Tuesday, August 16, 2011

Kibaki, Raila move to prevent money crisis



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President Mwai Kibaki and Prime Minister Raila Odinga at Harambee House. PHOTO/ FILE
President Mwai Kibaki and Prime Minister Raila Odinga at Harambee House. PHOTO/ FILE 
By  BERNARD NAMUNANE bnamunane@ke.nationmedia.com
Posted  Monday, August 15  2011 at  22:00
IN SUMMARY
  • Deadline for appointment of Controller of Budget pushed back to keep funds flowing
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President Kibaki on Monday extended the deadline of appointing the Controller of Budget by 21 days to avert a financial crisis in government.
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He also summoned the Cabinet to yet another meeting on Wednesday to discuss the 17 pending Bills critical to the implementation of the Constitution as the August 27 deadline edges ever closer.
Sources said the group will also discuss appointment of a new Attorney-General and Inspector-General of Police.
Government operations would have been paralysed from August 27 when the mandate of current Controller and Auditor General Anthony Gatumbo to approve withdrawals by ministries and government departments from the Consolidated Fund ends.
In the gazette notice, Mr Kibaki said: “In exercise of powers conferred by section (12) of the Independent Offices Act, I, in consultation with the Prime Minister, extend the period specified in section 5(1) of the Act, in respect of the declaration of vacancies in independent offices and the invitation of applicants immediately following the commencement of the Act, by twenty-one days.”
Mr Gatumbo can now approve withdrawals until September 17.
Last week, Justice and Constitutional Affairs Minister Mutula Kilonzo warned the government was running out of time to recruit the Controller of Budget, the Auditor General, the Inspector General of Police and a new AG.
“We are facing a major hurdle... with the time left, you cannot appoint any of the officers in a manner that is transparent, competitive and has the public participating as required by law,” he said.
The Auditor General will scrutinise government expenditure, while the Controller of Budget is charged with approving withdrawals by ministries and departments from the Consolidated Fund.
The two tasks that were previously carried out by one officer — the Controller and Auditor General — have been split.
The panel expected to fill the posts cut short the period of presenting the names to the President and Mr Odinga from 14 days to seven.
“We have been forced to rush the selection process to beat the impending deadline, but at the same time being strict to ensure the process is not compromised,” he said.
The panel has interviewed six candidates for Controller of Budget, among them Kenya Revenue Authority’s Commissioner of Domestic Taxes John Njiraini, former Central Bank of Kenya deputy governor Jacinta Mwatela and National Hospital Insurance Fund boss Richard Kerich.
Those lined up for interviews this morning are the Director of Audit Alex Nthiga Rugera, Mr Dismas Ogot, Ms Christine Mutingu, Mr Onesmus Ayaya, Mr Cheptumo Ayabei and Ms Agnes Odhiambo.
“The nominations for the Controller of Budget will be handed in on Tuesday while those of Auditor General will be on Thursday, a day after their respective interviews are completed,” she said.
Meanwhile, President Kibaki and Mr Odinga met with Deputy Prime Ministers Uhuru Kenyatta and Musalia Mudavadi to resolve the impasse over the Public Financial Management Bill that will guide financial relations between the central government and the counties.
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A small team tasked to harmonise the two drafts — one by Treasury and the other by Local Government — is expected to submit its report on Tuesday.
Of the 17 Bills, three are at the committee stage in Parliament, while one is lined up for debate.
Twelve others are with the AG for publication.
The Commission for the Implementation of the Constitution (CIC) says the deadline could still be met.
“If we all work overtime, we can meet the deadline. However, we should not sacrifice the quality of the Bills so that we come up with unconstitutional laws,” CIC chairman Charles Nyachae said.

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