Two Problems with SGR: First the Cost of Phase 1 and President Kenyatta cowardly blocking of Gov. Joho!

President Uhuru Kenyatta is a coward for not letting the Governor of Mombasa County, the Orange Democratic Movement leader Hassan Ali Joho attend the launch today of the Freight Train at the Port Reitz Station in Mombasa. It seems the Jubilee Party cannot handle opposition and has to freeze them out. Even as the launch of the SGR was happening, the Police escorted him away.

Maybe because the Chinese wrote this about the Kenyan Railway:

“Kiraithe added that the government, through the ministries of finance, transport and environment, hasbeen heavily involved in accelerating the completion of the SGR built by the China Road and Bridge Corporation.“But the infrastructure is for Kenyans and has been achieved to improve our living standards,” Kiraithe said. In 2013, President Xi Jinping and his Kenyan counterpart, Kenyatta, witnessed the signing of the memorandum of understanding on financing the Mombasa-Nairobi SGR. The Export Import Bank of China financed 80 percent of the project” (Morangi, 2017).

“I was among a group of people who wrote a letter to the president [Uhuru Kenyatta], specifically with regards to the value for money proposition,” political analyst Tom Mboya told RFI on Tuesday. At a staggering cost of nearly four billion euros–almost entirely funded by China’s Export Import bank– just for the first phase linking the capital Nairobi to the port city Mombasa, there is reason to be concerned, reckons economist Aly-Khan Satchu” (Okello, 2017).

The Presidency statement on it:

“President Kenyatta, who was flanked by Deputy President William Ruto and First Lady Margaret Kenyatta, said every Kenyan should be proud of the Standard Gauge Railway. “I call upon all Kenyans whatever their political beliefs to celebrate, today we should be together holding hands in celebrations,” said the President moments after the cargo train pulled alongside the Presidential Dias waiting for the flag off. It was song and dance as choirs played patriotic songs apt for the moment. “This is the Kenya we seek and this is the Kenya we want our children to inherit from us and their children to inherit from them,” said President Kenyatta amid applause, cheers and ululation. President Kenyatta said the SGR will make the port of Mombasa more efficient and will enhance the performance of the facility where the Jubilee Government has invested more than Sh60 billion in the last four years” (Presidency, 2017).

By the Statement made by the Presidency yesterday means that the Government spent: 60bn times 4 Shs. 240bn on the Standard Gauge Railway. Still, the East African reported differently earlier in the month: “So far, Sh327 billion has been spent on the first phase of the railway between Mombasa and Nairobi and Sh150 billion on the Nairobi-Naivasha section. With a national population of about 46 million, every Kenyan is set to owe China Sh18,413 in SGR debt once the deal is sealed” (…) “The SGR has been President Kenyatta’s pet project since he came to power” (Mutambo & Omondi, 2017). So if this is true, than the Presidency are dropping different numbers than the papers. Clearly the government trying to look more efficient, than what they are in reality. This should worry since most of the building of the SGR are based on development loans from the Exim Bank.

Is this why the words of and address to this from Joho is so striking:

“In the light of this, we hereby demand that

1. That the government release the terms of the contract with the Chinese Exim Bank, the details of disbursement and attendant relavant information

2. The Government of Kenya release all details of the Take or Pay contract between KPA and the financiers? What is the goods threshold and the responsibility of collection of the these fees.

3. Due to conflicting reports, the government clarify in details all charges related to goods and their destinations.

4. The government clarify the method of nomination of goods for rail and the point and implementation of charges.

5. The government clarify the extinction date of the Railway Development Levy on goods and come clean on the amounts collected since.

6. The government release the terms of the port concession, all monies paid and the details of the contract

7. The the Government clarify the details of site selection of Naivasha as a dry port. The feasibility study and the project appraisal report.

8. That the government release the “Willingness to Pay” survey of the goods for meant for railway and the feasibility report of the proposed Naivasha Special Economic Zone.

9. And that the Jubilee government show us their plan for Mombasa” (Hon. Ali Hassan Joho, 31.05.2017).

By all means the Governor of Mombasa wants to know the realities of the SGR, but that is something every single Kenyan deserves as this is the pet-project of Kenyatta. Kenyatta might be proud of Phase 1, but can the government carry the price of the trains and lines. Or is this is a stunt for development?

That the Governor was blocked from the Train Station that is opened in his county, as he was blocked from the relaunch of the ferries in March 2017. Shows that the Jubilee cannot handle opposition or their eyes on their projects. They are so initiated to represent the whole community, that if the community and citizens elects opposition. Than they are not allowed to enter public displays and their launching of projects. This has now been proven twice. That the Jubilee cannot handle NASA leadership or ODM party leaders. If they could than they would have entertained and made it possible for Governor Joho to be at the state functions as he is the local elected leadership of Mombasa county. Is that hard for the President and his deputy?

But the President and his Team is cowards who cannot even have the local government leadership at the launch of SGR at the Port Reitz Station. Peace.

Reference:

Morangi, Lucie – ‘ Chinese-built SGR to improve Kenya’s global standing’ (30.05.2017) link:http://www.chinadaily.com.cn/world/2017-05/30/content_29548836.htm

Mutambo, Aggrey & Omondi, George – ‘Uhuru seeks Sh370bn more to extend railway to Kisumu’ (16.05.2017) link: http://mobile.nation.co.ke/news/Kenya-requests-for-Sh370bn-for-SGR-third-phase/1950946-3928546-15jp48i/index.html

Okello, Christina – ‘Kenya’s ambitious new railway raises cost concerns’ (31.05.2017) link: http://en.rfi.fr/africa/20170530-kenya-4bn-railway-opens-amid-controversy-kenyatta-china

Presidency – ‘New dawn for Kenya as Standard Gauge Railway rolls out services’ (30.05.2017) link: http://www.president.go.ke/2017/05/30/new-dawn-for-kenya-as-standard-gauge-railway-rolls-out-services/

Kenya: the rain-drops from the Corrupt Officials turns into a River of Corruption Cases; showing some recent cases of 2016!

“Corruption cannot be tackled from the top, it has to be confronted from the grassroots” – John Githongo.

Kenyan Government might not like it or trying to deflect it, but here certainly a sorry state when it comes to corruption, graft and embezzlement. If it is either getting a better business deal, paying local council-men for having a shop or being a hawker, paying police officers while passing through a district, getting help by government officials and other buying services from officials like judges and Land-Commissions to get ahead of competitions.

This here is a national problem, but many of the Government Officials and Ministers are involved so the Jubliee Government do not want to be too strong against it; if it is then one of their own have to jump on the sword and lose their job. I think they have learned from Mwai Kibaki’s government and how the Corruption made them eat and let the ethical procedures fly out the window.

I will here show the cases that have come since Januar 2016. And this is not all I presume, this is reports and probes of corruption and grafts in Kenya. There are lots of them and the amount of people says how big the picture is and how big the scope of corruption is; there have to be a general cleaning, but then the Government Officials and the codes of conduct have to be taken from streets to the Parliament. But when Kanjo Kingdom documentaries shows how the certain county cars drives around and pocket money from traders an hawkers in Nairobi as they have target funds to get each week. This proves the levels and stages of corruption. There are viable and visible, and as long as county officials in the capital can get away with having open corruption and trading tax that is not deducted through their financial statement. Then it proves that the re-vamp have to happen from the Grassroot as Hon. Githongo says and I abide by, but the precedence have to be set by the Deputy President Ruto and the President Kenyatta!

Here are the cases and probes.  

State House Kenya

200 State Officials needed clearance:

“Close to 200 people on the List of Shame President Uhuru Kenyatta handed to Parliament last year have been charged with corruption and abuse of office” (…)”A confidential report by the Ethics and Anti-Corruption Commission (EACC) shows all cases have been investigated and action taken on at least 61 per cent of them” (…)”The status report says some suspects have been taken to court while others have had their cases referred back to EACC for further investigations” (Gicobi, 2016).

Deputy President William Ruto and his Wife; Rachel Ruto dined VISA to the US:

“The first lady who was to be accompanied with the DP’s wife Rachel Ruto traveled alone due to her (Rachel) being denied a Visa by the USA embassy” (…)”According to reliable source, Rachel was denied Visa following allegations that her banking initiative had extorted donor funds” (…)”Recently, it was revealed that Deputy President was banned from traveling to the United States, however,  it looks like his whole family was too after his wife Rachel became the first to be denied a Visa” (…)”Ruto’s involvement in almost all corruption cases might also be the reason why Rachel was denied a US Visa” (Bironga, 2016).

Tunoi Probe:

“Supreme Court Judge Phllip Tunoi sought to discredit his accuser in the Sh 200 million bribery saga as he fought off allegations that could bring down his career and those of several colleagues.  Appearing before a committee probing the allegations Tunoi said an affidavit implicating him was possibly drawn by judiciary staff in an elaborate plot to end his career. As Francis Gachuri now reports Tunoi’s accuser Geoffrey Kiplagat also appeared before the committee that has until Wednesday to submit its findings” (Kenya Citizen TV, 2016).

Nike Probe:

“Under its terms, the athletics company would pay the Kenyan athletics federation $100,000 in honorariums each year and a one-time payment of $500,000, which was referred to as a “commitment bonus.” The New York Times reports that the bonus was immediately withdrawn by Kenyan officials and kept off the books” (…)”Nike conducts its business with integrity and expects that our partners do the same,” Nike told Fortune in a statement (Addady, 2016).

Bank’s Probe:

“Several banks are under investigations after a major tax evasion ring was busted at a border entry point. The racket, said to cost the government over Sh120 million in unpaid import duties at Namanga border post, comes barely a month after a similar incident was discovered at the Port of Mombasa” (…)”Two Equity Bank staff members and an unnamed number of the Kenya Revenue Authority (KRA) personnel allegedly aided traders at the Namanga border post to import goods without paying duty, depriving the country revenue of more than Sh100 million” (…)”Nairobi-based financial analyst Aly Khan Satchu said the recent edict from the Central Bank where customers will need to clearly explain cash deposits and withdrawals of at least Sh1 million is welcomed. He said if the rules are enforced to the letter, corruption cartels would be dealt a blow” (…)“It’s clear that banks have a duty of care in this regard. If this new regulation is implemented without fear or favour then I am sure the deluge of ill-gotten proceeds going through the system will come to an abrupt stop. It seems to me it is no longer a question of rules and regulations, it is now a question of enforcement, pure and simple,” said Mr Satchu” (Ngungi, 2016).

King of Graft – Jimmy Mutuku Kiamba:

“A former Nairobi County chief finance officer amassed Sh800 million in cash, motor vehicles, buildings and land, which the government is now seeking to recover” (…)”Mr Jimmy Mutuku Kiamba’s wealth is half of the Sh1.6 billion that President Uhuru Kenyatta announced in his State of the Nation address that the government intends to seize” (Mwakilishi, 2016).

State of Jersey Confiscate Money:

“On 24 February 2016, Windward Trading Limited, a Jersey registered company, pleaded guilty to four counts of money laundering before the Royal Court of Jersey.  The Royal Court imposed a confiscation order of £3,281,897.40 and US$540,330.69, thereby stripping the company of all its assets” (…)”Windward admitted to laundering the proceeds of corruption between 29 July 1999 and 19 October 2001. The corrupt activities took place in Kenya where Windward’s beneficial owner, Samuel Gichuru, is resident. During the period on the indictment, Mr Gichuru was also the Chief Executive of Kenya Power and Lighting Company [KPLC], the Kenyan government’s electricity utility company. KPLC awarded valuable contracts to a number of engineering and energy companies worldwide who all made corrupt payments to Windward. The confiscation order provides an indication as to the scale of the criminal conduct that took place” (State of Jersey, 2016).

Afterthought:

This here shows the scope and reach of it. I don’t need to spell it out. It is clear as water. The rain-drops is becoming so much that they are creating a river in the valley; the same is happening with the corruption. There little rain-drops, but they all create a river and the water touches all parts of society. Time to put the kettle on and heat-up some water, because with all this eaten government funds and shady deals we need some sweet tea; Peace.

Reference:

Addady, Michael – ‘Nike Is at the Center of a Kenyan Corruption Probe’ (16.03.2016) link: http://fortune.com/2016/03/06/nike-kenya-corruption/

Bironga, Huldah – ‘CORRUPTION AT ITS PEAK; Ruto’s wife denied VISA by the USA for corruption linked allegation’ (24.03.2016) link: http://waza.co.ke/corruption-at-its-peak-rutos-wife-denied-visa-by-the-usa-for-corruption-linked-allegation/

Gicobi, Maryanne – ‘Kenya: 200 On Uhuru List Charged With Graft’ (15.02.2016) link: http://allafrica.com/stories/201602150294.html

Mwakilishi – ‘King of Graft Jimmy Mutuku Kiamba to Lose Sh800 Million Loot’ (01.04.2016) link: http://www.mwakilishi.com/content/articles/2016/04/01/king-of-graft-jimmy-mutuku-kiamba-to-lose-sh800-million-loot.html

Ngungi, Brian – ‘Kenya: Banks Under Probe Over Link to ‘Dirty Money’’ (28.03.2016) link: http://allafrica.com/stories/201603310135.html

State of Jersey (U.S.A.) – ‘Jersey confiscates £3.6 million proceeds of corruption’ (25.02.2016) link: http://www.gov.je/News/2016/Pages/Jersey-Confiscates-Proceeds-of-Corruption.aspx