THE Sh3.7 million gratuity due to be paid to each of the 222 MPs at the end of their term is expected to shoot up to Sh15 million if a proposed amendment to the National Assembly Remuneration Act is passed.
Taxpayers will also pay millions of shillings as responsibility allowances to the current and former Speakers of the National Assembly, their deputies and members of the Speakers' panel which comprises between three to five MPs who assist when the Speaker or his deputy are not available to conduct debate in the chamber. These payments will be back-dated to July 2003.
Some of these proposals are included in the Miscellaneous Amendment Bill tabled in Parliament by Attorney General Githu Muigai and set for debate this week. If passed, taxpayers will pay Sh3.3 billion as gratuity to the MPs apart from the millions more due as allowances for the Speaker, his deputy, PSC commissioners and members of the Speaker's Panel.
The proposal to enhance MPs gratuity as well as backdating the allowances due to the Speaker and other officials were made and enacted during a late night session held on April 19 when Parliament extended its seating hours to debate the Finance Bill.
During the debate, MPs agreed to increase their gratuity by 31 per cent per annum of “the salary specified in the second column of the First Schedule” of the Act. The salary specified in the schedule is their net salary which amounts to Sh200,000.
The amendment they propose wants to set a new definition of an MP's salary which will be used to calculate the gratuity. They want the gratuity based on their gross salary of about Sh850,000 inclusive of allowances instead of their basic salary Sh200,000.
This amount is the basic minimum as different MPs earn more depending on their positions as ministers, assistant ministers, deputy Speaker, Parliamentary Service Commissioners and whips among others.
For example, the Speaker and the Vice- President earn a gross salary of Sh300,000 minus hefty perks attached to their offices among them a responsibility allowance of Sh300,000 for the Speaker and Sh200,000 for the VP.
“The plan is to have the amendment moved on the floor of the House to catch the public unawares in the same way the other amendment was made on April 19th,” an MP privy to the deal cut between the government and a section of MPs said.
The proposal will hit taxpayers hard especially after MPs ignored the public's demand that they pay taxes on their entire salary and allowances of Sh851,000 instead of only their Sh200,000 basic pay.
The April 19th gratuity increase did not have a commencement date. Although it is assumed it would affect only the current Parliament, it could also be interpreted to affect the previous parliament.
The Miscellaneous Amendments Bill reads: “The amendment relating to the National Assembly Remuneration Act shall be deemed to have come into operation on the 1st July, 2003.”
If adopted, the deputy Speaker will for example, be paid Sh200,000 per month as responsibility which, when backdated to July 2003, will see him receive about Sh25 million.
The members of the Speaker's panel and the PSC commissioners will receive Sh100,000 per month backdated to July 2003 which will eventually seem them take home Sh8.4 million.
The amendments were moved by Finance minister Njeru Githae shortly after a section of MPs lost their bid to cap the interest rates charged by banks to four per cent above the Central Bank rate.
Surprisingly, no MP apart from Millie Odhiambo opposed the amendments to increase gratuity. Majority of the MPs, including those who had vociferously argued for the capping of the interests, kept quiet. “Whereas I believe MPs are entitled, I will not be party to the unfairness in this country. MPs have refused to reduce interest rates for members of the public, but when it comes to our own things, we are very quick and sneaky. I oppose the amendment,” Odhiambo said.
Information and Communications minister Samuel Poghisio commended Githae for succeeding in getting the House to move the Finance Bill. “The bipartisan way in which we have done this and moved the country forward is something that this House can be proud of, and I would like to be associated with the success, ” Poghisio said.
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