Envoy and PM spat over civil servants allowances

Business

By Martin Mutua

Prime Minister Raila Odinga almost fell out with US ambassador Michael Ranneberger over the push for austerity measures in Government.

Trouble started when Ranneberger questioned the recent raise in allowances for civil servants, saying the economy was still weak.

Raila, who had called a meeting between donors and top Government officials in his office, defended the raise, claiming the envoy was out of order. The envoy said the donor community had suggested that the Government limits the number and size of delegations overseas and were disappointed by the turn of events.

Ranneberger said a minister visiting Switzerland would claim $918 per day (about Sh68,850) in allowances, which is more than what an average Kenyan earns annually.

"By comparison it is perhaps worth noting that a US government official traveling to Switzerland receives only about half the daily allowance of a Kenyan minister," the envoy is reported to have said. At this point an agitated Raila hit back and told Ranneberger he had overstepped his mandate.

"The PM actually told the ambassador that he had now gone overboard and was meddling in the internal affairs of the country and should stop," added the source.

Raila is said to have referred the envoy to the visit by US Secretary of State Hilary Clinton whose entourage occupied the entire Inter Continental Hotel for a week.

"The PM asked the envoy to state whether by taking an entire hotel Clinton was also not burdening the US tax payers," added the source.

Other issues the donors are said to have raised include Goldenberg and Anglo Leasing scandals. Ranneberger asked whether the Government was preparing to make more payments to Anglo Leasing-related companies.

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