Thursday 9 August 2012

[wanabidii] Ted Odero for Dhiwa......Responsibility with Integrity is our goal.



 

People,

 

I love you all sincerely........but more importantly, I am passionate that we must have a Government that works for everybody without discrimination, corruption, graft or impunity. These are elements that create greed, hate, jealousy, selfishness and joblessness. Government too cannot be shut down. If it is shut down, how will peoples' interest be taken care of. Who will provide for discipline to regulate and put in checks bad and corrupt behaviors??? How will fairness be measured or guaranteed??? While Private Businesses create jobs, Government too creates jobs. The Government requires responsible leaders to dialogue in a bi-partisan manner to move progressive development agenda forward. Management of a Government service is not about offering services to Business community alone, but it is a body whose system facilitates peoples needs in a shared balanced fashion....where, all must have an opportunity to satisfy needs in a balanced way......so, all must sacrifice in one way or the other to make Government services, utilities and facilities available to all in a fair manner. For those who do wrong, are non compliant or are in default, there must be regulatory system put in place with legal machinery that must help with solving the problem amicably to maintain discipline and order.

 

People, when you look at Kenya, don't look at it in the village or national level; look at it Globally. Every thread of survival has global connotation to it. Whoever you are; when you view or think of your taxes, don't think locally, think globally…….

 

I respect Sungu's comment, he has put a valid point across.....but again we cannot claim we have answers to all things of life. We need each other's inputs; that is when we can succeed to remove poverty on the face of Africa and not just from Kenya or the Community of Nyanza. The 42 tribes of Kenya are part of us, People of African descent are our brothers and sisters. The Global community is part and parcel of Humanity. We are created by God to obey love commandment. If we can practice the commandment of love; there shall be no pain or sufferings, and security to our livelihood and survival shall be guaranteed. Individually, we must be committed to safe environment by shaping lifestyle to improve nature as it is part and parcel of survival.

 

It is wrong that humanity is at risk because of greedy wealth creators who are ambitious to engage non-transparent, tricky and dangerous business undertaking of a conspiracy to serve their selfish, corrupt and greedy needs; simply to stay and remain wealthy in control of the Government function-ability.

 

We must accept and work with good and considerate business people who respects majority wishes and recognizes that Government is supreme and is the authority over matters of discipline and regulatory principles. That business community however powerful, must agree to comply and play by the rule as required within the government system. Business community must not decide for public livelihood or survival. They shall remain partners in shared sacrifice for progressive development.

 

Responsible leaders of great integrity too must have a plan at which they must share with people how they wish to govern the country if given a chance. A Presidential aspirant without a Blue Print Plan of Action to share with the people is a gambler. Such a leader always comes with hidden agenda of selfishness and greed. Their aim is to gain power for wealth creation and to serve Special Interest; and as has been seen many times in the past, they are found to be thoroughly compromised networking within circles of Special Interest. They can never provide a balanced fair value for progressive shared interests to thrive.

 

If Russia, Iran and China (as commission agents to International Corporate Special Business Interests) have vested interests away from the majority of world's people's interest; they are not friends of the majority 99% who are after peace and unity for shared common value.

 

If International Corporate business community with their Global political networking are in a conspiracy to hijack power to destroy Democratic Government of the People to make way for network of the unscrupulous corrupt Corporate Special Interest who do not want to pay taxes or play by the rule; it must be known that, they are not working in favor of majority Democratic Governance rule of promoting shared sacrifice. They are after Special Interest and nothing more.

 

Why Unity is Important:

We must make solid and strengthen our unity of purpose so we are able to bargain effectively across boarders and into the Global market region, where everybody is included in this prospects of progressive development if they work hard. It is not easy but it can be done. We must transform our thinking and be able to move into a path of working for success. No one person can do it alone, but together, we shall be winners.

 

Why Voting Responsibly is Crucial:

Those who are voted to public office must know that they are duty bound to the voters first and foremost. That they must make the government strong by engaging in its democratic function-ability so voters are able to be served equally, fairly and in a balanced and transparent manner.

 

But when such comments like HEADQUARTERS Has asked Dhiwa aspirants to endorse so and so" it becomes a problem. We are not going according to the wishes of the majority voters. This is sounding wrong signal. People must be concerned. We must not accept to sell birth-rights for survival in place of group of business special interest who want to make us slaves, control our lives and livelihood and make our lives miserable, while they are busy creating wealth. It shall be a disaster in the making. It is the majority people through the Government who must decide how they wish to be fairly governed by choosing those leaders who can deliver socio/economic program agenda through a platform of responsible politics engagement and debate.

 

In Africa and in the world, the war of transformation to improve people's government has just started. It has just begun. It is not just in Kenya although poverty is worse, it is a Global problem that must be put in order. We all want functioning government that works for all and provides efficient, quality and dignified services to all fairly and because of this, we cannot gamble with our lives, or allow leaders who are in the business of gambling to manage our lives.....it can be risky and dangerous.....

 

It is our obligation to make sure we all fight hard to put in place, a government system that works as it should by making sure that Democracy is functioning and elected officials do what they are suppose to do .......We cannot afford to have a government working only for the rich and wealthy and leaving out the disadvantaged poor to rot in misery.

 

The world is moving very fast and to succeed in life, people must united at peace with each other under golden rule of love; where, sharing and caring for one another is the way to go.

 

Hard work is before all of us. Let us all in own ways, help President Obama to win this election so he is able to complete his second term.........He is passionate for a peaceful partnership relation network of a United global Nation in a secured safe environment.

 

Let us all dedicate for special Prayers for Gods wisdom, provision, protection and guidance as we endeavor in this journey.......

 

I love you all........

 

Cheers !!!!



Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
 
 
 
 
 
Africa Wealth is being devoured without Regulatory measures to protect or preserve:

A surprise judgment was made recently against a vulture fund, FG Hemisphere, striking down its claim for $100m from the Democratic Republic of Congo. FG Hemisphere has spent many years and a small fortune pursuing Congolese dictator Mobutu Sese Seko for a debt it bought "secondhand" for $3m, but on which it hoped to claim back $100m. Most recently it has been trying to grab the assets of Congo's state-owned mining company, Gécamines, through a joint venture in which it is invested on Jersey.

The DRC has vast mineral wealth including diamonds, copper, oil and gas; one estimate puts the value of these resources at $24 trillion. However, it is pretty much the poorest country in the world. The reason is centuries of plunder, at its worst involving the buying, selling and brutalisation of millions of people. But plunder today continues in different guises – through odious debt and tax avoidance.

It seems incredible that so rich a country can end up in serious debt, until you think about the amount of money leaving the DRC through the other crucial factor in its impoverishment: unpaid taxes. Although the DRC has been a poor reporter of data, it has been estimated that, between 1970 and 2008, more than $6bn left the country illicitly. This is equivalent to about 1% of the economy every year – more than enough to cover its total outstanding debts. The figures suggest that an average of $170m has left the DRC every year, almost two-thirds of the average $300m it has to make in debt service payments. Little wonder that its debt is starting to rise again, and is expected to reach $7.5bn by 2015.

As Africa is celebrated for its growth rates, the amount of taxes lost to the continent accelerates. The funds flowing in, lauded by Tony Blair, Sir Bob Geldof and their ilk, will primarily enrich those already at the top, fuel inequality and expand dependence on a crony form of finance. Vultures will increasingly swoop on these riches.

 
 


--- On Thu, 8/9/12, Lee Makwiny <amosogal@gmail.com> wrote:
From: Lee Makwiny <amosogal@gmail.com>
Subject: Re: [PK] Ted Odero for Dhiwa
To: progressive-kenyans@googlegroups.com, "uchunguzi online" <uchunguzionline@yahoogroups.com>
Cc: vuguvugumashinani@yahoogroups.com
Date: Thursday, August 9, 2012, 6:05 AM

PRESS STATEMENT
NATIONAL ELECTIONS BOARD

In June this year, the National Elections Board of the Orange Democratic Movement - ODM placed an announcement to party members requesting them to send their expressions of interest in the various seats they are intending to vie for in the coming general elections.
The Board gave out a period of one and half months for the interested persons to submit their expressions of interest. The deadline for this exercise was yesterday Wednesday 8th August 2012.
So far, the response has been enormous. We have received over 6,000 application letters through email, post office, courier services and majority of them, by hand delivery. The applicants are from all over the country and even from Kenyans leaving abroad and who want to return back home and join politics.
This clearly shows how popular ODM is and is an indicator of the things to come in the general elections.
However, there are thousands of other party members who could not beat the deadline due to various reasons and requested for an extension of the period to enable them send in their expressions of interest. The board met yesterday and considered this request.
Therefore, we are pleased to announce that the deadline for the expressions of interest by our party members has been extended by a further one week upto Friday 17th day of August 2012.
The board urges those who have not submitted their applications to do so on or before the close of business of the Friday 17 which is next week. We also appeal to other Kenyans who want to vie for elective seats in the general elections and are not decided on which party ticket to vie on, to join ODM which is the government in waiting.
In order to ease any logistical problems in delivering letters of expressions, the board has authorized all ODM County election coordinators to collect and dispatch the same to Orange House by the deadline.
We also wish to confirm to the public that the ODM is fully prepared for the September 17th by-elections. In Ndhiwa constituency, we have received 22 applications whose details are being verified for the party nominations on Monday 13th August 2012. The deadline for the applications for the by-elections in today Thursday 9th August 2012.

The board would like to make clear that, there is no preferred candidate for any of the vacant electoral positions in the by-elections.

In Kajiado North, after consultations among the ODM party officials, elders and stakeholders in the constituency and settled on Eng. Peter Ole Mositet to be the party's flag bearer in the by election.
Hon. Dr. JKA Misoi
Secretary, NEB
9/8/2012

On Thu, Aug 9, 2012 at 12:26 PM, MOSES ONUNGA <onungatz@hotmail.com> wrote:

The ODM HEADQUARTERS Has asked Dhiwa aspirants to endorse Ted Odero as the parliamentary aspirant,the aspirants are still consulting

Moses

Date: Thu, 9 Aug 2012 02:20:33 -0700

From: sunoti@yahoo.com

Subject: [PK] AGOSTINO NETO'S CANDIDATURE IN NDHIWA-LETS STICK TO ISSUES

To: VuguVuguMashinani@yahoogroups.com; progressive-kenyans@googlegroups.com

Lee,

I am actually going to harvest some fish but that does not stop me from eating fish on the way. Remember, fish is very expensive in Nairobi and I will be carrying for my family and a few friends some fish from my pond.

Meanwhile, I am looking for market in Kisumu, we can meet and discuss, I hear the prices in Homa Bay are quite attractive.

I want to harvest, restock and come back to serve the country through The Clean Kenya Campaign now that some corporates are showing interest in waste, we have sung this and it is good enough that people have been listening.

Pole about your illness, just put the fish tomorrow and I will buy the ugali (lol) then all will be well, tell them to put very little cooking oil, a little spinach, pilipili kidogo and soup kidogo sana, ugali they can put at will, no reservations!!!!

Sungu.

From: Lee Makwiny <amosogal@gmail.com>

To: progressive-kenyans@googlegroups.com

Cc: "Vugu Vugu Mashinani@yahoogroups.com" <VuguVuguMashinani@yahoogroups.com>

Sent: Thursday, August 9, 2012 2:13 AM

Subject: (VVM Forum) Re: [PK] AGOSTINO NETO'S CANDIDATURE IN NDHIWA-LETS STICK TO ISSUES

Sunoti,

I was able to Mr. Masira almost two times this month alone.

I have met Oto, but missed him in the last two occassions, the last being last week, when I really wanted to meet him, but was down with some illness. I am feeling better today and may be in Asembo tomorrow, but will be back early enough.

Hope to meet you.

BTW: How do i buy a fish-farmer some fis!!!!

Thank you!

On Thu, Aug 9, 2012 at 11:59 AM, otieno sungu <sunoti@yahoo.com> wrote:

I want to call on all of us discussing Neto's candidature to stick to the following.

Is he able to lead? Does he have credentials we trust are necessary for leadership? Does he meet Chapter 6 of the Katiba?

I want to believe, knowing Neto personally, that he is one of the brilliant young people Kenya needs in leadership. I have met in the course of the engagements in things I believe in young Kenyans with a passion for a better Kenya. Neto is one such person.

I also know a few who are not prone to empty talk like many young folks on these blogs but are focused and can get things done.They are doing marvelous things with youth.

The point about where people stood during the Katiba debate was relevant then, it may be an issue some will remember but as a nation, even though such judgement may haunt one, we should encourage everyone to now join implementing the katiba. We cannot get stuck on who opposed the document. Many who supported it may not have done so out of conviction just as many who opposed it may have had genuine concerns rather than the politics some characters treated us to during the Katiba debate.

Let us encourage youth to vie for positions, let us support them but above all, let us believe in some things, especially the national values.

I support Neto's candidature. I will be traveling to Rarieda tomorrow, I hope to meet PKs in Kisumu and Lee to buy the fish for late lunch, he stood me, my wife and son last time I was in Kisumu.

My son has never forgiven him.

Lee, are you listening?

Otieno Sungu


Africa's wealth is being devoured by tyrants and vultures

Citizens of the Democratic Republic of Congo should be living in one of the world's richest countries. Plunder and corruption condemns them to poverty

nick

    • Saturday 21 July 2012
Mobuto Sese Seko
'Repayment' of loans made to the corrupt Mobuto Sese Seko has proved an important means of draining the DRC's wealth. Photograph: Remy De La Mauviniere/AP
A surprise judgment was made last week against a vulture fund, FG Hemisphere, striking down its claim for $100m from the Democratic Republic of Congo. Keeping money out of the hands of profiteers is welcome, but wider questions raised by the case lead straight to one of the central problems of the global economy: the right of money to flow wherever, whenever, while millions remain in poverty.
FG Hemisphere has spent many years and a small fortune pursuing Congolese dictator Mobutu Sese Seko for a debt it bought "secondhand" for $3m, but on which it hoped to claim back $100m.
Most recently it has been trying to grab the assets of Congo's state-owned mining company, Gécamines, through a joint venture in which it is invested on Jersey. It was winning until Tuesday when the privy council, the final court of appeal for Jersey, overturned previous judgments, saying Gécamines assets could not be taken as state assets.
With luck, the case will have cost Hemisphere so much that we won't hear from it again. But for the people of Congo, it's not the end of the story. Few of them will know much about the case. Indeed, it raises the question of why wealth derived from mining in the DRC was being fought over in faraway Jersey in the first place.
The DRC has vast mineral wealth including diamonds, copper, oil and gas; one estimate puts the value of these resources at $24 trillion. However, it is pretty much the poorest country in the world. The reason is centuries of plunder, at its worst involving the buying, selling and brutalisation of millions of people. But plunder today continues in different guises – through odious debt and tax avoidance.
The debt bought up by FG Hemisphere was part of a vast pile that fuelled the rule of Mobutu, who pillaged his country for more than 30 years. Mobutu's lenders knew he was as corrupt as hell; a report by an IMF mission in 1982 reported there was "no, I repeat no, chance on the horizon for Zaire's [DRC's] numerous creditors to get their money back". But lending continued to rise sharply. Mobutu was, on balance, doing what his paymasters wanted.
"Repayment" of this money, long after Mobutu was ousted, has proved the first important means of draining the DRC of wealth. The country was judged eligible for debt cancellation on the basis of its poverty, but this involved jumping through so many hoops it took eight years to complete. By then, more than $2bn had left the country repaying Mobutu's debts and numerous new loans were needed.
It seems incredible that so rich a country can end up in serious debt, until you think about the amount of money leaving the DRC through the other crucial factor in its impoverishment: unpaid taxes. Although the DRC has been a poor reporter of data, it has been estimated that, between 1970 and 2008, more than $6bn left the country illicitly. This is equivalent to about 1% of the economy every year – more than enough to cover its total outstanding debts. The figures suggest that an average of $170m has left the DRC every year, almost two-thirds of the average $300m it has to make in debt service payments. Little wonder that its debt is starting to rise again, and is expected to reach $7.5bn by 2015.
In essence, successive governments have used foreign loans as a means of financing their activities – including building palaces in the jungle and stealing from state coffers.
This is useful for governments interested in avoiding accountability to their people. It's useful for lenders interested in plundering the countries of those governments. For today's leader, payment is put off for another day; for today's lender, a web of dependency is created with an income stream potentially reaching into the far future.
This tale is not limited to Congo. Latest estimates put capital flight from sub-Saharan Africa – money lost to the continent and hidden offshore – at $683bn between 1970 and 2010, more than enough to wipe out sub-Saharan Africa's debts to the rest of the world.
As Africa is celebrated for its growth rates, the amount of taxes lost to the continent accelerates. The funds flowing in, lauded by Tony Blair, Sir Bob Geldof and their ilk, will primarily enrich those already at the top, fuel inequality and expand dependence on a crony form of finance. Vultures will increasingly swoop on these riches. Stopping them, and building a different society, means controlling the flow of money – and taxing it.
Nick Dearden is Director of the Jubilee Debt Campaign

congofest.com

22/07/2012 09:50
by admin in News

Citizens of the Democratic Republic of Congo should be living in one of the world's richest countries. Plunder and corruption condemns them to poverty

A surprise judgment was made last week against a vulture fund, FG Hemisphere, striking down its claim for $ 100m from the Democratic Republic of Congo. Keeping money out of the hands of profiteers is welcome, but wider questions raised by the case lead straight to one of the central problems of the global economy: the right of money to flow wherever, whenever, while millions remain in poverty.
FG Hemisphere has spent many years and a small fortune pursuing Congolese dictator Mobutu Sese Seko for a debt it bought "secondhand" for $ 3m, but on which it hoped to claim back $ 100m.
Most recently it has been trying to grab the assets of Congo's state-owned mining company, Gécamines, through a joint venture in which it is invested on Jersey. It was winning until Tuesday when the privy council, the final court of appeal for Jersey, overturned previous judgments, saying Gécamines assets could not be taken as state assets.
With luck, the case will have cost Hemisphere so much that we won't hear from it again. But for the people of Congo, it's not the end of the story. Few of them will know much about the case. Indeed, it raises the question of why wealth derived from mining in the DRC was being fought over in faraway Jersey in the first place.
The DRC has vast mineral wealth including diamonds, copper, oil and gas; one estimate puts the value of these resources at $ 24 trillion. However, it is pretty much the poorest country in the world. The reason is centuries of plunder, at its worst involving the buying, selling and brutalisation of millions of people. But plunder today continues in different guises – through odious debt and tax avoidance.
The debt bought up by FG Hemisphere was part of a vast pile that fuelled the rule of Mobutu, who pillaged his country for more than 30 years. Mobutu's lenders knew he was as corrupt as hell; a report by an IMF mission in 1982 reported there was "no, I repeat no, chance on the horizon for Zaire's [DRC's] numerous creditors to get their money back". But lending continued to rise sharply. Mobutu was, on balance, doing what his paymasters wanted.
"Repayment" of this money, long after Mobutu was ousted, has proved the first important means of draining the DRC of wealth. The country was judged eligible for debt cancellation on the basis of its poverty, but this involved jumping through so many hoops it took eight years to complete. By then, more than $ 2bn had left the country repaying Mobutu's debts and numerous new loans were needed.
It seems incredible that so rich a country can end up in serious debt, until you think about the amount of money leaving the DRC through the other crucial factor in its impoverishment: unpaid taxes. Although the DRC has been a poor reporter of data, it has been estimated that, between 1970 and 2008, more than $ 6bn left the country illicitly. This is equivalent to about 1% of the economy every year – more than enough to cover its total outstanding debts. The figures suggest that an average of $ 170m has left the DRC every year, almost two-thirds of the average $ 300m it has to make in debt service payments. Little wonder that its debt is starting to rise again, and is expected to reach $ 7.5bn by 2015.
In essence, successive governments have used foreign loans as a means of financing their activities – including building palaces in the jungle and stealing from state coffers. This is useful for governments interested in avoiding accountability to their people. It's useful for lenders interested in plundering the countries of those governments. For today's leader, payment is put off for another day; for today's lender, a web of dependency is created with an income stream potentially reaching into the far future.
This tale is not limited to Congo. Latest estimates put capital flight from sub-Saharan Africa – money lost to the continent and hidden offshore – at $ 683bn between 1970 and 2010, more than enough to wipe out sub-Saharan Africa's debts to the rest of the world.
As Africa is celebrated for its growth rates, the amount of taxes lost to the continent accelerates. The funds flowing in, lauded by Tony Blair, Sir Bob Geldof and their ilk, will primarily enrich those already at the top, fuel inequality and expand dependence on a crony form of finance. Vultures will increasingly swoop on these riches. Stopping them, and building a different society, means controlling the flow of money – and taxing it.
Nick Dearden is Director of the Jubilee Debt Campaign

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World news: Democratic Republic of the Congo | guardian.co.uk

Popularity: 1% [?]

Draft Bill lowers integrity threshold, removes checks

Updated 6 hrs 17 mins ago
Candidates contesting elections will be spared intense scrutiny of their character after a Bill to enforce integrity was stripped of mandatory vetting by the public.
Key State organs earlier detailed to vet the candidates and prospective appointees to public offices have also been sidelined under the published Leadership and Integrity Bill.
Instead, it is proposed that candidates and those seeking appointment will fill a self-declaration form in which they will tick against a list of moral and ethical questions.
The Bill cleared by the Commission for the Implementation of the Constitution had compelled those seeking an appointment or election to a State office to obtain a certificate of compliance in line with Chapter Six of the Constitution.
The National Intelligence Service, National Police Service, Kenya Revenue Authority and Higher Education Loans Board were among agencies invited to do the background check.
Findings were to be relayed to the Independent Electoral and Boundaries Commission and anyone who failed the compliance test was to be automatically disqualified.
However, the Bill published by Justice Minister Eugene Wamalwa on August 3 has done away with this rigorous vetting process and essentially left it upon the candidates to assess themselves. The only caveat is that this would be done under oath.
Another aspect is that disqualification from elections is only after one is convicted at the conclusion of "a fair administrative process."
Ambiguity
The ambiguity is apparently designed to cushion scores of MPs and aspirants with pending cases.
"A person is not eligible for election or appointment to a State office if, after a fair administrative process has been undertaken, the person is found to have contravened the rules, regulations or the code of any entity that do not contravene the constitution or this Act on matters relating to ethics and integrity," the Bill reads.
The Bill has also struck out the requirement for candidates and prospective public appointees to make full disclosure of their wealth.
It has also limited the ban on participating in gainful employment to allow State officers directorship in private companies, conduct business that "does not require active participation" and any work not covered under the Employment Act.
CIC has warned the weakened draft law defeats the Bill's objective to provide "a minimum threshold of election based on personal integrity, competence and suitability."
The Bill is due to be presented to Parliament and is among laws require to be passed by the end of the month.

Law team urges MPs to save integrity Bill

The draft Integrity Bill provided for vetting of candidates seeking elective positions. Photo/FILE

The draft Integrity Bill provided for vetting of candidates seeking elective positions. Photo/FILE

By SAMUEL SIRINGI ssiringi@ke.nationmedia.com AND BERNARD NAMUNANE bnamunane@ke.nationmedia.com
Posted Wednesday, August 8 2012 at 22:30
The law implementation committee has urged MPs to reinstate clauses that were deleted by the Cabinet from the integrity Bill to provide for vetting of public officers.
The Commission for the Implementation of the Constitution said the diluted Leadership and Integrity Bill annuls the moral and ethical standards expressed in the supreme law.
CIC member Kamotho Waiganjo said the Constitution required that any law on integrity should provide room for vetting of elected leaders and public officers.
"The Constitution requires a statute that has a mechanism for vetting of leaders," he said of the Bill which prescribes the requirements without providing for organs to validate them.
The Integrity Bill is among eight proposed laws, which have to be enacted by Parliament by the end of this month to implement sections of the Constitution.
Others are Petition to Parliament Bill, Petition to County Assemblies Bill, Assumption of Office of President Bill, National Intelligence Service Bill, National Security Council Bill, Kenya Defence Forces Bill, and the Election Campaign Financing Bill.
The draft Integrity Bill provided for vetting of candidates seeking elective positions and people applying for top government jobs as required by Chapter Six of the Constitution.
It also required the two sets of public officers to declare their wealth before assuming office.
However, the Cabinet last week deleted the clauses on vetting and declaration of wealth, paving the way for politicians and public officers to hold offices without scrutiny.
This denies the anti-corruption commission and other agencies role in vetting those seeking public offices.

Fresh storm at NHIF

Updated 6 hrs 13 mins ago
By Ben Agina
A fresh storm is casting a long shadow on the credibility of National Hospital Insurance Fund caretaker committee, even as Cabinet plans to extend its term to December.
Having taken over from the suspended management team led by Richard Kerich and board chairman Richard Muga, which was also kicked out over the multi-million shilling controversial civil servants medical scheme, it was expected the new team would operate above board.
But the emerging facts from the troubled NHIF, whose head Medical Services Minister Peter Anyang' Nyong'o wanted reinstated
Team is the fact that the acting Chief Executive Adan A Adan, recommended the employment of his wife after landing at NHIF, and signed an approval form to that effect.
Adan, who has been in the office for hardly three months, recommended the hiring of his wife, Habib Ali Maalim, together with other people believed to be his relatives. He signed the formal forms for approval, even suggesting her grade and placement in the Fund.
Adan heads the caretaker committee, which is in contempt of a High Court order, and which was expected to hold its last board meeting on Wednesday.
On Wednesday, when confronted with the facts on the documents in hands of The Standard, Adan confirmed Habib was his wife, but argued her name was struck off the list of those to be recruited because of her link to him.
It is, however, curious that though he was the signatory of the approval letter, and predictably even took part in the earlier process of recruitment and even suggested she be taken on job grade HF6, he did not seem to have declared beforehand their relationship.
Struck off list
"Yes, Habib is my wife. She is a qualified senior nurse. We cancelled her name when we discovered her name was in the list," said Adan. But he did not explain how her name got on the final list bearing his signature, and at the number one position.
Assuming Habib did not get her appointment letter as her husband claims, she was to be recruited as Quality Assurance Officer 1, Job Group (HF6), and to be based at NHIF offices in Ruaraka.
On the same letter dated June 26, signed by Adan, there were further handwritten instructions to the manager, human resource, directing, "Kindly approve placement above HF6 the officer is a CPK finalist".
Other sources at NHIF claim newly employed Adan's relatives are Abdirashid Adan Ali (accountant HF7), to be based in Eldoret, and Abdikadir I Adan, Inspector 11 (HF7), to be stationed in Embu.
He however, denied having any relations with Abdirashid and Abdikadir, and dismissed claims they could be members of his family.
When contacted an angry Adan wondered why we are only zeroing in on one community, Somali, and yet there were others from other regions also earmarked for recruitment.
"Aren't the Somalis qualified for these jobs? Why are you not mentioning the rest," retorted Adan.
Apart from Habib, others who were to be recruited following Adan's instructions were Constatine Oile, Margaret Wanjiru Kirima, Ahmed Kher Abdi, Ann Njeri Mukuri, Yusuf Ali Shire, and Grace Wairimu Kang'ethe.
Sources in NHIF did not, however, raise any issue with this batch of appointments.
When contacted about the latest development, Medical Services Minister Anyang' Nyong'o declined to comment.
"Please leave me out of this,'' pleaded Nyong'o, who was in the eye of the storm over the Sh4.6 billion controversial health insurance scheme awarded to Meridian and Clinix heath providers. The award has since been suspended after it turned out they were not given on competitive basis, and some of the clinics listed were not even in existence.
Single sourcing
In yet another instance, Adan approved the single sourcing of a Sh3.7 million advertisement to appear in the USA Today magazine, without going through the normal procurement procedures.
The Manager, Marketing Communication, Bella Omino, wrote a letter dated June 15 to the chief executive informing him of an interview he (Adan) had with United World Ltd of London – a company that was to facilitate placement of the advert.
"The advert and the write-up would also be given a link on their website so as to reach Kenyans in the Diaspora to inform them of the role of NHIF and how they can contribute towards boosting NHIF," said Bella
She added that as NHIF also works toward achieving Universal Healthcare, it is important that the Fund communicates its achievements to Kenyans in the Diaspora.
USA Today is a widely read newspaper and will give us the right platform for showcasing our role in meeting Vision 2030," said Bella, seeking to justify the choice of advertiser.
Normal procurement
On June 19, United World Ltd invoiced NHIF US$43,600 (Sh3.7 million) for placement of a quarter page advert. But the General manager Finance and Control, Pamela Marendi, questioned why the United World was being awarded the tender without going through the normal procurement procedures.
"Kindly note that direct procurement method is only allowed as long as the purpose is not to avoid competition," said Marendi, in a letter addressed to manager, procurement and supplies.
She noted that the procedure for using direct procurement method as per Regulation 62 (2-3) of the procurement law, the procuring entity is supposed to record the reasons for direct procurement and the method be approved by the tender committee before sourcing for goods or services.
However, Adan had on June 19, personally approved the single sourcing by signing the official request from Omino. "We principally accepted the offer because this would have put Kenya in the world map. The cost, however, was too much and it remains cancelled,'' Adan explained in an interview before asking: "But who gave you this information?"
Affordable health
On May 19, President Kibaki demanded a speedy probe into the NHIF scam and promised tough action on those found to have mishandled or misappropriated the funds meant for the scheme.
He also warned the alleged scandal was likely to frustrate Government drive to provide affordable and universal health care.
"We must never compromise the health of our citizens because of greed and schemes meant to put money in the pockets of people, who have no capacity to deliver health services," said Kibaki.
Last month Justice Weldon Korir ruled the NHIF Act was not followed in the appointment of the new team, but the AG appealed the ruling.
The Judge noted that Section 4(1) of NHIF Act stating how the board should be appointed was not followed. Kenya Medical Association filed the case.
Improve Kenyans' lives, Kibaki urges MPs
By PPS
Posted Tuesday, August 7 2012 at 14:40

President Kibaki (centre) cuts the tape to officially open Parliament's refurbished chamber August 7, 2012. He is flanked by House Speaker Kenneth Marende (left). The President urged MPs  to use the remainder of their parliamentary term to improve Kenyans' lives. SALATON NJAU

President Kibaki (centre) cuts the tape to officially open Parliament's refurbished chamber August 7, 2012. He is flanked by House Speaker Kenneth Marende (left). The President urged MPs to use the remainder of their parliamentary term to improve Kenyans' lives. SALATON NJAU

By PPS
Posted Tuesday, August 7 2012 at 14:40
President Kibaki has urged MPs to use the remainder of their parliamentary term to improve Kenyans' lives.
Speaking at Parliament buildings during the official opening of the refurbished chamber Tuesday, President Kibaki said the legislators should ensure that the Tenth Parliament goes down in history for its role in uplifting the quality of the lives of Kenyans from all walks of life.
"Let us use the time left to entrench reforms and to put in place structures that future leaders will use to transform Kenya into a haven of prosperity as envisioned under our VISION 2030," President Kibaki said.
He observed that as leaders, MPs have tremendous capacity to transform the lives of the
electorate and called on Kenyans to carefully vet those they will elect to serve in Parliament during the next General Election.
"The power to determine the destiny of our nation is in our vote. Let us use that power wisely."
President Kibaki, once again, assured all Kenyans that the government is putting in place measures to ensure a free, fair and peaceful election.
He reassured that the government will support the Independent Electoral and Boundaries Commission (IEBC) in acquiring the biometric voter registration equipment that will contribute to the credibility of the electoral process.
President Kibaki said government will also fast-track the issuance of national identification cards to Kenyan youth to enable them to vote.
Smooth handover of power
He promised to oversee a smooth transition.
"I also re-commit myself to guaranteeing that Kenya has a smooth transition to the leadership that they will vote into office next March," President Kibaki said.
On devolution, President Kibaki restated the government's commitment to providing resources for devolved government as stipulated in the Constitution, saying devolution is here to stay.
"Devolution is critical and must be fully supported by this Parliament that should put in place the necessary structures that will guarantee a smooth transition to the next form of government," President Kibaki said.
He said the newly refurbished chamber will greatly aid the legislative and representative roles of MPs, the President commended Kenyan taxpayers for paying their taxes and all those involved in the refurbishment project.
The President said the government will work closely with Parliament to facilitate implementation of the next phase of the modernisation programme, including the preparation of facilities necessary for the Senate as well as increased staff numbers.
"We are committed to providing resources for the two-chamber legislature to function effectively. The Ministry of Finance will allocate the necessary funds for this endeavour," President Kibaki said.
Promote peace
The President insisted that Members of Parliament must actively promote peace, unity and national cohesion in all corners of the country.
"To ensure peaceful elections, I encourage Members of Parliament and other leaders and citizens to actively participate in the forthcoming county peace conference on 13th and 14th August and the national peace conference on 30th and 31st August," President Kibaki said.
President Kibaki said he was hopeful that the MPs will give due attention to a number of Bills related to the Constitution that will be presented in the coming days so as to stick to the timelines provided for under the Fifth Schedule of the Constitution.
During the occasion, President Kibaki handed over a copy of the original Constitution that he signed on the August 27, 2010 and the pen with which he appended his signature on the Constitution for safe custody in the august House.
National Assembly Speaker Kenneth Marende said seats in the refurbished chamber were made by the prisons department and called on Kenyans to give preference to locally made goods and materials as their contribution to building and branding Kenya.
Mr Marende said the old chamber will undergo similar refurbishments to accommodate the Senate.
Others who spoke during the occasion were Cabinet ministers Njeru Githae, James Orengo, Chris Obure and legislator Nicholas Gumbo.
In attendance were Vice President Kalonzo Musyoka, Deputy Prime Minister Uhuru Kenyatta, Chief Justice Willy Mutunga, acting Head of Public Service Francis Kimemia, ambassadors and High Commissioners, among other senior government officials and invited guests.
President Kibaki has urged MPs to use the remainder of their parliamentary term to improve Kenyans' lives.
Speaking at Parliament buildings during the official opening of the refurbished chamber Tuesday, President Kibaki said the legislators should ensure that the Tenth Parliament goes down in history for its role in uplifting the quality of the lives of Kenyans from all walks of life.
"Let us use the time left to entrench reforms and to put in place structures that future leaders will use to transform Kenya into a haven of prosperity as envisioned under our VISION 2030," President Kibaki said.
He observed that as leaders, MPs have tremendous capacity to transform the lives of the
electorate and called on Kenyans to carefully vet those they will elect to serve in Parliament during the next General Election.
"The power to determine the destiny of our nation is in our vote. Let us use that power wisely."
President Kibaki, once again, assured all Kenyans that the government is putting in place measures to ensure a free, fair and peaceful election.
He reassured that the government will support the Independent Electoral and Boundaries Commission (IEBC) in acquiring the biometric voter registration equipment that will contribute to the credibility of the electoral process.
President Kibaki said government will also fast-track the issuance of national identification cards to Kenyan youth to enable them to vote.
Smooth handover of power
He promised to oversee a smooth transition.
"I also re-commit myself to guaranteeing that Kenya has a smooth transition to the leadership that they will vote into office next March," President Kibaki said.
On devolution, President Kibaki restated the government's commitment to providing resources for devolved government as stipulated in the Constitution, saying devolution is here to stay.
"Devolution is critical and must be fully supported by this Parliament that should put in place the necessary structures that will guarantee a smooth transition to the next form of government," President Kibaki said.
He said the newly refurbished chamber will greatly aid the legislative and representative roles of MPs, the President commended Kenyan taxpayers for paying their taxes and all those involved in the refurbishment project.
The President said the government will work closely with Parliament to facilitate implementation of the next phase of the modernisation programme, including the preparation of facilities necessary for the Senate as well as increased staff numbers.
"We are committed to providing resources for the two-chamber legislature to function effectively. The Ministry of Finance will allocate the necessary funds for this endeavour," President Kibaki said.
Promote peace
The President insisted that Members of Parliament must actively promote peace, unity and national cohesion in all corners of the country.
"To ensure peaceful elections, I encourage Members of Parliament and other leaders and citizens to actively participate in the forthcoming county peace conference on 13th and 14th August and the national peace conference on 30th and 31st August," President Kibaki said.
President Kibaki said he was hopeful that the MPs will give due attention to a number of Bills related to the Constitution that will be presented in the coming days so as to stick to the timelines provided for under the Fifth Schedule of the Constitution.
During the occasion, President Kibaki handed over a copy of the original Constitution that he signed on the August 27, 2010 and the pen with which he appended his signature on the Constitution for safe custody in the august House.
National Assembly Speaker Kenneth Marende said seats in the refurbished chamber were made by the prisons department and called on Kenyans to give preference to locally made goods and materials as their contribution to building and branding Kenya.
Mr Marende said the old chamber will undergo similar refurbishments to accommodate the Senate.
Others who spoke during the occasion were Cabinet ministers Njeru Githae, James Orengo, Chris Obure and legislator Nicholas Gumbo.
In attendance were Vice President Kalonzo Musyoka, Deputy Prime Minister Uhuru Kenyatta, Chief Justice Willy Mutunga, acting Head of Public Service Francis Kimemia, ambassadors and High Commissioners, among other senior government officials and invited guests.

Minister and Governor ignored advice, leading to Sh1.8bn loss: PAC

Former Finance minister Amos Kimunya. Photo/FILE

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted Saturday, August 4 2012 at 23:30
Transport Minister Amos Kimunya and Central Bank Governor Njuguna Ndung'u have to take the blame for the Sh1.8 billion loss that the public suffered following the cancellation of a cheaper money-printing contract.
The Public Accounts Committee — the powerful parliamentary watchdog committee that audits government spending — is convinced that the two ignored the advice of the economists of the Central Bank and made somewhat reckless decisions that led to the loss.
Mr Kimunya was the Finance Minister when the controversial contract was signed. The committee is angered that Mr Kimunya misled the committee that the country had in fact saved Sh3.8 billion when the figures from the Auditor-General showed a different story.
The cost of printing the 1.71 billion pieces of banknotes at De La Rue was Sh3.8 billion; the interim orders for printing banknotes, as the Central Bank awaited the conclusion of that contract, comes to Sh5.5 billion. Yet Mr Kimunya told the committee that over three years, printing the 1.71 billion would have cost the taxpayer Sh8 billion.
"On the strength of the special audit report by the Auditor-General, the committee was satisfied that the taxpayer lost Sh1,830,909,616 being the price difference between the cost of the interim orders and the cancelled contract and that the government did not therefore get value for money in the interim orders," the PAC noted in its report, awaiting debate in Parliament.
When the committee spoke to former Central Bank Governor Andrew Mulei, and to the current governor, Prof Ndung'u, they all said that the taxpayer paid a lot of money to foot the money-printing bill — which would have been saved if Mr Kimunya had not put roadblocks to the process.
"De La Rue argued that the price difference in the interim orders and the cancelled contract was nil. Dr Andrew Mulei told the committee that the price of the interim orders was one and a half times more than the cancelled contract. Prof Ndung'u told the committee that the cancelled contract was cheaper than the interim orders," PAC noted. Did Mr Kimunya cook the Sh8 billion figure?
Although Dr Mulei did now show up before the committee, he sent a written submission to the Clerk of the National Assembly, Mr Patrick Gichohi. The submission was forwarded to the committee and, after scrutiny, the committee agreed to admit it.
Former CBK Deputy Governor Jacinta Mwatela also pointed out gross violations of the law by both the Governor and Mr Kimunya. She was the chair of the tender committee that carried out due diligence before De La Rue got the tender to print the 1.71 billion pieces.
Ms Mwatela pointed out to the committee that Mr Kimunya had acted illegally because he could not cancel a contract that he was not party to.
"Only the tender committee had such powers as provided for by Section 32 (2) of the Public Procurement and Disposal Regulations," she told the committee in her submissions as recorded in the PAC report.
While the initial interim order of 164.05 million pieces was within the law, which allows for an interim order to be 10 per cent or lower than the initial order; Mr Kimunya and Prof Ndung'u conspired and ordered another 390 million pieces of banknotes.
If the two wanted more orders, the tender committee was of the view that the law on procurement had to be followed to the letter.
The governor and Mr Kimunya went ahead with the plan to take the interim orders.

Kimunya used Kibaki's name in De La Rue deal

PHOTO | FILE | NATION Former Central Bank of Kenya's acting governor Jacinta Mwatela when she appeared before Parliament's Public Accounts Committee.

PHOTO | FILE | NATION Former Central Bank of Kenya's acting governor Jacinta Mwatela when she appeared before Parliament's Public Accounts Committee.

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted Saturday, August 4 2012 at 23:30

In Summary

  • Public Accounts Committee report says the President denied ever telling the then Finance minister to stop the launch of new generation currency in 2007 in a meeting with Jacinta Mwatela, who was acting CBK governor
Cabinet minister Amos Kimunya invoked President Kibaki's name when he pushed the Central Bank to cancel the controversial money-printing contract that had been awarded to international money-printing firm, De La Rue.
However, the President reportedly denied that he told Mr Kimunya, the then Finance Minister, to stop the launch of new generation currency in 2007, because it was an election year.
The details of the President's denial and the political intrigues are contained in the evidence adduced before Parliament's Public Accounts Committee, which wants Mr Kimunya (now the Transport minister) and the Central Bank governor, Prof Njuguna Ndung'u, barred from ever holding public office.
Former acting governor of the Central Bank, Ms Jacinta Mwatela, told the committee that she met the President in January 2007. She raised the issue of launching the new generation banknotes, which was expected later that year, saying that she had been advised to delay it, because the President had reservations about it.
"The President, however, denied having ever told Mr Kimunya to tell the [Central] Bank not to launch new generation banknotes in an election year. In his wording, the President said 'hapana sikusema"," the PAC report, now in Parliament, says.
Not only did the minister reportedly use that excuse to cancel the tender, but he also said that the Cabinet, having approved a joint-venture between the Treasury and De La Rue, had gone ahead and pushed for the cancellation of the contract.
Two confidential letters from the Cabinet to the Attorney-General's Office and the Treasury, pushing for the joint venture between De la Rue and the government, did not mention the contract. This made the committee suspicious, that perhaps, Mr Kimunya had "kept the Cabinet in the dark" regarding the pending money-printing contract.
"The Committee was not persuaded by Mr Kimunya's evidence that the contract for printing 1.71 billion pieces of banknotes between Central Bank of Kenya and De La Rue was cancelled following a Cabinet decision as he did not produce any documentary evidence to the effect," the committee says in its report.
Mr Kimunya is said to have deliberately blocked Ms Mwatela from executing the contract despite the fact that she was the acting governor. The minister waited until Prof Ndung'u was appointed, and then prevailed upon him to cancel the contract, and quickly ensure that the Central Bank got into a joint venture with De La Rue, including a 10-year guarantee for business.
"The Central Bank was strongly opposed to Treasury and De La Rue's joint venture agreement under which the Bank would be tied by Treasury to signing a 10-year banknote printing contract with De La Rue International Ltd. This would contravene government procurement regulations and procedures as the Bank would not be guaranteed a fair market price during the ten years," the PAC noted in its report.
"... the Bank was not part and parcel of the negotiations for the joint venture since the Central Bank of Kenya Act prohibits it from taking part in investments. In the circumstances therefore, the governor would not sign a contract tying the Bank to a ten-year currency printing contract with De La Rue Company."
The committee notes in its report that when Prof Ndung'u was appointed, he was hesitant when it came to ensuring that the money-printing contract, which had already been awarded and a down payment made, was activated. Yet, the only item pending was the governor's signature.
Mr Kimunya also told the committee that the Central Bank of Kenya did not have sufficient strong rooms and vaults to store 1.71 billion pieces of banknotes. He said that the money, which was being printed in Malta, would be shipped to the Port of Mombasa, all at once, and that it would have been difficult to get it to the Central Bank outlets in Nairobi, Mombasa, Eldoret and Kisumu.
Prof Ndung'u agreed that the volume of the cargo would occupy five times the space available, even if the Central Bank went ahead to lease more space at the Times Tower — the headquarters of the Kenya Revenue Authority.
According to De La Rue, 1.71 billion pieces of banknotes would occupy close to 85 40-foot containers.
But Ms Mwatela, who sat in the tender committee, which drew up the contract, said the money would be delivered in tranches. That would then explain why the Central Bank agreed on a delivery schedule for the money.
The committee got the delivery schedule on the signed contract which staggered deliveries between March, 2007 and December, 2009.
"The Committee further observed that since delivery of the banknotes was staggered, it was reasonably expected that when new deliveries are made, earlier deliveries would have already found their way into the market to replace the undesirable ones thereby giving space for storage," the MPs noted in their report.
"The Committee made a finding that printing of the 1.71 billion pieces of banknotes in Malta would have taken more than a year and it would not have been prudent for De La Rue to pile up ready banknotes for a very long time before shipping them in one consignment."
De La Rue, according to the contract, had the duty to deliver the money to Central Bank in Nairobi from their plant in Malta.
Business

Standard Chartered accused of laundering Iranian funds

Posted: 08/08/2012 01:00:00 AM MDT
Updated: 08/08/2012 01:12:56 AM MDT
By Gavin Finch and Greg Farrell
Bloomberg News

Standard Chartered PLC fell the most in almost 24 years as an analyst estimated it may face costs of $5.5 billion after being accused of violating U.S. money-laundering laws over its dealings with Iranian banks.
The shares fell 16 percent to 1,228.5 pence ($19.23) in London trading, their biggest decline since 1988, the earliest date for which data are available.
Standard Chartered may lose its license to operate in New York after the state's Department of Financial Services found the bank conducted $250 billion of deals with Iranian banks over seven years and earned hundreds of millions of dollars in fees for handling transactions for institutions subject to U.S. economic sanctions.
The London-based lender Tuesday denied the allegations, saying it "strongly rejects the position and portrayal of facts" made by the regulator.
The bank may be fined $1.5 billion by U.S. regulators, lose about $1 billion of revenue from its Iranian operation and $3 billion in market value if senior managers quit, Cormac Leech, an analyst at London-based Liberum Capital Ltd. who rates the stock a buy, wrote in a note to investors Tuesday.
"It's unclear whether senior management will resign for the alleged shortcomings given that they have been in their current roles for much of the relevant period, raising the risk of kitchen-sinking on arrival of new management," Leech said.
The stock had risen 11 percent this year before Monday, making it the third-best performing British bank stock.

Staff shake-up leaves five Equity executives jobless

Equity Bank chief executive officer, Mr James Mwangi. Photo/FILE

Equity Bank chief executive officer, Mr James Mwangi. Photo/FILE

Kenya's biggest bank by customer base, Equity, has replaced five senior managers and wound up its investment banking arm, leaving 15 employees jobless.
In what is billed as one of the most far reaching changes in Equity's executive suites since it entered the retail market five years ago, the bank has merged some roles and departments in a re-organisation plan that began early this year.
Top on the list of those who have been replaced are two directors – Gakuru Wahome and Rodney Schuster – and three senior managers who headed the finance, IT and risk management departments.
Dr Wahome, the architect of Kenya's development blueprint the Vision 2030, joined the bank two years ago as an executive director in charge of marketing, advocacy and policy, while Mr Schuster served as a director in charge of regional expansion.
Three general managers Allan Mwangi (finance), Peter Gachau (IT) and Papius Muhindi (Risk Management), have also been replaced, while the fate of Dr Catherine Munene, the head of human resources, was unclear.
People familiar with the matter said the changes are the culmination of a major strategy and business review that the bank's chief executive James Mwangi announced to staff at the beginning of the year, soon after the bank closed down its Alternate Business Channel (ABC) and laid off its business growth and development managers who serve as the marketing managers.
The decision to discharge the business growth managers of their duties was, however, nullified following an upsurge of customer complaints over inaccessibility of point of sale (PoS) termini used across the market.
Equity, which broke all banking sector growth records between 2004 and 2007 has been under immense pressure since last year when a combination of a slowdown in economic growth and the January 2008 political turmoil brought its micro lending business to a near standstill squeezing its profits to single-digit levels.
Some market observers, however, maintained that Equity was merely doing what was inevitable, having created so many positions that lacked clear jurisdictions and became points of persistent friction among senior managers.
"A shake-up of the executive suites was inevitable given the recruitment spree that the bank went into when its growth was robust," said a senior manager who cannot be identified because he has committed not to speak to the media as part of the severance deal.
Though the shake-up is being seen as part of the many changes that strategists have recommended to the bank as it enters the next phase of growth, one of the managers who resigned in protest at the "demeaning status of his new posting" described Equity as a one-man show with no room for professional input at any level of the organisation.
"This might look like a normal restructuring, but the question that investors should be asking is why such a large group of professionals could leave an organisation within such a short span," he said. "The majority of senior staff leaving have long experience having worked for various organisations both locally and internationally and they cannot all be incompetent," said the source.
Equity did not respond to our questions on this subject, but sources close to it said the main challenge that the bank has had to deal with is the lack of strong organisational structure to give it a sense of stability.
The January shake-up, for instance saw Dr Gakuru transferred to head the newly created Leadership and Development unit and his former brief of marketing, advocacy and policy moved to the CEO's office.
Dr Gakuru had been on the job for only two years.
The closure of Equity Investment Bank (EIB) division after barely two years of operation is also being seen in this light.
The unit, which was established in 2008 generated Sh7.2 million — largely from unrealised profits amounting to Sh6.7 million last year finishing deep in the loss making territory.
EIB earned only Sh500,000 in consultancy fees indicating the difficulties it faced in closing deals.
The investment bank posted Sh57.68 million in operating losses that was largely expense driven.
Its 17 staff members cost the bank Sh55 million in salaries and wages while other operational and administrative expenses took Sh5.7 million.
The move comes two months after its chief executive Maina Mwangi, who had been poached from Renaissance Capital barely a year earlier left in unclear circumstances.
The investment bank was mainly staffed by former Renaissance Capital employees who moved with Mr Mwangi to Equity.
EIB was formed in 2008 following the acquisition of a trading licence from the then dormant Juanco Investment Bank.
Risk appetite
Market insiders said the closure of EIB did not come as a surprise given the acute skills deficiency in the outfit.
"Investment banking requires a different set of skills and risk appetite, which the mainstream bank may be lacking," said Robert Bunyi, an analyst with Mavuno Capital.
"Retail banking is driven by customer deposits while investment banking rides on relationship with investors and owners of capital," he said.
Mr Bunyi reckons that the absence of an established capital markets culture in Kenya, the existence of few trading instruments, high risk environment and lack of a long-term view among key players will continue to hamper the growth of the investment banking business.
In the last two years, Kenya's securities market has weathered a severe storm of low business volumes as investors have shunned the equity market after it was hit by a prolonged bear run.
Human resource experts said the heavy turnover in Equity's executive suites may be informed by a broader pursuit of change that may also aim at aligning the bank with Kenya's changing political environment.
"The bank may be trying to shed off its long held view of being top heavy in terms of senior management coming from one community hence the need to recast itself as a national institution," said a human resource expert who chose not to be named because he does business with the bank.
But some insiders insisted that the latest shake-up is the bank's response to the lower-than-expected growth in past one year and mounting challenges in the area of information technology.
Last year, Equity returned Sh5.2 billion in pre-tax profit, a four per cent growth from Sh5 billion the previous year when profits grew by 111 per cent.
Equity Bank transformed itself from a microfinance institution to a fully-fledged commercial bank in 2003 and has largely remained a mass market micro lender positioned in the bottom end of the market.
Its rapid growth both in terms of branch set up, customer numbers and the top and bottom line forced other players to rethink their business strategy forcing rivals who had shunned the low end market to engage the reverse gear.
More recently, however, Equity has increasingly become known for the uncharacteristically high staff turnover at the top that has seen at least 11 senior managers leave.
The exit of Dr Gakuru is likely to be the most telling.
When he joined the bank, he took over the bank's product development, innovation and research duties that were previously under Henry Karugu.
Equally puzzling is the exit of Mr Schuster who joined Equity after the bank acquired a Uganda microfinance institution he had founded.
Equity has never filled the position of director of finance since Mr John Njoroge, the previous holder left last year.
In an effort to diversify its income sources the bank launched a cocktail of other financial services which include insurance services, investment banking, regional expansion and entry into mortgage business through acquiring a stake in Housing Finance.

National Bank of Kenya's first-half profit falls 17 pct

Reuters – Fri, Aug 3, 2012

NAIROBI (Reuters) - National Bank of Kenya posted a 17 percent fall in first-half profit to 911.8 million shillings, bogged down by interest expenses that rose five-fold, it said on Friday.

High lending rates, after the central bank tightened policy aggressively late last year to fight inflation and currency weakness, crimped the growth of Kenyan banks' loan books and increased non-performing loans.

"During the six months, the bank paid interest to depositors five times more compared to similar period in 2011. The decline (in profit) is largely attributed to high interest expenses during the six months," National said in a statement.

Net interest income inched down to 2.47 billion shillings from 2.67 billion shillings in the year-ago period.

The bank, which started paying dividends in 2011 after more than a decade of turning around from heavy losses caused by bad debts associated with politician Daniel Moi's regime in the 1990s, is undergoing a leadership transition.

It said in June that it had picked Munir Ahmed, who previously worked for Standard Chartered in London, Johannesburg and Nairobi, to replace long-serving Managing Director Reuben Marambii, whose contract ends in December.

The government plans to sell a controlling stake in the bank to a strategic investor through a privatisation round.

Mohammed Grimeh
Mohammed Grimeh
Head of Trading
Head of Global Markets, Americas
Mohammed Grimeh joined Standard Chartered Bank in January 2009 as Head of Trading, Americas. He became the Head of Global Markets, Americas, in June 2009.
He is responsible for managing fixed income, equities and commodities sales, trading, and capital markets for the Americas.
From 1998 to 2008, Mo was with Lehman Brothers in New York City, holding posts as Head of Latam Derivatives, Head of Latam Credit Trading, and Global Head of Emerging Markets Fixed Income and Equities. He has 18 years of experience managing risk and client business in the areas of credit, interest rates, foreign exchange, equities and commodities across the emerging markets. Prior to Lehman, he held trading roles at Societe Generale and ING in Paris, London and New York.
Mo holds a master's degree in engineering from Ecole Central, Paris, where he majored in applied mathematics. He is fluent in Arabic and French. He is Vice Chairman and member of the board of Emerging Market Traders Association (EMTA) and a member of Arab Bankers in North America (ABANA).
Equity Bank of Kenya to Start JCB Merchant Acquiring in South Africa

Tokyo, June 18, 2012 - (JCN Newswire) - Equity Bank, a major financial institution in Kenya, and JCB International (JCBI), the international operations subsidiary of JCB, the only global payment brand based in Japan, today announced that Equity Bank and JCBI have signed a merchant acquiring license agreement. Through this agreement, Equity Bank will phase in facilitating JCB card acceptance at all Equity Bank merchant locations in Kenya, Uganda, South Sudan, Rwanda and Tanzania. Equity Bank plans to start operations in December 2012.

Mr. Koremitsu Sannomiya, President and COO of JCBI stated, "This is an affirmation of JCB's commitment to develop its business on a global scale. We see the African market as an area of potential growth for JCB and of increasing importance for our cardmember base globally. I am confident that Equity Bank will prove to be an excellent partner as we expand our business across the continent."

"We are pleased to partner with JCBI as a licensed acquirer of JCB cards in Eastern Africa," said Dr. James Mwangi, CEO of Equity Bank Group, "Our partnership with JCBI will further enhance convenience of financial access while facilitating ease of international business and travel for JCB cardmembers in Kenya and the wider region."

JCBI has seen the growth of in-bound traffic of travellers into the region in recent years both from a tourist and business perspective. JCBI is looking forward to working even more closely with its partners in the region to ensure that the JCB card acceptance network will continue to grow, providing more convenience and services to JCB cardmembers from around the world.

About Equity Bank Group

Equity Bank Group is one of the region's leading banks whose purpose is "to transform the lives and livelihoods of the people of Africa socially and economically by availing them modern, inclusive financial services that maximize their opportunities." Equity Bank has evolved to become an all inclusive bank. With over 7.5 million accounts, Equity Bank is the largest bank in the region in terms of customer base. The Bank has operations in Kenya, Uganda, South Sudan, Rwanda and Tanzania. Equity Bank was the first bank in the country to install the EMV (Europay-Mastercard-VISA) technology in the bank's Automated Teller Machines (ATMs) outlets and point of sales (POS). The EMV card contains a small computer chip, which gives greater memory capacity and ensures improved security for consumers. Equity Bank is the first bank in East Africa to comply with all PCI/DSS and EMV standards.


About JCB

JCB is a major global payment brand and leading credit card issuer and acquirer in Japan. JCB launched its card business in Japan in 1961 and began expanding worldwide in 1981. Its acceptance network includes over 22 million merchants and over a million cash advance locations in 190 countries and territories. JCB cards are now issued in 16 countries and territories, with more than 77 million cardmembers. As part of its international growth strategy, JCB has formed alliances with more than 350 leading banks and financial institutions globally to increase merchant coverage and cardmember base. As a comprehensive payment solution provider, JCB commits to provide responsive and high-quality service and products to all customers worldwide. For more information, visit: www.jcbcorporate.com/english .

Note: JCB statistics included in About JCB are as of the end of March 2012.



Contact:

Ayako Tanaka  Corporate Planning  JCB International Co., Ltd.  +81-3-5778-8390  ayako.tanaka@jcb.co.jp  

Japan's JCB expands into South Africa with acquiring licence from Equity Bank Kenya

By Carlos Martin Tornero
18 June 2012
JCB International (JCBI), a subsidiary of the Japanese payment brand JCB, and Equity Bank of Kenya have signed a merchant acquiring license agreement to extend JCB card acceptance at the bank's merchant locations in South Africa, as well as Kenya, Uganda, South Sudan, Rwanda and Tanzania.
Equity Bank of Kenya said it plans to start operations in South Africa by December 2012.
With the move, the Japanese card issuer and acquirer seeks to reinforce its business on a global scale.
JCB said that the region has experienced an in-bound traffic of travellers in recent years, both from a tourist and business perspective, which lays out the potential for growth in the acquiring market.
Koremitsu Sannomiya, president and COO of JCBI said:
"We see the African market as an area of potential growth for JCB and of increasing importance for our cardmember base globally. I am confident that Equity Bank will prove to be an excellent partner as we expand our business across the continent."
Dr James Mwangi, CEO of Equity Bank Group, said:
"Our partnership with JCBI will further enhance convenience of financial access while facilitating ease of international business and travel for JCB cardmembers in Kenya and the wider region."
Related articles:

The headquarters of Standard Chartered in London

Business

Standard Chartered accused of laudering Iranian funds

Posted: 08/08/2012 01:00:00 AM MDT
Updated: 08/08/2012 01:12:56 AM MDT
By Gavin Finch and Greg Farrell
Bloomberg News


Standard Chartered PLC fell the most in almost 24 years as an analyst estimated it may face costs of $5.5 billion after being accused of violating U.S. money-laundering laws over its dealings with Iranian banks.

The shares fell 16 percent to 1,228.5 pence ($19.23) in London trading, their biggest decline since 1988, the earliest date for which data are available.

Standard Chartered may lose its license to operate in New York after the state's Department of Financial Services found the bank conducted $250 billion of deals with Iranian banks over seven years and earned hundreds of millions of dollars in fees for handling transactions for institutions subject to U.S. economic sanctions.

The London-based lender Tuesday denied the allegations, saying it "strongly rejects the position and portrayal of facts" made by the regulator.

The bank may be fined $1.5 billion by U.S. regulators, lose about $1 billion of revenue from its Iranian operation and $3 billion in market value if senior managers quit, Cormac Leech, an analyst at London-based Liberum Capital Ltd. who rates the stock a buy, wrote in a note to investors Tuesday.

"It's unclear whether senior management will resign for the alleged shortcomings given that they have been in their current roles for much of the relevant period, raising the risk of kitchen-sinking on arrival of new management," Leech said.

The stock had risen 11 percent this year before Monday, making it the third-best performing British bank stock.

Standard Chartered Faces N.Y.

Suspension Over Iran Deals

By Greg Farrell and Bradley Keoun - Aug 7, 2012 2:09 AM CT

Jerome Favre/Bloomberg
The Standard Chartered Plc. logo is displayed outside the company's headquarters in Hong Kong.
Standard Chartered Plc conducted $250 billion of transactions with Iranian banks over seven years in violation of federal money laundering laws, a New York regulator said in an order warning that the firm's U.S. unit may be suspended from doing business in the state.

Aug. 7 (Bloomberg) -- Ralph Silva, director of Silva Research Network, talks about money-laundering charges against Standard Chartered Plc. New York's Department of Financial Services accused the London-based bank of conducting $250 billion of transactions with Iranian banks over seven years in violation of federal laws. Silva speaks with Linzie Janis on Bloomberg Television's "On the Move." (Source: Bloomberg)

Standard Chartered Faces Suspension Over Iran Transactions

Standard Chartered Faces Suspension Over Iran Transactions

Matthew Lloyd/Bloomberg

Standard Chartered said in a statement that 99.9 percent of its transactions with Iran complied with U.S. Treasury regulations.

Standard Chartered said in a statement that 99.9 percent of its transactions with Iran complied with U.S. Treasury regulations. Photographer: Matthew Lloyd/Bloomberg

Standard Chartered Plc CEO Peter Sands

Standard Chartered Plc CEO Peter Sands

Andrew Harrer/Bloomberg

Standard Chartered CEO Says 'No Grounds' for Revoking License.

Standard Chartered CEO Says 'No Grounds' for Revoking License. Photographer: Andrew Harrer/Bloomberg

Standard Chartered earned hundreds of millions of dollars in fees for handling transactions on behalf of Iranian institutions that are subject to U.S. economic sanctions, New York's Department of Financial Services said yesterday. The London-based bank, which generates almost 90 percent of itsprofit and revenue in Asia, Africa and the Middle East, was ordered by the regulator to hire an independent, on-site monitor to oversee operations in the state.
When the head of the bank's U.S. unit warned his superiors in London in 2006 that Standard Chartered's actions could expose it to "catastrophic reputational damage," he received a reply referring to U.S. employees with an obscenity, according to the order.
"Who are you to tell us, the rest of the world, that we're not going to deal with Iranians?" a bank superior in London said, according to the New York regulatory order.
Standard Chartered fell as much as 14 percent in London trading and was down 13 percent at 1,273 pence as of 8:06 a.m. today, heading for the biggest decline in almost four years. The shares had risen 11 percent this year before yesterday, making it the third-best performing British bank stock after Lloyds Banking Group Plc and HSBC Holdings Plc. (HSBA)

'Strongly Rejects'

The bank said in a statement that 99.9 percent of its transactions with Iran complied with U.S. Treasury regulations, and that the total value of transactions that weren't in compliance was less than $14 million.
The lender said it "strongly rejects the position and portrayal of facts" made by the state regulator, run by Superintendent Benjamin Lawsky.
Standard Chartered "had previously reported that it is conducting a review of its historical compliance and is discussing that review with U.S. enforcement agencies," the bank said in the statement, referring to the Department of Financial Services, the U.S. Justice Department, U.S. Treasury Department, Federal Reserve Bank of New York and New YorkDistrict Attorney.
The lender said it "waived its attorney-client and work product privileges to ensure that all the U.S. agencies would receive all relevant information."

U.S. Penalties

The loss of its banking license in New York would have a big impact on Standard Chartered's ability to process dollar payments, said Royal Bank of Canada analysts including Patrick Lee in London, who has an outperform rating on the stock.
"These are very serious penalties," Lee said in a report to clients today. "Standard Chartered's U.S. headquarters are in New York, so a revocation of its license would have potentially major implications on its ability to conduct business in the U.S. Similarly, its U.S. dollar clearing operations, the seventh-largest in the world, according to Standard Chartered, would potentially impact its core business trade finance business model."
The accusations against Standard Chartered are the latest in a series of alleged regulatory transgressions by the New York offices of British banks.
In August 2010, Barclays Plc agreed to pay $298 million to settle claims it violated trade laws by facilitating transactions involving banks from countries under U.S. sanctions including Cuba, Iran, Libya and Sudan.

Concealed Transactions

In 2009, a unit of London-based Lloyds accused of allowing Iran illegal access to the U.S. financial system agreed to pay $350 million to settle an investigation by Manhattan District Attorney Robert Morgenthau.
HSBC, also based on London, last month made a $700 million provision for U.S. fines after a Senate committee found the bank gave terrorists, drug cartels and criminals access to the U.S. financial system. That sum may increase, according to Chief Executive Officer Stuart Gulliver.
Senate investigators said HSBC concealed transactions that bypassed U.S. sanctions against Iran.
"It really seems as if they are perfectly prepared to flout whatever sanctions, rules and laws anybody tries to impose on them," said Sherrill Shaffer, a former senior economist for the New York Fed who's now a banking professor at the University of Wyoming in Laramie. "It starts to convey a picture that London-based banks have decided that they're not going to pay attention to U.S. sanctions with regard to their U.S. operations."

Iran Office

Standard Chartered handled transactions involving Iranian entities such as the Central Bank of Iran, Bank Saderat and Bank Melli, according to the regulator's order. Lawsky's agency is also investigating similar transactions between Standard Chartered and entities in other U.S.-sanctioned countries, including Libya, Myanmar and Sudan, according to the filing.
The scandal may cost the bank as much as $5.5 billion in fines, lost revenue and reduction in share price, said Cormac Leech, an analyst at London-based Liberum Capital Ltd. who has a buy rating on the stock.
Standard Chartered opened its Iran office in 1993. Ten years later, the lender said "cross-border trade flows with markets like Turkey, Afghanistan, Iraq and Iran appear to be growing and offer potential to us."
The bank stopped all new business in Iran in May 2007 and pulled out completely in May 2012.

Wire Transfers

Wire transfers involving Iranian banks are at the heart of Standard Chartered's alleged misconduct. From 2001 to 2007, according to the order, the bank executed 60,000 wire transfers involving $250 billion through its New York branch.
During this time, the U.S. Office of Foreign Assets Control, or OFAC, required U.S. banks to identify and filter all dollar-clearing transactions involving financial institutions operating in nations facing U.S. sanctions, including Iran --even if the transactions were handled by third-party banks.
The goal, according to the Treasury, was to prevent U.S. dollars from being used to finance terrorist organizations and the proliferation of weapons of mass destruction.
Standard Chartered flouted the OFAC rules by "repairing"wire-transfer orders involving its New York branch to remove any reference to the involvement of Iranian banks, according to the New York filing.

'Rogue Institution'

The alleged conduct occurred over seven years, until OFAC revoked authorization for such third-party transfers in 2008, the state said. The lender continued to hide its actions even after the transfers stopped, according to the regulator, leading to the allegation that it hid the conduct from bank supervisors for almost a decade.
The New York agency alleged that Standard Chartered operated as a "rogue institution" that intentionally withheld information from state and federal regulators regarding its dealings with Iranian clients.
"We remain in close contact with both federal and state authorities on this matter," said John Sullivan, a Treasury spokesman.
The regulatory order poses a challenge to the bank's senior executives, said Christopher Wheeler, a Mediobanca SpA analyst in London.
"This is going to prove rather tricky for the management team at Standard Chartered as they have been at the bank" for years, he said. "This has been happening while Peter Sands, Richard Meddings and Mike Rees have been in place."
Management Change?
Sands was promoted to CEO in November 2006, after four years as finance director. Meddings, who replaced Sands as finance director, was previously director for governance for Africa, Middle East, Pakistan, Europe and the Americas. Mike Rees has been CEO of global banking and markets at Standard Chartered since 2003.
"It's too early to say who will fall on his sword as it depends on what is found, but it really doesn't look good,"Wheeler said.
The announcement by Lawsky's agency came after the bank said last week it was conducting a review of its compliance with sanctions rules.
"The group is conducting a review of its historical U.S. sanctions compliance and is discussing that review with U.S. enforcement agencies and regulators," Standard Chartered said on Aug. 1 as it reported first-half earnings. "The group cannot predict when this review and these discussions will be completed or what the outcome will be."

'Surprise'

Ian Gordon, an analyst at Investec Plc (INVP) in London, said he was surprised by the order. He has a buy rating on the stock.
"I am surprised we are already at this stage when the latest disclosure stated it was an internal review and discussion with authorities," Gordon said in a telephone interview.
Sands, Standard Chartered's CEO, praised his bank's culture in comments to analysts last week.
"We build businesses that deliver a wider social and economic benefit," Sands said Aug. 1. "As a source of competitive advantage, as the ultimate protection against risk, our culture and values are our first and last line of defense."
Lawsky ordered representatives of Standard Chartered to appear before his agency Aug. 15 "to demonstrate why SCB's license to operate in the state of New York should not be revoked."
Standard Chartered's New York operation had $40.8 billion of assets at the end of March, according to the New York regulator. By comparison, the bank had $624 billion in assets at the end of June.
To contact the reporter on this story:Greg Farrell in New York at gregfarrell@bloomberg.net; Bradley Keoun in New York at bkeoun@bloomberg.net.

British media outrage over Sh200,000 seats for MPs

By NATION CORRESPONENT
Posted Wednesday, August 8 2012 at 22:30
Parliament's purchase of chairs at Sh200,000 each has come under intense criticism from the British public after their cost was revealed in the UK media.
The chairs that weigh 50kg each have been installed in the lower chamber of Parliament at a cost of more than Sh85 million (£650,000), part of a Sh1 billion (£8 million) upgrade to the House, whose MPs are already at Sh800,000 (£6,000) a month pay — among the highest paid in the world, said the Telegraph.
Mercedes seats
Comments such as "I am glad they can now sleep comfortably"; "these seats must be the 'Mercedes' of all seats!"; "African parliamentarians are so blind to the need of their people"; "all they (Kenyan parliamentarians) want is how to siphon money"; and "one chair could feed a village for a week or two," all appeared on the BBC's website within hours of the article being published.
Expanded House
The Sh1 billion ($12 million) parliamentary refurbishment included expanding the chamber to cope with the 350 MPs to be elected at the next General Election, up from the current 220, which officials say brings the House into the digital age.
"The changes we are making are going to input positively in governance," Speaker Kenneth Marende told the BBC in a statement. "Now the member will be completely on his own, he will be independent, he will make up his mind and just press a button."
He added that electronic voting would let MPs vote according to their conscience rather than be forced to vote in a certain way by party whips.
The BBC reported that Kenyan MPs had often been criticised for giving themselves hefty salary increases.

Parliament gets Sh922 million new chamber

Updated Wednesday, August 08 2012 at 00:00 GMT+3
BY PETER OPIYO
Members of Parliament whose conduct displeases National Assembly Speaker Kenneth Marende will have their microphones cut off at the touch of a button.
No more will the Speaker have to shout himself hoarse to get the attention of the House with the famous words, "Order! Order!" thanks to a new technology in the new Chamber.
Once he overrules a member, the Speaker can disconnect the offending MP's microphone from his chair. This will target those who breach House rules such as making unsubstantiated allegations or raising frivolous points of order. MPs who are digitally challenged might have it rough, as members must login to activate their microphones and address the House.
Such MPs will be dazzled by the sheer array of communication technology meant to usher them into the digital age, and make their work easier.
Those with computers or tablets like the iPad and Samsung Galaxy Pad or Kindle can access the Internet using the secure virtual private network and the provided logins.
Jumping to get the attention of the Speaker has also gone out the door, as MPs must now press a buzzer to his attention.
Details of the changes quickly became evident as excited MPs moved into their new home on Tuesday, a spanking new chamber that cost taxpayers a record Sh950 million.
The MPs have until January 14 when their terms expire to enjoy the ultramodern facilities furnished with very comfortable red leather seats that cost Sh70 million in total.
Change homes
It is a major transition for the MPs as they change homes, moving from the Old Chamber they have been using for the last two years to their new home.
During the opening ceremony for the new chamber Tuesday, some MPs struggled to operate the communication system. Deputy Prime Minister Uhuru Kenyatta was tickled and could be seen giggling as Chris Obure struggled to operate his microphone.
This is the first major renovation Parliament has undertaken since independence. Initially Parliament used to sit in the Old Chamber since the number of MPs was not more than 200.
During the 6th Parliament in 1988 to 1992, the number of MPs was increased to 202 with 188 elective, 12 nominated and two ex officio members. In 1997 this rose to 210 for elective seats bringing the number to 222. Following the Promulgation of the new Constitution, the Independent Electoral and Boundaries Commission (IEBC) following the boundary changes, increased the number by creating another 80 elective seats.
Transaction of business
With the new Chamber, officially opened by President Kibaki, transaction of business in the House went digital, but MPs experienced challenges that come with such new ventures.
After the President had cut the tape signaling the opening of the Chamber, it was the turn of National Assembly Speaker Kenneth Marende to start off the special session, and he did so with a mastery of all things digital by asking Deputy Speaker Farah Maalim to login and address the House.
Every member's table is fitted with a computer monitor that requires a login card and personal identification number (PIN) to turn on the microphones. The Speaker receives the request on his monitor and gives the MP the floor.
That there will be challenges was evident as the House clerks took Deputy Speaker Farah Maalim through his paces.
"This is the problem of technology but we'll get used to it," he remarked.
The new Chamber also comes with a public address system and electronic voting, eliminating the use of paper ballots.
Better coverage
Work on the facility began in April 2010 and the Clerk of the National Assembly, Mr Patrick Gichohi said the refurbished Chamber would provide for multimedia digital services to facilitate better coverage of House proceedings.
He said renovation works on the Old Chamber to accommodate members of the Senate who are to be elected on March 4 next year will begin soon and should be completed by January next year. "The PSC will undertake renovation of the Senate Chamber and offices for leadership of both Houses in the next phase of our 2008-2018 strategic plan. We will endeavor to complete this renovation by January 2013 ahead of the convening of the 11th Parliament," said Mr Gichohi. Kibaki was also handed his login card by the Speaker and which he used to activate his microphone was activated. The picturesque horseshoe design of the new Chamber gives MPs greater sitting space, ambience and personal comfort, with specially designed slots for persons with physical disabilities.
Additional members
It also caters for live broadcast of Parliamentary proceedings and the anticipated increase of members following the creation of 80 additional constituencies and the 47 women representatives from the counties.
The horseshoe design borrowed from the German Bundestag and the Dodoma-based Tanzanian Parliament, has between 352 individualized seats for MPs, and 20 mobile seats to cater for any eventuality.
The retractable seats were supplied by the Prisons Department and Marende said the cost was far much less than Sh167 million quoted by others who bid for the contract.
Apart from the MPs, there is a seating capacity of 600 for the media. public, diplomats and those occupying the Speaker's gallery. Robotic cameras and TV monitors also dot the Chamber to ensure members comfortably follow the proceedings of the House in real time. The Chamber has inbuilt radio and TV broadcasting studios transmitting live feeds from the floor. It also has digital congress system that provides for public address, an electronic voting component and login that is useful for collecting statistical data such as Members' attendance.

MPs in secret payment deal

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Updated Saturday, April 21 2012 at 00:00 GMT+3

By ALEX NDEGWA

Members of Parliament will stick their hands into the public pocket one last time as they prepare to leave the National Assembly.

As accusations of petty bribery arose over the just-passed Finance Bill, it has emerged that the law included a secret ¡®golden handshake¡¯ that may have helped persuade MPs to drop their fight for better terms for Kenyan borrowers. The deal was sealed after MPs were treated to two expensive luncheons in Nairobi. The MPs voted Wednesday to give themselves a tidy Sh3.7 million each as a gratuity at the end of the tenure of the Tenth Parliament. This is more than double the current severance pay.

Parliament in session. [PHOTO: FILE/STANDARD]
Following increases by the Eighth Parliament, MPs are also eligible for life-long pensions and other retirement benefits. The amount proposed as payment to outgoing MPs is a huge increment from the Sh1.5 million paid out to each member of the last Parliament. The Ninth Parliament outraged the public when they approved a severance allowance at the rate of Sh300,000 for every year in service, translating to Sh1.5 million.

The pay increment is likely to be challenged in court as MPs are seen to have illegally taken over the role of the Salaries and Remuneration Commission. It was passed as an amendment to the Financial Bill MPs had held up on the pretext they wanted to force through a cap on bank interest rates. Parliamentary officials advised against the amendment citing the conflict with the role of the commission but were ignored, The Standard On Saturday has learned.

With public protests likely, attention shifts to President Kibaki who must sign the Bill into law for the new perks to take effect.

The hefty send-off package MPs handed themselves on Wednesday night covers all 222 members and will cost taxpayers Sh825 million. Millions more will be paid out in other allowances to various groups.

The lawmakers gave Deputy Speaker Farah Maalim Sh2.4 million per year in parliamentary responsibility allowance, to be backdated to 2008 when he assumed office. This means the taxpayer already owes him Sh9.6 million in arrears. The four members of the Speaker¡¯s panel ¨C MPs Gitobu Imanyara, Joyce Laboso, Ekwe Ethuro and Phillip Kaloki ¨C will also get Sh1.2 million each for every year served.

Parliamentary Service Commission members were handed Sh1.2 million each in parliamentary responsibility allowance for every year served. The commissioners had not been getting the allowance, which is paid out to the President, Prime Minister, Vice-President, House Speaker, Cabinet ministers and assistant ministers.

Backdated payments

All payments are backdated to the time various officers took over these roles. However, the new parliamentary responsibility allowances have been backdated to 2006. This is to compensate those who served in the PSC and Speaker¡¯s Panel previously and were made to pay back their allowances after a court ruled they had received them illegally before the necessary law had been passed.

The changes were part of a deal approved on Wednesday night when the House voted on the controversial Financial Bill. Finance Minister Njeru Githae used the payouts as a ¡®sweetener¡¯ to soften the MPs who had forced the Executive to withdraw the Finance Bill three times since June last year over a proposal to fix the interest rates that commercial banks can charge on consumer loans.
Githae moved the amendments to the National
Assembly Remuneration Act to legislate the new pay. The pay deal was kept secret and was not listed on the Order Paper that detailed amendments proposed to the Bill.
As the originator of the Bill, the Finance Minister is allowed to move amendments at any stage without prior notice, discretion the Treasury apparently exploited to keep the pay increase under wraps.
Only nominated MP Millie Odhiambo spoke out against the additional perks. She described the heftier pay as "sneaky" and "unfortunate", coming after the House had rejected the amendment to regulate interest rates.
¡¡
"I will not be party to unfairness to this country. MPs have refused to reduce interest rates for members of the public, but when it comes to our own things, we are very quick and sneaky," Millie said.
Earlier, Millie had claimed some MPs had been bribed with Sh50,000 each to defeat the bid to regulate interest rates. ODM MPs were reportedly lobbied at a luncheon at Gazebo, while their PNU counterparts were hosted at the Pan Afric hotel. The huge severance payout is now being viewed as the incentive that ended the standoff over an attempt to fix interest rates charged by banks at four per cent above the Central Bank base rate.
Severance allowance
Although the interest rate amendment was popular all along ¨C even a past meeting between President Kibaki and MPs had failed to secure a compromise ¨C it was curious that on Wednesday night the Executive appeared to have won over majority of MPs. The Government won the vote to oppose interest rate caps by 58-17. While those pressing for an intervention had marshalled more than 20 MPs, forcing a division.
In Parliament, Githae moved an amendment that "a severance allowance at the rate of 31 per centum of the salary specified in the second column of the First Schedule for every year in service," which had the effect of increasing the amount from Sh1.5 million per year to Sh3.7 million. The changes to the Finance Bill led to the insertion of a new clause immediately after Clause 44.
"The National Assembly Remuneration Act is amended in the Second Schedule by deleting the words "A severance at the rate of Sh300,000.00 for every year in service" appearing in column 2 of the Schedule against item 5 of the first column of the Schedule and substituting therefore the words "A severance allowance at the rate of thirty one per centum of the salary specified in the second column of the First Schedule for every year in service," the minister moved. The amendment to introduce a new clause immediately after clause 43 in the Bill introduced new beneficiaries for parliamentary responsibility allowance.
"That the National Assembly Remuneration Act is Amended in the first schedule by inserting in the third column thereof, under the title "Parliamentary Responsibilities Allowance" and corresponding to the entry " Deputy Speaker", "Member of Chairmen¡¯s Panel", and "Parliamentary Service Commissioner" in the first column, the figures "2,400,000, and "1,200,000" and that it comes into effect on January 1, 2006," moved the minister. Reports also indicated there were changes that led to an increment of mileage allowances.
Uhuru faults Mutunga on integrity and leadership

Updated Wednesday, August 01 2012 at 00:00 GMT+3
By JUDY OGUTU

Deputy Prime Minister Uhuru Kenyatta, a key suspect at The Hague, has taken on Chief Justice Willy Mutunga over his statements on leadership and integrity issues. And, curiously, Attorney General Githu Muigai came out backing Uhuru and Eldoret North MP William Ruto in a case challenging their eligibility to run for president while still saddled with the crimes against humanity charges at the International Criminal Court.
Githu dismissed the local case challenging their candidature on the grounds that it was unconstitutional. In a preliminary objection filed in court on Tuesday, the AG argued the case should be dismissed as it conflicts with the constitutional provision of presumption of innocence before a trial and it was based on "speculation and conjecture".
The court, he argues, was being invited to enter the arena of legislation that constitutionally belongs to Parliament. "The petition is misconceived based on total misrepresentation and misapplication of the Constitution of Kenya and the legal process at International Criminal Court," adds Muigai.
On his part, Uhuru wants the court to have Mutunga stopped from issuing statements, which he says have a bearing on his presidential ambition.
Uhuru registered his protest when a case challenging his candidature and Ruto's came up for hearing on Tuesday. Patrick Njuguna, Augustino Neto, and Charles Omanga have filed the case.
Other parties to the suit are Kenya Youth Parliament, and Kenya Youth League. These parties argued that the two are suspects charged before ICC and therefore do not meet the threshold of the Constitution on Leadership and Integrity.
Interestingly, when the case came up for hearing on Tuesday, it faced another roadblock as two out of the three judges hearing it were reportedly indisposed, and, therefore, the case could not proceed.
Justice Isaack Lenaola, who is the third judge, informed lawyers for the three parties of the development, saying his colleagues Mohamed Warsame and Philomena Mwilu were indisposed. He adjourned the case to September 27.
However, before Justice Lenaola could adjourn the proceedings Uhuru's lawyer Evans Monari hit out at Mutunga, saying his utterances through Press statements were of concern to his client.
Curiously, Ruto who has personally been sued with Uhuru was neither in court nor did he send any of his lawyers to represent him. "I would like to register protest on remarks of certain judicial officers. The Chief Justice has been issuing Press statements. It is not viable that the issue is discussed in this manner," Monari said.
But before he could stretch his protest, Justice Lenaola said the rules of engagement are clear and neither judges nor advocates should make substantive comments on the case.
He directed the parties to minimise comments on the merits and demerits of the case. Early this year, Justice Lenaola issued orders stopping public debate on whether Uhuru and Ruto can run for president.
He gave the directive after parties in a suit before him, entered a consent allowing him to do so. The order was, however, vacated.
Mutunga is on record stating the Judiciary would ensure leaders who fail to meet the threshold of integrity as set out in the Constitution are not considered for public office.
Mutunga, who is also the president of the Supreme Court, and the one who will swear-in Kenya's fourth President, has said the courts will defend the Constitution.
The CJ has equally promised to ensure courts uphold Chapter Six of the Constitution to weed out individuals who do not meet integrity and leadership standards.
Saying he would forever fight "in the trenches of reform," Mutunga dismissed claims by a section of lawyers, MPs, and political leaders that Chapter Six of the Constitution on leadership and integrity stands suspended until a Bill is passed in Parliament to implement it.
His strong statement seemed to have excited Kenyans who have feared the worst, as Parliament and the Executive remained divided over Chapter Six of the Constitution that touches on leadership and integrity.
The CJ has been emphatic that the courts must be seen to uphold the spirit of the Constitution when it comes to interpreting Chapter Six, which he warned could still be used to vet those seeking leadership positions.
Mutunga is on record saying the Constitution must be upheld and followed to the letter by the courts to ensure people seeking to lead are held accountable, and those who fail integrity and leadership thresholds are not appointed or elected to public offices.
The petitioners in the Uhuru and Ruto case have sued Muigai and named Independent Electoral Boundaries Commission and the Commission on Implementation of the Constitution as interested parties.
In addition, 213 Internally Displaced Persons are also party to the case. International Centre for Policy and Conflict, Kanu, The National Alliance Party, and several individuals have joined the suit as interested parties. Dr Stephen Njiru is an amicus curie (friend of the court)
It is the petitioners' contention that allowing Uhuru and Ruto to run for public office would amount to perpetuating impunity.
Also sought by the petitioners is an order barring IEBC from accepting nomination or election of any candidate accused of committing serious offences under the international law or Kenyan law, until they are cleared.
In addition, they want a declaration that allowing the two to vie for president was a threat to the Constitution.
Further, they want the court to determine whether presumption of innocence in favour of Uhuru and Ruto overrides public interest to ensure protection and upholding the principles of the Constitution.
Also being sought for is a declaration that presumption of innocence of the two does not override public interest.

PAC: Kimunya and CBK Governor unfit to hold office

Updated 2 hrs 22 mins ago
By Peter Opiyo

The Parliamentary Accounts Committee wants former Finance Minister Amos Kimunya and Central Bank of Kenya Governor Prof Njuguna Ndung'u investigated in the loss of Sh1.8 billion in the money printing deal.
The PAC in its recommendations said both Kimunya who is currently Transport minister and the Governor were unfit to hold office.
PAC recommended that the two be investigated by the ethics and the anti corruption commission.
Members led chairman Dr Bonny Khalwale said that the procurement procedures as contained in the Public Procurement Act were not followed.
The 11-member committee said Kimunya misled the PAC during hearings by arguing the contract did not factor in the purchase of corporate security features of the new generation currency notes.
PAC also clarified that Treasury was not party to the controversial contract for the supply of 1.7 billion pieces of bank notes by De La Rue to CBK.
PAC noted that Treasury had no authority to direct CBK to cancel the contract after the controversial tender was awarded.
 
 
 

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