Kenyan Finance Minister Continues to Defy Calls to Step Down

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04 July 2008

Kenya's finance minister continues to resist calls by lawmakers to stepdown over his role in the government's controversial sale of a Nairobiluxury hotel. As Derek Kilner reports for VOA from the Kenyan capital,the affair could represent the steepest challenge to date for thecountry's new coalition government.

A governmentcommittee appointed by Prime Minister Raila Odinga and headed byAttorney General Amos Wako produced a report this week calling onKimunya to step down, along with the central bank governor, the head ofthe National Security Intelligence Service and the head of the KenyaAnti-Corruption Commission. The committee called the deal "false,fraudulent" and "designed to deceive."

Kenya's parliament hasalso passed a vote of no-confidence in Mr. Kimunya. Parliament lacksthe power to remove a minister from office, but the body has stoppedhearing any business related to the Finance Ministry, a move that couldparalyze government operations if it continues.

Mr. Kimunya, aclose ally of President Mwai Kibaki continues to deny any wrongdoing,saying his hands are "totally clean." He claims Mr. Odinga, Mr. Wako,and Lands Minister James Orengo, among others, were aware of the dealbefore it took place. And he says many lawmakers are simply acting outof resentment over the finance minister's separate efforts to tax theirsalaries.

Mr. Kimunya had denied reports of the hotel's saleuntil Mr. Orengo exposed the deal last week. Mr. Orengo is a key memberof Mr. Odinga's Orange Democratic Movement, the former opposition partywhich is now sharing power with President Kibaki's supporters in acoalition government, following December's disputed presidentialelections.  

Mr. Kimunya has received little public backing fromhis traditional allies in the president's party. Attorney General Wako,Justice Minister Martha Karua, and other key politicians from Mr.Kimunya's home region of Central Province have criticized the FinanceMinister.

On Friday, however, Deputy Prime Minister Uhuru Kenyatta, another Kibaki ally, came to Mr. Kimunya's defense.

"Iwould like and I would have wanted to believe that acting in the bestinterests of Kenyans we would have wanted to know what are all thefacts surrounding this particular saga and situation," he said. "IfKimunya or anybody else is involved, where is the evidence that isconcrete so that we are providing and saying this man must not only bedismissed but he must go to jail because we have evidence A, B, C, D."

PresidentKibaki himself has been silent on the issue, in marked contrast to hispartner in the coalition government, Mr. Odinga. Mr. Namwamba, a memberof Mr. Odinga's party, says that if the president fails to take actionsoon, and is seen as protecting Mr. Kimunya, then more of thepresident's allies may be pressured fall into line, risking divisionsin the coalition government.

"If the president and Kimunya digin, then the differences will start to emerge," he said. "During debateof the censure motion you saw a fairly united house and you saw leadersacross the political divide closing ranks on this issue. But if theposition of the president comes under threat, his people, as it were,are most likely to close ranks and that will expose the cracks,definitely."

The public accusations within the Cabinet, particularly between Mr. Orengo and Mr. Kimunya as well as the factthat the bulk of the country's key ministers, claim to have been kept inthe dark about the deal, have also raised questions about the coherenceof the new coalition.