Kenya 'fraud' minister told to go

Kenya's Finance Minister Amos Kimunya and other officials should be suspended over alleged fraud, says a government inquiry led by the attorney general.

The reports covers the sale of a luxury Nairobi hotel, which was allegedly sold for a third of its value.

On Wednesday night, parliament passed a vote of no confidence in the finance minister and urged him to resign.

Mr Kimunya, a close ally of President Mwai Kibaki, has denied any wrong-doing in the sale of the Grand Regency hotel.

The hotel's sale to a local company with Libyan interests, has led to renewed pressure on Kenya's power-sharing government, set up after violent clashes over disputed elections earlier this year.

Prime Minister Raila Odinga, who says he was cheated of victory, has led the investigations.

"My hands are totally clean on this transaction," Mr Kimunya told members of parliament during the debate on Wednesday.

Corruption

On Tuesday, Prime Minister Raila Odinga set up a committee headed by Attorney General Amos Wako to investigate the sale, saying no-one - not even himself or the president - would be spared if there was evidence of fraud in the deal.

The committee also called for the Central Bank governor and the head of the National Security Intelligence Service to step down.

They have also denied any wrong-doing.

It said the sale of the hotel was ""false, fraudulent and designed to deceive", and should be revoked.

The hotel was allegedly sold for about $45 million instead of its recorded valued of $115 million.

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

The Grand Regency was recovered from Kamlesh Pattni, the man behind the Goldenberg scandal, in which the government compensated him millions of dollars in a fake gold export scheme.

He surrendered his interest in the hotel, he claims, in exchange for amnesty in connection with outstanding corruption charges against him.