By Alex Ndegwa

Parliament finally began the process of putting its seal of approval on a Bill whose effect includes lavish plans to funnel millions of shillings into pockets of current and former MPs.

What is worse is that the amendment unlocking the public coffers for the group is meant to ‘correct’ and legitimise the payments they received years ago and for which the Ethics and Anti-Corruption Commission has been seeking refund through the courts.

But it does not stop there, it also gives them almost ten times over what EACC was pursuing them for, which means they will receive the payments less the deductions of the irregularly paid sums, and still laugh at the taxman and the anti-graft agency.

But as they raid the national kitty, first through awarding themselves Sh3.3 million gratuity payment each two months ago, and the latest mischievious and hideous payment backdated to 2003, the House has largely ignored the Salaries and Remuneration Commission.

Last month alone, MPs approved amendments to the Finance Act, which among other issues, sanctioned back payments to January 2006. 

The law was apparently revised to cover up for disputed 2006 payouts to commissioners of the Parliamentary Service Commission in the last Parliament, which had attracted the attention of the anti-graft agency.

illegal payouts

In 2009 the then Kenya Anti-Corruption Commission branded the payouts illegal and took 11 beneficiaries to court seeking to recover the payments plus interest.

The Government intends to not only help them pay their way out of trouble with the anti-corruption commission, but also award them millions more at taxpayers’ expense.

The Bill whose debate was initiated by Lands minister James Orengo on behalf of Attorney General Githu Muigai proposes to amend the Finance Act to further backdate these allowances to July 1, 2003, which means the Treasury will splash at least Sh60 million more on the privileged class.

The payouts are done even as the Planning ministry unveiled grim economic statistics (See Separate Story) showing majority of Kenyans are struggling to survive and the economy is still on a downturn. Worse still, the fledgling economy is still expected to shoulder the burden of the devolved units of government coming in place next year along with an expanded National Assembly and new Senate and County Assemblies.

This means the select group of MPs will pocket an additional Sh60 million over the millions of shillings the House approved in the Finance Act passed last month.

beneficiaries

on Tuesday, MPs debated the Statute Law (Miscellaneous Amendments) Bill that proposes extra payments to members who are currently being pursued in court for some Sh30 million they awarded themselves in 2006. The latest change affects Section 23 of the Finance Act, which introduced new parliamentary office holders who will also benefit from the responsibility allowance. Previously, the allowance was only paid to the House Speaker and the Leader of Government Business (the Vice President).

The MPs are themselves beneficiaries of the Government’s charity to help them sort out their problems with the taxman and it is believed they played along as reciprocation for the sweet deal they themselves got.

This financial year, Sh500 million has been allocated in Parliament’s budget for MPs’ taxes for the remainder of their term. Last year, the Treasury forked out Sh1 billion to underwrite tax arrears owed to Kenya Revenue Authority since 2010. 

The extra Sh60 million in allowances backdated to January 2003 will go to current and former members of the Parliamentary Service Commission and members of the Chairman’s Panel who assist the Speaker in the House during proceedings.

controversial

The beneficiaries include former Speaker Francis ole Kaparo and nine members of the Parliamentary Service Commission in the last Parliament. 

Defence Assistant minister David Musila, who served as Deputy Speaker in the last Parliament, Information minister Samuel Poghisio and Turkana Central MP Ekwe Ethuro, who were in the Chairman’s Panel, are also beneficiaries.

Ole Kaparo will receive a total of Sh16.2 million. Mr Kaparo is entitled to Sh7.2 million under the Act (January 2006-2007) but he will receive an extra Sh9 million in back payments to January 1, 2003. He had rejected the 2006 controversial payments when he was at the helm of Parliament.

Musila is currently entitled to Sh4.8 million for service from January 2006-2007. If the perks are backdated to July 2003, the Mwingi South MP will pocket an extra Sh6 million, making a total of Sh10.8 million.

As members of the Chairman’s Panel in the last Parliament, Poghisio and Ethuro are also entitled to similar payments totaling Sh10.8 million.

Then Government Chief Whip Norman Nyaga and Kanu Chief Whip Justin Muturi are also set to pocket the hefty perks. Each of the nine PSC commissioners in the Ninth Parliament will pocket an extra Sh3 million if allowances are backdated to 2003. This will increase their total package to Sh5.4 million for the period served to 2007. 

Among the expected beneficiaries are Deputy Prime Minister Uhuru Kenyatta, who sat in the PSC as Leader of the Official Opposition and then PSC Vice Chairman Oloo Aringo.

Others are former PSC commissioners and former MPs GG Kariuki, Joseph Kamotho, John Sambu, Daniel Khamasi, Jimmy Angwenyi and Dr Abdullahi Ali who failed to recapture their seats in the 2007 elections.

Current holders of the positions are entitled to the new allowances too. They Include House Speaker Kenneth Marende, his deputy Farah Maalim, as well as PSC members Walter Nyambati, Wilson Litole, Joseph Lekuton, Peter Mwathi, Adan Keynan, Jamleck Kamau, Zakayo Cheruiyot, Chris Okemo and Olago Aluoch. However Kamau left last month after being appointed to the Cabinet but he will still be entitled to payment for the period he served.

Chairman’s Panel

Maalim will receive Sh2.4 million for each year served since 2008.  Four members of the Chairman’s Panel will also pocket Sh2.4 million a year. They include Prof Philip Kaloki, Ekwe Ethuro, Joyce Laboso and Gitobu Imanyara. The nine PSC members are to receive Sh1.2 million annually.