As Kenya turns: watch as the Chris Murungaru Anglo Leasing suit against John Githongo heads toward Supreme Court—“feeding the pig of corruption”

Kenya has had that one widely accepted successful presidential election out of six in the multiparty era following the end of the Cold War. The 2002 “Kibaki Tosha” “National Alliance Rainbow Coalition” election has remained the taproot of mythology about Kenyan democracy in the United States to this day, nearly seventeen years later.

The 2002 succession of Moi, with the young Uhuru Kenyatta left to wait his turn, serving as Leader of the Opposition, then Deputy Prime Minister during Kibaki’s two administrations, was supposed to have ushered in an actual spirit of multiparty competition and higher-minded, cleaner governance that was missing as long as Moi was still in State House himself even though he had grudgingly agreed to change the law for the 1992 election to allow non-KANU parties.

The pick up and continuation of the Anglo Leasing national security looting scheme in spite of the turnover from Moi to Kibaki contradicted the myth and was egregious enough to risk the support of State Department diplomats for Kibaki’s re-election. When I arrived in Kenya in mid-2007 I inherited democracy assistance programs that reflected U.S. disappointment in the Kibaki Administration’s corruption as reflected in the Anglo Leasing scandal, which had been sharply and publicly criticized by the previous U.S. Ambassador and British High Commissioner. But the programs had been established back under the previous Ambassador more than a year-and-a-half earlier.

By the eve of the 2007 election the worm had turned:

This is from my Freedom of Information Act Series on on the 2007 election:

Getting back to the narrative, I also remember Tuesday, December 18, 2007, the date that Ranneberger wrote the second of the cables that I received recently through a 2009 FOIA request.

That morning’s Standard featured a big, full page exclusive interview with Ambassador Ranneberger, nine days before the election.  For me this article was something of a benchmark in terms of my instructions to take “no more b.s.” from the Ambassador.  There are several reasons I found the article troubling, part related directly to the independence of  our IRI election observation mission, and part related to the Kenyan campaign itself,  in particular the corruption issue.  On corruption:

[From“Envoy Predicts Free and Fair Election”, The Standard,December 18, 2007–an interview with U.S. Ambassador Michael Ranneberger nine days before the Kenyan election]

Q: What are your views on corruption?

A:Lots of people look at Kenya and say lots of big cases have not been resolved because of Anglo Leasing and Goldenberg. I always point out that we have lots of corruption even in the US. These cases take a lot of time to bring to justice. We had the famous Enron case. It took over four years to resolve in a system that works efficiently, yet only a couple of people were convicted. These things take a long time.

There has been substantial effort to fight corruption in Kenya and the award the country won for Civil Service reform [from the World Bank] is a pointer to that effect. The fact that the Civil Service is more professional than ever before is progress as are the new procurement laws recently put in place and the freedom of the Press to investigate and expose corruption. More, of course, needs to be done.

The economy has grown by 7 per cent. How much of that has actually trickled down to the people will again be determined by time.

A career diplomat, Ranneberger has been in Kenya for close to one-and-a-half years, and has served in Europe, Latin America and Africa.

During previous days The Standard had been running new revelations about corruption in the Kibaki administration from documents from exiled former Permanent Secretary for Ethics and Governance  John Githongo. Rumor had it that Githongo wanted to be able to return to Kenya and might want to be able to return to government after the election, although I had no knowledge one way or the other about whether that was true. Githongo’s personal adventure trying to address corruption in the Kibaki administration is the subject of Michela Wrong’s It’s Our Turn to Eat. Wrong rightly noted in her book that stealing the election was the ultimate corruption.

Githongo had previously alleged that the Anglo Leasing scandal that Ranneberger referred to was intended to fund the campaign to re-elect Kibaki. See this from BBC News, January 26, 2006, “Kenya ‘safe’ for anti-graft czar”:

On Wednesday, the World Bank urged Kenya’s president to take tough action against any cabinet ministers found to be corrupt.

The warning came as the World Bank approved a new $25m loan to help fight corruption – a decision slammed by former UK Kenya envoy Sir Edward Clay.

Sir Edward, who has condemned Kenya for not tackling graft, said the new loan would feed the “pig of corruption”.

‘Insensitive’

”The Anglo-Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the code of conduct signed by the new cabinet weeks ago,” said World Bank Kenya director Colin Bruce.

“I believe that this is an historic moment for the government to signal where it stands on the issue of political accountability,” he said.

President Kibaki is under increasing pressure over corruptionPresident Kibaki was elected in 2002 on a pledge to fight corruption.

Some donors, including the UK, have suspended some aid to Kenya over concerns about corruption and Sir Edward, who retired last year, thought the World Bank should have sent out a tough message.“How can the World Bank be so insensitive and hapless to announce new loans to Kenya?” reports the Guardian newspaper.

“They have added insult to injury by feeding the pig of corruption in Kenya when many Kenyans were beginning to hope they might smell the bacon beginning to fry.”

Over the weekend, Mr Githongo’s leaked report said his attempts to investigate the Anglo-Leasing scandal were blocked by four top ministers – Vice-President Moody Awori, Energy Minister Kiraitu Murungi, Finance Minister David Mwiraria and sacked Transport Minister Chris Murungaru.

Mr Murungi and Mr Awori have publicly denied the claims.

Mr Murungi said the report was “untrue” and an attempt to bring down the government.

Mr Githongo resigned last year amid reports that his life had been threatened.

The money raised by the alleged scam was to be used to fund the ruling Narc coalition’s campaign in elections due next year, Mr Githongo said.

Following the leaking of the 31-page report, the opposition has urged President Kibaki to dissolve cabinet.

Opposition Orange Democratic Movement leader Uhuru Kenyatta said: “This is clear evidence that the government can no longer be trusted to conduct detailed and honest investigations into this saga.”

Other diplomats were maintaining effective “radio silence” in the sensitive closing days of the 2007 campaign, while Ranneberger was speaking out to defend the Kibaki administration’s corruption record. In the meantime, after my December 15 experience at the Embassy residence I was quietly preparing the new last-minute pre-election Langata survey, along with all the other work for the exit poll and Election Observation Mission.

After reading the Standard article, I e-mailed my local USAID officer on the Election Observation and Exit Poll to complain, noting my opinion about the article and where things seemed to be going in regard to my obligation to supervise an objective and independent Observation Mission and the Ambassador’s alternative approach.

Part One;   Part Two;    Part Three;    Part Four;    Part Six;    Part Seven;   Part Eight Part Nine Part Ten

So by December 2007, we had the U.S. Ambassador having pivoted to the role of offering apologetics for Anglo Leasing in the context of Kibaki’s re-election.

At some point after the election debacle I was asked to submit to my Washington office names for IRI to send to an international women’s leadership event and we passed along a current MP and Njoki N’dungu who had an NGO and who had been a member of the Ninth Parliament from 2002-2007. Shortly afterward I was informed by a diplomatic source that N’dungu was “closely connected” to Chris Murungaru of the Anglo Leasing matter. Reporting to Washington it was agreed that the invitation would not have been made had we realized this problem in time.

Today, Uhuru Kenyatta is in his sixth year as president and has in effect adopted Anglo Leasing by paying out more millions on the bogus procurements over the years while notional prosecutions languish. Githongo continues to be subject to nasty tribalist attacks from jingoists for revealing admitted truths that were embarrassing to purported tribal leaders, including from one pundit who may have received some Western support in 2013 while pushing his tribal election theories to demonstrate that the opposition could not compete with UhuRuto.

Today, corruption is worse–no surprise there– but the World Bank is stepping in again, with $75M. The local World Bank Director Colin Bruce was right back when the Anglo Leasing scandal broke that it was “an historic moment for the government to signal where it stands on the issue of political accountability”. The Government of Kenya was quite clear and remains so–it is Kenya’s donors that have twisted and contorted to avoid hearing.

Today, Githongo has a new personal judgment against him for defamation for the leaked publication of his work as Permanent Secretary in trying to “stop these thieves” and protect the Kenyan government and public from looting and insecurity. He is appealing and Kenyans are raising funds to support the appeal.

Today, N’dungu is Justice on the Supreme Court. (She will need to recuse herself from any involvement in the Murungaru versus Githongo matter.)

I have to shake my head in remembering the window back about a decade ago when the U.S. and other Western donors were vocally backing what we called “the reform agenda” and USAID even got involved in supporting the National Council of Churches of Kenya in using the Michela Wrong book, It’s Our Turn to Eat, to teach against corruption.

Now we have a new Ambassador, the fourth since Anglo Leasing broke to the public. As I have written I have a sense that he wants to help change the dynamic on corruption in Kenya. He can make progress if he makes the sacrifices necessary but he does have to realize it will be much harder than it would have been back in 2007 or at so many other turning points in the past and that pushback will come from places other than Kenya.

Update: be sure to read Rasna Warah’s “In Whose Interest? Reflecting on the High Court Ruling Against John Githongo” in The Elephant’s East African Review.

Kenya’s persistent national security corruption continues to burden Somali endeavors

In the wake of the incomprehensible looting at Westgate, Ben Rawlence, Open Society fellow and former Human Rights Watch researcher has published a candid look at the context in “Kenya’s Somali Contradiction” at Project Syndicate:

. . . if the Kenyan government’s aim was, as it claimed, to destroy al-Shabaab, the intervention has been a spectacular failure . . . In fact, retaliation against the militant group was little more than a convenient excuse to launch the so-called Jubaland Initiative, a plan to protect Kenya’s security and economic interests by carving out a semi-autonomous client state . . .

. . . the United Nations monitoring group on Somalia and Eritrea reported in July that Kenya’s Defense Forces have actually gone into business with al-Shabaab.  .  .  . [T]he Kenyan state’s endemic corruption constantly undermines its policymakers’ goals.  Indeed in Kismayu, Kenya’s officials have reverted to their default occupation — the pursuit of private profit. . . .

Read the full piece.

if the Kenyan government’s aim was, as it claimed, to destroy al-Shabaab, the intervention has been a spectacular failure. But there is much more to the story. In fact, retaliation against the militant group was little more than a convenient excuse to launch the so-called Jubaland Initiative
Read more at http://www.project-syndicate.org/commentary/kenya-s-contradictory-strategy-in-somalia-by-ben-rawlence#rC0Jau4qyOYbHqeO.99

Going back to my time in Kenya during the 2007 presidential campaign, it is well to remember that the multimillion dollar Anglo Leasing scandal that was subject to John Githongo’s whistleblowing involved corrupt contracts that were to have provided for the purchase of passport security technology, a forensic lab, security vehicles and a Navy vessel, among more than a dozen national security procurements.

Ultimately the exposure of the scandal proved to be a huge missed opportunity for the U.S. and the international community as a whole to address a pervasively corrupt security apparatus that we have continued to help underwrite.  While everyone was grateful for Githongo’s courage, we didn’t match it with courage of our own to take risks for reform and we ended up letting the Kenyan people rather than the Kibaki administration bear the burden.  See my post “Part Five–Lessons from the Kenyan 2007 election and new FOIA cables”.

Unfortunately corruption does not fix itself.

Uganda Debt Network

Leaders

Furthermore, contrary to claims that securing Kismayo put al-Shabaab at a disadvantage, the United Nations Monitoring Group on Somalia and Eritrea reported in July that the Kenyan Defense Forces have actually gone into business with al-Shabaab. The group’s profits from illicit charcoal (and possibly ivory) exported from Kismayo have grown since Kenya took control.

CommentsView/Create comment on this paragraphThis highlights a fundamental problem: the Kenyan state’s endemic corruption constantly undermines its policymakers’ goals. Indeed, in Kismayo, Kenyan officials have reverted to their default occupation – the pursuit of private profit. Instead of working to achieve the diplomatic objective of defeating al-Shabaab, Kenya’s military, politicians, and well-connected businessmen have been lining their own pockets.

Read more at http://www.project-syndicate.org/commentary/kenya-s-contradictory-strategy-in-somalia-by-ben-rawlence#rC0Jau4qyOYbHqeO.99

if the Kenyan government’s aim was, as it claimed, to destroy al-Shabaab, the intervention has been a spectacular failure. But there is much more to the story. In fact, retaliation against the militant group was little more than a convenient excuse to launch the so-called Jubaland Initiative,
Read more at http://www.project-syndicate.org/commentary/kenya-s-contradictory-strategy-in-somalia-by-ben-rawlence#rC0Jau4qyOYbHqeO.99

Is Washington, DC a logical place from which to fight global poverty? (Updated)

I thank those of you who have been reading some of my older posts while I have been primarily away from the blog the past few weeks.

Let me take time now to throw out a couple of “macro” observations as an observer of “development” practice in recent years and a life long observer and frequent past participant in American politics.  The first is just how strange it is from one perspective that organizations like USAID and especially the Millennium Challenge Corporation are located “inside the beltway” in Washington, DC.

Don’t get me wrong, Washington certainly has its share of poverty, but in general the Washington inhabited by agencies like USAID, the MCC and the World Bank operates in the thrall of the micro-economy generated by the brokering of the American federal government’s expenditures on the order of $4 Trillion annually.  It is a sui generis antiseptic boomtown quite disconnected from the economy of the rest of the cities and towns even of the United States, much less the rest of the world. Especially that of those facing the extreme poverty that the Millennium Development Goals were intended to overcome.

It just seems to me that we might, say, move one of our agencies like the MCC to West Virginia, for instance.

West Virginia is one of our poorer states, and one where we have this terrible problem of conflict between the need for jobs and the immediate and long term environmental harm done by strip mining and “mountain top removal” for coal.  West Virginia has an economy rooted in natural resources and agriculture, like most of the world, and unlike the District of Columbia–but it is close by, just a short drive.  Long serving Senator Robert Byrd was for many years famous especially for bringing federal agencies outside Washington to his state of West Virginia.  While this was widely derided as “pork barrel politics” by people from other states, those federal agency jobs go somewhere.  Putting a poverty fighting agency there might directly fight poverty as well as help us learn more about how to be most helpful elsewhere.

Update: On the topic of US aid transparency, here is great piece from Jennifer Lentner (@intldogooder) on Oxfam America’s “The Politics of Poverty” Blog: “More U.S. international aid data released–now what? A user’s perspective”.  Jennifer interviews Hon. Albert Kan-Dapaah a former minister in the Ghanaian government and former chair of the Parliamentary Public Accounts Committee.  He finds the current data important but “pretty scanty” toward meeting the needs of public officials and of civil society watchdogs.

New bi-partisan legislation—the Foreign Aid Transparency Act of 2013—would open the books on US foreign aid. More transparency will enable people like Hon. Albert Kan-Dapaah to hold their governments accountable for how they invest US resources. Learn more and contact your representatives here.

And stay tuned to Politics of Poverty to get more user perspectives on aid transparency data!

Part Five–Lessons from the Kenyan 2007 elections and the new FOIA cables

Getting back to the narrative, I also remember Tuesday, December 18, 2007, the date that Ranneberger wrote the second of the cables that I received recently through a 2009 FOIA request.

That morning’s Standard featured a big, full page exclusive interview with Ambassador Ranneberger, nine days before the election.  For me this article was something of a benchmark in terms of my “no more b.s.” from the Ambassador instructions.  There are several reasons I found the article troubling, part related directly to the independence of  our IRI election observation mission, and part related to the Kenyan campaign itself,  in particular the corruption issue.  On corruption:

[From “Envoy Predicts Free and Fair Election”, The Standard, December 18, 2007–an interview with U.S. Ambassador Michael Ranneberger nine days before the Kenyan election]

Q: What are your views on corruption?

A: Lots of people look at Kenya and say lots of big cases have not been resolved because of Anglo Leasing and Goldenberg. I always point out that we have lots of corruption even in the US. These cases take a lot of time to bring to justice. We had the famous Enron case. It took over four years to resolve in a system that works efficiently, yet only a couple of people were convicted. These things take a long time.

There has been substantial effort to fight corruption in Kenya and the award the country won for Civil Service reform [from the World Bank] is a pointer to that effect. The fact that the Civil Service is more professional than ever before is progress as are the new procurement laws recently put in place and the freedom of the Press to investigate and expose corruption. More, of course, needs to be done.

The economy has grown by 7 per cent. How much of that has actually trickled down to the people will again be determined by time.

A career diplomat, Ranneberger has been in Kenya for close to one-and-a-half years, and has served in Europe, Latin America and Africa.

This was a full page “exclusive” feature interview in The Standard nine days before the 2007 Kenyan election.

During previous days The Standard had been running new revelations about corruption in the Kibaki administration from documents from exiled former Permanent Secretary for Ethics and Governance  John Githongo. Rumor had it that Githongo wanted to be able to return to Kenya and might want to be able to return to government after the election, although I had no knowledge one way or the other about whether that was true. Githongo’s personal adventure trying to address corruption in the Kibaki administration is the subject of Michela Wrong’s It’s Our Turn to Eat. Wrong rightly noted in her book that stealing the election was the ultimate corruption.

Githongo had previously alleged that the Anglo Leasing scandal that Ranneberger referred to was intended to fund the campaign to re-elect Kibaki. See this from BBC News, January 26, 2006, “Kenya ‘safe’ for anti-graft czar”:

On Wednesday, the World Bank urged Kenya’s president to take tough action against any cabinet ministers found to be corrupt.

The warning came as the World Bank approved a new $25m loan to help fight corruption – a decision slammed by former UK Kenya envoy Sir Edward Clay.

Sir Edward, who has condemned Kenya for not tackling graft, said the new loan would feed the “pig of corruption”.

‘Insensitive’

“The Anglo-Leasing cases represent an excellent opportunity for the authorities to invoke the disciplinary provisions of the code of conduct signed by the new cabinet weeks ago,” said World Bank Kenya director Colin Bruce.

“I believe that this is an historic moment for the government to signal where it stands on the issue of political accountability,” he said.

Kenyan President Mwai Kibaki

President Kibaki is under increasing pressure over corruption

President Kibaki was elected in 2002 on a pledge to fight corruption.

Some donors, including the UK, have suspended some aid to Kenya over concerns about corruption and Sir Edward, who retired last year, thought the World Bank should have sent out a tough message.

“How can the World Bank be so insensitive and hapless to announce new loans to Kenya?” reports the Guardian newspaper.

“They have added insult to injury by feeding the pig of corruption in Kenya when many Kenyans were beginning to hope they might smell the bacon beginning to fry.”

Over the weekend, Mr Githongo’s leaked report said his attempts to investigate the Anglo-Leasing scandal were blocked by four top ministers – Vice-President Moody Awori, Energy Minister Kiraitu Murungi, Finance Minister David Mwiraria and sacked Transport Minister Chris Murungaru.

Mr Murungi and Mr Awori have publicly denied the claims.

Mr Murungi said the report was “untrue” and an attempt to bring down the government.

Mr Githongo resigned last year amid reports that his life had been threatened.

The money raised by the alleged scam was to be used to fund the ruling Narc coalition’s campaign in elections due next year, Mr Githongo said.

Following the leaking of the 31-page report, the opposition has urged President Kibaki to dissolve cabinet.

Opposition Orange Democratic Movement leader Uhuru Kenyatta said: “This is clear evidence that the government can no longer be trusted to conduct detailed and honest investigations into this saga.”

Other diplomats were maintaining effective “radio silence” in the sensitive closing days of the 2007 campaign, while Ranneberger was speaking out to defend the Kibaki administration’s corruption record. In the meantime, after my December 15 experience at the Embassy residence I was quietly preparing the new last-minute pre-election Langata survey, along with all the other work for the exit poll and Election Observation Mission.

After reading the Standard article, I e-mailed my local USAID officer on the Election Observation and Exit Poll to complain, noting my opinion about the article and where things seemed to be going in regard to my obligation to supervise an objective and independent Observation Mission and the Ambassador’s alternative approach.

Part One;   Part Two;    Part Three;    Part Four;    Part Six;    Part Seven;   Part EightPart NinePart Ten

Fuel Distribution Crisis Hits Kenya, and Other Economic News

“Kenya oil industry in chaos as fuel shortage bites”, reports the Daily Nation:

Motorists stood in long queues on Wednesday as one of the most severe and bizarre fuel shortages hit many parts of the country.

Many people ran out of fuel on the road while others were forced to leave their vehicles at home and take public transport. (IN PICTURES: Nairobi fuel crisis)

Petrol stations were forced to close after running out of fuel due to panic purchases.

The absence of petrol at the pump, particularly after the government confirmed that there was 19 million litres in storage tanks in Nairobi, is a commentary on the chaos in fuel distribution.

On Wednesday, the government passed the buck to the oil companies, accusing them of creating a shortage by refusing to order adequate stocks over the Labour Day holiday.

Today’s Star also reports that Prime Minister Odinga, speaking at Great Lakes University in Kisumu, said that the private sector is the only source for vital job growth:

He said the country must create a conducive environment for the private sector to thrive as a solution to the unemployment crisis. He said the private sector is the engine of economic growth thus the need for both local and foreign investors to increase investments that can create jobs for the youth.
Raila said the 750,000 graduates who join the labour market every year from schools, colleges and universities cannot find employment in the public service with about 50,000 job opportunities only every year.
He assured Kenyans that available positions in the public service will be distributed fairly among all the communities in the country in accordance with the constitution.
On education, the PM decried low levels of research in the country saying privave sector has refused to fund research unlike in other countries.
He said, the country needs to invest more on research work to provide more job opportunities.

The Star also reports additional international funding, from Germany, for geothermal power development:

THE 280 MW Olkaria geothermal power project by KenGen yesterday got a Sh7.4 billion boost from Germany’s Development Bank KFW to fund consultancy services and part of the steam field drilling works.

The money will fund extension of Olkaria one and Olkaria IV power station project targeted for completion by end of 2013. The overall cost of the project is Sh83 billion and is being co-funded by KenGen, World Bank, European Investment Bank, Japan International Corporation Agency and French Development Agency, AFD. “Development of renewable energy is excellent for development of Kenya and for the environment,” remarked KFW Director General for Middle East and Africa Doris Koehn during the loan agreement signing ceremony held yesterday at KenGen offices in Nairobi.

World Bank–current circumstance “calls for a new approach–Africa as an investment proposition . . .”

Apparently the World Bank has noticed the same shifting environment that private investors and the rest of us have and has released a draft of a revised Africa stategy this week at least in part to help position itself “in front of the parade”. Claire Provost has a good discussion at the Guardian‘s Poverty Matters blog: “What role does the World Bank have in Africa’s future?”

Recent Kenya Links

Government’s KBC: “Prime Minister Raila Odinga has directed internal security minister to order the arrest of police officers involved in the brutal murder of seven people in Kawangware last Thursday”, saying they must be arraigned in court by next Monday. Let’s see if it happens.

World Bank urges Kenya to focus on “quiet corruption”.

Sunday Nation story on Cold War CIA documents from the 1960s showing views of Oginga Odinga (Raila’s father) and Tom Mboya, Kenyatta’s circle and succession.

Recent macro level summary of the Kenyan power struggle from The Economist Intelligence Unit.

“Nairobi becomes East Africa’s tech heartbeat” from Njeri Wangair (KenyanPoet) on Global Voices.

Nick Wadhams on East African oil in Time.

First local Kenyan music download site using M-Pesa “mobile money”, PewaHewa.com–also takes credit cards.

Uganda: “Angry Donors Threaten Aid Cut”

From The Observer in Kampala: “Angry Donors Threaten Aid Cut”.

The World Bank Country Director, speaking “on behalf of the donors” funding 30 percent of Uganda’s budget, spoke to key government ministers at an event at which Museveni was expected to attend, after the media was asked to leave. While praising economic progress, she said that the donor group was upset by the failure to make serious progress against corruption to the point of evaluating punitive measures. She also noted the threat posed by high population growth, at 3.2% leading to propulation projections of 100 million by 2050.

Related story at The Standard from Nairobi and The Guardian.

In 2005 The New Vision reported on a confidential World Bank report coauthored by Dr. Joel Barkan, Senior African Governance Advisor.

The reports adds, “Since the Bank cannot weight in explicitly on Uganda’s political process, this is the only mechanism at its disposal [lowering aid levels] to signal its concern. Conversely, the continued provision of high levels of budget support, especially when such support can be diverted into classified budgets and used for political purposes, indirectly involves the Bank in the political process”.

“To continue budgetary support at present levels risks embarrassment to the Bank, especially after it has been warned, not only by this report, but in what is common knowledge and discourse among leading members of the diplomatic community in Kampala,” the report says.