The standoff at Kenya’s Youth Fund does not serve the youth

On Wednesday 21st October 2009, the Minister of Youth Affairs and Sports, Hon. Prof. Hellen Sambili reinstated the Youth Enterprise Development Fund’s former CEO Mr. Umuro Wario, after a - yet to be made public - Kenya Anti Corruption Commission investigation report that cleared Mr. Wario of any criminal culpability in his activities prior to his suspension and subsequent termination by the Youth Fund’s Board.

In June 2009, the Partnership for Change released a report (published here on this blog) questioning the true reasons for Mr. Wario’s dismissal from the fund, in addition to queries concerning:

• Single sourcing of contracts prior to and during Mr. Wario’s tenure as CEO.
• The contentious partnership with Enablis East Africa, that Mr. Wario himself claimed was the main reason behind his termination, and
• The corporate governance structure of the Youth Fund's Board with regards to conflicts of interests among named members.

So far the Youth Fund’s Board has not deigned to acknowledge nor respond to the questions, despite the Partnership posing the queries not only in the mainstream media but in youth forums. As Yipe.org’s work is focused on the youth entrepreneurs, we too tried to ask questions when given the opportunity, only to be met with the response that our enquiries lacked any substance, and were based on fallacious reports.

As a result of the Fund's deafening silence, sadly we have become fully aware that the Youth Fund’s Board is only interested in retaining full and complete control over this most important national fund; so much so that the Board will go to any lengths (at whatever cost and detriment to its reaching the 3 million of unemployed youth that require it’s assistance) to ensure that Mr. Wario is not allowed back into the Fund’s secretariat.

To spend in the range of millions of precious Kenya shillings  to reiterate what has been roundly publicized on our television screens and radios to endear Kenyans to their point of view, has exposed the high handed attitude by the Youth Fund’s Board. Why run to the media now, when in June 2009 the Board fronted by the Chairperson disparaged the same media as being in cahoots with political enemies?

Nevertheless, the Youth Fund’s public statement and extract of the auditors investigation published on Wednesday October 28th, brings onto the fore further questions. 

On reading the two page - full colour advertisements* placed in yesterdays Daily Nation and Standard newspapers, it is indeed stupendous that the Kenya Anti Corruption Commission (KACC) exonerated Mr. Wario if the Commission’s investigators were aware of the damning evidence of the State Corporation Inspectorate’s office outlined in the published extract. Surely the KACC investigations would have involved interviewing the Fund’s staff and Board members in addition to the State Inspectorate?

The Youth Fund's Board has stated that it never referred Mr. Wario’s case to the KACC, though in their published statement released yesterday, Mr. Wario is guilty of a wide range of derelictions and/or omissions of duty that would have landed any other public officer in an interrogation room at Integrity House. Yet the Board was benevolent enough to not forward Mr. Wario’s case to the KACC even as they accused him of mismanagement of funds and assets.

Indeed the extract from the report by the Inspectorate of State Corporations confirms the Board’s allegations of gross violations that are in contravention of both the Anti-Corruption Economic Crimes Act 2003, as well as the Public Officers Ethics Act.

1.    The Anti-Corruption and Economic Crimes Act, 2003 (ACECA)

The Youth Fund by virtue of being a State Corporation is a public body as per the 2003 Act; and Mr. Wario by virtue of his employment at the Youth Enterprise Development Fund fell into the category of a public officer.

The Act defines corruption as including abuse of office or breach of trust. Mr. Wario’s disregard for financial and recruitment procedures (concern #4), attempted diversion of funds without adherence to due process (concern #6) and non-transparent use of financial resources (concern #8) would have surely made him culpable of being charged with corruption.

Furthermore, Mr. Wario’s acts regarding procurement outlined in the advertisement are in breach of the ACECA 2003 s. 45(2), which states that:

(2) An officer or person whose functions concern the administration, custody, management, receipt or use of any part of the public revenue or public property is guilty of an offence if the person —
 (b) wilfully or carelessly fails to comply with any law or applicable procedures and guidelines relating to the procurement, allocation, sale or disposal of property, tendering of contracts, management of funds or incurring of expenditures.

According to concern #5 of the extract from the report by the Inspectorate of State Corporations, Mr. Wario was guilty of flouting established procurement rules, and as such is liable under ACECA s. 45(2)(b).

2.     The Public Officer Ethics Act, 2003. (POEA)


Under the POEA 2003, Mr. Wario flouted s. 8 which states that:

8. A public officer shall, to the best of his ability, carry out his duties and ensure that the services that he provides are provided efficiently and honestly.

According to the published extract of the Inspectorate’s report, Mr. Wario was guilty of insubordination (concern #1), had a dismal performance in discharging his duties (concern #2) and lacked strategic direction and execution (concern #3).

This raises the following questions:

• Why did the YEDF Board not forward Mr. Wario’s case to the KACC seeing that in their paid advertisement they claim that he is responsible for the loss or mismanagement of tax payer funds? This points to the Board’s failure in stewardship of public funds and accountability not only to the Exchequer, but to all Kenyan taxpayers and most importantly to the nation’s youth entrepreneurs.
• The KACC should also answer how it found Mr. Wario not culpable in the face of the damning report by the Inspectorate of State Corporations. If the Commission was diligent in its duties, surely it would have discovered the report; or have they investigated the report and subsequently dismissed it?

However one cuts it, due process of the law must and should be followed. Instead of publishing expensive advertisements in the local dailies, the YEDF should press for Mr. Wario being charged and if guilty convicted under ACECA.

Justice can still be done. Under ACECA 2003, the YEDF can now forward their evidence to the KACC which stipulates penalties under  section 48:

48. (1) A person convicted of an offence under this Part shall be liable to —
(a) a fine not exceeding one million shillings, or to imprisonment for a term not exceeding ten years, or to both

Section 35(4) of the Act further allows the Board to pursue Mr. Wario even after they terminated his services, which is what any steward of public resources would have done.

Mr. Wario can only be judged in a court of law and not in the public court. To spend money that COULD and SHOULD have been used to empower young business people, only makes the Youth Fund look just like what they accuse Youth Minister Hellen Sambili of – acting with impunity!

Read the Youth Fund Board's statement

* A phone call to the Daily Nation this afternoon quoted Kshs. 437,000 per full colour full page. Advertisements were also placed in the Standard thus costing approximately 1.5 million shillings. Such a sum could have been invested at Kshs. 50,000 per venture in 30 youth owned enterprises

Africa, Yes YOU Can!

Dr. Tajudeen killed in car crash: Message of Condolence

By Cyprian Orina Nyamwamu, NCA-NCEC

Dear Compatriots and comrades,

On behalf of the The National Convention Assembly (NCA), The Partnership for Change and on my behalf, I wish to share the sadness and shock that has engulfed us on learning of the tragic death of Taju. We learned of the tragic death of Taju from a message Kepta Ombati sent us from Dar at 7 a.m. this morning. This is shocking beyond belief.

Taju, was one of the greatest Pan-Africanist standing. NCA/NCEC tremendously benefited from his wisdom and input over the years.

I knew Taju in 1996 when I met him in Kampala as a student leader of the Kenya Polytechnic Students Union. Then, Taju as Secretary General of the Pan-Africanist Movement was powerful and really the icon of the African vision and leadership. My encounter with him left a permanent impression on me. In 1999, after the death of our Mwalimu Julius Nyerere, Taju was with us at the Wasifu Nyerere and since then he has practically turned kenya into his base for pushing the liberation agenda forward for Africa. In 2005, Taju working with his fellow Panafricanists including Dr. Willy Mutunga helped us get Prof. Issa Shivji to address our NCA fifth Plenary Session at Ufungamano House. Taju was simply outstanding.

The great Nigerian he was espoused the spirit of the continent. Those who worked even more closely with like Betty Kaari Murungi, Houghton Irungu, Mwaura Kaara, Mwangi Waituru and the whole team at UNMC Against Poverty and the MDGs, the whole African gender justice and indeed the Social Justice movement shall miss the leadership, inspiration and indefatigable embodiment of our struggle for free, prosperous and just societies in African and the world over.

The Kenyan Youth Movement and the Grass roots based social justice movements including the NYC, Bunge La mwananchi, the Transitional justice and the groups working with communities around land such the Social Economic Rights Foundation, Action Aid etc will find the gap Taju has left simply daunting.

When The Urgent Action Fund Africa co-convened last year the major African region Conference on Sexual and Gender Based Violence, I recall Taju illuminating the room with his originality, fervour and buoyant energy. How I Love the way he filled us with a smile and hope.

I am simply lost for what to say comrades. Let us just call for the Union of African states and the scrupulous delivery on the MDGs to honor Taju's efforts.

I will miss him.. My tears are with his family.

Pole Kenya, Pole Nigeria, Pole Africa.

Cyprian Orina Nyamwamu
NCA-NCEC

Accountability at last!

After the tabling and debate of the report by the Joint Parliamentary Committee investigating discrepancies in the Supplementary Budget, Parliament moved that the Supplementary Budget should be withdrawn and a forensic audit to be conducted.

Below is a message from the Partnership for Change who assisted in exposing the said inconsistencies, which at last count totalled Kshs. 10.7 billion.

===================================================================================
The Partnership for Change Report on Phase 1 of the Budget 2009 Campaign to save Public Resources for Agenda 4 of the National Accord.

The Partnership for Change is asking you to help us to campaign and encourage Kenyans to demand austerity measures and savings to be made in the June 2009 National Budget, by Government and Parliament. Money saved will be directed to the Development Budget. The Outcome will be to save approximately 200 Billion shillings, which if allocated to the Development Budget, will contribute enormously to Agenda 4 issues of the National Accord, such as unemployment, underdevelopment, starvation, food insecurity and impunity.

The Campaign entered its first phase with scrutiny of the Supplementary Budget. It is envisaged that we will save at the very minimum 10.7 Billion that is concealed in the Supplementary Budget. Further we anticipate that a forensic audit into the Supplementary Budget will also identify waste. Yesterday 13th May 2009 the Report Of The Joint Committees On Finance Planning And Trade and The Budget Committee On The Inconsistencies Contained In The Supplementary Estimates Of The Financial Year 2008/2009 was tabled in Parliament and was adopted by the House.

The Joint Committee Recommended that:
1. Since there are inconsistencies in the Supplementary Estimates, they should be withdrawn and correct estimates resubmitted.
2. An independent forensic Audit be done
3. The fiscal Management Bill be approved and enacted as a matter of urgency

The Partnership for Change is grateful to Hon. Gitobu Imanyara, and Hon. Paul Muite SC who availed invaluable time, advise and support at no cost whatsoever to the Citizens of Kenya, and with no partisan interest, helped us focus Parliament on their duty to those they represent. Our gratitude also to the Speaker of the National Assembly Hon. Kenneth Marende, who has been fair and just.

Finally to those Members of Parliament who sat in the Joint Committee and promised Citizens that they would exercise their oversight role and do the just and right thing. We achieved all our recommendations to the Committee in our submission to Parliament including odious debt such as Ken Ren, which you will see in the report of the Committee. We did not manage to obtain an apology from the Minister Of Finance to patriotic Kenyans that were are only doing their duty, but the Partnership for Change has been commended by both Chairs of the Joint Committee. Either way we are grateful to Parliament for doing their duty and in particular to our request that this matter should not adopt a political nature as public resources are serious matters.

The campaign will now move into its second phase as we advocate for 60% development budget allocations in the National Budget to be brought to Parliament in June 2009.

Read Full Report at http://blog.marsgroupkenya.org/?p=814

THE SUPPLEMENTARY BUDGET ESTIMATES 2008-9 is not a casual matter

Partnership for Change
From Dictatorial Impunity to
Democratic Accountability in Kenya
http://marsgroupkenya/partnershipforchange

The partnership for change has been on the front-line to make Kenyans understand their budget and the budget making process. Our leaders in Parliament when the Minister of Finance was reading and presenting the supplementary budget agreed to have it passed without blinking an eye to the details. This shows the importance of also educating members of Parliament on the process so that they do not once again pass a fictitious budget in the future.

We are however dismayed and disappointed even after the damning revelation by the Partnership for change on the 9.6 Billion shillings that was going to be spent on fictitious items. The very serious issues have been reduced to political commentary by the MPs. The issues as raised by the Partnership for change on the budget should not be politicised.

The budgeting principles go beyond the Minister of Finance, it is about the public servants who have worked tirelessly for this nation, it is about the women and children who need food on their tables, it is about the men and youth who are looking for a livelihood, it is about the poor Kenyans, all Kenyans and how the services of the government reach them.

It should be noted that the supplementary budget estimates were approved in one record afternoon and no member of parliament opposed them.

P4C researched the Supplementary budget and raised key questions as follows:

Where is the authority for Variation of what Parliament approved last year?

Where is the authority for the reallocations?

Even though all variations are supposed to be accompanied by explanatory notes why is it that nowhere is there an explanatory note for over 200 items for Ksh 9.6 billion?

The Minister of Finance rubbished the intention of the Partnership for Change in asking the questions. He did not even consult his officers on the issues raised. He later admitted that there could have been an error after realising things were thick following the Speakers ruling that the matter be referred to the committee.

Kenyans are enraged that the Minister could go ahead to read a budget that does not add up. We would like to see a forensic audit on what transpired at treasury while the Government needs to own up to the very big mistake it committed through inaccurate documents of account as prepared by the Ministry of
Finance technocrats, do these documents meet proper accounting standards?

Parliament needs to deal with this issue very FIRMLY as Kenyans can no longer afford to have their taxes embezzled through dubious means. The problem here is much more bigger than an individual in the name of the
minister.

Let Kenyans be very watchful as we await to see the financial estimates for the year 2009/2010 presented. Should we allow the same people who are misleading Kenya to continue being in office at the Ministry of Finance? Are they competent enough to handle our financial resources? Are members of Parliament justified not to handle this matter with urgency of a criminal offence?

Our Leaders MUST be accountable to us.

The Financial Budget should serve Kenyans not a few individuals. Its about all of us. We are very keen to know what the findings of the joint parliamentary committees will present tomorrow.

Emmanuel Dennis
National Coordinator
Partnership for Change