World Bank working paper reveals astonishing amount of aid money to the African continent going directly into tax havens!

The World Bank working paper named ‘Elite Capture of Foreign Aid – Evidence from Offshore Bank Accounts’, which was finally released yesterday is a devastating read. Not because of the facts in it, but because of the extent of the misuse and theft of aid money. The World Bank are now proving by small samples how much of their loans, grants and funds, which is given by donors to the WB, which happens to be moved to tax havens by the regimes that needs it. That is eating of the plate of the poorest and living lavish on others people’s dime.

Just in the Annex, the truth really comes forward, where it is only a small samples, but showing the distasteful enterprise still. Like from table one. You can see that a certain amount of African countries have taken out huge funds into havens deposits and non-haven deposits.

The report explains this about the table one: “The table shows the 22 countries in our main sample and presents summary statistics for the main variables in our analysis. The sample includes all countries for which annual disbursements from the World Bank are equivalent to at least 2 percent of annual GDP on average. Sample mean is the average of the 22 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).

Nation Haven (million USD) Non-Haven (million USD)
Burkina Faso 32 88
Burundi 103 19
Eritrea 8 11
Ethiopia 64 155
Ghana 76 446
Guinea-Bissau 8 16
Madagascar 193 232
Malawi 31 82
Mali 27 133
Mauritania 32 150
Mozambique 40 161
Niger 29 79
Rwanda 149 41
Sao Tome and Principe 4 8
Sierra Leone 32 82
Tanzania 145 437
Uganda 73 188
Zambia 117 306

When you add into the A6 Table of the modestly aid-dependent countries. You see yet more African countries, where the money a flowing out of the coffers. Where surely not all aid is going where its supposed too.

The report explains table A6 like this: “The table shows the 24 countries for which annual disbursements from the World Bank are between 1% and 2% of annual GDP on average. is the average of the 24 countries in the sample. Annual WB aid (% of GDP) is annual disbursements from the World Bank as a fraction of annual GDP. Sample mean is the average of the 22 countries in the sample. WB aid disbursements is annual disbursements from the World Bank as a fraction of annual GDP. Annual ODA aid (% of GDP) is annual Official Development Assistance (ODA) from all sources as a fraction of annual GDP. Haven deposits is foreign deposits held in the 17 countries classified as havens. Non-haven deposits is foreign deposits held in the countries not classified as havens” (World Bank Feb 2020).

Nation Haven (million USD) Non-Haven (million USD)
Benin 42 96
Cape Verde 14 20
Central African Republic 18 53
Chad 11 91
Comoros 7 27
Democratic Republic of Congo 910 93
Cote d’Ivoire 387 787
Gambia 24 82
Guinea 54 114
Kenya 1277 1784
Lesotho 11 28
Senegal 253 487
Togo 82 146

Without going into deep technicalities of these operations, neither how the World Bank came through these numbers. We can see there is a staggering amount of funds that disappear and goes missing. Which was supposed to go to development or directly to support the state functions. Which happens to end up in tax-havens, surely by someone closely associated with the state or heads of state. Since, these sorts of amounts couldn’t have left the nations without the approval of the executive or head of state.

We can also clearly see, that some aid is directly feeding the rich and keeping tax-havens alive. Giving them financial stimulus and also covering the expenses of the elites in the respective places. There is certainly a mismanagement and a need for more oversight from the World Bank. But also more mechanisms to stop the misuse of aid. If it is supposed to help and not just create a very vastly elite in the nation in question. Because, with this sort of operations, they have clearly achieved that. Peace.

Kenya: Governor Alfred Mutua letter to IGP Hilary Mutyambai – Re: Treats to me by DP William Ruto, Aden Duale and Kipchumba Murkomen (16.12.2019)

Council of Governors: Jamhuri Day Message (12.12.2019)

Kenya: MLK LLP letter to Chairman Kirogo – Ref: Request for Information on Dennis Njue Itumbi (09.12.2019)

Opinion: Kenyatta’s Week of Anger

It seems like its been a week of anger in concern of President Uhuru Kenyatta. It is hard to know why he suddenly gotten so mad. Maybe the fuzz of the beers or whatever he drinks doesn’t work anymore. Maybe some international organizations doesn’t want to borrow money without to many strings anymore. Who knows? But certainly, his not the happy, go lucky President of the past.

Kenyatta has gone after the ones claiming he was silent. He has targeted the ones who commented on the BBI Report before it was published. Uhuru has addressed the Tanga Tanga and Ruto allies. But not in friendliness, but straight forward attacks.

First with the silent quote, before the carrying own cross!

They see me silent and think ‘he is just there and knows nothing. There is nothing I do not know and when the time comes, I know those who speak and they are not those who are speaking now. When the time comes, we will come and we will speak to you about what we will do. Mwaka mpya, we are with you. Let’s just first listen to their lectures. We are with you” – Uhuru Kenyatta on the 4th December 2019

Please let us not politicize the war on corruption. When an individual is stealing public resources he doesn’t do so on behalf of his family or community. Therefore, anyone who is implicated should carry their own cross” Uhuru Kenyatta on the 8th December 2019

With this he shows that his made and furious. Not that Kenyatta haven’t shown that before. He has whined before in public about his war on corruption. Not that its believable, because his closest cronies and known grand corruption scandals, which are not touched or have had any consequences. They have just gotten appointed elsewhere or gotten away scotch-free.

That is why his anger and frustration only seems forced. That the President only says this things, because he knows this is the right thing to say. However, his actions and his state of affairs is saying otherwise. That is why its not believable.

It is a mirage, that the President think he can create on his own. He thinks he can build it and make the image of it into reality. When its only a creation of his own imagination. The President can continue with his harsh words, warn and talk of sanctions. The President can continue to assault one part of the political elite or professions, but that wouldn’t change anything.

Kenyatta can act mad, can act sad or even glad. Nevertheless, the real actions are shown with what he borrows, the debt-ratio he leaves behind, the state deficit and the lack of good results from his time in office. That Kenyatta have little to show compared to the Big Four promise or the other pledges. Is because the state has been busy doing other things and securing their time to eat. The President has accepted it too, because he has eaten too.

That is why, the current outcry and stable battle against corruption goes old. When it really isn’t targeting the ones on the top, but the small fringe players and the ones whose has their turns. That is why Kenyatta can play and think PR speeches will save his behind. However, it will not. It is a lot of noise, but no real action. Peace.

Kenya: National Police Service – Press Statement on the Arrest of Nairobi Governor Mike Sonko (07.12.2019)

Opinion: It was Sonko’s turn, apparently…

Arresting Nairobi City County Governor Mike Mbuvi Sonko will not solve anything. Neither will it change the ways this are done. Governor Sonko has just followed the footsteps of the previous governors and County Officials. Not it’s righteous or make it right to steal from the public coffers, but that is ingrained in the system. There was no significant change from Evans Kidero or anyone else before him.

The Presser of DPP Noordin Haji and his arrest order of Sonko will not do a big whoop in Nairobi. Than, the whole political elite and all the stakeholders has to change overnight. As they are working as business as usual. Yes, Sonko is a thief, his comrades is involved and his misused power. Nevertheless, in Nairobi, who hasn’t and who of the political elite isn’t benefitting at this current moment?

It is not like the slum-dwellers nor the citizens outside the posh areas feels significant changes from who reside as the Governor. It is just another head and another big-man, who has his time to eat. That isn’t inspiring nor justification for what Sonko did, but he does what everyone before him has done too in this role. Land grabbing, putting associates on County Boards and appointing friends as county officials. That is just what they do.

Before he got elected, he had already been convicted and a run-away prisoner too. So, he knows the rule of law and know what it entails to break it. He has served a stint behind bars and that’s not new to him.

If his corrupt, than his just as blimy and outrageous as plenty of the government officials and the ones running the Jubilee government. Not like the Jubilee have gone long and far between corruption scandals, neither the mere scope and the amounts of grand corruption too.

Therefore, Sonko has to answer for his misdeeds, unless they are baseless and taken out proportions. Some even claim this is the sins of the previous administration and Sonko trying to clear the bill. But that is up for his legal aid to defend the man.

Sonko’s time was up and suddenly he had to appear. Somehow, it isn’t far from being a high ranking official to be answering in courts. Even Cabinet Secretaries has gone from High Ranking Officials to felons overnight. Therefore, that Sonko does it now isn’t that special.

His just one con down, more to go. Wouldn’t be shocked if he got caught slipping and had cases against him with viable evidence. However, that is up to the courts of if the DPP has his paper-trail in order. It wouldn’t be shocking if Sonko got caught doing some illegal bidding and some tenders out of whack. That just meant he was the perfect target at this very moment.

Since the DPP and other agencies has targeted less friendly faces and ensured they have a bad day. Like Hassan Joho of Mombasa has already been under fire for other reasons. Therefore, that Sonko is in trouble today isn’t a sudden new trick of the sleeve. More another play and to show that someone gets charged for corruption.

If this plays out well and not a PR stunt, than the DPP and EACC has done their best. If he just get free and the case is dismissed. Than it was just a play for the façade and hoping that no one notice the charade. However, that is to early to know.

Nevertheless, when you elect a crook and a thief, don’t expect him to not steal. He will not turn into a preacher man and a saint, when he has already been charged with it in the past. That should be public knowledge and common sense, but apparently is not. Peace.

Nairobi City County: Office of the Governor – Press Statement over DPP’s Arrest Order (06.12.2019)

Kenya: office of the Director of Public Prosecutions Statement on Allegations of Corruption in Nairobi County Government (06.12.2019)

KMPDU: Statement on the Death of Dr. Hamisi Juma in Cuba (18.03.2019)