Kibaki, Raila approved prime land sale to Bharti

Wednesday, 25 May 2011 00:09 BY ISAAC ONGIRI

TOP DECISIONS: President Kibaki chats with Ethiopian PM Meles Zenawi during a meeting held in Addis Ababa.

PRESIDENT Kibaki and Prime Minister Raila Odinga authorized the sale of a prime property valued at Sh543 million belonging to Postal Corporation of Kenya to Bharti Airtel and the IBM.
Information minister Samuel Poghisio told Parliament that the two endorsed the transfer of the land to the two international investors who want to construct their regional headquarters on the plot.
The companies first wrote to President Kibaki seeking to be allocated land for their investment which they say will create over 2,000 direct jobs. Bharti, who owns Airtel, is the second largest mobile telephone network in Kenya after Safaricom.
The plot in Kilimani, Nairobi, had been lying idle and the minister said that the proceeds from the sales will be used by the broke PCK to meet its obligations. “Yes, the government intends to dispose off parcel of  land owned by the PCK situated in Kilimani in Nairobi to M/S Bharti/IBM companies to build their headquarters for African operations,” Poghisio said.
He was responding to a question asked by Gwasi MP John Mbadi who wanted to know whether the government was planning to dispose of the land.
But Poghisio aroused suspicions from MPs who demanded to know why the disposal of the land was not being done through open tender as required by the law. “This land is valued at over Sh500 million, to dispose it the government procedures should be followed, was there an open tender for he sales,” Mbadi asked.
But Pogisio insisted that all the procedures have been followed so far and that the government was waiting for the investors to respond. “I am also alive to the fact that it is government policy to attract foreign investment into the country,” he said.
The minister said that PCK board, the Treasury and the ministry of Land have both endorsed the sales and said it was being done in compliance with the law,” the minister told the house. But South Mugirango MP Manson Nyamweya expressed fears in the planned sale of the land.
He warned of mischief after the minister confirmed that the Public Procurement Oversight Authority had not been involved.