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Hotel saga reveals Kenya cracks Hotel saga reveals Kenya cracks
(about 2 hours later)
By Noel Mwakugu BBC, News Nairobi By Noel Mwakugu BBC News, Nairobi
The hotel deal could endanger Kenya's power-sharing governmentThe hotel deal could endanger Kenya's power-sharing government
It took Kenya's Finance Minister Amos Kimunya six days to finally wake up and smell the coffee.It took Kenya's Finance Minister Amos Kimunya six days to finally wake up and smell the coffee.
In the end, the minister, a key ally of President Mwai Kibaki, agreed to hand in his resignation over the controversial sale of a luxury hotel and allow an independent investigation into his conduct.In the end, the minister, a key ally of President Mwai Kibaki, agreed to hand in his resignation over the controversial sale of a luxury hotel and allow an independent investigation into his conduct.
But the saga over the Grand Regency Hotel, sold to Libyan investors for $45m (£24.5m), has left a bad taste in many Kenyans' mouths.But the saga over the Grand Regency Hotel, sold to Libyan investors for $45m (£24.5m), has left a bad taste in many Kenyans' mouths.
Many wonder if the new coalition government, set up after the bloody aftermath of disputed polls, will be any different to its predecessors when it comes to tackling graft.Many wonder if the new coalition government, set up after the bloody aftermath of disputed polls, will be any different to its predecessors when it comes to tackling graft.
It has also revealed coalition cracks that may further splinter the fragile administration.It has also revealed coalition cracks that may further splinter the fragile administration.
No-one in this government is indispensable Prime Minister Raila OdingaNo-one in this government is indispensable Prime Minister Raila Odinga
Meanwhile questions linger about how independent the government-sponsored probe into the affair will be.Meanwhile questions linger about how independent the government-sponsored probe into the affair will be.
In his inaugural speech, Prime Minister Raila Odinga, Mr Kibaki's rival in December's presidential vote, said his coalition cabinet would usher in a new era of governance in Kenya.In his inaugural speech, Prime Minister Raila Odinga, Mr Kibaki's rival in December's presidential vote, said his coalition cabinet would usher in a new era of governance in Kenya.
"No-one in this government is indispensable, right from the president to clerks in the civil service," he told parliament in response to the hotel affair."No-one in this government is indispensable, right from the president to clerks in the civil service," he told parliament in response to the hotel affair.
DefianceDefiance
But the events surrounding the secret sale of the Nairobi luxury hotel to an investment company run by the Libyan government have cast doubt on Kenya's commitment to transparent governance, especially among development partners and investors.But the events surrounding the secret sale of the Nairobi luxury hotel to an investment company run by the Libyan government have cast doubt on Kenya's commitment to transparent governance, especially among development partners and investors.
Amos Kimunya says that "his hands are clean"Amos Kimunya says that "his hands are clean"
Mr Kimunya's defiance, even after parliament passed a vote of no confidence, showed he was drawing strength from a formidable political quarter.Mr Kimunya's defiance, even after parliament passed a vote of no confidence, showed he was drawing strength from a formidable political quarter.
Given his association with Mr Kibaki, who has characteristically remained silent on the controversy, political pundits argue he had presidential backing.Given his association with Mr Kibaki, who has characteristically remained silent on the controversy, political pundits argue he had presidential backing.
They suggest the Libyans expressed an interest in the hotel last year when President Kibaki was the guest of his Libyan counterpart, Muammar Gaddafi.They suggest the Libyans expressed an interest in the hotel last year when President Kibaki was the guest of his Libyan counterpart, Muammar Gaddafi.
So, many are asking, if the president was aware of the deal, did he give instructions to Mr Kimunya to seal it without following the public procurement laws that required that the sale be opened for a bids from all interested parties? So, many are asking, if the president was aware of the deal, did he give instructions to Mr Kimunya to seal it without following the public procurement laws that required that the sale be opened for bids from all interested parties?
Mr Kimunya insists that all the relevant people were properly briefed on the sale and has demanded that Mr Odinga and the attorney general, among other senior government officials, also step aside for the investigation.Mr Kimunya insists that all the relevant people were properly briefed on the sale and has demanded that Mr Odinga and the attorney general, among other senior government officials, also step aside for the investigation.
But if past experience is anything to go by, Mr Kimunya has little to worry about.But if past experience is anything to go by, Mr Kimunya has little to worry about.
Other inquiries set up by the government, despite implicating top officials and influential figures, have not punished a single person for their alleged misdeeds.Other inquiries set up by the government, despite implicating top officials and influential figures, have not punished a single person for their alleged misdeeds.
One litmus test on the new dawn of political accountability will be whether Mr Odinga and Mr Kibaki appear before the inquiry.One litmus test on the new dawn of political accountability will be whether Mr Odinga and Mr Kibaki appear before the inquiry.
Political survivalPolitical survival
The way both leaders handle the affair will also be a sign of how the grand coalition government, made up of members of the president's Party of National Unity (PNU) and Mr Odinga's Orange Democratic Movement (ODM), is actually functioning.The way both leaders handle the affair will also be a sign of how the grand coalition government, made up of members of the president's Party of National Unity (PNU) and Mr Odinga's Orange Democratic Movement (ODM), is actually functioning.
A power-sharing government was set up after violent clashesA power-sharing government was set up after violent clashes
At the moment it seems as if the left hand does not know what the right is doing.At the moment it seems as if the left hand does not know what the right is doing.
The likelihood, however, is that both men will use the saga to their advantage.The likelihood, however, is that both men will use the saga to their advantage.
Mr Odinga still has his eyes set on the ultimate political prize - the presidency - which he still believes was stolen from him in December.Mr Odinga still has his eyes set on the ultimate political prize - the presidency - which he still believes was stolen from him in December.
He is likely to push for the recommendations of the inquiry to be implemented - selling himself as someone who deals firmly with corruption.He is likely to push for the recommendations of the inquiry to be implemented - selling himself as someone who deals firmly with corruption.
President Kibaki, for his part, may not be intending to stay in power beyond 2012, but he wants to safeguard his legacy.President Kibaki, for his part, may not be intending to stay in power beyond 2012, but he wants to safeguard his legacy.
If he does take action on the inquiry, he will win accolades from anti-corruption campaigners.If he does take action on the inquiry, he will win accolades from anti-corruption campaigners.
But if he does not want to potentially lose a trusted lieutenant, he could still brush the affair under the carpet without losing face as he has a trump card - the Kikuyu community.But if he does not want to potentially lose a trusted lieutenant, he could still brush the affair under the carpet without losing face as he has a trump card - the Kikuyu community.
Mr Odinga would need the large Kikuyu vote to make it to State House, something Mr Kibaki could give him.Mr Odinga would need the large Kikuyu vote to make it to State House, something Mr Kibaki could give him.
The two men could make a pact and the controversial luxury hotel sale would be forgotten.The two men could make a pact and the controversial luxury hotel sale would be forgotten.
After all, the Central Bank of Kenya argues that the $45m price tag was not in fact a loss.After all, the Central Bank of Kenya argues that the $45m price tag was not in fact a loss.