MPs kill report on Kimunya, Ndung’u

By Allan Kisia and Peter Opiyo

Transport Minister Amos Kimunya and Central Bank of Kenya Governor Njuguna Ndung’u survived indictment over the loss of Sh1.8 billion in a currency printing deal when Parliament threw out a report that implicated them in the loss.

At the end of debate, Parliamentary Accounts Committee (PAC) Chairman Boni Khalwale was left badly bruised by accusations that the report by the team was deliberately authored to end the careers of Kimunya and Ndung’u.

Kimunya and several other MPs accused Khalwale of being blinded by his personal differences with the Transport minister, a claim the Ikolomani legislator denied.

Prior to the moving of the report, there was intense lobbying in the last four days by Kimunya. Last week, even the acting Head of Civil Service Francis Kimemia was reportedly to have drummed up support for Kimunya by sending text messages to MPs considered “friendly” to turn up in the House and support the embattled minister.

On Tuesday Acting temporary Deputy Speaker Prof Philip Kaloki rushed members through to conclude debate on the report, and even initiated a move to reduce the time for members and the mover to debate it to three minutes, which is against House Standing Orders.

MPs participated in a verbal vote to reject the Public Accounts Committee’s report that declared the two unfit to hold public office and also accused them of incurring a Sh1.8 billion loss on taxpayers’ account.

It also recommended that the Ethics and Anti-Corruption Commission (EACC) investigate the two.

Safeguard measure

Earlier, MPs deleted recommendations of the report that made Kimunya responsible for the alleged Sh1.8 billion loss and which declared both him and Njuguna unfit to hold public office. The deletion proposed by MP Rachel Shebesh was a safeguard measure in case the House adopted the report. In this case it would have saved the two even with its adoption.

Shebesh moved the amendment saying PAC’s recommendations have political undertones and that the committee cannot recommend investigations on Kimunya and Njuguna and also recommend their removal from office.

“We have entered a political stage in this country. We have very good debaters in this House, but we tend to massage the truth. When you see the names of Anyang’ Nyong’o and Amos Kimunya in such reports, investigate the political intrigues behind it and these political intrigues would continue.”

The deleted sections wanted both Kimunya and Njuguna to be held responsible for the alleged loss of Sh1.8 billion in a currency printing deal between CBK and De La Rue.

The committee further wanted the CBK Governor to step aside and the President to appoint a tribunal to investigate him.

Cash loss

While seconding Shebesh’s amendment, nominated MP Amina Abdalla said Kimunya is only being targeted because he is an “unpopular” and “rigid” person in Parliament, but was forced to withdraw the former description by the temporary Speaker.

“We can’t say we want him investigated and also not hold public office. According to the Constitution you are innocent until proved guilty... let’s separate the rigidness of Amos Kimunya from this debate,” said Ms Abdalla.

“Kenyans have been asking for answers and the committee has provided the same. This House will soon make its decision on the report,” said Khalwale.

In defending Kimunya, Public Service Minister Dalmas Otieno said the loss being talked about was not “a cash loss” but a “computed loss.”

While contributing to the debate Kimunya denied that the Government incurred losses in the deal. He said PAC recommendations were misleading. “There is no use for investigations and there is no need for Kimunya to step aside,” stated the minister.

He explained that adopting the report would set a bad precedent in parliamentary committee work.

“Has Parliament taken over the role of the Judiciary yet we are supposed to legislate? Why say I should be investigated, and again say I should not hold public office?” questioned Kimunya.

The minister reiterated that not a single cent was lost in the joint venture with money printing firm, De La Rue, and said he is sure of his remarks because he is an accountant.

He added that the Government saved over 300 jobs in the deal with the Ruaraka-based company.

Bad environment

“All these people have families. They are also a source of income to other people,” he explained.

Kimunya further said a Government policy can never be challenged in an audit.

“If the Government says it will buy maize from local farmers at Sh4,000 per bag, this cannot be challenged in an audit even if the prices could be much less somewhere else,” he stated.

He said his personal differences with Khalwale contributed to the bad environment during his meeting with the committee.

However, Bonchari MP Charles Onyancha said that indeed money was lost in the deal.

“It was occasioned by the winner of the tender, which was De La Rue branch in Malta. Salaries there are higher than in Ruaraka,” he said.

Pieces of banknotes

Gwassi MP John Mbadi supported the adoption of the report, but with amendments.  Mbadi proposed adoption with amendment to sections 5a and 7 of the recommendations.

“I support adoption if we delete these two sections,” stated the Gwasi MP.

Since 2003 CBK had been procuring banknotes from De La Rue on interim orders without subjecting them to competitive procurement, contrary to Government procurement regulations and procedures.

The report notes that since October 2006, when the contract for printing 1.71 billion pieces of banknotes was awarded, CBK had procured from De La Rue four interim orders of current generation of banknotes.

In its report the Khalwale-led PAC said it was satisfied De La Rue was overcharging CBK on the interim orders since, when subjected to a competitive procurement, it charged less hence the price difference.