By EMMAN OMARI eommari@gmail.com
Posted Saturday, November 26 2011 at 22:30
Posted Saturday, November 26 2011 at 22:30
The recurrent expenditure of the future National Assembly and Senate threatens to take up a very large a chunk of taxpayers’ money should the proposed Salaries and Remuneration Commission maintain the salaries and perks enjoyed by current MPs.
Parliament has already made a request to Treasury for Sh6.3 billion for mortgages for members of the two Houses of Parliament.
Sunday Nation asked Mr Peter Oloo Aringo, the man who 11 years ago spearheaded legislation that created the Parliamentary Service Commission, if Treasury should consider this request. It is the PSC that administers mortgages for MPs.
“No. Parliament has no business going to Treasury for doles to run the scheme,” Mr Aringo said.
The former Education minister feels that as the mortgage scheme was meant to be a revolving fund that grows every year, Parliament should be able to support its members.
Mr Aringo was the first vice-chairman of the PSC and also chair of the Mortgage Committee when the scheme was established in 2000.
The politician, who has been nominated by Parliament as the National Assembly representative to the proposed SRC, added: “MPs to the future two-tier House will have to make some sacrifices if Kenyans are to realise the full benefits of the Constitution.”
He suggests a review of the 3 per cent interest paid on MPs’ mortgages.
MPs get mortgage loans of up to Sh15 million to buy houses in Nairobi.
The Sh6.3 billion they are asking for from Treasury is calculated on the basis that the two Houses will have a minimum of 418 members.
Safina leader Paul Muite said that even banks lend their staff at double the rate MPs get and are still able to sustain internal mortgage schemes.
“They (MPs) should wait for the establishment of the Salaries and Remuneration Commission, which has powers to determine pay packages for every State officer in the country,” he said.
House Speaker Kenneth Marende told the Sunday Nation that even though a revolving fund had been set up, Parliament may have to go back to Treasury to cover the shortfall once the two-tier House is in place.
“The initial seed money was given on the basis of 210 elected MPs plus 12 nominated,” he said.
The Speaker also pointed out that the one-third gender rule might increase the number of members above the 418 proposed in the Constitution.
However, Clerk to the National Assembly Patrick Gichohi said Parliament might only require an additional Sh2 billion to boost the mortgage fund to cover additional members.
Since budgets in all government sectors are prepared in the preceding year, the current MPs have begun to prepare proposals for the 2012/2013 financial year.
And there is every possibility that they will be asking for more billions if the perks they currently enjoy are maintained.
Therefore, working with the minimum 418 members, MPs will be asking for Sh4.269 billion for salaries to cover just the first year, based on the current MP’s monthly salary of Sh851,000.
And chances are that senators’ pay could be higher than MPs of the National Assembly since they will be representing a bigger constituency – the county.
They will also be asking for Sh1.254 billion to provide for the Sh3 million they are each given to buy cars as soon as they get into Parliament.
The current MPs are in their final year so Parliament will also have to ask Treasury for severance pay, which is calculated at Sh300,000 for each year an MP has served.
There are also plans to ask for another Sh2.1 billion in lieu of notice in case elections are held in August and MPs lose six months’ salary.
Financial experts predict that the new Parliament might require more than Sh50 billion in the next budget, which is far beyond the 15 per cent of national revenue that is to be distributed to the 47 counties under the Constitution.And there is also the parliamentary staff and development budget required to expand the main and old Chambers in readiness for the two Houses.
Chairman of the Commission on Revenue Allocation Micah Cheserem told Sunday Nation earlier this month that if things remain constant, Treasury will be overburdened with the increased number of House members and suggested the salaries commission should reduce the salaries of MP.
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