PM chairs crisis meeting over Finance Bill

Written By:Kendagor Obadiah,    Posted: Mon, Aug 22, 2011

Prime Minister Raila Odinga Monday convened a sub-cabinet committee in a bid to resolve the stalemate over the Public Financial Management Bill that has placed the offices of the two deputy Prime Ministers at loggerheads. The meeting is expected to break the standoff between Treasury, the Ministry of Local Government, the Committee on Implementation of the Constitution and the Commission on Revenue allocation over the Public Finance Management Bill, ahead of the Cabinet meeting Monday afternoon. It made some progress with agreement that the Bill would not go to the Cabinet before it is shared with CIC and CRA, in line with the demands of the constitution. CIC also said it is willing to review its request for a 30-day extension after the committee agreed it would be wrong to table the Bill in Cabinet without CIC's and CRA's input. CIC chairman was allowed to convene his team and go through the Bill as the committee goes on with discussions on other aspects of Public Finance Management. The meeting is being attended by Ministers Otieno Kajwang, Amos Kimunya, James Orengo, Kiraitu Murungi, Deputy Prime Minister and minister for Finance Uhuru Kenyatta, Deputy Prime Minister and Local Government minister Musalia Mudavadi, Mutula Kilonzo and Dalmas Otieno. Chairman of the Commission for the Implementation of the Constitution (CIC) Mr Charles Nyachae and chairman of the Commission on Revenue Allocation (CRA) Micah Cheserem also attended. Treasury and Local government are embroiled in a tussle over the public financial management bill that stipulates how revenues will be shared between the national and county governments. While treasury prefers a harmonized act for both governments, the local government ministry going by recommendations of a task force on devolution, recommends two bills, one for each level of government. The controversy has persisted threatening to derail efforts to meet the deadline to pass crucial constitution implementation bills by the end of this week. In a bid to accord the bill the due attention it deserves, CIC Chairman Charles Nyachae had recommended that measures be taken to extend its deadline. Panic has gripped the country over pending legislations necessary for the implementation of the new law which must be passed before August 27. There is a rush by the executive to dispense 15 pending bills. Monday's meeting is a continuation of another that took place on Sunday between Treasury and Local Government over the same issue. The Ministry of Local Government says it wants to be satisfied that the distinctiveness between the County and Central Governments is taken into account in the Public Finance Bill, in line with the constitution. Meanwhile, Prime Minister says the process of picking the Controller of Budget, like the one that picked the Chief Justice, the Deputy Chief Justice and a number of other officers appointed so far in line with the new constitution, is independent and free of political interventions. "The process is being driven by a panel comprising officers from the Office of the President, Office of the Prime Minister, Treasury, the Attorney General's office and the private sector." In a statement Monday, the PM says he wishes that the process remains independent and professional to enable the best persons take up every position that is up for filling under the new laws. The Prime Minister is yet to get recommendations from the panel on who should be the Controller of Budget. The PM urges politicians to respect the new constitution by allowing its stipulations to take off without their interference. He also wishes to assure the public that the Executive will respect the recommendations of the panel, as has been the case with other appointments.