Deals that put a dark mark on the coalition

A new spate of questionable deals amounting to billions of shillings has blighted the first 100 days of the Grand Coalition Government.

The public and donors are wondering whether the pledges made by President Kibaki and Prime Minister Raila Odinga as they came together more than 100 days ago would hold ground in the face of the emerging scandals.

Fears are setting in that these scandals are likely to strain the relationship of the partner parties.

Promissory notes

They range from the controversial sale of the Grand Regency hotel at Sh2.9 billion to Libyan investors; the unanswered questions at the Immigration ministry over issuing of citizenship and entry permits to foreigners; the Safaricom IPO; the cancelled contract with currency printer De La Rue; and purchase of troop carriers for the armed forces. There is also the unfinished business of nomination of councillors.

Others are the questionable changes at the Mombasa Oil Refinery and the inclusion of Sh4 billion in this year’s budget to pay for some of the promissory notes relating to Anglo Leasing that former Finance minister Amos Kimunya publicly said had been cancelled.

Concerned about these debatable deals in the media, Mr Odinga states: “The news headlines (on corruption) may also deter potential investors that Kenya is back in business as before, where financial transparency and accountability are just meaningless words.”

Nairobi Metropolitan Development minister Mutula Kilonzo argues that although there are “pockets” of official corruption, the swiftness to expose them is high given that rival parties have come together to form a government.

“I don’t think that as a country we had bid bye to corruption. The difference now is that we have a grand coalition government,” he says.

The upsurge in the shady dealings has started sending alarm signals among donors, as Mr Odinga admits.

“I have also heard that some of our development partners were considering withdrawing financial support and development assistance. Well my message to them is that this is the new Kenya where people regardless of their status are accountable for their actions,” he states.

German ambassador Walter Lindtner says diplomats are concerned about the rising cases of questionable deals.

The scale at which the scandals are popping up reminds, painfully, the public of the multi-billion scandals of Anglo Leasing during the first term of the Kibaki rule and that of Goldenberg during the reign of Retired President Daniel arap Moi.

Says former Kikuyu MP Paul Muite: “The Kibaki administration is not any different from the Moi government. May be the only difference is that corruption is now a little bit sophisticated like using the Nairobi Stock Exchange. The only hope is that the ODM part of the coalition can effectively check on corruption.”

Assistant minister Ahmed Sugow, MPs Jakoyo Midiwo, Musikari Kombo and Bonny Khalwale hold that the country can only be saved from the malaise through enforcing the tough provisions of the law and strengthening institutions.