Accountants hit at MPs over pay perks

By David Ohito

Accountants have added their voice against the attempts by MPs to pass legislation awarding them hefty pay perks, a move which has triggered outrage countrywide.

The institute of Certified Public Accountants said: “We at ICPAK applaud the President Kibaki for rejecting the self-serving piece of legislation that the Members of Parliament passed to award themselves send off package that is estimated to cost a sum of Sh 2.1 billion.

Accountants said the move is unconstitutional as it goes against the provisions of Article 75 (1) of the constitution. “ICPAK is of the opinion that this creates a conflict of interest as the parliamentarians have awarded themselves this benefit which is contrary to the principles and practice of good governance,” Said Patrick Matange, who is ICPAK chairman.

“We further note that Parliament abrogated itself the constitutional role of the Salaries and Remuneration Commission which under Article 230 (4) (a) of the constitution is the only constitutional organ mandated to set and review the remuneration and benefits of all state officers. “ Matange argued.

Article 260 further defines a State Officer to include Members of Parliament among others. Hence Members of Parliament being state officers are constitutionally incapable of determining and influencing their pay and related benefits.

Accountants noted that the current state of affairs of the nation cannot afford such a financial burden from the MPs.

“Parliamentarians must rise to the occasion, be champions of constitutionalism and uphold the very Constitution that they swore to protect.” Matange said.

The body reminded Kenyans of the wave of labour unrest that engulfed the education and health sectors of the economy in the past few days.

The resulting pay rise is expected to increase budgeted recurrent expenditure to the tune of Sh 40 billion.

“Treasury, faced with limited options has indicated that it will resort to budgetary cuts on development expenditure. An additional bill of Sh2 billion will in effect escalate the reduction in the development vote which will result in hampering capacity for public service delivery in future. This in effect means external borrowing may be used to finance the Parliamentarian’s exit package which is not prudent utilization of public financial resources, “ the accountants said.

On the premise of good corporate governance, the move by the MPs to adjudicate in a matter where they have direct interest is ill advised. This is an aspect that the Constitution anticipated, by creating systems of checks and balances in the area of compensation and benefits under a constitutional commission, the Salaries and Remuneration Commission.

“It is worth noting that going by global best practice, the MPs cannot purport to accrue to themselves gratuity payment whereas at the same time enjoy pension benefit funded and managed by the same employer (the Government). At least not in a situation where even the revenue generated is inadequate to meet the recurrent expenditure as is currently the case.” ICPAK said.

Accountants urged political leaders to effectively manage public financial affairs in a manner that avoids encouraging wide-spread labour unrests that bring about macro-economic imbalances.

They maintained that action by MPs is unacceptable on the simple assertion that it is wrong.

“It is a breach of the Constitution and it must be treated as such and corrected at the earliest opportunity. We call upon Members of Parliament of good will, to exercise patriotism by defending the Constitution in addressing themselves to the President’s memorandum that indeed the move was unconstitutional and untenable in the prevailing economic circumstances,” ICPAK said.