WORLD BANK LOAN ON GRAFT NOT DESERVED

[miguna]

NOTE: This is the version that appears in the kenya Times of Jan. 27th. Some important portions were omitted. Those interested can read the original piece below.
___________________________________________

World Bank loan on graft not deserved
By MIGUNA MIGUNA

Both the local and international press has estimated that about Sh70 billion was looted by those at or close to the centre of power in the Kibaki administration in the first two years of Narc reign. This is compared to about Sh30 billion stolen by both the Kenyatta and Moi regimes in their 39 years of power. Essentially, whereas about Sh769 million was reportedly spirited away each year during both the Kenyatta and Moi administrations, approximately Sh35 billion have been looted each year. If this regime remains in power up to the end of its term in December 2007, Kenyans may likely lose a whooping Sh175 billion!

When it comes to massive looting of public coffers, members of the Kibaki regime take gold. In terms of scale and speed, the Kibaki cabinet plays in the corruption super league while both Moi and Kenyatta regimes belonged to the juniors.

There is absolutely no way that any country could fully recover from such a financial catastrophe. Not only will Kenya be reduced to a basket case - and a true banana republic - it will not be able to meet any of its budgetary requirements, and it will be permanently reduced to begging (from mostly foreigners) in order to feed its own people. With such huge sums out of circulation, and perhaps most of it stashed in Swiss and other offshore banks, there will inevitably follow real economic crisis, precipitating social, political and other turmoil within our society. Under these circumstances, even our political independence cannot be guaranteed.

We have not been told how much more has disappeared into Narc's deep holes for the past twelve months (following the Sh70 billion massive thefts in the past two years). However, going by the examples we have been reading about, it would not surprise me if at least another Sh35 billion has been flushed down the Narc drains. In fact, I suspect that it has to be more considering how much it must have cost the Banana/Yes referendum leaders to try and sell the Wako Draft..

The amounts involved are astounding. By all standards, these are staggering figures; the kinds that even the most inept gatekeepers at a commercial bank would not feign ignorance of. One probably needs one hundred large commercial trucks to cart away that kind of money from a bank. Most of the time, even large commercial banks do not keep that much money in hard currency in their depositories at any one particular location.

Failing to notice such massive loses from an institution should by itself disqualify anyone from ever occupying any responsible public office, even as a guard or watchman. That is why Kenyans are entitled to question the integrity of David Mwiraria. As Finance Minister, and the person who confessed to having made the questionable payments to non-existent companies, he does not deserve to be our gatekeeper at the Treasury. Similarly, since Githongo has provided detailed accounts of his discussions and briefings with President Kibaki over an extended period of time concerning these shady payments, Kenyans must challenge the President to comprehensively explain why he allowed such massive looting to occur under his watch. Kibaki must also explain to us what role his personal secretary, Alfred Getonga, played in all of these. He cannot deny Getonga's involvement at this late stage in the game.

Obviously, all the other ministers mentioned like Chris Murungaru, Kiraitu Murungi and the Vice-President, Moody Awori owe Kenyans an explanation.

But even more importantly, since the money stolen belongs to the people, Kenyans must insist not just on full and complete disclosure and explanation - each and every cent of the people's money must also be repatriated, including all applicable interests.

At the end of the day, we must demand for the apprehension, prosecution and possible imprisonment of all those who perpetrated these crimes. If found guilty, they should all be sentenced to long jail terms without remission. It is imperative that Kenyans see severe punishments meted out to wrongdoers, especially those that have flagrantly abused and misused their powers, positions, authority and trust in order to enrich themselves.

With the current post 9-11 stringent banking and financial rules, it is very difficult to understand how anyone - leave alone an important representative of a legitimate government - could claim that hundreds of millions of shillings were either paid out or received (electronically remitted back), without, first, the identity of both the recipients and senders being carefully scrutinised by the respective financial institutions, and secondly, without electronic fingerprints being left behind after each and every transaction.

Modern computer technology has made fraud very easy to detect and trace. As well, international laws, protocols and rules against money laundering, terrorism and drug trafficking have basically rendered large volumes of money transfers impossible to hide. Financial institutions are compelled to fully and completely disclose the identities of everyone (and that includes corporate entities) that deposits, remits or receives amounts in excess of $5,000. This would be equivalent to Sh380,000 at today's exchange rate. Even if this amount were to be fixed at Sh500,000, virtually all the Anglo Leasing and the "proceeds" of other related scams would have been detected and traced.

So, why hasn't anyone been arrested by the Kenyan authorities?

We are told that what we have read in the press only represents the tip of the iceberg. According to those privy to the reports John Githongo has prepared on some of the financial misappropriations in the government during his tenure, both Kibaki and Aaron Ringera were fully briefed on what was going on but failed to take any action.

Regardless as to whether or not these reports were considered accurate by some, it is impossible to imagine that the same people that failed or refused to act when they had the opportunity to do so will act now. Even if they do, as they have often "promised," such grudging acts will be too little too late.

Incredibly, governments in Africa do not fall on the basis of the number of scandals, sleaze or abuses they commit. It is as if African governments are immune from the standards most governments are judged on - honesty and ethical conduct.

In view of the foregoing, it is difficult to understand why the World Bank would see fit to release a truncheon of Sh1.8 billion to "fight corruption" when it is said that more than Sh70 billion has been stolen by the same people being given money to fight their own graft. You can only set a thief on another; not on one self. That's why I consider the World Bank loan as a big joke.

(The writer is a Barrister & Solicitor in Toronto, Canada)

[miguna]

NOTE: Original version
------------------------------------------------------------------

WORLD BANK MONEY IS NOT DESERVED BY KIBAKI GOVERNMENT
By MIGUNA MIGUNA* - © 25 January 2006

Both the local and international press has estimated that about Sh70 billion was looted by those at or close to the centre of power in the Kibaki administration in the first two years of Narc reign. This is compared to about Sh30 billion stolen by both the Kenyatta and Moi regimes in their 39 years of power. Essentially, whereas about Sh769 million was reportedly stolen each year during both the Kenyatta and Moi administrations, approximately Sh35 billion have been looted each year under Kibaki. If this regime remains in power up to the end of its term in December 2007, Kenyans may likely lose a whooping Sh175 billion!

When it comes to massive theft of public coffers, members of the Kibaki regime take Gold. In terms of scale and speed, Kibaki Cabinet plays in the corruption super league while both Moi and Kenyatta regimes belonged to the juniors.

There is absolutely no way that any country could fully recover from such a financial catastrophe. Not only will Kenya be reduced to a basket case – and a true banana republic – it will not be able to meet any of its budgetary requirements, and it will be permanently reduced to begging (from mostly foreigners) in order to feed her own people. With such huge sums out of circulation, and perhaps most of it stashed in Swiss and other offshore banks, there will inevitably follow real economic crisis, precipitating social, political and other turmoil within our society. Under these circumstances, even our political independence cannot be guaranteed.

We have not been told how much more has disappeared into Narc’s deep holes for the past twelve months (following the Sh70 billion massive thefts in the past 2 years). However, going by the examples we have been reading about, it would not surprise me if at least another Sh35 billion has been flushed down the Narc drains. In fact, I suspect that it has to be more considering how much it must have cost the Banana/Yes referendum leaders to try and sell the Wako Mongrel.

The amounts involved are astounding. By all standards, these are staggering figures; the kinds that even the most inept gatekeepers at a commercial bank would not feign ignorance of. One probably needs one hundred large commercial trucks to cart away that kind of money from a bank. Most of the time, even large commercial banks do not keep that much money in hard currency in their depositories at any one particular location.

Failing to notice such massive loses from an institution should by itself disqualify anyone from ever occupying any responsible public office, even as a guard or watchman. That is why Kenyans are entitled to question the integrity of David Mwiraria. As Finance Minister, and the person who confessed to having made the questionable payments to non-existent companies, he does not deserve to be our gatekeeper at the Treasury.

Similarly, since Githongo has provided detailed accounts of his discussions and briefings with President Kibaki over an extended period of time concerning these shady payments, Kenyans must challenge the president to comprehensively explain why he allowed such massive lootings to occur under his watch. Kibaki must also explain to us what role his personal secretary, Alfred Getonga, played in all of these. He cannot deny Getonga’s involvement at this late stage in the game.

Obviously, all the other ministers mentioned like Chris Murungaru, Kiraitu Murungi and the Vice President, Moody Awori owe Kenyans an explanation.

But even more importantly, since the money stolen belongs to the people, Kenyans must insist not just on full and complete disclosure and explanation – each and every cent of the people’s money must also be repatriated, including all applicable interests.

At the end of the day, we must demand for the apprehension, prosecution and possible imprisonment of all those who perpetrated these crimes. If found guilty, they should all be sentenced to long jail terms without remission. It is imperative that Kenyans see severe punishments meted out to wrongdoers, especially those that have flagrantly abused and misused their powers, positions, authority and trust in order to enrich themselves. It is high time the ordinary Kenyan saw a clear statement from those in power that crime does not pay whether one occupies high or low positions in society.

Prompt and appropriate punishment meted out for these horrendous crimes will not just act as a general deterrence against such abuses; it will also help inculcate honesty and ethical conduct in public service.

Before Kibaki appointed his Cabinet, each and every one of them should have been thoroughly screened on three levels. First, there should have been security and criminal screening conducted by both the National Security Intelligence (NSI) and the Criminal Investigations Department (CID). The NSI would have assessed the security risks posed by each potential member of the cabinet while the CID should have detected whether or not any of them had a criminal record that would disentitle them from occupying positions of public trust. Second, the Kenya Revenue Authority should have checked their financial and tax records and weeded out any potential appointees that owed taxes to the state (whether in relation to properties or personal income). Those owing taxes to the state (and they were many) should have been excluded from appointment since they would be placed in a conflict of interest situations with the government they would serve. In addition, the refusal or inability to pay one’s taxes is usually considered a red flag with respect to one’s financial rectitude. And third, all potential appointees should have been vetted by Parliament. This is similar to vetting by the Privy Council in both Canada and the United kingdom and Congress in the United States of America. Since Parliament is the people’s watchdog, it should play a central role in vetting cabinet appointments.

With the current post 9-11 stringent banking and financial rules, it is very difficult to understand how anyone – leave alone an important representative of a legitimate government – could claim that hundreds of millions of shillings were either paid out or received (electronically remitted back), without, first, the identify of both the recipients and senders being carefully scrutinized by the respective financial institutions, and secondly, without electronic fingerprints being left behind after each and every transaction. Modern computer technology has made fraud very easy to detect and trace. As well, international laws, protocols and rules against money laundering, terrorism and drug trafficking have basically rendered large volume money transfers impossible to hide. Financial institutions are compelled to fully and completely disclose the identities of everyone (and that includes corporate entities) that deposits, remits or receives amounts in excess of $5,000. This would be equivalent to Sh380,000 at today’s exchange rate. Even if this amount were to be fixed at Sh500,000, virtually all the Anglo Leasing and the “proceeds” of other related scams would have been detected and traced.

So, why hasn’t anyone been arrested by the Kenyan authorities?

We are told that what we have read in the press only represents the tip of the iceberg. According to those privy to the reports John Githongo has prepared on some of the financial misappropriations in the government during his tenure, both Kibaki and Aaron Ringera were fully briefed on what was going on but failed to take any actions.

Regardless as to whether or not these reports are considered accurate by some, it is impossible to imagine that the same people that failed or refused to act when they had the opportunity to do so will act now. Even if they do, as they have often “promised,” such grudging acts will be too little too late.

Incredibly, governments in Africa do not fall on the basis of the number of scandals, sleaze or abuses they commit. It is as if African governments are immune from the standards most governments are judged on - honesty and ethical conduct.

In view of the foregoing, it is difficult to understand why the World Bank would see fit to release a truncheon of Sh1.8 billion to “fight corruption” when it is said that more than Sh70 billion has been stolen by the same people being given money to fight their own graft. You can only set a thief on another; not on one self. That’s why I consider the World Bank loan as a big joke.
______________________________________________________________________

*The writer is a Barrister & Solicitor in Toronto, Canada

[miguna]

The shredders are now welcome to plunge!

[kamalet]

Here comes one of the shredders as would like to refer to those who disagree with you!!!

1. Can you quantify the 70 billion stolen in the last 3 years with facts and not "but we have read about these figures Kamale in the media!!" as part of your basis?

2. Do you have an idea of the total amount stolen on Goldenberg alone before you credit Moi and Kenyatta with only supervising the theft of only 30 billion in 39 years? How much was lost on the Molasses project (both scams!), Kenya Fibre, Eldoret Airport etc? Can they really add up to the paltry figure of 30 billion?

3. Perhaps you should know that whilst in Canada you may have certain anti-laundering laws, there are still countries and principalities where such laws do not exist. Do you remember the saga of 2 billion wired to an account in Nairobi for Humphrey Kariuki a couple of year ago from some principality in Europe?

4. I have no reason to defend the likes of Murungaru, but I still beleive they are entitled to due process as a human right. Have you seen conclusive evidence of Murungaru's involvement in the scams or is he a thief just because media says that he became rich overnight? Should we also not say the same of other Kibaki ministers one present and one former who have built what are being referred as a hotel complex and a supermarket respectively all in Karen? One moved from Runda and the other from Fedha Estate. Should we also not be blowing whistles on them? Should we also not blow whistles on ministers who have the weddings of their sibblings financed by people banned from "trading" with the government?

The problem I see with the approach now taken is that we are failing to deal with the problem. Snippets of unsubstantiated information should not be used condemn people.

Finally, with regard to World Bank lending, I though you might find this attachment interesting on how the bank goes about lending to governments, and where politics is not just the standard:

web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20036115~menuPK:34480~pagePK:34370~theSitePK:4607,00.html

enough of shredding!

[kamalet]

Here comes one of the shredders as would like to refer to those who disagree with you!!!

1. Can you quantify the 70 billion stolen in the last 3 years with facts and not "but we have read about these figures Kamale in the media!!" as part of your basis?

2. Do you have an idea of the total amount stolen on Goldenberg alone before you credit Moi and Kenyatta with only supervising the theft of only 30 billion in 39 years? How much was lost on the Molasses project (both scams!), Kenya Fibre, Eldoret Airport etc? Can they really add up to the paltry figure of 30 billion?

3. Perhaps you should know that whilst in Canada you may have certain anti-laundering laws, there are still countries and principalities where such laws do not exist. Do you remember the saga of 2 billion wired to an account in Nairobi for Humphrey Kariuki a couple of year ago from some principality in Europe?

4. I have no reason to defend the likes of Murungaru, but I still beleive they are entitled to due process as a human right. Have you seen conclusive evidence of Murungaru's involvement in the scams or is he a thief just because media says that he became rich overnight? Should we also not say the same of other Kibaki ministers one present and one former who have built what are being referred as a hotel complex and a supermarket respectively all in Karen? One moved from Runda and the other from Fedha Estate. Should we also not be blowing whistles on them? Should we also not blow whistles on ministers who have the weddings of their sibblings financed by people banned from "trading" with the government?

The problem I see with the approach now taken is that we are failing to deal with the problem. Snippets of unsubstantiated information should not be used condemn people.

Finally, with regard to World Bank lending, I though you might find this attachment interesting on how the bank goes about lending to governments, and where politics is not just the standard:

web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20036115~menuPK:34480~pagePK:34370~theSitePK:4607,00.html

enough of shredding!

[aeichener]

kamalet said:

The problem I see with the approach now taken is that we are failing to deal with the problem.

Here is what "johns" rightly wrote in the Nation Forum:

"Our interest should not be placed on personalities to check this running train of corruption which appears to have been institutionalized by past and present governments. The creation of institutions of governance to reinforce accountability and transparency within government must be emphasised and demanded before next election, so that the pillars for a democratic society are in place whenever the next election take place."

[miguna]

Kamau,

Welcome back. How was your globe-trotting? I truly envy your versatility. But I hope that the Kenyan tax payers like me are not funding your trips or that you were not sent with a full briefcase to Geneva by the dirty pigs in State House.

I am glad that my useless pieces are capable of waking you up from whatever it is you must have been dreaming of.

With the deep moral decay and complete incompetence we have seen in the Kibaki administration, even "good" functioning institutions would not help. Kenyans deserve both functioning institutions and ethical/accountable leadership. It is not an either/or argument, as some of the apologists are suggesting.

Be that as it may, I would like to share with you an email I've just sent to the World Bank (the individual and department will remain undisclosed for now) over your (and Kibaki's) administration's thefts...Here we go.
------------------------------------------------------------------------------------------

Dear....

Two days ago, I read press reports that the World Bank has released Sh1.8 billion to President Kibaki's administration to "fight corruption." Given credible reports currently in circulation - thanks to John Githongo - most Kenyans believe that the Kibaki government does not deserve this money. As far as Kenyans are concerned, the government has stolen much more than the sum being given by the World Bank.

Please see attached two articles that I have written and published in the Kenyan media over this issue.

We urge you to withhold all pending "loans" to the Kibaki government. It is unconscionable to tie Kenyans to loan repayments when the loans will be fraudulently converted to the personal use of those in power.

Kenyans would be pleased to see proactive steps taken by your institution in calling the Kenyan government to account; not simply through criticisms, but by meaningful actions such as the refusal to advance it any credits, loans or help.

We are also appealing to your institution to do whatever is in its power to assist ordinary Kenyans unravel all the major corruption scandals in Kenya - past and present.

Without a complete unraveling of all these scandals and the repatriation of all the looted money, ordinary Kenyans will be forever reduced to servitude.

I thank you for your understanding and anticipated action.

Yours very truly,

Miguna Miguna
Barrister & Solicitor
45 Sheppard Avenue East, Suite 410
Toronto, Ontario M2N 5W9 CANADA
Tel [phone]
Fax [phone]----------------------------------------------------------------------------------------------------------------

Now, you can proceed with the master shredders. Your proven abilities just make my day. Have a good day hiding from the Kenya people....

[miguna]

This is a sample of the BBC report on the different reactions on the World Bank's decision:
Last Updated: Thursday, 26 January 2006, 18:09 GMT
Kenya 'safe' for anti-graft czar


On Wednesday, the World Bank urged Kenya's president to take tough action against any cabinet ministers found to be corrupt.

The warning came as the World Bank approved a new $25m loan to help fight corruption - a decision slammed by former UK Kenya envoy Sir Edward Clay.

Sir Edward, who has condemned Kenya for not tackling graft, said the new loan would feed the "pig of corruption".

'Insensitive'

"The Anglo-Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the code of conduct signed by the new cabinet weeks ago," said World Bank Kenya director Colin Bruce.

"I believe that this is an historic moment for the government to signal where it stands on the issue of political accountability," he said.
------------------------------------------------------------
Some donors, including the UK, have suspended some aid to Kenya over concerns about corruption and Sir Edward, who retired last year, thought the World Bank should have sent out a tough message.

"How can the World Bank be so insensitive and hapless to announce new loans to Kenya?" reports the Guardian newspaper.

"They have added insult to injury by feeding the pig of corruption in Kenya when many Kenyans were beginning to hope they might smell the bacon beginning to fry."
---------------------------------------------------------------------------------------------------------------------

Continue with the shredd......

[aeichener]

miguna said:

With the deep moral decay and complete incompetence we have seen in the Kibaki administration, even "good" functioning institutions would not help. Kenyans deserve both functioning institutions and ethical/accountable leadership. It is not an either/or argument, as some of the apologists are suggesting.

I would certainly agree with this pious wish. But you know, ethical/accountable leadership is hard to find worldwide, these days.

The role of institutions (not that I would presume that Miguna really knows what the word means) is exactly to provide for deficiencies of leadership. The king may then be a complete fool, but the kingdom will still run halfway smoothly.

There would be an easy solution for the (self-declared) Morally Upright like MM: give Kenya back to the Crown, and make Sir Edward Clay the Governor General. Five years should suffice to make her the leading nation in Africa. But I suppose you still wouldn't be content then, would you?
Tee-hee ;D

Alexander

[miguna]

Anti-Corruption Group Blasts World Bank's Loan to Kenya
By Cathy Majtenyi, Nairobi, 26 January 2006

The anti-corruption group, Transparency International, has blasted the World Bank for loaning Kenya $25 million to fight corruption, following allegations implicating four senior ministers, including the vice president, in financial scandals.

The World Bank credit is to be used to strengthen checks and balances in budgeting procedures, financial management, and auditing in several key ministries of the Kenyan government.

The lead economist at the World Bank's Kenya office, Fred Kilby, explains.

"The thinking behind the credit is that there are many Kenyans in government, in the civil service, who would like to see that aspect of Kenya's anti-corruption plan strengthened," he said. "We feel there is a strong commitment to reducing, [and] fighting corruption through the types of arrangements we are supporting under the credit."

But the executive director of Transparency International's Kenyan office, Mwalimu Mati, says the World Bank's timing is "insensitive and ironic," given the corruption allegations that have recently surfaced.

Kenyan media this week have been reporting alleged corruption cases sent earlier to President Mwai Kibaki from John Githongo, who was permanent secretary in charge of governance and ethics for about two years. Githongo resigned last year and now lives in London.

Among the cases is the so-called Anglo Leasing affair, which involved the government awarding lucrative contracts to fictitious companies to print high-tech passports and build police forensic laboratories.

The scheme, which was prevented, could have cost the Kenyan economy around $200 million. Vice President Moody Awori, Finance Minister David Mwiraria, Energy Minister Kiraitu Murungi, and former Transport Minister Chris Murungaru are among those alleged to be involved in the deal.

The World Bank's Kilby says that the scandal has eroded Kenyans' confidence in their government. But he says that overall the government has made a significant effort to build up anti-corruption institutions and systems.

Transparency International's Mati says that the World Bank is sending out the wrong signals by giving the Kenyan government a loan at this time.


Davinder Lamba of Mazingira Institute, left, and Harun Ndubi of Kituo Cha Sheria protest the resignation of President Mwai Kibaki's top anti-corruption adviser John Githongo
"If what we are reading in Githongo's dossier is true, then yes, it [the loan] would be an endorsement of a government that is under serious suspicion of having tolerated or condoned grand corruption within its ranks," he said. "And worse, still, it does not take into account Githongo's story. Githongo is the first statehouse insider who has ever actually defected towards the public and told the public something they have never heard before, that there is corruption in the Kibaki government."

Many Kenyans say they are disillusioned with the current government, which was elected at the end of 2002 on a strong anti-corruption platform.

[miguna]

And from the Financial Times, UK...
-------------------------------------------------
Friday Jan 27 2006 . All times are London time.
Watchdog criticises World Bank loan to Kenya
By Andrew England in Nairobi
Published: January 26 2006 19:10 | Last updated: January 26 2006 19:10

The head of the Kenyan chapter of corruption watchdog Transparency International on Thursday criticised the timing of a World Bank loan to Kenya, saying it was sending the wrong messages at a time when government officials were implicated in corrupt deals.

On Wednesday the bank said it had approved a $25m (€21m, £14.5m) loan to the east African country to “strengthen the capacity of key ministries”. The announcement came just days after a leaked dossier produced by John Githongo, Kenya’s former anti-graft tsar, alleged that senior members of government and presidential aides were involved in corrupt deals that could have cost the country more than $270m.

Mwalimu Mati, executive director of Transparency International Kenya, told the Financial Times the bank should have waited until there were clear signs that President Mwai Kibaki was taking action before disbursing new funds.

“We think that when the vice-president, cabinet ministers and the head of public service are being mentioned as either being involved in corrupt deals or of covering up investigations, the bank is sending out the wrong signals . . . by approving the loan,” he said. “They need to be careful about the subtext of the message – that nothing is wrong.”

Those named by the dossier included Moody Awori, vice-president, David Mwiraria, finance minister, and Kiraitu Murungi, the energy minister. They have denied any wrongdoing.

On Thursday, a group of ministers said the government was committed to tackling corruption and called on Mr Githongo to return to Kenya and give evidence to the country’s anti-corruption body.

Mr Githongo, who has said he is willing to return, resigned from the government last February after becoming frustrated with its failure to tackle graft, and has been living in exile in the UK.

The Kenya Anti-Corruption Commission says it plans to summons the three ministers named in the dossier for questioning in connection with a multi-million dollar scandal known as Anglo Leasing.

But many doubt whether the political will exists to allow a genuine investigation. President Kibaki had possession of the dossier after he dismissed his cabinet in November, but still re-appointed the same ministers. In a statement announcing the loan, Colin Bruce, the bank’s country director, said it was “an historic moment for the government to signal where it stands on the issue of political accountability”.

However, Maina Kiai, chairman of the Kenya National Commission on Human Rights, said the timing of the loan was “insulting to us as Kenyans in the midst of these revelations”.

He added that the integrity of any investigation would be surrounded by doubt as long as officials tainted by graft allegations remained in office.

“The only way we can have a sense of confidence is to see action, so these ministers should step aside.”

[aeichener]

But how credible is the TI Kenya chapter - quis custodiet ipsos custodes? See the forced Gladwell Otieno resignation and the previously tainted board of the institution; see Anyang Nyongo's revelations.

Alexander

[miguna]

FROM THE VIGIL CORNER - Kenya Times
I believe all Kenyans can talk with one voice and tell President Kibaki that, they are fed up with corruption and now want action taken against those implicated. During the tenure of former President Moi, I remember Kibaki going around the country giving figures that were at the time at his fingertips, on how much the government had collected from the taxpayers and how much had been misappropriated! Today Kibaki is mum about the same issue and about Anglo Leasing! It’s unbelievable how power changes a man. Forget about setting another commission. We are demanding the truth now. I still wonder what the culprits are doing walking freely on our streets. Why haven’t they been arrested, sacked and their ill-gotten loot frozen and or confiscated? President Kibaki must make a choice, either he sails with the Kenyans or sink with the culprits. The Anglo Leasing saga makes Goldenberg look amateurish. Enough is enough Mr President, take action now!
-----Ndungu Reuben, Sweden

[aeichener]

I found the LDP ultimatum interesting: the serment du jeu de paume, repeating itself. The government should better learn from history...

Alexander

[kamalet]

miguna said:

Kamau,

Welcome back. How was your globe-trotting? I truly envy your versatility. But I hope that the Kenyan tax payers like me are not funding your trips or that you were not sent with a full briefcase to Geneva by the dirty pigs in State House.

Miguna,

Can you really sink lower than this? For someone who has met me, questioned me on what I do and where I work, it is a real pity that you can sink this low!

Shame!

[miguna]

NOW WE ARE TALKING................
--------------------------------------
Tuesday January 31, 2006

The World Bank withholds Sh15b
--------------------------------------------------------------------------------
By Benson Kathuri

The World Bank has now withheld Sh15 billion in development aid over the Anglo Leasing scandal.

The Bank’s action comes in the wake of mounting pressure on President Kibaki to act on the scandal that is proving to be the worst nightmare in his three year rule, and is now threatening to split his recently reconstituted Cabinet down the middle after fresh graft revelations by the media.

Some Cabinet ministers have even refused to forge a common defence for colleagues behind the Sh7 billion scandals, arguing that the culprits should be brought to book.

The Sh15 billion is crucial funding that was earmarked for development projects and the Bank now says it will only release the monies after the Government moves to deal firmly with corruption.

The withholding of the funds also opens another phase to the Narc government’s nightmare.

Narc came into power on the platform of zero tolerance to corruption and initially enjoyed massive goodwill from the public.

The Bank’s country director, Colin Bruce, supported former Ethic permanent secretary, John Githongo, for shedding light on the unresolved Anglo Leasing scam.


Healthy debate


Recent revelations published in the media have been attributed to Githongo, who resigned last year saying it had become impossible for him to continue performing his duties. Bruce asked Government officials not to vilify Githongo.

"We believe the Government has an investigative process in place and we should allow the Government to respond," Bruce told journalists in his office on Monday.

"It is not appropriate to guess what the Government would do, but the issues raised by Kenyans are serious and legitimate."

Bruce said Githongo’s revelations were bold and encouraging and had generated healthy debate that only Kenyans can conclude.

The Government, he said, had a duty to respond to the claims and act decisively for the interest of the people who had high expectations of the Narc Government.

He, however, defended the Bank’s recent approval of Sh1.7 billion to help the Government fight corruption last week.

Among the projects likely to suffer due to the delay is the free primary programme that was set to receive Sh4 billion, the fight against HIV/Aids and financial sector reforms.

Withholding of the funds does not come as a surprise.


Kenya singled out

Only last week, World Bank President, Paul Wolfowitz, warned that the Bank would withhold funding or halt the approval of loans for some projects if there were concerns about corruption in a country.

Wolfowitz singled out Kenya as one of the countries that would likely be affected on the raised bar on issues of graft.

"We are going from an era where nobody wanted to say no to anything, to an era when people have to be encouraged that if there are serious problems, they bring them forward, and saying no is a good thing," Wolfowitz said.

Speaking on Monday, Bruce said ministers mentioned in the scandal should not be solely blamed, saying even the budgetary processes were too weak.

He said it was possible for civil servants to sneak into the budget dubious commitments that ended up in corrupt deals.

"We need to strengthen and open the budgetary process in order to avoid the kind of Anglo Leashing scam from happening," he said.

Last week, Bruce had asked President Kibaki to deal firmly with those implicated in corruption. He asked the President to use the new code of conduct for ministers to deal with those implicated in the multi-billion shilling scandal.

"The Anglo Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the Code of Conduct signed by the new Cabinet weeks ago," Bruce said.


Serious barrier to growth


"I believe that this is an historic moment for the Government to signal where it stands on the issue of political accountability, even when further evidence still needs to be gathered or examined."

He said the Bank acknowledged the huge challenge before Kenya on corruption, especially Anglo Leasing.

According to the code released shortly after President Kibaki announced his new Cabinet in December, ministers are supposed to be exposed to public scrutiny.

Together with their assistants, they are accountable for their decisions and actions to the public and must submit themselves to scrutiny by the public and Parliament. It also requires ministers to uphold high standards of ethical behaviour.

It says they should not place themselves under any financial or other obligations to outside individuals or organizations that might seek to influence them in the performance of their official duties.

"They should avoid accepting any gifts or hospitality which might reasonably appear to compromise their judgment or place them under an improper obligation," says the 39-page document in part.

Bruce said the Bank board in Washington shared the views widely held by Kenyans and others that corruption was still a serious barrier to shared growth and development.

[miguna]

Leaders support World Bank move on aid
--------------------------------------------------------------------------------

Standard Team

The Government should have seen it coming and least expected that the World Bank would not turn off the aid taps. And last evening, political leaders, trade unionists and members of the civil society said despite the money from the bank being a loan, it was prudent to withhold it because the burden of repaying it would be passed on to the taxpayer.

"The money would have lined up the pockets of a few yet it is the people who shoulder that burden," former Cabinet minister Najib Balala said.

Balala, the Mvita MP, said the bank and other donors had every right to see to it that their money was well used and accounted for.

He said Narc had let down not only the many Kenyans who voted for it, but other countries, which viewed the changeover as a democratic model of transition.

Ntonyiri MP Maoka Maore (Kanu), who first blew the Anglo Leasing whistle, said the action by World Bank was necessary.

"It makes no sense for donors to give Sh15 billion yet a single corrupt deal takes much more than that," said Maore.

Maore said the E-Cop project aimed at computerising each police station was one of the projects which would have cost more than the amount the country was begging from donors.

"We should not be looking for Sh15 billion when we are squandering Sh22 billion," he said.

Father Gabriel Dolan of the Kitale Catholic Diocese’s Justice and Peace Commission said if the Government seriously tackled corruption, then the country would not be in need of foreign aid.

Dolan said corruption was the main issue not the response taken by donors.

Cotu Secretary General Francis Atwoli blamed the World Bank and the IMF for messing up with economies of many African countries through unworkable programmes.

He said the Government should fight corruption and ensure that taxpayers’ money is well utilised to reduce dependency on donors.

The Secretary General of the National Union of Civil Servants, Mr Alphayo Nyakundi, welcomed the move saying giving the country more money, which ends up being misappropriated, would simply enslave Kenyans to donors.

South Mugirango MP Omingo Magara said it was the better not to have the loan.

[kamalet]

Does it matter that the funds were actually withheld in 2004 and reasons thereof given?

Pretty sad that we should be rejoicing when the fnds were meant for HIV problems when many Kenyans continue to die!!

[aeichener]

Oh Kamalet, the very reason for such withholding these funds is just that such helps would not meet the people whom they are intended to meet; after all, the rich and corrupt feed on the dying poor. Must I mention Margaret Gachara ?

A.

[maina]

Wanakenya,

The World Bank is witholding Sh15 billion in development aid over the Anglo Leasing scandal. What about the initial loan to fight graft, the KSHs1.7 Billion.......was it conclusively disbursed or did the World Bank withold it too?

Maina

[miguna]

The "imperialists" have done the right thing here. Kibaki doesn't deserve the money. They have looted enough.

www.timesnews.co.ke/08feb06/nwsstory/topstry.html

[mossad]

The refuasal to grant these loans to kenya is a welcome gesture as to how the interenational community feel about Kibaki and corruption. I think the good people of kenya have done a good job to deny Kibaki all these grants and by clearly pointing to the fact that the monies wont be used for it's intended purposes.

Mossad.