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Z’bar govt in public property lease scam - 2011-01-17

THE GUARDIAN, January 17, 2011

Zanzibar government has contravened laid down procedures in leasing out two of its Forodhani Beach buildings and a garden to a hotel group for 99 years, it has been confirmed.

Government sources told The Guardian the hotel group, Kempinski signed an agreement with the Isles government in October last year and paid $1.5m, equivalent to 2.1bn/-, an amount said to be a throw-away price for the prime area.

Efforts to speak to the hotel management proved futile. However, sources said the hotel is planning to construct a five star hotel at the site.

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