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COVER STORY “Whatever the laws, whatever the technology there can never be zero corruption in the procurement and collection of revenue unless people change their ways and act with total honesty, one can never seal all the loopholes with legislation and technology,” or people impersonating them still use fake receipt books and debit motorists, saving more than a million a day is defi nitely a step in the right direction. Nakuru town clerk Mr. Sheikh Abdullahi says his council is making only Sh416M a year but believes if they were to fully embrace the technology they would rake in more. “The main loophole in revenue collection is the fact that we are not fully automated. The other is some residents do not want to pay our new rates as they say they are too high,” says the town’s chief executive adding that with that kind of revenue the council runs on a defi cit of Sh154M. Mr. Tubman Otieno, Mombasa’s town clerk agrees that indeed IT is an important aspect in guarding against the cruel nature of untrustworthy employees. He adds that other than ensuring that information and records are easy to follow and monitor, effective use of technology also cuts on the time and inconveniences that ratepayers go through in the process on remitting their dues. Mr. John Ngugi, City Treasurer, CCN In Nairobi, the decentralization of rate paying units has been made possible by these integrated systems. The council has since opened a new paying centre at Makadara, in the city’s Eastlands and Mr Ngugi says the response of his customers, is so far, impressive. But all said and done, Kenyans are eons away from realizing a corruptionfree procurement process in their local authorities, unless offi cials in the councils transform to honesty. Offi cials interviewed by Neighbourhood Kenya concede that whatever technology that is introduced and implemented, the goodness of man will be the only way to completely alleviate the scourge of corruption and ensure that residents within affected local authorities get the services they deserve and pay for. “Whatever the laws, whatever the technology there can never be zero corruption in the procurement and collection of revenue unless people change their ways and act with total honesty, one can never seal all the loopholes with legislation and technology,” says Mr Ngugi. Local government experts intimate that though the laws governing the process are in place, it is virtually impossible to seal all the loopholes available for unscrupulous characters and it all rests on the transparency of concerned personnel for everything to fl ow transparently. The treasurer of Kenya’s capital city admits that whatever his council does, there can never be total safeguard against fraudsters in the process of procurement and revenue collection. Some experts say that a complete change in Kenyans’ (both council workers and residents) psyche and a development of a national conscience will make the country achieve effi ciency. Mr Ngugi adds that a large percentage of the funds meant for the betterment of the city’s life ends up in individuals’ pockets, wrongly and yet consciously despite the deliberate effort he has initiated to guard against the vice. With the recent graveyard plot acquisition saga by the city council still fresh in most Kenyans’ minds, the revelation by the city offi cial is disturbing. Most local authorities have revenues running into billions of shillings and the admission that things are not foolproof, is to say the least, worrying. Nairobi handles, or is expected to handle, over Sh10B shillings annually. Of Nakuru’s Sh416M revenue, the expenditure projections are Sh667M, part of which Sh340M goes to personnel, Sh227M to operations leaving a defi cit of Sh154M. All local authorities are expected to abide by the government’s Public Procurement and Disposal Act of 2005 but hardly do they do this as they engage in multi billion shillings deals. Its workers are also expected to strictly adhere to the Public Offi cers Ethics Act. The gap between such expected policy guidelines and actual practices among senior most workers has been growing by every passing day. It is hoped that local authorities will move fast enough to take on board and use customized technology systems to reduce the rate of misappropriation of public funds and make scandals like the recent cemetery plot by Nairobi City Council in Mavoko Municipal Council history so that residents can regain confi dence in their supposed workers. Whether the ICT can signifi cantly cut on corruption without change of attitude and accountability among the workers at local authorities is anyone’s guess. Disclaimer: Neighbourhood Kenya is produced bi-monthly by The Kenya Alliance of Resident Associations (KARA) The opinion expressed in the articles are those of the authors and do not necessarily reflect KARA’s offi cial position. The editor welcomes contributions of articles and photographs from members of the public. Any materials received will be treated as unconditionally assigned for public and will be subject to KARA’s unrestricted right to edit and publish.KARA reserves the right of this publication and no part can be published in anyway without express permission.
PROFILE ENERGY High Petrol Prices: The Ten Unanswered Questions! The circumstances surrounding the Kenya Bureau of Standards (Kebs) suspect and disputed contract with an Indian fuel quality inspection fi rm Geo Chem Middle East which pushed pump prices upwards by an estimated Sh4 was yet another manifestation of an irresponsible and disjointed government bent on fl eecing the hapless taxpayer and consumer. The prices were only reduced after public outcry that forced the government to retract its intention. No doubt the emerging disagreement within government on the matter has more to do with the vested interests that would have shared the proceeds of the deal as opposed to protecting public interest. Energy and Industrialization ministers Mr. Kiraitu Murungi and Mr. Henry Kosgey, respectively, seemed to feign ignorance on the whole matter that had been on the cards for long. The now increasingly fashionable trend where no minister, permanent secretary and other government offi cials takes responsibility for sins of commission and or omission within their respective dockets is costing the economy and Kenya’s reputation among the family of nations. Let us assume that Kebs had good intentions in introducing the new fuel inspecting company. The fi rst prudent move would have been to objectively study and document credible misgivings on the manner the Kenya Petroleum Refineries Ltd and the Kenya Petroleum Company could be inspecting the oil. The next step, and assuming Kebs would have been acting in good faith, it would have moved to recommend to the relevant arm of government on the need to immediately discontinue the two based on their assessment. A competitive open tendering process would then have followed in earnest. Following the Sh4 when the actual implication of the Kebs and Geo Chem Middle East deal is said to have been less than Sh1 Fifth, who will believe the oil marketers’ crocodile tears on the matter when they have remained notorious and a real pain to the public in failing to adjust oil prices downwards whenever global prices of the precious commodity fall Six, could Kebs have noticed what is unknown about the dangers posed to the public by the current oil inspectors or are they simply being used as a conduit to enrich the select few, and if yes, why can’t the acting MD Mr. Kioko speak out Seven, why is the industrialization PS Prof. John Lonyangapuo playing politics with this critical matter at one time disowning the deal and then softening a few days later. Eight, what is the Attorney General’s position and who exactly is protecting the public interest in the matter as different forces jostle for a piece of this lucrative and long-term tender impasse, ten salient questions now beg for answers; First, Kebs is in charge of setting standards of quality of oil in this case. Does it have any business signing contracts binding the government on this matter Second, does Kebs hold the power to hire a contractor on behalf of the tight-lipped Energy Regulatory Commission or the ministry of energy Third, are oil companies in order to withhold the oil from the public and cause artifi cial shortage, and if not, what action would be taken against those fi rms found culpable Fourth, just what informed the oil marketers to peg their price at the additional Nine, when will competitiveness in the energy sector become a reality Ten, are President Kibaki and PM Raila odinga still being consulted by their ministers and PS’s on such major decisions that have huge implications on every citizen including the majority poor who will now be forced to pay an estimated Sh75 per litre of kerosene they so desperately need for cooking and lighting
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