|
|
Post by kasuku on Feb 14, 2012 16:09:08 GMT 3
|
|
|
|
Post by destiny on Feb 14, 2012 17:16:09 GMT 3
Sadly the most important criteria used to pick the Govornor is TRIBE. Ditto finance minister, his PS and the head of KRA.
|
|
|
|
Post by nok on Feb 14, 2012 18:02:42 GMT 3
Rated the worst CBK Governor in Africa I was surprised that the country still tolerated this fella. I finally realized why when Githae replaced The BOSS at treasury. The Bottom line moto is; With this kind of quacks,its a field day for the looting MOB!!
|
|
|
|
Post by gemagema on Feb 14, 2012 18:27:59 GMT 3
Good call! Long overdue.
|
|
|
|
Post by 5thestate on Feb 14, 2012 18:50:44 GMT 3
What the committee has basically said loud and clear and which everybody knew is that we have a nincompoop heading the CBK and he should be out mara moja. Just like the new clueless Finance Minister he should never have been there in the first place.
What’s amazing and drives the point home is that the committee decided to do HIS JOB for him by directing the banks to reduce the interest rates.... its an ultimatum, will he see through the implementation of this directive ? The beauty is he is damned if he follows through (sleeping on the job) and he is damned if he does not - explain to the tribunal.
Fireworks ahead if the tribunal is constituted..... The radical governance shift ushered in by the new constitution is here with us. There are still remnants in the system (and outside praying all over the country) but they are being flushed out one by one.
The big question is that will we end with another big fall or another one clinging to state office despite obvious ethical issues not excluding old fashioned incompetence
What we are witnessing in real time is the legacy of a Mr President being written while he is still in office, the committees action directing him to indict his one of his own to be humiliated in public after dumping his Finance and State Ministers is the final confirmation that we have a lame duck in da house, stripped almost naked and just bidding his time for a disgraceful exit.
We are just beginning to hit the small bumps, I suggest you check with Michuki if he still has some seat belts unsold and replace your old ones, the big ones will be quick and furious as the new constitutions takes root and continues to flex its biceps.
Is a major prerequisite in our countries financial regime being an “idiot”!
|
|
|
|
Post by joblesscorner on Feb 14, 2012 19:45:58 GMT 3
Should have been done "like yesterday"
|
|
|
|
Post by job on Feb 14, 2012 20:09:00 GMT 3
Here’s the full report:www.nation.co.ke/blob/view/-/1327516/data/332693/-/b20pe1/-/SHILLING+REPORT.pdfThe Committee tried to tone down its language and mute its recommendations. I particularly noticed the conspicuous treatment of Banks with soft hands – inviting speculation that culprit banks possibly ‘feted’ these members with some favours. However, credit goes to them for getting a few things quite right:
7.2.1 Policy indecisiveness and inaction of the Central Bank of Kenya -(CBK)
The Committee finds the following acts as directly linked to the slide
of the shilling:
(i) Creatingopportunities for arbitrage - Failure by the CBK to detect
and close in time the gap between the interest rate on Discount
Window of the CBK, the rate on the interbank lending market
and rates on Treasury bills and bonds. The Committee is
convinced that commercial Banks exploited this loophole for
monetary gains. The problem of the exchange rate could have
been addressed to a great extent through a rise in the CBR as
early as June 2011 and also the placement of stringent penalties
on the abuse of the Discount Window.
(ii) Failure to detect and arrest speculative activities - The Committee
also found that the CBK failed to detect and arrest speculative
activities of the financial market players through several financial
instruments that fueled the sharp volatility and sudden fall of the
shilling in 2011. This is related to weak monitoring and
surveillance of financial markets.
(vii) The Committee is of the view that the Governor is squarely
responsible for creating the opportunity for Banks and individuals
to make quick money.
(viii) His announcement and release of CBK circular to bypass the
Banking system and deal directly with buyers or sellers of foreign
exchange, although reversed, was in complete disregard of the
financial structures. This could have opened opportunities for
rationing of foreign exchange, occasioned parallel markets to
thrive and creation of multiple currency practices (see annex 5).
7.2.7 Conflict of Interest– the Committee finds that top management and
board members in some Banking institutions hold board positions in
key public policy organs which are tasked with major development
projects in the country. This is a source of disaffection among Banks
which feel undue advantage is gained by such Bank executives.
For
instance, the CEO of Equity Bank chairs the Vision 2030 board which
in the Committee’s and other Banking institutions provides undue
advantage on present and future information about inflow of funds
towards infrastructure development.Similarly, the chairman of Equity
Bank chairs the National OilCorporation.
7.2.8 Kenya Bankers Association – The Committee found that Kenya Bankers
Association (KBA) discussed the problem of monetary policy in a
meeting with CBK. The Committee found that the interactions
between the regulator and KBA, which is an interest group for profit
seeking Banks, was inappropriate in free markets. This opens up
opportunities for collusion, arbitrage and speculation in foreign
currencies.
7.2.9 Inaction by the Ministry of Finance – The Ministry of Finance failed to
exercise the provisions of the Central Bank Act (Cap 491 section 4c)
and take a proactive role to tame the decline of the shilling. Under
the law, Treasury can intervene (take over monetary policy) upon
69
approval by the Cabinet for a period of 6 months if the CBK shows
inability or unwillingness to pursue the intended monetary policies.
(i) Governor of the CBK – Failures attributable to the CBK during the
period of the decline of the shilling, and the Governors own
conduct bordering on incompetence created panic and fertile
ground forBanks and individuals to make quick money.
The
Committee finds the Governor’s conduct and behavior
incompatible with the holder of the office of Governor of the
Central Bank of Kenya and therefore recommend:
�� The Governor takes responsibility for allowing the sharp
decline of the shilling.
�� The Governor steps aside to pave way for thorough
investigation.
�� That the President should constitute a Tribunal to investigate
the Governor’s conduct, incapability, connivance and
incompetence to perform the functions of the office as per the
provisions of the CBK Act Cap 491 section 14 (2)(f) and 14(3).
(i) Position of Chair and deputy Chair of the CBK Board - The
Central Bank Act (CAP 491 section 11 (1)(a)(b)) should be
amended to provide that the CBK Governor and the Deputy
Governor cannot chair the Board of Directors which is expected
to review his performance in achieving the CBK core mandates.
(ii) Appointment of the Governor and Deputy Governor - The
Committee recommends that the CBK Governor and Deputy
Governor be recruited through a competitive process.
7.3.6 Finally, the current interest rates of slightly over 30% charged by
banks are unrealistic, harmful and untenable. Therefore, the
Government, CBK and financial market players should put in place
deliberate mechanisms to reduce the interest rate to affordable rates
within three (3) months of adoption of this report by the House.
The independence of central Bank should be upheld and the
institution should know its responsibility and the consequence of
not undertaking its duties diligently. The Government should stop
frequent interferences with its CBKs operations.
|
|
|
|
Post by jakaswanga on Feb 14, 2012 20:15:54 GMT 3
Before a CBK governor becomes the scapegoat for the mulfunctioning shilling, it is important to elucidate the statutes under which he operates. How restricted? how free?
Is he for instance under effective ministerial control, or is the CBK independent? That means, can the bank for instance set interest rates, reduce them or increase them, even in the face of opposition from the political boss? Or merely an advisor who comes up with several options and the minister picks the one that serves... whatever interest the best?
Can the institution [CBK] negotiate loans directly to itself and local banks without express supervision by the 'minister' in charge of finance?
One of the greatest reforms of Gordon Brown, Tony Blair's moody finance minister and later failed sucessor, was the making independent of the bank of England. Granting it operational autonomy in key monetary areas.
So it is important to take a look at the structural constraints that bedevil the governor of the CBK, before he is guillotined. Is he merely a straw-man [in the sense of puppet] or is he his worth?
It is possible he is paying the price of subservience to a political baron, a fall guy.
But it looks fishy to me, to accept Githae as finance minister and sack Ndung'u!
But to have a committee of THIS parliament take over the functions of the CBK? That is even a parody worse than Idi Amin adopting the title Conquerer of the British Empire!
|
|
|
|
Post by adongo23456 on Feb 14, 2012 20:43:46 GMT 3
job,
I noticed the bizarre demands from the "Panel". These are not serious demands at all. They merely want Njuguna to kneel before them and say he screwed things up. That helps nobody. Njuguna is going nowhere and the M.Ps know that. Njuguna is one of Kibaki's untouchables to guide his hand as they walk out of the quagmire created under Kibaki.
The structural changes suggested and specific demand to have Njuguna fired are great but there seems to be very little political muscle behind these demands.
Secondly the "Panel" asking the banks to reduce rates or else is absolute nonsense. It si the best way to get the banks off the hook, particularly when there is this Finance Bill which State House pets at the Treasury want passed. If people noticed, Uhuru already provided an additional Kshs 5 million loan @ 5% interest rate to all M.Ps which will be dished out mara moja once the M.Ps pass the Finance Bill. If the M.Ps can get loans on top of loans for 5% interest rate when the rest of Kenyans are paying 30% interest, why would the M.Ps care about interest rates.
As to Njuguna's responsibilities in relation to the chaos in the monetary system and policies in in the last year or so, the buck stops with him and the finance minister. Interest rate is today at 30% and inflation is hovering around 20%. Njuguna has obviously failed in his duties but we have to remember he is a political appointtee and those who appointed him did not do so with any objective of having him implement a functioning financial system. He was appointed to serve the interests of Kibaki and his cabal that controls the Treausury and the ministry of finance. As long as he is doing that job he is safe.
These makeleles are just for window dressing. Nothing is going to happen until Kibaki actually leaves that office and there is a new order. Do people ever wonder why Kibaki would prefer his incompetent and reckless toys to take over State House. Look no further than the Treasury and ministry of finance.
|
|
|
|
Post by subsaharanite on Feb 14, 2012 22:00:11 GMT 3
I'd rather have him stay for now.
Kibaki will only appoint his fellow tribes-mate who will take his turn to 'eat' with a fresh insatiable appetite.
I agree with the last commentator, lets wait till Kibaki goes home if he is ever gonna do that
|
|
|
|
Post by job on Mar 10, 2012 1:52:12 GMT 3
www.the-star.co.ke/national/national/66049-mps-took-cash-to-remove-cbk-governor-name‘MPS TOOK CASH TO REMOVE CBK GOVERNOR NAME' FRIDAY, 09 MARCH 2012 00:02 BY MOSOKU GEOFFREY KIKUYU MP Lewis Nguyai denied yesterday that he had distributed money to some MPs to save Central Bank of Kenya Governor Professor Njuguna Ndung'u. A parliamentary Committee investigated why the shilling declined last year and recommended the removal through of Ndung'u for incompetence. Parliament debated the report on Wednesday evening and expunged the name Professor Ndung'u after heated debate on the floor of the house. Several MPs told the Star that a Central Kenya MP had distributed cash to MPs in a bid to secure their support in defeating the report which was later adopted by the house. "This allegations are preposterous to say the least. I only lobbied for the deletion of of Ndung'u name from the report but even before I started the lobbying there were people who were employing underhand tactics to threaten me. They claimed that i had received some money to bribe some MPs. All these claims are meant to tarnish my name. They are malicious and mere propaganda," said Nguyai yesterday. Yesterday the Star spoke to four MPs who confirmed receiving payments to support the removal of Ndung'u's name. One MP from Kisii told the Star that he was asked to pick his report at a whip’s offices last week and when he went he was given an envelope containing cash. He was later informed that the money was a small lunch to help water down the report by Finance committee chaired by Aden Keynan. “I have always heard claims that MPs are bribed to vote in a certain way but never believed it until it happened to me," the MP told the Star. Another MP, who claims to have received Sh20,000 to oppose the report, said he was aware that several colleagues had also received cash to vote "favourably". However Yatta MP Charles Kilonzo termed the allegations as rumours being spread by those who lost in the vote. "Every time people lose on the floor of the house, they start shouting out there that MPs have been compromised," Kilonzo said. The Yatta MP defended MPs who voted to amend the committee's report saying as far as he was concerned no money exchanged hands. In May 2011 the Nation published a story alleging that corruption had become the order of the day in Parliament. According to the story, based on multiple interviews with sitting and former House members, wealthy and influential politicians offered handouts to MPs to vote in their favour when they came under political scrutiny. “There should be thorough investigations into the conduct of some MPs. Their body language consistently speaks volumes when they vote for or against certain sensitive issues,” Parliamentary Agriculture committee chairman John Mututho told the Nation. “The Speaker should do something about it,” he said the day after MPs threw out his committee's report on the maize scandal saying it was politically engineered and clumsy. Some MPs allegedly can raise questions in Parliament for cash.
|
|
|
|
Post by job on Mar 10, 2012 2:01:06 GMT 3
www.the-star.co.ke/national/corridors-of-power/66065-corridors-of-powerCorridors Of PowerA female and a male MP from Rift Valley were overheard complaining that they never benefited from the “tea” that was being served to several of their colleagues on Wednesday evening when the debate on the report prepared by the committee that probed the depreciation of the shilling was going on. The two MPs were wondered why they were left out yet their contribution on the debate and their vote counted just as much as their other colleagues!
|
|
|
|
Post by tnk on Mar 10, 2012 2:07:02 GMT 3
i guess parliament just depreciated itself .... again ....
is it coincidence or is nguyai a very accomplished errand boy or is it errant mp?
|
|
|
|
Post by b6k on Mar 10, 2012 9:27:38 GMT 3
Yesterday the Star spoke to four MPs who confirmed receiving payments to support the removal of Ndung'u's name. One MP from Kisii told the Star that he was asked to pick his report at a whip’s offices last week and when he went he was given an envelope containing cash. He was later informed that the money was a small lunch to help water down the report by Finance committee chaired by Aden Keynan. “I have always heard claims that MPs are bribed to vote in a certain way but never believed it until it happened to me," the MP told the Star. Another MP, who claims to have received Sh20,000 to oppose the report, said he was aware that several colleagues had also received cash to vote "favourably". However Yatta MP Charles Kilonzo termed the allegations as rumours being spread by those who lost in the vote. "Every time people lose on the floor of the house, they start shouting out there that MPs have been compromised," Kilonzo said. The Yatta MP defended MPs who voted to amend the committee's report saying as far as he was concerned no money exchanged hands. In May 2011 the Nation published a story alleging that corruption had become the order of the day in Parliament. I think The Star is failing the people of Kenya by not naming & shaming the 4 MP's they got the story from. Judging from the way Khalwale changed his tune against Ndungu, his envelope must've been at least ten times more than the 20k the lesser MPigs "earned". |
|
|
|
Post by njamba on Mar 10, 2012 20:31:39 GMT 3
That is why nguyai is Ngui
|
|
