MPs mute on Kibaki’s rejection of Bill

By Peter Opiyo

President Kibaki’s rejection of the MPs’ Sh2.1 billion severance allowance has put the legislators in a quandary.

Hitherto known as vocal and daring legislators, the zeal of Thursday’s nocturnal conspiracy has slipped away and the lawmakers are cautious of the President’s move.

Most of the MPs approached for comments about the President’s refusal to assent to the Finance Bill 2012, refused to talk over the matter, as some said off the record that they would overturn the President’s memorandum.

Some, however, agreed with the President’s move, saying it has saved the country. Surprisingly, none of them wanted to talk on record, perhaps not to be subjected to the wrath of the public or criticism from their colleagues.

Asked about Kibaki’s move, a presidential aspirant who sought anonymity said: “It is fine the President has done the right thing.”

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But others are said to be keen on raising the numbers to overturn the President’s memorandum to make their sweetheart deal of Sh9.3 million a reality.

Chepalungu MP Isaac Ruto, however, said he has no problem with Kibaki refusing to sign the Finance Bill. “I have got no problem with the President, in fact he never refused to sign my Bill (Elections (Amendment) Bill). I don’t need the money for campaigns,” said Ruto without going into details.

But to overturn the President’s memorandum the MPs must raise at least 145 MPs (65 per cent of the 222 MPs) as stated in Article 46 of the old Constitution. Article 115 of the new Constitution requires at least 148 MPs of the 222 MPs (two-thirds) to overturn the President’s memorandum, but this is suspended until after the elections, meaning Parliament is using the provision of the old Constitution.

Manyatta MP Emilio Kathuri said raising the 65 per cent would not be easy. “It would be a tall order, I tell you getting 145 MPs in this Parliament is not that easy,” he said.

Supported amendment

On Thursday night, MPs supported Wajir West MP Adan Keynan’s ammendment to the Finance Bill 2012 awarding the MPs Sh9.3 million each as severance allowance.

The introduction of a new clause 21A wanted the severance (winding-up) allowance to be calculated at 31 per cent of the basic salary of Sh200,000 from January 15, 2008, when they were sworn in until August 26, 2010. This would translate to each MP pocketing Sh62,000 every month for the 31 months.

The ammendment also proposed that the second phase of the package be calculated at 31 per cent of the gross salary of Sh851,000 from August 27, 2010 to January 14, 2013, when their term expires. This would mean each MP pockets Sh263,810 every month for the 28 months. In total, each MP would have pocketed Sh9.3 million from January 2008 to January 2013, when they leave office.

President Kibaki declined to append his signature to the Bill following public outrage.

In rejecting the offending clause, the President said the amendment was unconstitutional and was not sustainable under the current economic situation.

And the Salaries and Remuneration Commission said it could not comment further on the MPs’ allowances since the President has acted, but emphasised that the role of reviewing salaries of State officers was the exclusive preserve of the commission.

“We would like to state that it is only the Salaries and Remuneration Commission that has the sole power and functions to set and review the salaries and remuneration of State officers,” said the SRC’s vice-chairman Daniel Ogutu.

Kibaki said coming shortly after the increment of salaries for teachers and doctors, the severance pay for MPs would lead to an unsustainable wage bill at a time when the country requires massive resources to implement the new Constitution and meet other competing demands in the economy.

And the Salaries and Remuneration Commission also read from the same script, saying the wage bill was very high and needed to be reduced.

“The current wage bill consumes 70 per cent of the annual budget to the extent that we can’t even fund development projects. We need to get it down to below 60 per cent,” said commissioner Isaiah Kubai.

The Finance Bill outlines taxation measures levied by the Government and gives it the legal mandate to collect taxes to fund its operations. It was estimated that with the passage of the Bill, taxes amounting to Sh40 billion would be collected by the State.

In the Bill, Finance Minister Njeru Githae proposed to levy ten per cent taxes on cellular phone money transfer services.

In the amendments to the Finance Bill 2012, the minister also targets beer and wines proposing a ten per cent increment duty on the ex-factory price. Consequently, beer made from malt would attract Sh70 per litre or 50 per cent of the ex-factory price, whichever is higher, as duty charged.

The same would apply to Cider, Opaque beer and other fermented beverages. Wines would attract a duty of Sh80 per litre or 50 per cent of the ex-factory price, whichever is higher.

In targeting the money transfer services, Githae wants the excise duty on fees charged for money transfer services by cellular phone service providers, banks, money transfer agencies and other financial service providers to be ten per cent.

This would automatically increase the charges on Safaricom’s M-Pesa, Orange’s Orange Money, Airtel’s Money and Yu Cash services.

The Excise duty charged by other financial institutions would also be ten per cent.