Raila upstages Uhuru by announcing Sh553m for CoE

By Alex Ndegwa and Isaiah Lucheli

After Treasury taunted Committee of Experts it was not going to get a single coin more for civic education, Prime Minister Raila Odinga stepped forward saying, here is Sh553 million more for you.

The anti-climax on the protracted battle between Finance Minister Uhuru Kenyatta’s docket and CoE over how much money the experts received and what was left, sent Kenyans wondering what the fuzz was about if there was so much cash lying somewhere.

It also raised questions on whether the Government may have chosen to slip the Proposed Constitution project’ funds into CoE kitty because both share the aspiration to see it passed in the August 4 referendum.

Curiously, Raila announced the release of the funds while chairing a special Cabinet committee meeting in his office, which Uhuru attended.

For the last two weeks, CoE had been begging Treasury for Sh230 million to complete civic education, even as time set for the exercise approached the end, but Uhuru Kenyatta and his Permanent Secretary Joseph Kinyua were adamant CoE had exhausted its allocation. But Justice Minister, CoE Chairman Nzamba Kitonga and his Chief Executive Ekuru Aukot accused Treasury of sabotaging the reform process.

Humble pie

But yesterday, after the hullabaloo, there was no explanation where the half-a-billion shillings was sourced, even as it appeared Uhuru and his team was forced to eat humble pie. The cash pumped into CoE is more than double what it has been asking for. Mutula and Aukot also attended the two-hour meeting.

From left, Deputy Prime Minister Uhuru Kenyatta, Prime Minister Raila Odinga and Justice Minister Mutula Kilonzo after a press conference at the PM’s Treasury Building offices, Thursday. [PHOTO: BONIFACE OKENDO/STANDARD]

Raila assured CoE the money would be disbursed immediately, saying the Treasury-CoE row was blown out of proportion.

Despite the PM’s view that the issue was a misunderstanding, only last week Mutula stated he would not beg Uhuru for funds because it was not a favour.

"The review had not been factored in the Budget and the Government has been sourcing the money for civic education from other departments, which occasioned the delay," explained Raila.

Raila added CoE’s budget would be factored in the 2010/11 Budget due to be read next week.

But he did not explain if the money he promised would come from the upcoming budget and what would be done to overcome the bureaucracy of withdrawal from Consolidated Fund before the civic education or even the referendum is over.

He did not even say if it was being borrowed from some other Government account, which will be replenished after the Budget.

But Raila was emphatic civic education campaigns have not been affected by the delay. "CoE has been carrying out the exercise and even donors have funded it," said the PM.

"After resolving the misunderstanding the focus should be civic education. We do not want the matter to be dragged because it is causing anxiety among the public," explained the PM.

The development came as news broke National Cohesion Commission and Interim Independent Constitution Dispute Resolution Court were also in financial crises.

Sources told The Standard the court’s judges were only paid three weeks ago after persistent pressure on Treasury.

Treasury and CoE had tussled over tenders for the printing of copies of the Proposed Constitution, with Treasury only releasing Sh100 million to CoE. It was explained that of this, Sh90 million was from PM’s Office and Sh10 million from the Ministry of Justice.

Government Printer

Treasury explained another Sh400 million had been diverted to the Government Printer for work done, though it was not clear why Treasury chose to pay the Printer directly, and not through CoE.

CoE protested at the withheld funds, saying it had contractual obligations totaling more than Sh330 million for tenders awarded for the printing of various versions of the draft, distribution, and advertising. Treasury and CoE then engaged in a flurry of terse correspondences after the latter accused the Finance Ministry of reneging on an agreement reached during a meeting on May 18 to provide a further Sh200 million for civic education.

In the most recent letter dated May 26, a copy of which The Standard obtained, Aukot reminded Treasury PS that the Sh200 million was to support civic education and outreach activities with respect to media-radio, TV and print activities.

"As we write this letter to you, the fate of the Sh200 million is not known to us; we are not sure when the agreed funds would come to us as we continue to commit against the allocation. It is imperative that you resolve this issue and make the Sh200 million remitted as we have commitments running on the back of the allocation," Aukot wrote.

To underscore the gravity of the concerns, Aukot copied the letter to President Kibaki, Raila, Uhuru, Mutula, Kitonga, Chairman of the Parliamentary Select Committee Abdikadir Mohammed, and Justice PS Amina Mohammed.

The row was sparked by Treasury’s failure to include CoE’s proposal for additional funding in the Supplementary Budget Parliament passed in April.

In the 2009/2010 Budget, CoE was allocated Sh519 million against a budget proposal of Sh1.5 billion, with Treasury promising to provide additional funds through the Supplementary Budget.

In November, last year, CoE made the request for an additional Sh414 million, which was scaled down to Sh393 at Treasury’s request.

But the agreed allocation was not contained in the Supplementary Estimates — a mini-budget prepared to allow the Government to finance essential services until the June budget.

All are critical

CoE questioned how only its request was disregarded while the Interim Independence Electoral Commission’s was granted yet both reform bodies were critical in the referendum.

What followed was a flurry of letters between Kinyua and Aukot. As the war of words raged Kinyua, in a press statement last weekend, responded Treasury had financed all the activities agreed upon with CoE. Kinyua said that Sh100 million had been released to CoE while the Government had used Sh230 million to print copies of the Proposed Constitution.

He added the Government would spend Sh1.2 billion to print copies of Proposed Constitution for distribution ahead of the August 4 referendum.