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{
    "id": 104325,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/104325/?format=api",
    "text_counter": 350,
    "type": "speech",
    "speaker_name": "Mr. Orengo",
    "speaker_title": "",
    "speaker": {
        "id": 129,
        "legal_name": "Aggrey James Orengo",
        "slug": "james-orengo"
    },
    "content": "Mr. Deputy Speaker, Sir, in September, 2007, NIC approached the Government with a request that the interest on the rent be waived and the remaining term of the lease be extended for 15 years. This request was granted, wherein in the interest of the general public and protection of depositors’ funds and in agreement approved by the Attorney-General and Treasury, the remaining term of the lease was extended by five years and NIC was allowed to pay only the principal land rent amounting to Kshs92,400,000. This is what enabled the NIC on 4th September, 2008 to use the chargee’s statutory power of sale to transfer the land to Galaxy Walker Limited for Kshs155 million which was freed and discharged from all encumbrances. So, the first point to note is that the Government did not sell or allocate. It is the NIC which exercised its statutory power of sale. Mr. Deputy Speaker, Sir, the new owner of the property, however, requested the Government to extend the remaining term of lease, which was seven years and three months, with effect from 1st August, 2008 to 99 years, to enable them recoup the intended investment. They also requested for change of user from casino to commercial hotel and residential apartments. The Government approved the extension of lease for a further 50 years and change of user as requested at a reduced rent of Kshs1.6 million per year. After payment of the required fees, a grant with the extended term and new user was issued and registered in favour of Galaxy Walker Limited on 27th November, 2008. The approval was granted subject to the following conditions. (a) Advance copies of the building plans must be submitted to the Commissioner of Lands for due diligence and determination of whether the proposed development is consumerate with the status of the land. Mr. Deputy Speaker, Sir, the conditions of the grant are there and so, I do not want to take a long time on it. However, instead of commencing with the envisaged development as indicated in the application for extension of lease and change of user, Galaxy Limited transferred the land to Azarel Investment at a consideration of Kshs205 million. Considering the circumstances under which the extension of lease and change of user was considered and granted by the Government, the reduction of the rent and disposal of land by Galaxy Walker Limited to Azarel Investment Limited within a period of less than four months, the transaction was clearly tainted with dishonesty and fraud. It is for that reason that when this matter came to my attention on 16th June, 2009, I directed that a caveat be placed on the title with a view of revoking the lease. Presently, there is no evidence that the guarantees have the financial capability to develop the land. They have not submitted approved plans to Nairobi City Council and those made"
}