Probe De La Rue, Muite tells UK

Mrs Mwatela. Photo/FILE

The British Government was Sunday dragged into the controversy over the deputy Central Bank governor’s transfer, with demands that it investigates its public quoted company De La Rue.

De La Rue, British firm, has been printing Kenyan currency for the last 16 years.

On Friday, Mrs Jacinta Mwatela said that De La Rue might be one of the reasons she was being edged out of the coveted CBK position.

She has rejected her transfer, last Monday, to the Northern Kenya and Arid Areas ministry as permanent secretary, terming it illegal.

Safina Party leader Paul Muite said the UK’s Serious Fraud Unit should investigate De La Rue relations with past regimes and the current one.

“If Britain is keen on assisting Kenyans to fight corruption as opposed to lip-service, it should involve the Serious Fraud Office to investigate and audit De La Rue’s operations in Ruaraka. It should investigate whether there has been any corruption in terms of kickback in printing currency in the Moi and Kibaki administrations,” Mr Muite, who is a lawyer, said.

Mrs Mwatela, who heads the CBK tendering committee, said the contract with De La Rue, which has won most of its contracts through single sourcing, was illegal and against the Procurement Act.

Kenya is one of the few countries still using old technology to print money and De La Rue has been accused of charging exorbitant rates.

The fate of Mrs Mwatela remained unknown on Sunday, but sources said the Government was determined to sack her if she does not move.

Mr Muite said President Kibaki will be violating the law if he removes Ms Mwatela. He insisted that the CBK governor and deputy governor enjoy security of tenure contrary to the Government’s assertions.

Law Society of Kenya vice-chairperson Aggrey Mwamu blamed the drafters of the CBK Act and parliamentarians for overlooking the provision on how the deputy governor should be removed from office.

Law was silent

Mr Mwamu said that, unlike the governor whose removal must be referred to a tribunal, the law was silent on how the deputy can be removed or transferred.

But the Parliamentary Accounts Committee chairman Bonny Khalwale differed with the LSK vice-chairman saying “whatever the law captures on the governor also applies to his deputy.”

Dr Khalwale said that in the event Mrs Mwatela is removed from the post, the PAC will challenge the Government’s decision once Parliament resumes next month.

Members of the PAC will make a major announcement on the Mwatela saga at a news conference to be held today at Parliament buildings.