Inside William Ruto's fight over anti-laundering Bill

President William Ruto at State House on December 4.[Photo, PSC] When President William Ruto claimed that a parliamentary committee had received a Sh10 million bribe to pass anti-money laundering laws last April, there was little doubt about his target. The 15-member National Assembly's Justice and Legal Affairs Committee had processed the Bill seeking to amend the Anti-Money Laundering and Combating of Terrorism Financing Laws. So it had to be the committee in question. On Thursday, the committee's chairperson, Tharaka MP Gitonga Murugara, responded strongly to Dr Ruto's bribery claims. "The committee did not solicit and did not receive any inducement of any kind whatsoever from any member or quarter... as alleged or at all," said Murugara, noting that the Bill was sponsored by Majority Leader Kimani Ichung'wah, as all government-sponsored bills are. He challenged the President to name the involved MPs and person (s) who gave the alleged inducement. A day earlier at a joint parliamentary group of the ruling United Democratic Alliance and the Orange Democratic Movement, Ruto had doubled down on claims of rampant corruption in Parliament, this time singling out JLAC. "Do you, for example, know that a few members of your committee collected Sh10 million so that you don't pass that law on anti-money laundering?" Ruto posed, saying his assertions were backed by "raw intelligence" that he claimed to access through his office. "Did you get the money?" JLAC comprises Deputy Speaker Gladys Boss and MPs Mwengi Mutuse (Kibwezi West), TJ Kajwang' (Ruaraka), Otiende Amollo (Rarieda), Michael Mwangi (Ol Jorok), John Makali (Kanduyi), Stephen Mogaka (West Mugirango) and Suleka Harun (Nominated). Others are Farah Maalim (Dadaab), Silvanus Osoro (South Mugirango), Timothy Wanyonyi (Westlands), Muchangi Karemba (Runyenjes), Aden Daud (Wajir East) and Siyad Amina (Garissa Township). In April, Ruto rejected a version of the Bill the National Assembly passed, which amended 10 Acts of Parliament to seal gaps identified by the Eastern and Southern Africa Anti-Money Laundering Group and the Financial Action Task Force. The latter had grey-listed Kenya over weak anti-money laundering and terrorism financing laws that made the country vulnerable to illicit financial flows, prompting amendments to the said bill. When he rejected the original bill, Ruto had an issue with possible extension of the term of office of outgoing Financial Reporting Centre (FRC) Director General Saitoti Maika. A clause in the bill passed by the National Assembly proposed to transition Maika's tenure to a single non-renewable term of six years, which the Head of State faulted as one that could extend his cumulative term to beyond 10 years. "The transitional provision does not adequately account for the established architecture of independent constitutional offices and their governance framework," Ruto's memorandum read in part. "In particular, the proposed framework governing independent office holders under Chapter 15 of the Constitution... whose maximum term of service is capped at eight years." The President would propose an amendment that would have any existing office holder complete their tenure under the terms applicable when they were appointed. Maika was appointed in 2017 for a renewable term of four years, which expires this year. FRC was set up in 2012 to counter money laundering and fight terrorism financing. It is an independent body established by the Proceeds of Crime and Anti-Money Laundering Act and the Prevention of Terrorism Act. In the memo, Ruto did not tie Maika to any wrongdoing, and neither did he on Monday. Equally, The Standard is not aware of any wrongdoing on his part and does not intend to impute any ill motive. The 10 laws amended were: The Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A); the Prevention of Terrorism Act (Cap. 59B); the Betting, Lotteries and Gaming Act (Cap. 131); the Retirement Benefits Act (Cap. 197); the Mining Act (Cap. 306); the Sacco Societies Act (Cap. 490B); the Accountants Act (Cap. 531); the Estate Agents Act (Cap. 533); the Certified Public Secretaries of Kenya Act (Cap. 534); and the Public Benefits Organizations Act (No. 18 of 2013). "The amended law seals long-standing loopholes that have enabled the misuse of property transactions and shell companies for illegal financial activities," State House said when Ruto enacted the new law last June.

Inside William Ruto's fight over anti-laundering Bill

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