'Corrupt' Kenyan MP told to quit

2008-07-03 11:13

Nairobi - A Kenyan government report into the controversial sale of a luxury Nairobi hotel has recommended that 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 late on Wednesday against Finance Minister Amos Kimunya.

The report recommended 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.

Cabinet was due to meet on Thursday to discuss the fast-moving controversy over the sale of the Grand Regency hotel to a group of investors including Libyans.

Anti-graft watchdogs and various ministers had slammed the deal as the latest example of high-level corruption in east Africa's largest economy. The dispute had deepened tensions in factions of Kenya's already fragile coalition government.

Kimunya, who said the hotel went for 2.9 billion shillings ($45m) last week, told parliament on Wednesday that "my hands are totally clean". But critics said he sold the government asset in secret at a knockdown price.

Despite the no-confidence vote, it would be solely up to President Mwai Kibaki to decide whether Kimunya, a strong ally, stays in office. Kimunya had run the finance ministry since 2006.

- Reuters