By MURITHI MUTIGA mmutiga@ke.nationmedia.com
Posted Saturday, October 29 2011 at 22:30
Posted Saturday, October 29 2011 at 22:30
Some of Prime Minister Raila Odinga’s closest allies were among MPs who warned the PM to overhaul the management structure of the Kazi Kwa Vijana when Parliament discussed the first phase of the programme in April.
All the 16 MPs who contributed in response to a ministerial statement by Deputy Prime Minister Musalia Mudavadi on phase two of the project were critical of the way the scheme had been handled in the 2009/2010 financial year and said it was not transparent and accountable.
A number of ODM MPs asked Mr Odinga to put in place measures that would make the programme more efficient and which would deal with complaints in phase one over unpaid allowances for youth and excessive expenditure on administrative costs.
Gwasi MP John Mbadi said the management structure of the programme was unwieldy:
“Mr Temporary Deputy Speaker, Sir, I really wonder how the Prime Minister’s office could imagine that it would supervise and co-ordinate the work of Kazi Kwa Vijana in 210 constituencies and cutting across many ministries. It is impossible.
Stop exercise
“I want to ask the Deputy Prime Minister and Minister for Local Government if he could stop this exercise and form committees in the constituencies for proper implementation of this programme. Kenyans cannot afford to lose money this way.
“We have problems in our constituencies. Youth ask us about this programme and we have no idea about it.
“A lot of money is spent. Imagine this country has spent over Sh7 billion and if you go to the constituencies, there is nothing to show for it on the ground.”
Other ODM MPs who made similar contributions in the House on April 6 were James Rege, John Pesa, Nicholas Gumbo and Rachel Shebesh.
A financial management review of the second phase has resulted in the cancellation of World Bank funding for the Sh4.3 billion project.
The Treasury and the Office of the Prime Minister are in discussions over how to refund the World Bank the money, which was disbursed for this component of the project.
The details of the review have created a political headache for the PM as politicians allied to the G7 alliance have taken advantage of the revelations to demand that he step aside.
Despite the personal nature of the attacks on Mr Odinga, the financial review did not reveal any personal involvement by the PM in the scandal. It also did not indicate that he was aware of the malfeasance perpetrated by staff in his office.
But the report indicated that managers of the project had misappropriated considerable amounts of money allocated by the bank with millions of shillings being spent on “ineligible” expenditures such as staff allowances, fuel cards, foreign travel and one seminar which did not take place.
If he had listened
Mr Odinga could probably have avoided the crisis if he had listened to the counsel of MPs who contributed to debate triggered by a question by Imenti Central MP Gitobu Imanyara.
Mr Imanyara had complained that youth in his constituency had not been paid for taking part in the project. He demanded that the government should order an audit of the first phase before more money was spent on the second phase.
This was a demand also voiced by Bura MP Abdi Nuh. according to the Hansard record of the day’s proceedings: “Mr Speaker, Sir, Kazi Kwa Vijana was a sham. My experience and that of honourable members attests to that.
“The youth did a good job. They were not paid, but besides that, vouchers were filled to show that they were paid. We have adduced that evidence in this House.
“However, more importantly, the Deputy Prime Minister and Minister for Local Government said that they are thinking of a way to streamline the Kazi Kwa Vijana funds.
“That is where the problem is. He has said that 11 per cent of phase one of the funds were used for administrative work. Even in Constituencies Development Fund where the implementing units are different and are paid from the constituency fund, they use three per cent.
“What are the administrative costs that amounted to 11 per cent when it was the same ministries that carried out the projects?”
Despite the political heat the story has generated, no credible challenge has been mounted to the assertions in the story.The Sunday Nation revealed last week that the World Bank had withdrawn financing for Kazi Kwa Vijana after its financial review team labelled the project as “high risk”. (READ: WB cancels funding for Kenya youth project)
Mr Mudavadi told Parliament on Wednesday it was not true that the World Bank had discontinued funding.
The actual position is that the bank has stopped funding for the most well-known “component” of the programme, which involves labour intensive activities in projects in the country.
Offering internship
The bank will now only finance the two other components which involve the offering of internship and training to 10,000 youth through the Kenya Private Sector Alliance and strengthening the ministry of Youth Affairs.
Mr Mudavadi’s contention that the World Bank has not demanded a refund is contradicted by a letter from the administrative secretary in the office of the Prime Minister Abdul Mwasserah informing Treasury PS Joseph Kinyua that the two offices should work together to pay the World Bank.
“The Office of the Prime Minister intends to refund all of the World Bank financing that has been disbursed to this component to date, including both the credit and associated grant,” the October 11 letter reads in part.
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