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Bills top agenda as Parliament resumes

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By DAVID MWERE
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Statistics bill 2019 is among the bills that will be given the highest priority as the National Assembly and Senate resume sittings on Tuesday for their third session after the 2017 general election.

The two Houses had been on a month-long Christmas recess and resume duty to a packed in-tray.

The statistics bill, which is awaiting publication, has significant implications on the national census to be held in August.

It is an amendment to the Statistics Act of 2006 that establishes the Kenya National Bureau of Statistics (KNBS) for the collection, compilation, analysis, publication and dissemination of statistical information, and the coordination of the national statistics system.

There is also the Budget Policy Statement (BPS) that Treasury Cabinet Secretary Henry Rotich is to present to MPs February 15, according to the Public Finance Management Act.

The BPS outlines the country’s expenditure priorities and revenue collection measures as well as deficits.

Parliament has also prioritised the passing of the Independent Electoral and Boundaries Commission (IEBC) Amendment bill to provide the mechanism for hiring new commissioners whenever vacancies arises.

This is informed by the resignation of four members of the seven- member commission in October 2017 and in April 2018.

As currently constituted, the IEBC Act has no such mechanism hence the need to recruit commissioners ahead of the census and delimit electoral boundaries ahead of the 2022 general elections.

The Land Value Index Laws (Amendment) 2018 bill is also crucial to the government’s infrastructure development plan.

It aims to address the matter of land compensation by providing for negotiated valuation that will bring down the cost thereby helping the government to roll out projects faster. 

The other bills the House wants to prioritise include Energy Bill of 2017, Petroleum Bill 2017, Kenya Roads Bill (NA Bill No. 47 of 2017) and the Government Contracts Bill of 2018.

The MPs expect to conclude matters on the BPS to ensure the Division of Revenue bill and the County Revenue Allocation bill are passed in time.

However, they are grappling with whether the budget cycle will be affected as in September 2018, the High Court in Nairobi declared the provisional collection of taxes unconstitutional before the passage of the Finance bill. This followed a petition by activist Okiya Omtatah.

High Court Judge Winfrida Okwany said the National Assembly must pass the Finance bill before appropriating national resources.

The implication of the ruling is an amendment to the Public Finance Management Act, which says the Finance bill must be passed 90 days with the passing of the Appropriations bill.

During a leadership meeting of the two Houses in Mombasa in December, President Uhuru Kenyatta was concerned about slow progress on bills.

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It emerged that majority, including the Land Value Index Laws, Energy, Petroleum, Physical Planning, Roads and Government Contracts bills, were stuck in the Senate.

The Petroleum bill had been passed by the two Houses but the President rejected it with a memorandum over revenue sharing.

The National Assembly passed it in the last Parliament but it has been lying in Senate since then.

The case is the same with the Energy bill – it was passed in the National Assembly in the last Parliament, rejected by the President, reconsidered by National Assembly, sent to the Senate, lapsed, republished and then sent back to the Senate, where it remains.

President Kenyatta rejected it after Mvita MP Abdulswamad Sharif forced an amendment for Kenya Power compensate Kenyans and manufacturers for power outages.

The Roads bill has also been lying in the Senate since it was passed in the last Parliament.

The two are among bills aimed at supporting vision 2030.

The Physical Planning bill was to be passed within the first five years of the implementation of the Constitution.

The Government Contracts bill, which states who between the national and county governments should sign agreements, is also expected to be prioritised.

During his unveiling of the 2018/19 budget in June last year, CS Rotich proposed to have the Insurance bill and the Sacco Societies (Amendment) bill prioritised to support the budget.

The bills were due before the end of last year but were delayed.

The National Assembly is also expected to receive a memorandum from the President on why he rejected the Health Laws (Amendment) bill. 

There is also the post facto approval request from the National Treasury on the victims of the Solai dam tragedy in Nakuru that is pending before the National Assembly committee on Budget and Appropriations.

The other bills include the Statute Law Miscellaneous (Amendment) bill No 2 that seeks to amend 15 pieces of legislation. It is awaiting the second reading in the National Assembly.

There is also the Sports bill that is at the second reading and the County Governments (Amendment) bill, currently in the National Assembly.

The bill by Elgeyo Marakwet Senator Kipchumba Murkomen provides the mechanisms of appointing deputy governors whenever vacancies arise and clarifies their roles.

It also provides for the position of a deputy speaker at county assemblies.



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General

Sordid tale of the bank ‘that would bribe God’

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Bank of Credit and Commerce International. August 1991. [File, Standard]

“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.
BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.
It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.
BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.
The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.
He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.
In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.  
BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.
The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.
The bank had five branches countrywide and panic had gripped depositors on the state of their money.
Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.
It sent statements assuring depositors that their money was safe.
The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.
It was said that contact between CBK and Abu Dhabi was “likely.”
This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.
The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.
And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.
“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.
BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank.  The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.
“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.
A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.
“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.
CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.
This was meant to stop Kenyans from making panic withdrawals.
For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.
In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.
Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain. 
The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.
Criminal culture
In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).
The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.
This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.
Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.
“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.
These included the Third World Foundation for Social and Economic Studies, a British-registered charity.
“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.
BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).
Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).
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Monitor water pumps remotely via your phone

Tracking and monitoring motor vehicles is not new to Kenyans. Competition to install affordable tracking devices is fierce but essential for fleet managers who receive reports online and track vehicles from the comfort of their desk.

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Agricultural Development Corporation Chief Accountant Gerald Karuga on the Spot Over Fraud –

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Gerald Karuga, the acting chief accountant at the Agricultural Development Corporation (ADC), is on the spot over fraud in land dealings.

ADC was established in 1965 through an Act of Parliament Cap 346 to facilitate the land transfer programme from European settlers to locals after Kenya gained independence.

Karuga is under fire for allegedly aiding a former powerful permanent secretary in the KANU era Benjamin Kipkulei to deprive ADC beneficiaries of their land in Naivasha.

Kahawa Tungu understands that the aggrieved parties continue to protest the injustice and are now asking the Ethics and Anti-corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to probe Karuga.

A source who spoke to Weekly Citizen publication revealed that Managing Director Mohammed Dulle is also involved in the mess at ADC.

Read: Ministry of Agriculture Apologizes After Sending Out Tweets Portraying the President in bad light

Dulle is accused of sidelining a section of staffers in the parastatal.

The sources at ADC intimated that Karuga has been placed strategically at ADC to safeguard interests of many people who acquired the corporations’ land as “donations” from former President Daniel Arap Moi.

Despite working at ADC for many years Karuga has never been transferred, a trend that has raised eyebrows.

“Karuga has worked here for more than 30 years and unlike other senior officers in other parastatals who are transferred after promotion or moved to different ministries, for him, he has stuck here for all these years and we highly suspect that he is aiding people who were dished out with big chunks of land belonging to the corporation in different parts of the country,” said the source.

In the case of Karuga safeguarding Kipkulei’s interests, workers at the parastatals and the victims who claim to have lost their land in Naivasha revealed that during the Moi regime some senior officials used dubious means to register people as beneficiaries of land without their knowledge and later on colluded with rogue land officials at the Ministry of Lands to acquire title deeds in their names instead of those of the benefactors.

Read Also: Galana Kulalu Irrigation Scheme To Undergo Viability Test Before Being Privatised

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“We have information that Karuga has benefitted much from Kipkulei through helping him and this can be proved by the fact that since the matter of the Naivasha land began, he has been seen changing and buying high-end vehicles that many people of his rank in government can’t afford to buy or maintain,” the source added.

“He is even building a big apartment for rent in Ruiru town.”

The wealthy officer is valued at over Sh1.5 billion in prime properties and real estate.

Last month, more than 100 squatters caused scenes in Naivasha after raiding a private firm owned by Kipkulei.

The squatters, who claimed to have lived on the land for more than 40 years, were protesting take over of the land by a private developer who had allegedly bought the land from the former PS.

They pulled down a three-kilometre fence that the private developed had erected.

The squatters claimed that the former PS had not informed them that he had sold the land and that the developer was spraying harmful chemicals on the grass affecting their livestock and homes built on a section of the land.

Read Also: DP Ruto Wants NCPB And Other Agricultural Bodies Merged For Efficiency

Naivasha Deputy County Commissioner Kisilu Mutua later issued a statement warning the squatters against encroaching on Kipkuleir’s land.

“They are illegally invading private land. We shall not allow the rule of the jungle to take root,” warned Mutua.

Meanwhile, a parliamentary committee recently demanded to know identities of 10 faceless people who grabbed 30,350 acres of land belonging to the parastatal, exposing the rot at the corporation.

ADC Chairman Nick Salat, who doubles up as the KANU party Secretary-General, denied knowledge of the individuals and has asked DCI to probe the matter.

Email your news TIPS to [email protected] or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

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William Ruto eyes Raila Odinga Nyanza backyard

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Deputy President William Ruto will next month take his ‘hustler nation’ campaigns to his main rival, ODM leader Raila Odinga’s Nyanza backyard, in an escalation of the 2022 General Election competition.

Acrimonious fall-out

Development agenda

Won’t bear fruit

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