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 Since there are inconsistencies in the Supplementary Estimates, they should be withdrawn and correct estimates resubmitted.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 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.

The following is the report to the movement on the activities of Phase 1 of the BUDGET 2009 Campaign.

Wednesday April 29, 2009

Mars Group Kenya writes to Hon. Martin Otieno Ogindo, who is the Chairman Fiscal Analysis and Appropriations Committee, Kenya National Assembly requesting that he establish certain details, which are not obvious from the published Supplementary Estimates, from the Minister of Finance before giving his approval to the Supplementary Estimates which may appear before the National Assembly as early as that day. Mars Group Kenya wanted the MP?s to seek time to adequately debate and scrutinize the Supplementary Estimates. Prudence suggests that the best way forward is to allow a longer period for scrutiny and debate. It could very well save the country billions of shillings.

Citing examples of issues that Mars Group had come across in our preliminary analysis of the budget as examples for the purpose of suggesting that given time it will be possible for Parliament to contribute from an informed basis about what is a very important supplementary budget for this country. Prudence dictates that all MPs have the opportunity to consult with their constituents about the content of the supplementary estimates in order to seek their approval.

Read letter to Hon. Martin Otieno Ogindo, Chairman Fiscal Analysis and Appropriations Committee, Kenya National Assembly


Tuesday 5th May 2009

1.Gitobu Imanyara tables evidence of fictitious entries in the supplementary budget in Parliament

Mr. Imanyara: Mr. Speaker, Sir, I rise to seek a Ministerial Statement from the Deputy Prime Minister and Minister for Finance in relation to what appears to be a monstrous fraud committed, not only to this House, but also the country. Through you, I would like your guidance as to what we should do with documents which come from the Government and laid on the Table of the House, but on their own face, contain discrepancies that reveal fraud. Last year, we approved the Budget Estimates.

Supplementary Budget for this year arose as a result of the approved Budget. Looking at the two sets of figures tabled by the Deputy Prime Minister and Minister for Finance, for example, from a random selection, I am able to point out a figure of Kshs9.2 billion which has been shown as having been falsified in these documents. I want to give an example, whereas last year under Vote 05, The Office of the Vice-President and Ministry of Home Affairs, we approved Kshs86 million. However, the Estimate that were approved in this House last Thursday indicate falsely that this House had approved Kshs26 million; a figure of Kshs60 million is unaccounted for.

Mr. Speaker, Sir, looking at 20 Ministries, there is a figure of at least Kshs9.2 billion which is on documents tabled by the Deputy Prime Minister and Minister for Finance in this House. We are talking of a sum of money that is three times more than the amount that was set aside for strategic food reserves.

In these circumstances, I want him to come and tell this House why he presented documents that were forged or that contained false entries that resulted in this House

2. Speaker of the National Assembly Marende directs Minister of Finance Uhuru Kenyatta to explain discrepancies on Thursday 7th 2009

M r. Speaker: Order, Prof. Ongeri! On the face of it, the matters narrated by the hon. Gitobu Imanyara are very grave. The Chair would want the Minister to respond to those matters. If they are wealth penny, then they must dealt with and clarified. So, Prof. Ongeri, please, hold the Ministers brief and carry this information to him, including the document which has been tabled, so that he can come with a suitable response by Thursday, this week.

Read full extract of the Hansard of Parliament for Tuesday 5th May 2009

Document tabled by Hon. Imanyara, that contain an extract of 20 budget items that have discrepancies.

Live Coverage of the proceedings in Parliament

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Wednesday 6th May 2009

1. Uhuru Kenyatta gives ministerial statement on the budget, defends figures in the supplementary estimates

Finance Minister decides not to wait until Thursday as directed by Mr. Speaker, and issues his Ministerial Statement on Wednesday 6th May 2009. In his statement the Minister responds to Hon. Imanyara’s question, but does he tell the truth?

Our immediate reaction to the Minister is that he further misled Parliament. The Minister’s Statement at paragraph 8 chooses to deal at length with the Ministry of Education as thus:

8. Mr. Speaker the decision by the government to cut non-priority expenditure does not constitute fraud; indeed it is a sign of prudent financial management for which we should be proud of as Nation. It is also useful to note the supplementary budget estimates only focus on proposed expenditure changes as I earlier mentioned. As an example, for the Ministry of Education, the items reduced under item 2110300 Personal Allowance paid as part of salary are House Allowance and Medical Allowance by Ksh 393.8 million and 16.6 million respectively and these are the ones reflected in the supplementary budget. The other five sub-items under this item of Personal Allowance which amount to Ksh 8.2 billion were not revised and were therefore not included in the overall change of the principal Item. However, the Ministries overall budget on that principal item is Ksh 29.2 billion and not Ksh 20.9 as claimed.

The Minister for Finance’s Statement at page 3 paragraph 8 is misleading in respect of the true position of the Approved Estimates vis-a-vis the Supplementary Estimates for the Ministry of Education item 2110300 : Personal Allowance paid as part of salary:

1. The amount provided and approved by Parliament in June 2009 for the item 2110300 Personal Allowance paid as part of salary for the entire Ministry of Education is Ksh 30,301,263,081 and NOT “Ksh 29.2 billion” as stated by the Minister in Parliament.

2. The amount the Minister revises on this budget line item in the Ministry for Education is a net reduction (Ksh8,778,340,927) and NOT as stated by the Minister in his statement “by 393.8 and 16.6 million respectively.”

3. There is only one budget line item under personall allowance that the Minister did not revise and it is worth Ksh 494,184 and NOT “five sub-items under vthis item of personal allowance which amount to Ksh 8.2 billion.”

After all his revisions listed in his statement on this budget line item, the overall budget on this item 2110300 should NOT be and cannot be “Ksh 29.2 billion” as stated to the House by the Minister

2. Uhuru accuses Imanyara of tabling documents from doubtful organizations and blames Mars Group

Hon. Imanyara responds to Hon Uhuru Kenyatta by tabling a further 200 items that have discrepancies in the Supplementary Budget amounting to kshs 9.6 Billion as Uhuru Kenyatta uses Parliamentary privilege to launch a scathing attack on the integrity of the Mars Group. Speaker Marende directs the Finance and Budget committees to scrutinize the figures and report to the house on Tuesday 12th May 2009 at 2.30 pm.

Read Uhuru Kenyatta’s full Ministerial Statement

Read the Hansard of Parliament

Live Coverage of Parliament

Document tabled by Gitobu Imanyara

Media

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Thursday 7th May 2009

1. Uhuru Kenyatta withdraws the Appropriation Bill and asks for it to be deferred

The Deputy Prime Minister and Minister for Finance (Mr. Kenyatta): Thank you, Mr. Speaker, Sir. The House approved the Supplementary Estimates on 29th April, 2009. The basis of the Appropriation Bill is to issue sums contained in the Supplementary Estimates and appropriating them for the purposes specified in the Supplementary Estimates. On 5th May, 2009, hon. Gitobu Imanyara rose on a point of order to challenge the issuance of amounts contained in the approved Supplementary Estimates. Yesterday, having given the clarification of those Supplementary Estimates, you ordered that the matter be investigated by the Departmental Committee on Finance, Planning and Trade in conjunction with the Fiscal Analysis and Appropriation Committee which should present their findings to the House on Tuesday, 12th May, 2009. The amounts contained in the Approved Estimates are in doubt. It, therefore, follows that the same amount contained in the Appropriation Bill is equally in question. The Appropriation Bill should, therefore, in good conscience, be deferred until amounts in question have been investigated and cleared to the satisfaction of the House. In keeping with good practice and good governance observed internationally, no dealing whatsoever, shall take place in any transaction that is under investigation and, indeed, not a single shilling shall be spent until the matter has been investigated.

Mr. Speaker, Sir, the Appropriation Bill should, therefore, not be moved until such time this matter has been concluded in all fairness to Kenyans and, indeed, to this House. Therefore, under Standing Order No.36 (2), I beg that you defer the business contained in Order No.8 to another day.

Hansard of Parliament


Friday 8th May 2009

1. Uhuru Kenyatta admits that there are errors in the Budget but denies fraud

Uhuru Kenyatta admits errors in the supplementary estimates saying they are typographical errors. Uhuru says treasury officials had no intention of defrauding the taxpayers as CID is called in to investigate the matter at Treasury.

2.The Joint Session of the Budget and Finance Committees commence its hearings and Mars Group and the Partnership for Change give evidence to the Committee.

This submission is on behalf of the Partnership for Change a non-violent people?s movement dedicated to ending dictatorial impunity and re-establishing democratic accountability in Kenya. To better engage the public with public finances we study budgets at central and local levels. When the Supplementary Estimates were first made public we formally communicated in writing to the Budget Committee our concern about the short time given for scrutiny of the Supplementary Budget and suggested that detailed scrutiny would identify any inconsistencies or improper provisions ahead of Parliamentary approval. Unfortunately the supplementary estimates were approved in one afternoon and no member of parliament opposed them.

As we researched the Supplementary Estimates we asked the following questions:

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?

Hon. Gitobu Imanyara raised this matter in Parliament on May 5th 2009. The Finance Minister’s first reaction was to issue a 6 page statement in the National Assembly, in which he strenuously defended the integrity of the supplementary estimates as laid in the House, and further questioned the motives of both Imanyara and other private citizens for airing concern. The Finance Minister did not admit to any error before the House and Mr. Imanyara was dissatisfied with the statement as were many Kenyans

Read our submission to the joint parliamentary committees enquiring into matters arising from a request for a ministerial statement by hon. Gitobu Imanyara related to the supplementary budget estimates 2008-9

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Sunday 10th May 2009

Uhuru Kenyatta and Treasury credibility questioned

Uhuru blames politics on the budget saga, as several MPs defend the minister, the ‘typing error’ explanation is in doubt and Uhuru blames treasury officials of undermining him. Uhuru Kenyatta is supported at a public rally by President Kibaki’s son Jimmy Kibaki.

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Monday 11th May 2009

Uhuru Kenyatta appears before the Finance committee to explain the discrepancies

Uhuru Kenyatta appears before the Finance committee to explain the discrepancies as the Finance ministry and former ministers profiled by the media.

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Wednesday 13th May 2009

Budget and Finance Committee Tables report in Parliament

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

The Joint Committee Recommends 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

Live Coverage of Parliament

Media

11 thoughts on “The Partnership for Change Report on Phase 1 of the Budget 2009 Campaign to Save Public Resources for Agenda 4 of the National Accord.

  1. Kenya Web Based Activism
    Through the GV Rising Voices Group I got to know the Mars Group, a leadership, governance, accountability and media watchdog organization based in Kenya.

    Our goal is to create awareness and to generate an effective demand, by Kenyans, for accountability from Kenya’s leadership and to encourage Kenyans to hold to account those who have committed improprieties.

    Among the many different activities, the group actively work reporting news on Government and corruption, live streaming videos on their own frequent reports and promoting citizens participation. At the moment they claim having more than 170000 change activists on the ground. They also have a blog on which they openly report on all their initiatives.

    One of the latest successful initiative is about exposing fraud in a supplementary budget tabled in parliament, and after being lambasted by the Minister of Finance itself, a joint parliamentary committee confirmed the Mars Group work stating the existence of financial inconsistencies in government planning.

    One of the greatest project launched by Mars Group is Partnership For Change, a Web Based, ongoing citizen participation initiative that aims to

    advance the strategic use of non-violent action in calling upon the Kenyan Citizen to demand the end of Impunity, Restore Democratic accountability and to end Dictatorship in Kenya.

    The project is a true and concrete Call to action, spreading forms on non-violent protests, advocacy material and much more, aiming to collect people and push em to actively volunteer for the campaign. This is the Facebook group of the project.

    Great job guys.

    Giuseppe Tempestini

  2. Dear Mars Group,

    Your course in Noble but the problem is that you are political pawns. You do not advocate for the taxpayer but your political affilliates. Your eports are always anti-govt. There have been and are still many scandals flying around but you are focusing on a ‘GHOST ONE’. Tell us the truth..was there any fraud? was the taxpayer conned? As far as I can read from this, the Total figures were correct and the only diffs were with lines which now there is widespread proof and acceptance that it was sabotage. Why are you not helping identify the sabotage culprits who are actually the culprits..the Finace Minister is actually a victim (regardless of his affiliations).

    We have a bigger scandal of ‘MAIZE’ which has led to hunger and contaminated (GMO) maize in circulation. The taxpayers you deem to champion are dying of hunger and poisoned and you chhose to focus on an issue that you yourselves got your figures wrong..I believe the figure you purpoted to be swindled by the finance minsater was different form the one didused by the committee..does that imply you are defrauding/misleading Kenyans by presenting wrong eveidence???

    Be objective and impartial and work with the govt. not against to improve the lives of the taxpayer; oinstead of vying for self glorification.

    At this juncture I have read that the Maize Scandal report has been revised to remove the names of prescribed ODM affilliates…what do you think of this and what if the same happened to the Financce committee report..i.e. ALTERED TO SUIT CERTAIN INDIVIDUALS..I’M SURE YOU’D BE UP IN ARMS…

    NB: All I need is objective/impartial reporting and effort from the people we depend on to support us the taxpayer.

    Thanks

  3. We would like you to know that the majority of Kenyans in Alabama and Georgia fully appreciate and support your efforts to be the watch men and women for our beloved country.Kenya has great potential and has enough educated and professional that given the chance can spearhead the country to greater economic development.Lets unite together,and please any help that you may need from our side let us know.again we do appreciate our foot soldiers on the ground in Kenya and that is the Mars Group.

  4. Thank you so much and please keep it up.

    The most credible group I have ever come accross.

    God bless you for being very mindful of poor Kenyans

    George Odiwuor Awuonda
    SUNA-KENYA

  5. We do appreciate for your hard work for putting Kenya law makers on the road to their national responsibility.

    Solomon Kimuyu
    Diaspora, Dallas,Texas

  6. Thanks a million Mars Group.

    You have my total support,continue the good work, several of us out here are very proud of your team.

    Sungu Otieno.
    Juba-Southern Sudan.

  7. Mati
    Great job done and a pat on the back for this. Now, I would like to inform you of a little matter of KSHS 31 million that went into construction of a desert museum in Loiyangalani The big question is where did the money go, we have a building worth less than 3 million, and furniture worth maybe 100K at most. The museum has an Italian connection, was opened by Hon Ntimama last year but is lying in waste, no visitors, an old computer, part of the roof is giving way etc. Can you dig and find out who the culprits are?

    Secondly, there is a massive rip-off in the grading and murraming of roads in northern Kenya, especially the greater Marsabit district – the country is losing colossal amounts of public money – from CDF, LATF, to GoK development funds. Basically the contractors are doing a shoddy job a few kilometers after the major market centres, especially after Marsabit towns. They pass over the roads with graders, hardly any murrum. Where rock outcrops are on the road, they do not make alternative routes, just pass over these as well. the widths of the roads are as varied as the terrain – big to small. where they use cement, mostly the sections are one vehicle wide! The less we write about the culverts the better – most are either cracking or being washed away by the current – very mild rains – one wonders what would happen when normal rains fall!
    Lastly, I managed to attend a Leaders meeting in Laisamis. The MP instructed the DDO
    and accountant to pay contractors – on the basis that down in Kenya, even those who
    have not finished their work are paid – several millions – no reason not to pay these small contractors!

    Why all these? because if you do not take care of the pennies – then you will never
    make a dollar!

  8. HALLO MY NAME IS CHRISPORY JUMA FROM MOI UNIVERSITY.
    I HAVE A LOVE FR WRITIN WHICH HAS NOT BEEN EXPLOITED. OF LATE YOU AHVE BEEN POSTING THE ARTICLES I HAVE BEEN SENDING TO THE VARIOUS MEDIA HOUSES. I DO NOT KNOW IF I CAN CLAIM PAY FOR THAT OR IF YOU CAN HELP ME IN ANY WAY. MEANWHILE I TEND TO LIKE WHT YOU HAVE BEEN DOING TO THE KENYAN PEOPLE.

    I HAVE ATTACHED MY CV. THANK YOU SO MUCH.

    • Hello Chrispory
      We’ve checked and this is your first posting on MGK.Org. We set up the forum as a free space for Kenyans to interact on Governance issues, and don’t pay for contributions. Nonetheless we’ve received your curriculum vitae and encourage you to continue writing!
      MGK

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