FEEBLE KICKS OF A DYING HORSE

[miguna]

Monday, December 12, 2005

Story by JOHN OYWA
Publication Date: 12/12/2005
Spirit firms yesterday criticised a government order requiring them to pay a new tax upfront.

And a sugar industry lobby – Sugar Campaign for Change – described the new taxation rule as punitive and a sabotage to the industry.

Lobby chairman Peter Kegode said the Kenya Revenue Authority had no justification in subjecting Spectre International that owns the controversial Kisumu Molasses Plant, and the Muhoroni Agrochemical Company, to the upfront tax on all spirits for local and export markets.

The move has sparked off a war of words between Spectre and Agrochemical on the one hand, and KRA on the other.

Spectre International is owned by Mr Raila Odinga and his brother, Bondo MP Oburu Oginga.

Yesterday, Mr Kegode, who spoke to the Nation in Kisumu, said the move by KRA would stifle the diversification of the sugar industry, whose by-products are used in the manufacture of ethanol and spirits.

He said the arbitrary introduction of taxes would lead to the closure of the two firms and reduce job opportunities.

"As a campaign lobby, we are surprised by the Government action, which is counter-productive to the national interest of adding value to sugar sector products," he added.

Instead of imposing punitive taxation measures, we would like the Government to streamline its policy in the diversification of the sugar sector, especially on the production of ethanol and related products.

Mr Kegode, who is also an industry consultant, said that the decision by the Government to demand upfront taxation was political, and could scare away investors.

The KRA was yesterday quoted as having ordered the two companies to stop further production until they paid taxes upfront.

The tax collector cited rampant misuse of spirits, both for export and under bond managed by the two firms, allegedly leading to dumping of the product in the local market.

However, a Spectre International senior manager Israel Agina denied the allegations and said the move by the Government amounted to double taxation, and was likely to kill the Kisumu-based factory.

Mr Agina said 80 per cent of his company's products were exported.

Agrochemical managing director O. P. Narang also protested against the new tax, describing it as unnecessary.

Mr Kegode told the Government to urgently review its position and warned that it could spark problems in the sugar industry.

"This decision is in bad taste, especially at a time when the sugar industry is trying to consolidate its value to include products like ethanol and industrial spirit," Mr Kegode said.

Spectre International has been in the news in the past after the Government tried unsuccessfully to repossess the land on which it is built, claiming it was illegally allocated to the Odinga family.

The issue was settled after the family produced documents proving they legally acquired the land.

[job]

Kichwa Mbaya,

I picked up this posting (see below) from KOL and I'm not sure whether it was originated by the same Kichwa Mbaya of Jukwaa.

If so, Kichwa Mbaya, does the speculation/plan (posted below) originate from a credible source?

One thing for sure, is that this current remnant of Kibaki's "government" may very likely be tempted to do just this, during this very desperate moment (for them).

I think if they toy with such an idea, ........Kenya would be taken many steps backwards, since the society has outlived such dark days of authoritarian silencing of political opponents using State instruments of power.

In case he does toy with it, I wonder whether he assumes that any resultant destruction & future consequences will be solely limited to his opponents, with no rebound or boomerang effects.

If Kibaki is trying to replicate and replay the 1966-78 Kenyatta "strong man" authoritarian dictatorship, which involved detentions, assassinations, police suppression, economic strangulation of opponents, tribal isolation games, and such ugly plots, .....then the people of Kenya must surely pray and strive to ensure that he doesn't succeed.

The process or it's aftermath can be catastrophic.

The people of Kenya may not necessarily rally behind any such political plots this time around.

............here's the posting..

*********************************************
From: Kichwa Mbaya - Sun, Dec 11, 9:04 PM

MKM have believed all along that Raila and Luos are the problem. They also believe that power should not leave the house of Mumbi ever again.

The only obstacle to their retention of power as far as they are concerned is this man Raila. They tried to destroy him politically through the votes but Raila turned the tables on them.

If Banana would have won they would have declared Raila politically finished. Now they are only left with one option. Political isolation and containment of Raila has failed.

The only thing left is to isolate him physically or Kill him. They will therefore find some trumped up charges like treason.

The original plan was to arrest Raila in Mombassa at the ODM rally that had been called-off. They did not want the huge thanksgiving crowd that gathered in Nairobi to be repeated. Raila was tipped off of the arrest.

The next thing they intend to do is to take his passport, as soon as he arrives back in Nairobi, accusing him of plotting with others outside the country to over-throw the government. Then they plan to follow that up with filling charges of trying to overthrow the government. They will plant evidence and find fake witnesses to lie that Raila confided in them his coup plans.

Let us wait and see how they execute this plan. They will probably screw it up too.

[kamalet]

I do not think that Kibaki is capable of the things being suggested here like killing Raila or having him jailed for treason.

I have said before that I am not convinced that assasinating Raila would achieve the desired effect since a similar objective can be achieved by isolationist politics. Moi succeded with this and following the 1997 elections was able to convince Raila that it was in the interests of the Luos to join government - and this came complete with cabinet posts negotiated!! Moi's intention was to cushion himself with a Luo vote for Kanu since he would not be a candidate in 2002, and he feared a backlash if he lost since he could no longer retain the Luhya vote and his Kalenjins were isolated. It was expected that in the run up to 2002, there would have been defections from Kanu that would have hurt him.

This is pretty much the same thing that drove Kibaki to conjure up a GNU in June last year to forestall the LDP rebellion that was costing his government in parliament. So Kibaki will perhaps try and isolate the LDP group and convince the moderates such as Balala and Kalonzo with enticements that leave LDP as a luo shell - ala KPU afte 1966.

The second level would be to force Raila to negotiate with Kibaki by hurting him either politically or economically. I would not even be surprised the changed taxation rules for Spectre International is not one of these - i.e. use legal means to strangulate him economically and politically, including invalidating the Molasses deal!

I have said this before that Raila has a constituency that he can deliver to any partner and the moment you make him vulnerable, he will peddle this constituency!

What I do not expect though is that there is any one in Kibaki's government that has the "wisdom" to see it that Raila is their enemy who needs to be contained by forcing him to a table where you negotiate from an upper hand by pushing him to the wall. Sometimes you just wish for an expert liek Moi to do these things for you!!!

So as it stands, and based on how Kibaki handlers have behaved in the past - Raila is a problem that can be wished away by ignoring him!! Oh! how wrong they are!!!!

[miguna]

He killed Odhiambo Mbai; didn't he?

[kamalet]

...and perhaps the dead dog I saw on Waiyaki way last evening.

Very lame in deed!!

[KOLONEL BRISK]

When N.D.P chose to join Kanu it was due to an agreement that the constitution was to be rewritten. The other details concerned some regional development which every area represented by N.D.P was asked to submit. I do not know of cabinet post and what was given was in the spirit of Co-operration.