MILLIONS FOR PARTIES

Political parties are the proud recipients of the first tranche of millions from the Taxpayer as the long awaited State funding law was finally implemented.

Over Sh100 million has already been funneled to the parties in line with the new law, with Prime Minister Raila Odinga’s Orange Democratic Movement getting Sh58 million in round one. President Kibaki’s Party of National Unity is expected to get at least Sh50 million — but not yet because it is battling in court with Gichugu MP Martha Karua’s Narc-Kenya.

Her party insists the coalition arrangement with PNU was only for the purpose of elections and it should get its funding directly and not through the President’s party.

Narc-Kenya has the most number of seats in Parliament compared to the other 12 PNU affiliates, including Vice President Kalonzo Musyoka’s ODM-Kenya and Deputy Prime Minister Uhuru Kenyatta’s Kanu.

Treasury released the money, through the Registrar of Political Parties, in line with the stipulations of the Political Parties Act. At least Sh140 million, which is part of the Sh200 million set aside by Uhuru, in his capacity as Finance Minister, in the 2009/10 Budget for the Political Parties Fund, was released to parties.

When the Act came into force last year, another Sh30 million was distributed among the 47 registered political parties with each raking in Sh650,000.

The funding caps decades of agitation by pro-reformists for public financing of parties to cushion the Opposition and peripheral groups from unfair competition from ruling parties, which use the State resources and machinery to run their programmes.

It was also argued the funding would help free the parties from personalised control and manipulation by rich politicians flaunting their wealth to intimidate their peasant supporters.

From now on, party chiefs, even from those peripheral parties that manage to send one or two MPs to Parliament, may have to worry more about looking extravagant than where to get finances for office rent, transport to party functions upcountry and salaries for staff.

Campaign fundraisers

This was part of the unachieved demands of the minimum reform champions in the countdown to the1997 elections under the umbrella of the Inter-Party Parliamentary Group (IPPG).

Opposition parties have been surviving on the goodwill of its members who turn up for its campaign dinner fundraisers, buy party paraphernalia and membership cards, as well as MPs and other senior officials who agree to a check-off system from their pay-slips. Meanwhile as they sweat it out, the party of the incumbent rides on the crest of State resources, and even dishes out government’s freebies.

The windfall could refocus attention on control of political parties as those in charge could use funds to their leverage.

But curiously, Treasury released the money in the thick of President Kibaki’s and Prime Minister Raila Odinga’s campaign for a ‘Yes’ vote in the August 4 referendum.

On Monday, Raila who the other week met the leadership of the 23 parliamentary parties, said the Proposed Constitution was a Government project.

State funding of parties is done proportionate to the total number of votes secured by the party candidates at the last General Election.

The Standard learnt some of the parties had been turned away because they had not met stipulated rules. These include submission of a work plan, opening of a separate bank account for the funds and complying with the gender rule. Ideally all the funds should be disbursed by the end of the financial year in June.

But the kitty, like the Constituency Development Fund, is not subject to stringent financial rules that require unused funds to be returned to Treasury.

ODM’s National Election Board chairman Dr Joseph Misoi confirmed to The Standard the Orange party had received the money. He revealed each of its branches will get Sh100,000 to run their party affairs.

The release of the millions could, however, raise eyebrows on whether it is an enticement for the parties to support the Proposed Constitution. It is likely the funding was discussed at the Kibaki-Raila talks with party leaders last week.

The question of how to use of the money allocated could reignite differences that have been raging in political parties, such as that between the PM and Higher Education minister in ODM.

It could also open a floodgate for sour grapes tales, given for example that former South Mugirango MP Omingo Magara, who is fighting to recapture his seat, quit his position as ODM National Treasurer last month. If he were to remain and he got the party’s ticket, his campaign would have probably been less arduous.

Small parties

The funds could also reignite battle to control the parties, such as that between Uhuru and a section of Rift Valley politicians.

From the look of things, PNU and its affiliates will take longer to get their share of the funds due to a court tussle. Last year, Narc-Kenya moved to court to block the lump-sum release of the funds to the coalition and instead asked that the Registrar of Political Parties distribute the money to individual parties.

Yesterday Karua said hearing of the case is due next month. Karua added Ford-People and Democratic Party have joined the suit. The Sh60 million yet to be disbursed includes the allocation to PNU and other small parties.

The Political Parties Act provides for establishment of the Fund, which shall be administered by the Registrar, to foot expenses for purposes compatible with democracy.

Part of the funds allocated to political parties is intended for civic education in democracy and other electoral processes as well as promoting the parties’ influence on public opinion.

The law says 15 per cent of the Fund is to be distributed equally among the political parties.

From the kitty, 80 per cent shall be distributed proportionately by reference to the total number of votes secured at the last General Election by each political party’s presidential, parliamentary and civic candidates.

The balance of five per cent is spent on administration expenses of the Fund. The sources of the Fund are those provided for by the Minister for Finance in the annual estimates and contributions from any other source.

The Act demands that monies allocated to a registered political party from the Fund may be used for purposes compatible with democracy, including promoting active participation by individual citizens in political life. But the law bars use of funds to reward supporters or finance activities that are in contravention of Public Officers’ Code of Ethics.

Further, parties are also restricted from ploughing the funds into business ventures or such activities that are incompatible with the promotion of a multiparty democracy and electoral processes.

No more than 25 per cent of the funds would be used for the administrative expenses of the party, says the Act. Misoi said: "We will give each of all our branches Sh100,000 for the running of their offices. That is why we have harmonised areas where we had disputes. We cannot send money to branches where there are wrangles," he said.

He said the funds would be used to put in place structures to make ODM active.