions

If you liked this story please support M&C and Buzz the site on Yahoo.

Latest Headlines in Africa

Talkback

There are currently no comments for this article. Be the first to comment! (no registration required)

Latest from M&C Blogs

Debate: did McCain do enough? - Global Eye on September 29, 2008 6:46 AM | Permalink | Comments (20) | TrackBacks (1)

Should Sen. John McCain's health records be made public? - Global Eye on September 15, 2008 8:39 AM | Permalink | Comments (49) | TrackBacks (0)

Propaganda and the campaign for president - Global Eye on September 9, 2008 7:12 AM | Permalink | Comments (10) | TrackBacks (0)

London Film Festival - Dean Spanley - London Calling on October 6, 2008 9:38 AM | Permalink | Comments (0) | TrackBacks (0)

Raindance Film Festival: Gardens Of The Night - London Calling on October 6, 2008 9:21 AM | Permalink | Comments (4) | TrackBacks (0)

London Film Festival - IL DIVO Review - London Calling on October 1, 2008 3:46 PM | Permalink | Comments (0) | TrackBacks (0)

Bugatti Veyron 16.4 Grand Sport - The World in Pictures on October 2, 2008 4:15 PM | Permalink | Comments (0) | TrackBacks (0)

Devotee to Chinese Shrine of Sapam has face pierced - The World in Pictures on October 2, 2008 4:13 PM | Permalink | Comments (0) | TrackBacks (0)

Indian Muslims offer prayers on the occasion of Eid-al-Fitr - The World in Pictures on October 2, 2008 4:11 PM | Permalink | Comments (1) | TrackBacks (0)

Africa

Kenyan finance minister quits over corruption allegations

Africa News

Latest Headlines in Africa

Talkback

Latest from M&C Blogs

Similar articles

In Monsters and Critics

Corporate

The Fine Print