Background
The Grand Regency hotel played a minor part in the Goldenberg Scandal, one of the largest corruption scandals uncovered in Kenya (See article: Corruption in Kenya.) Goldenberg involved the trans-shipment of large quantities of gold through Kenya, with a 35% subsidy paid to the Goldenberg company by the Government of Kenya. Much of the gold was smuggled out of the Democratic Republic of the Congo, site of a civil war. It is estimated the earlier scandal cost the country around 10% of one years' GDP, and many of the country's current leaders have been implicated.
Kamlesh Pattni, a central figure in the Goldenberg investigations and a founder of the Goldenberg company, reportedly used proceeds from the Goldenberg scandal to build the Grand Regency. In addition to the questionable source of the funds, Pattni acquired the lands from the Central Bank of Kenya in highly suspicious circumstances. Under a law passed in 2002 offering amnesty to those who return proceeds of corruption, Pattni negotiated immunity from prosecution for his role in Goldenberg in exchange for the transfer of the Grand Regency to the Central Bank of Kenya.
Read more about this topic: Grand Regency Scandal
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