Kimunya, CBK boss 'should leave office'
CBK Governor Njuguna Ndung’u (left) and Transport minister Amos Kimunya (right). A parliamentary reports recommends that the two should go home for their role in the Sh1.8 billion loss of public funds in a controversial money-printing contract that was cancelled five years ago August 30, 2012 NATION MEDIA GROUP
By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com
Posted Thursday, August 30 2012 at 18:55
Posted Thursday, August 30 2012 at 18:55
IN SUMMARY
- PAC chairman says Mr Kimunya connived with the CBK Governor to cancel a cheaper contract.
- Prof Ndung’u rejected expert advice from CBK economists not to cancel the contract and go for short-term deals.
Transport minister Amos Kimunya and Central Bank Governor Prof Njuguna Ndung’u should go home for their role in the Sh1.8 billion loss of public funds in a controversial money-printing contract that was cancelled five years ago.
The chairman of the Public Accounts Committee, Dr Boni Khalwale, said the two ought to be kicked out of office “together”, because they were like “siamese twins”.
The MP got his day in the House after weeks of waiting for debate on the committee report that seeks to have the two fired over the scandal.
Mr Kimunya was the minister in charge of Finance.
The Ikolomani MP –amid many interruptions—rallied his colleagues to adopt the committee report.
He said Mr Kimunya, who was not even party to the contract, had connived with the CBK Governor, to cancel a cheaper contract, and take short-term contracts, which turned out to be inefficient and expensive.
“This is corruption. If corruption is not wrong, then nothing is wrong in Kenya,” said Dr Khalwale.
Reject expert advice
The PAC chairman then said that Prof Ndung’u rejected expert advice from economists of CBK not to cancel the contract and go for the short-term deals.
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“A professor who is well read, knew that he was not under the direction of anybody. Because he allowed himself to be under the direction of the minister, it can only make the committee conclude that there was connivance to share the spoils,” said Dr Khalwale.
“It is this defiance; it is this impunity by Prof Ndung’u, who deliberately refused expert advice that convinced the committee that he lacks the chemistry and the responsibility to protect public good,” the PAC chairman said.
Two of those technocrats whose advice was rejected –Jacinta Mwatela and Macharia Gikonyo— were subsequently fired from Central Bank. They had to give their evidence in camera, and they had to get special security just to appear before the Public Accounts Committee, Dr Khalwale disclosed in Parliament Thursday.
The tension in the House was palpable. The silence, when the interruptions subsided, was so loud. But that did not stop MPs from raising Points of Order –seeking the attention of the Speaker to signal a breach of procedure.
The temporary Deputy Speaker Gitobu Imanyara, who presided over the meeting had to ask MPs to listen to Dr Khalwale instead of interrupting him. The MPs heeded.
Dr Khalwale then added that Mr Kimunya went to De La Rue and agreed with a Mr James Hussey that when the Central Bank contract was cancelled, De La Rue ought not to vary the price. With the cancellation, Mr Kimunya promised De La Rue uninterrupted business for interim orders of banknotes, which cumulatively turned out to be expensive, yet the volume ordered was so much lower.
Voluminous storage
The interim orders delivered 1.4 billion pieces of old generation banknotes , yet the contract that was cancelled was to deliver 1.7 billion pieces on new generation banknotes, which were smaller and had enhanced security features.
“We were shocked when Amos Kimunya came and misled the committee. He said that he feared for the voluminous storage of 1.7 billion pieces of banknotes. That was not true. There was plenty of space,” said Dr Khalwale.
He then rubbished the joint venture that De La Rue wanted to strike with the government.
“You want to pump hundreds of millions shillings of Kenyans into an investment without a feasibility study, without caring to know what you’re investing in.
"Going by the archaic age of the plant in Ruaraka, the only thing that the government will be investing in, is the public land, but wait a minute, that land is public land,” said Dr Khalwale.
The PAC chairman added: “This minister chose to have the government investment in its own land so that when the risks come; they (De La Rue) pack up and go. If you have to invest, tell the country what you’re investing in. You can’t just take Sh600 million and say you’re investing. When the investors pack and go because there’s no capacity to print currency in Ruaraka, creditors will come back and sue us for breach of contract, and we’ll pay up,”
Dr Khalwale said the payments were definite, given that the country was paying for goods, such as the fertiliser factory, that has never been built.
Dr Julius Kones (Konoin) seconded the motion and will conclude his bit on Tuesday, if the debate makes it to the schedule. After that MPs will debate and Mr Kimunya will respond to the allegations then they’ll vote on the report. If adopted, the onus will be on the government to implement the report or risk sanctions from Parliament.
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