==================
IN THIS REPORT
==================
#GRAND CORRUPTION
WITHIN THE RULING CLASS
#ECONOMIC AND
POLITICAL CRISIS
#WORKERS’
STRUGGLE
#WHAT IS THE
ALTERNATIVE?
#CONCLUSION
“The neo-liberals
and other opportunists are still holding ground in
BRIEF REPORT FROM
INTRODUCTION
At first, media reports about
The national mood is conspicuously dominated by a yearning for a new political force to inject fresh life into the struggle against mass poverty, unemployment, privatizations, dependency on imperialist hand outs, corruption, deteriorating standards of living, wanton deprivation and super exploitation of millions of poor Kenyans by the rich.
Narc has lost the good will of Kenyans because of three major reasons - failure to honour key election promises, return of grand corruption within the capitalist ruling class and endless internal power struggles between the Liberal Democratic Party (LDP) and National Alliance Party of Kenya (NAK) which form the core of the Coalition. In fact, the Coalition only exists on paper with President Kibaki ruling by crisis. The gap between LDP and NAK is now officially classified by Kibaki’s top advisors as “irreconcilable” and this situation has forced President Kibaki to opt for desperate measures to prevent his fragile regime from falling into pieces.
Following the LDP rebellion occasioned by the failure of Kibaki to honour a pre-election Memorandum of Understanding (MoU), the President surprised Kenyans who voted for Narc when, in an impromptu Cabinet reshuffle, he recruited opposition politicians into the Cabinet to prevent the government from losing crucial votes in Parliament. In the process, MPs and other functionaries allied to LDP who were not dancing to Kibaki’s tunes were summarily demoted or sacked from their top jobs to pave the way for loyalists in a new “government of National Unity”. To underline the NAK-LDP fall-out, Raila Odinga, the de facto leader of LDP believed to be the architect of the party’s rebellion against the government, had his wings clipped by Kibaki who chopped off the “Housing” portfolio in his Ministry of Roads, Housing and Public Works.
As Kibaki moved to re-organize the government in the face of uncertainty created by growing LDP recalcitrance, corrupt politicians from the defeated KANU party under which former dictator Moi plundered the country’s resources for more than two decades, suddenly found their way back into the Cabinet. This development hammered the last nails into the coffin of Narc unity and pushed the LDP into assuming the role of opposition in the country. In a kind of Déjà vu, Kibaki used the same tactic of “reshuffle” Moi used endlessly to cling on to power in times of unmitigated crisis.
ANGLO-LEASING AND GRAND CORRUPTION WITHIN THE RULING CLASS
Although several corruption scandals have been recorded since Narc took power, the first major case of grand corruption in the new government began with the Anglo-Leasing scandal in which the government could have lost Ksh 7.6 billion in a shady deal involving the printing of new Kenyan Passports at a tune of Ksh 2.7 billion and the purchase of security equipment for the Criminal Investigation Department at over Ksh 4 billion. Those accused of involvement in the scandal were non other than Mr. David Mwiraria, the Finance Minister, Dr. Chris Murungaru, Minister of Internal Security in the Office of the President and Mr. Moody Awori, the country’s Vice President. Apart from the huge amount of money that was involved, the scandal was interesting because Anglo-Leasing company (which was at the centre of the scandal) does not exist in real life.
The
scope of the scandal attracted the attention of at least four imperialist
powers -
As
one corruption scandal after another exploded in the media, imperialist powers
found it difficult sustaining their credibility in the eyes of the Kenyan
public which became unable to understand the basis of Western support of a
rotten ruling class whose short control of power has been characterized by
corruption at a level described by commentators as “worse than KANU”. While
Clay’s anti-government broadside calmed public anxiety about imperialist
position in relation to the emerging corruption within the Kibaki government,
conditions that were given by
Despite
the corruption and Kibaki’s inability to meet imperialist conditions in
exchange for aid, imperialism is unlikely to suffocate the Kibaki regime
dangerously because of the risk of destabilization, a situation that may
threaten imperialist’s interests in a country which is the epicenter of
British/American political and economic operations in East and
There
is no obvious candidate in
Apart
from having taken over
The uncontrollable urge by MPs especially those allied to Narc to grab public wealth is driven by the fear that they may not make it to Parliament after the next elections scheduled for the year 2007 because corruption, the wrangling in Narc and failure by the ruling Coalition to honour election promises have combined to convince millions of Kenyans that former dictator Moi was actually succeeded by more lethal political gangsters who have converted politics into a lucrative business. Unlike thieves from KANU who had been emptying public coffers for 24 years under Moi and who had become millionaires before the December 2002 elections, the new breed of Narc MPs are relatively new in the business of looting and plundering of public resources. Apart from those who were recycled from KANU like former Vice president Professor George Saitoti and company, majority of MPs entered Parliament empty-handed because for decades, they have been jostling in the opposition trying to lay their hands on the “fruits of independence”.
A good number of these leaders managed to purchase their first luxurious cars and expansive residential houses only last year which also marked their debut when it comes to real theft of tax payer’s money. Further, Narc may not evolve the kind of authoritarianism that can enable it to entrench itself in power indefinitely to be assured of a long term looting holiday. Consequently, Narc MPs are on a shaky economic ground and their only security is what they can grab now thus the crudity with which they are using Parliament to award themselves millions of Shillings in salaries and allowances as the helpless tax payers shake their heads in utter disbelief. Kenyan voters are learning the hard way – that the capitalist politicians are the same regardless of whether they are in power or in the opposition challenging their colleagues in government.
Goldenberg
Just before the Anglo-leasing scam assumed prominence within the public domain, a sensation that had and continues to feed the capitalist media is the Goldenberg Inquiry set up to establish how Kenya lost more than Ksh 68 billion in fake gold export compensation schemes during the Moi dictatorship. The excitement of Kenyans when the Inquiry began was not in the act itself but in fresh hopes that crooks who stole money during the Moi dictatorship would finally suffer the indignity of public exposure with possibilities of jail sentences if found guilty.
This expectation evaporated soon after every prominent personality whose name emerged at the inquiry escaped by simply sending a lawyer “to hold brief” at the Inquiry. Mr. Kamlesh Pattni, the chief architect of the Goldenberg scandal, is under custody but top names he has linked to the theft of public funds are comfortable in multi-million bungalows built with tax payer’s money. From public comments on the ground to views gathered during private contacts, the failure of the government to act on the big names has led to a sharp decline in public confidence in the Inquiry which is now viewed as just another money guzzling Commission similar to bogus ones former Dictator Moi used to set up as smoke-screens to hide scandal in times of crisis.
The Inquiry is imbibing Ksh 40 million every day and after running for more than 100 days, major culprits are still dishing out press releases while there is no estimation when the Inquiry is likely to come to an end. During the proceedings, a lawyer representing a client was caught off the mark when Pattni informed him that he (the lawyer) received Ksh 100,000 as campaign money during the 1992 elections when the lawyer was contesting a Parliamentary seat during the Moi dictatorship. Gibson Kamau Kuria, one of the top lawyers leading proceedings at the Commission is himself enmeshed in a corruption scandal in which he has been accused of collaborating with Pattni on the line of evidence. The point is that the Commission is itself rout with dirty revelations that calls for yet another inquiry!
The big names which have emerged at the Commission and which were expected to land in custody at the end of the day include former President Daniel arap Moi named by Pattni as having received Ksh 100 million, sitting MP Joseph Kamotho (Ksh 920,000), MP Kuria Kanyingi (Ksh 9 million), Education Minister Professor George Saitoti (Ksh 1.8 million), Moi’s son, Gideon Moi (Ksh 3 million), former Vice president Moses Mudavadi (Ksh 2 million) and others who are among 1,000 people Pattni claims were beneficiaries to the looting of State cash. The names came up along with revelations that Pattni bank rolled KANU’s 1992 election campaigns at a staggering cost of Ksh 4.4 billion. Now, Kenyans have just learnt that Ksh 10 billion that were siphoned into Pattni’s back account cannot be traced.
The
excruciating details spilled by Pattni at the Commission has only added public
anger as to why the government is not taking action against crooks named in
what was dubbed “Kenya’s corruption scandal of the century”. In one instance which may have caused many
Kenyans grave indigestion, former Dictator Moi is said to have ordered the
transfer of over Ksh 5 billion from the Central Bank of
Instead
of taking the suspects into custody, they have been left to continue operating
and to confuse the public with opportunist politics. Moi is denying every
allegation through the media while Professor Saitoti, whose name was linked to
the scandal even before Narc took power, was further shielded from testifying
in a Ksh 112 million court case involving the importation of 500
Purchasing MPs votes in Parliament
There
is no limit to corruption in Narc which has spread to Parliament where MPs vote
according to the amount of cash they are paid. According to an MP I spoke to,
the price ranges between Ksh 300,000 to Ksh 1 million depending on the nature
of what needs to be passed by Parliament. The purchase of MPs votes began after
the fall out between LDP and NAK, a situation which meant that the government
could lose crucial votes which were key to the success of ruling class strategy
of looting state resources and courting of funds from friendly imperialist
powers controlling
Without LDP votes, the Kibaki inspired NAK has to get votes from other sources to survive. The most celebrated case of vote buying was when the government needed to appoint Justice Aaron Ringeria as the Boss of the Kenya Anti Corruption Commission (KACC). The government invited MPs from both sides of the House to “a dinner” at the Vice President’s residence where they were allegedly bribed before they all voted for Ringeria. The government needs Ringeria because they believe he is the correct person to shield the ruling class whenever a corruption scandal threatens to surface. Calls by LDP that the Ringera appointment be investigated because money changed hands before MPs voted for him in Parliament have not been acted upon.
Tenders and contracts
A leading area where corruption is rampant is the awarding of government tenders and contracts. Two recent cases involves a Ksh 700 million tender for Kenya Ferry services which had to be stopped when companies whose tenders had been rejected raised the alarm about corrupt activities around the awarding of the tender. The scandal came as it emerged that another tender worth Ksh 42 million was awarded to Insurance broker - Arkchoice - for non motor insurance business even though the company failed to provide a Ksh 5 million guarantee deposited in a “reputable bank” as stipulated in the tender rules, prompting losers to raise the alarm after suspicion mounted that money changed hands under the table. In both cases, no one has been brought to book. Another case which could be mentioned is that of the Ksh 80 million contracts awarded by Ministry of water for the construction of elevated water tanks in Mandera, Hola and Kwale districts and which was queried by contractors after the lowest bidders were rejected. These are scandals that emerged this year between July and August alone.
Since Narc took power, Ksh 4 billion has been lost by the government through the supply of counterfeit products and substandard merchandise which mysteriously pass the notice of the Kenya Bureau of Standards. In a bizarre case, Gesto Pharmaceutical Ltd supplied fake tablets laced with chalk worth Ksh 160 million through the Dannish Embassy. The drugs had been paid for through a German aid agency. After the sale, the drugs were distributed to health centers across the country and had to be recalled when the scam was blown up in the media. It was not immediately clear as to how many patients had consumed chalk across the country’s health centers! When one talks about grand corruption, what it means is that even old bank notes that are supposed to be burnt find their way back into circulation as evidenced by a case in which notes amounting to Ksh 10 million failed to find their way to the furnace because some top employees at the Central Bank of Kenya thought that they could still purchase something.
The level of corruption in Narc is now being described by the media as worse than corruption during the Moi dictatorship which is estimated to have looted Ksh 500 billion between 1990 and 2000. The quick spiral of corruption in the government confirms Marxist analysis that it is not possible to end corruption within the frame work of capitalism because corruption is part of the system. As the public quietly absorbs the corrupt nature of the new Narc ruling class, these looters have openly adopted a culture of displaying their loot through the purchase of multi-million cars, construction or purchase of multi-million residential houses, distribution of largesse to the deprived and other lavish public displays.
The
extent of the looting has shattered the myth that leaders within the current
political life will change
ECONOMIC AND POLITICAL CRISIS
Narc’s
budget deficit has now reached Ksh 80 billion, up from Ksh 50 billion when the
Coalition took power in January last year. Out of an annual budget of Ksh 334
billion, the government will spend Ksh 114.7 billion (34% of the total annual
budget) on debt servicing during the 2003/2004 financial year. The pay hike
that was awarded to civil servants for propaganda reasons is expected to cost
the government an initial Ksh 50 billion, money which, the government says,
will have to be raised from imperialist countries with interest in
The
problem the government faces is that so far, money expected from the European
Union which promised funds if certain impossible conditions are met totals only
Ksh 7.8 billion in “development funding”. Hopes that the World Bank-linked
International Development Association would release Ksh 18.7 billion faded
after the IMF, which works in tandem with the World Bank, blocked the release
of funds to
After the introduction of free primary education which has largely been running through hand outs from imperialism, the Ministry of education estimates that its recurrent expenditures will shoot to Ksh 78 billion as compared to the current Ksh 2.7 billion. Nobody in the government knows how the education budget will be funded. The situation is compounded by a vague declaration of free health care services by the Ministry of Health, a project the health Minister said, is expected to cost Ksh 40 billion annually. Because the government is broke, a conspiracy was quickly hatched between the Ministry of Health and the National Hospital Insurance Fund (NHIF) to fleece workers out of their money by introducing a fraudulent tax under the guise of “health insurance” to finance the government’s free health plan.
The move backfired when workers rejected the ploy by threatening to go on strike if their starvation wages were touched, arguing that the ruling class was so corrupt that there was no guarantee that the proposed tax deductions would not end up in the pockets of known conmen running the Kibaki government. Out of the estimated Ksh 40 billion, the government expected to raise Ksh 7 billion by slashing salaries of both teachers and civil servants with the rest of the cash being raised by cutting salaries of workers in other sectors. The strongest signal came from the Dock Workers Union which warned the Kenya Ports Authority that their 5,000 members would cripple KPA’s operations if their salaries were deducted to align the pockets of the rich. When the government learnt that workers in key sectors across the country were talking the language of strikes, the health Minister was advised by her boss to back down and the plan was immediately shelved in a rare victory for working class unity. In the meantime, uncertainty looms about the new free health plan announced by the government.
Extravagance of the ruling class
The corruption
scandals have been playing themselves against a backdrop of famine which has
threatened 3 million Kenyans with starvation. Although money is being stolen
from the State, President Kibaki appealed to foreigners to help
The extravagance of the ruling class in the face of starvation of millions of Kenyans (thousands have starved to death) further came to light when it was revealed in Parliament that since Narc took power, trips by MPs abroad had cost the country Ksh 90 million. It is routine for MPs to travel abroad with a large entourage under the guise of different departments taking contacts with their counterparts abroad. Both State House and the Office of the Vice President have an allocation of Ksh 100 million and 20 million respectively for overseas trips.
During these lavish trips, money is normally looted through hefty “traveling allowances” advanced to every member of the delegation at different rates depending on job groups. MPs mainly travel abroad to beg for imperialist handouts, negotiate contracts (which have been the source of corruption scandals) or to discuss the sale of State enterprises through privatizations. It is routine for government Ministers to use Helicopters regularly to travel across the country “to meet the people” at Ksh 10,000 or more per hour with the Vice President being the most notorious user of hired helicopters at the expense of the tax payer.
WORKERS’ STRUGGLE
Kenyans
whose money is being looted by the ruling class and who are also funding their
extravagance are the six million workers and other tax payers. Frustrated by
the wanton plunder of public resources and the millions of shillings MPs are
raking through fraudulent perks, strike actions by workers to demand higher
wages and strike threats have become a common way through which workers rent
their frustrations in
Between
July and mid August when I was in
In cases where workers have been sacked as a result of strike action, the government has been reluctant in intervening to help reinstate them. Instead, the government is in the process of retrenching 21,000 civil servants after orders from the World Bank and IMF that the regime scale down its recurrent wage bill as a condition for aid. There are no active discussions as to what will happen to these workers and their families once they are retrenched. Despite the big price workers have had to pay for their strike actions, they have not been deterred. In the latest case, 18,000 head teachers have demanded an increment of their responsibility allowance and threatened to take action if they are not listened to. Bankers have also given a strike notice demanding a pay hike that had already been passed by the industrial court but which the bosses are still sitting on.
Nightmare scenario
The
nightmare scenario for the government came when the Kenya Civil Servants Union
(KCSU) issued a 21 day strike notice that its 120,000 members who run the bulk
of government services would down their tools if they were not awarded a 600%
pay rise. Technically, what this meant was that after the expiry of the notice,
the government of President Kibaki would stop functioning if the worker’s
conditions were not met. The demand was
inspired by the millions of cash MPs had awarded themselves through Parliament
and the colossal salary increments that fat cats within the Civil service had
scooped in a new pay deal after the cats collaborated with their good friends
who appointed them in top positions in the government. To cool down tempers,
the government hurried a 38% pay rise for 35,000 workers living below the
poverty level (earning Ksh 3,310-4,280). However, this did not sooth the
For
example, five Permanent secretaries who had been earning between Ksh 388,790 –
Ksh 762,110 (117-230 times the wage of a lowly paid worker) got a wage hike
that brought their new salaries to between Ksh 430,215 - 844,640. This range
amounted to a 148% pay hike. After the KCSU rejected crumbs from the
government, new talks were opened between the
In certain instances, the Union bureaucracy has threatened strike actions to get an opportunity of mingling with the ruling class “to discuss the crisis” as their pockets are filled with cash. When the Civil Servants Union called off the strike, sections of civil servants vowed to continue with it. But faced with the sacking threat from the government, a change of position by the Union (without consultation with workers) and lack of political support from the opportunist and ethnic based parties, the worker’s effort to bring the government down failed and the workers went back to work.
The
fundamental problem facing workers struggle in
WHAT IS THE ALTERNATIVE?
Millions
of Kenyans and exploited workers who
have lost faith in Narc’s ability to transform their lives do not have hopes in
KANU, the official opposition party that looted the country’s resources for 24
years before Narc took over. Despite the political and deep economic crisis
facing
According to a KSDA study of the situation on the ground for one and a half months, registration of a Socialist revolutionary Party could still meet with some resistance from the ruling class even though the country is officially under a multi-party democracy. This is because a decree issued by Moi in the 90s banning the registration of “ideological or religious parties” and parties that do not advocate for “Parliamentary democracy” has not been lifted. Likewise, the banning by Moi of Socialist books and literature has also not been lifted 20 months after Narc took power. In fact, Moi’s decree has been used by the Narc government to block the registration of Chama cha Mwananchi which the Assistant registrar of Societies has claimed, “has a Marxist leaning”. Chama cha Mwananchi is looking for funds to take their case to court. Moi’s decrees are serving Narc well by making it difficult for Kenyan Leftists to organize politically and expose the bankruptcy of opportunist Parties running the show at the moment.
For
the Narc ruling class, a Socialist Party armed with a revolutionary theory and Program
for revolutionary change in
Putting the gigantic preparations that will be needed into consideration, the major task of KSDA and other revolutionary forces on the Left should be to begin the process of registration of a Socialist Party or organization that can link up with other democratic forces on the ground struggling to broaden the base of struggle.
Despite
their ability to challenge the authority of the ruling class and to mobilize
the masses to protest against “single issues” such as a new Constitution or
respect for human rights, the civil society will never lead or provide guidance
to the Socialist revolution that is the ultimate anti-dot to the capitalist
crisis in
Lesions for the Kenyan Left
Our
observation is that today, what is possible immediately is the setting up of a
Socialist publication (in whatever form) which can be used to give a different
perspective of politics in preparation for the launching of a revolutionary
Movement or party. With superior Socialist analysis of the situation in
The
Kenyan Left has made the biggest contribution in the liberation struggle in our
country and any new initiatives should be seen as a continuation of the
anti-capitalist struggle. Comrades have been killed in struggle, others
currently in the government have been assimilated into the
capitalist/imperialist ideological frame work while others are idling in the
opposition. Massive expectation that comrades who made it to Parliament could
help in rejuvenating the Left are fading as one comrade after another support
neo-liberal politics or agree with the capitalist ruling class. Those in the
opposition are giving all sorts of excuses for not doing anything to profile
Socialism or to move towards the building of a socialist Movement or Party. The
masses are asking: “Why were people detained or persecuted ?” Majority of former detainees, political prisoners
and exiles with Leftist thinking who returned to
The big lesson Kenyan Socialists outside Parliament are learning is the “crisis of expectation” that a Socialist who goes to Parliament without allegiance to a Socialist revolutionary Program could still fight for Socialism once elected. We are witnessing an ever ending line up of turn coats who are frustrating the anti-capitalist struggle after getting to Parliament using radical histories based on political persecution, detention and exile. Instead of advancing the ideological struggle, indications on the ground is that former Comrades will be jumping from one capitalist party after another as they strategize to get back to Parliament on populist platforms. For this reason, KSDA believes that the way forward is to stop pinning hopes on individuals but to set up a Socialist structure which draws it’s strength from an organized membership committed to the anti-capitalist struggle.
CONCLUSION
At
the moment, Capitalism is not facing any challenge in
In
the run up to the next elections, we predict that new opportunist parties and
Alliances will emerge to be used by individuals as vehicles for the acquisition
of political power, privilege and prestige. However, our position is that it is
time to test the waters with a Socialist/revolutionary outfit even if it means
opening a new struggle for the registration of such an outfit. To address the
issue, KSDA will consult with interested Kenyans at home and abroad to discuss
the organization of an International conference in
The
neo-liberals and other opportunists are still holding ground in
Okoth Osewe
Secretary
Published by
email: harakatips@hotmail.com