Kimunya, CBK governor unfit to hold office: report

Kimunya, CBK governor unfit to hold office: report Written By:Catherine Achienga/Graham Kirwa,    Posted: Wed, Aug 01, 2012

Transport Minister Amos Kimunya The Public Accounts Committee (PAC) has declared Transport Minister Amos Kimunya formerly the Finance Minister and Central Bank of Kenya  governor professor Njuguna Ndung'u are not fit to hold public office.  In a bulky damming report, the committee goes ahead to call for the immediate stepping aside from office of the CBK governor and the termination of his contract through a tribunal set up by the president in accordance with the law as well as the ethics and anticorruption commission launch investigations into the role of Kimunya in the shady contracts with a view to taking legal against him and recovering the lost funds. The report tabled in parliament Wednesday by the public accounts committee chair Bonny Khalwale which declared the duo unfit to hold office argues they are responsible for the loss of the taxpayers monies since they acted contrary to the provisions of chapter 6 of the constitution on leadership and integrity, the public officer ethics act and the public procurement and disposal act. It further goes ahead to agree with a cabinet decision allowing the government to enter into a joint venture with the de la rue company with respect to the Ruaraka Nairobi plant, setting out conditionality's prior to the joint venture. Anomalies The committee which points out anomalies in the draft agreement wants it rectified to include a provision that will not tie CBK to signing a 10 year currency printing contract with de la rue citing it contravenes the procurement regulations and procedures since the bank can't guarantee a fair market price for currency printing unless there is a competitive procurement process. It also suggests the contract must address the issue of the capacity of the plant to print huge volumes with enhanced security features following a proposal by de la rue to print 1.7 billion pieces of bank notes in Malta and not Ruaraka in Nairobi. The committee also wants the government to negotiate and enter into a joint contract with the de la rue international ltd in the UK with respect to the Ruaraka Nairobi plant and not its subsidiaries, as well as seeks to have the government undertake a feasibility study of the Ruaraka plant to ascertain its profitability and viability before investing in it. The committee also recommends treasury takes necessary steps and fast tracks the bringing into parliament for enactment legislation guaranteeing CBK independence in accordance to the constitution.  Penalties for destruction Elsewhere, Vandals of communication equipment will face ten year jail term or a fine of Sh5 million if convicted of the crime. Parliament approved a motion seeking amendments to the Energy and Communications Law (Amendment) Bill 2011 to enhance the penalties for destruction of communication equipment which MPs says is now become rampant in the country. According to the Chairman of the Parliamentary Energy Engineer James Rege those found tempering with communication equipments, need to face punitive penalties to deter the acts.  He said amendments to the Scrap Metal Act of 2007 will reintroduce controls in the scrap metal sector which is largely to blame for vandalism.  The amendments will introduce 14 regulatory provisions that had earlier been repealed and empower the police to license scrap metal dealers and fight vandals. The enactment of the Bill seeks to protect communication and energy apparatus from vandals and classifies the offence as acts of economic sabotage. Debating the Bill, MPs decried the vandalism of fiber optic cables cutting off local and international communications thus raising the cost of doing business. They said vandals are cannibalizing vehicles, road rail guards and sign posts including those of school signs. Gem MP Jakoyo Midiwo proposed an amendment to force Kenya Power to install transformers in secure places among them people's homesteads, schools, churches and police stations. The MPs expressed dissatisfaction with the rampant transformer vandalism saying it is stifling the work of Rural Electrification Authority. The MPs called on the government to develop communication infrastructure in far flung areas such as the arid and semi arid areas where there are no telecommunication services. Kenyans are watching Gem MP Jakoyo Midiwo claims capitalists fueled by greed have been trying all manner of tricks to defeat the Consumer Protection Bill from landing in parliament. Midiwo said a few individuals have taken to fleecing Kenyans in the full glare of the government and it is now time the house put in place a legislation to end the practice once and for all. Jakoyo who was moving the Consumer Protection Bill 2011 said he attempted to introduce the bill in the 9th parliament but forces within the government worked towards its demise. He said all efforts were done by the trade minister then to protect class suit at the expense of the poor majority. He said the awakening of Kenya under the new constitutional dispensation now makes it free for backbenchers to introduce bills in the house which has motivated him to bring the bill to protect the millions of Kenya suffering of in the hands of traders.  Midiwo said Kenyans are watching as banks fleece them with impunity and he will be attempting to cap interest rates through the finance bill which was shelved yesterday by the House due to the absence of the Finance minister. He said banks have ripped Kenya apart for many years bursting in billions of shillings in profits at the expense of suffering poor who have had to pay through their nose. The Gem legislator took on the government for being insensitive to the plight of Kenyans who are dismembered by greedy traders yet it has been bestowed with the onus to protect the rights of Kenyans. He said nothing stops the government from reigning in on errant banks out to milk Kenyans. Midiwo singled out the youth and women funds from government kitty which has now turned to enriching banks instead of aiding the targeted group. He questioned the rationale that was used to allocate the funds to private banks which are gaining from the money yet it was suppose to lend with minimal returns. He said time has come for Kenyans to stop living at the mercies of profit driven groups and be protected to enjoy their rights guaranteed under the law. MPs were unanimous that there should be some law that protects Kenyan consumers from the continued exploitation they have shouldered for long. They said some Kenyans have turned wicked and waits to grab every available opportunity to cash in on helpless Kenyans and the practice must stop and this can only be done through a legal framework. Right for goods The bill is based on article 46 of the constitution which states that consumers have the right for goods and service of quality and to the protection of their health safety and purchasing rights. The bill seeks to establish a regime of consumer protection law in order to provide protection and appropriate recourse to aggrieved consumers.