Africa Image Live

LATEST:

Grab the widget  Tech Dreams

Wednesday, 5 August 2009

In Kenya, Corruption Expose Is Too Hot to Sell



When British journalist Michela Wrong published her book about the crushing effects of Kenyancorruption a few months back, she knew her material would be explosive.

After all, her story of the crusade of one man, John Githongo, to investigate and document corrupt practices by officials illustrated just how deep graft had wormed its way into Kenyan politics, becoming a standard practice of the country's elite and top cabinet ministers, and receiving the tacit approval of Kenya's supposed reformist president, Mwai Kibaki.

What Ms. Wrong didn't count on was fear. Even today, no bookstore in Kenya offers her book, "It's Our Turn to Eat" for sale. Many booksellers, noting past lawsuits for defamation, fretted over reprisals by politicians named in the book.

Yet the anger of ordinary Kenyans has overcome fear. Today, one can buy the book on street corners at giveaway prices. Radio talk-show hosts excerpt it on the air, and church ministers read from it in services, paired with biblical parables about the importance of standing up for principle. It's a grass-roots movement of people who know that corruption, in a poor country, can be as deadly as war.

"This is about free speech and good governance," says Wrong in a phone interview. She adds that she is "flattered" by the groundswell around her book, but has not organized it herself. "The idea is that once you've got 5,000 copies of the book out there, then the boycott will be meaningless, and any bookseller with an ounce of entrepreneurialism will say, 'You can buy the book on the street corner, so I might as well sell it, too.' "

Citizens Waking up to Graft's Effects

Corruption, of course, exists in every country. Defense-contract scandals haunt politicians from the United States to South Africa; British tabloids publish the taxpayer-funded expenses of parliamentarians. But in the cash-strapped developing countries of Africa - where graft costs the continent an estimated $150 billion annually - corruption can kill. Treating government revenues as a personal piggy bank is stealing money from millions of the world's poorest citizens, many of whom have been displaced by war, famine, or - as in Kenya's case - politically motivated violence. Unassisted, many of these Africans go hungry and even die.

"Kenya is not a natural-resource-rich country, so there is a limit to how much taxpayer money one can steal," says Mwalimu Mati, an anticorruption crusader with Mars Group Kenya, a think tank that documents corruption. "In the past, if a minister took 10 million Kenyan shillings [$128,000], a person would think: 'What does that have to do with me?' It was normal. But in the current economic environment, and particularly after the postelection violence, people are thinking, 'Goodness, corruption is rampant. This is affecting me personally.'

The inspiration for Wrong's book is anticorruption crusader John Githongo. A member of Kenya's intellectual and ethnic elites, Mr. Githongo felt an almost religious revulsion to corrupt government officials' depleting Kenya's meager resources.

During the dictatorship of former President Daniel arap Moi, he worked for Transparency International Kenya to publicize the way politicians were misusing public funds. Like many idealists then, Githongo thought Kenya's problem was that it was a one-party state, and that with competition the system would cleanse itself. Rivals would expose one another's misdeeds, courts would prosecute the guilty, and a free media would ensure that no politician could misbehave with impunity. When Mr. Moi's government was thrown out in the 2002 elections, Githongo accepted new president Mwai Kibaki's offer to be his personal adviser on corruption in government.

Corruption Is 'the Glue That Holds It All Together'

It didn't take long for Githongo to realize that his trust in Mr. Kibaki was misplaced. Many of Githongo's investigations led to fellow cabinet members, who appeared to be acting with the tacit knowledge of Kibaki himself. Githongo pressed on, leaking information to the press about a contract to a fictitious company called "Anglo Leasing." Anglo Leasing was a mere $54 million scam, but it was part of a larger pattern of fictitious procurements by Kibaki government ministers that added up to $655 million.

Soon afterward, Githongo began to secretly tape conversations with officials, and to ship those tapes out of the country. Eventually, persistent death threats forced Githongo to flee the country for London.

"People already knew a lot of the stuff that was in the book," says Githongo, "but it is because we put it together into a chronological order, with the background and the conversations of the people involved" that it has had such an effect.

The current government of national unity - a compromise coalition formed between Kibaki's Party of National Unity and Raila Odinga's Orange Democratic Movement after months of postelection violence - has let the country down, Githongo says.

Greed, he says, brought Kenya's politicians close to civil war, since they were willing to unleash ethnic violence to be able to control the Kenyan government, which forms the bulk of Kenya's economy.

"Corruption is the glue that holds it all together," says Githongo, who returned to Kenya last year. But greed may also bring this government down, as the anger of ordinary Kenyans and the courage of civic-minded groups and churches grows to confront politicians.

"I think the system is folding in on itself," Githongo says. Older corrupt politicians will die off, he says, and a growing urbanization of Kenyan society will weaken the tribal ties that give Kenya's traditional politicians their power. "Change will not be neat. But change will come."

Report Says Public Corruption a Continuing Problem for East Africa

Corruption within public institutions continues to plague the nations of Kenya, Uganda, and Tanzania, according to a report by a group of regional transparency organizations. Out of the three nations, Kenya ranks highest in its level of corruption, followed by Uganda. If publiccorruption continues unchecked, experts say that development in the region could be significantly hindered as a result.

The report says police are the most corrupt institutions in each country. The Kenya police force ranks highest on the corruption index of any institution surveyed, while Tanzania police are listed as the second most corrupt institution in the region.

More than half of those polled in the region claimed to have paid bribes for the purpose of receiving public services in the past year.

Public perceptions confirm the region's problem with corruption. The public in each country overwhelmingly thought that corruption had gotten worse in the past year.

Seventy-four percent of Kenyans ranked the nation as "very corrupt" or "extremely corrupt," compared with 65 percent among Tanzanians and 60 percent of Ugandans.

The high rates of public bribery are paired with a deep lack of faith in public reporting methods. Only six percent of Kenyans from whom bribes were solicited reported the incidence to authorities. More than 50 percent of those Kenyans who did not report bribes stated that their reason for not reporting the incident was due to a belief that no action would be taken.

The executive director of Transparency International-Kenya, Job Ogonda, says that ultimately Kenyan public leadership is responsible for the failure to address the nation's corruption issues. "Even if we are called upon to support the Kenyan police in institutional integrity reforms, then the political will to sustain those reforms depend on the leadership of the Kenyan police and the political leadership of the country," he said.

Kenyan government spokesperson Alfred Mutua admitted that corruption is a major problem and said that the government must re-evaluate its strategy for addressing the issue. "Our country, as we have said in the past, really really faces an upward challenge when it comes to the fight against corruption. We need to look at the strategy we've been undertaking in the fight against corruption, and study: Is its really working?," he said.

The nations' judiciaries also ranked poorly across the region - listing as the second worst public institution in Tanzania, third worst in Kenya, and sixth worst in Uganda. Kenyans reported that a bribe was solicited in 85 percent of their attempts to access either police or judicial services.

Poor economic conditions connected with the global economic downtown are thought to be contributing to the prevalence of corruption in the region as both lower government officials and those seeking jobs face increasing hardship.

Albert Gituku, an analyst at the Kenyan Leadership Institute, says that corruption is much deeper an issue than it may appear. "You totally destroy the fabric of governance within an institution, so the underlying cost you incur when you practice corruption at that high level is more injurious than meets the eye," he said.

The East Africa Bribery Index 2009 was a joint project of Transparency International-Kenya,Transparency International-Uganda, and Tanzania Transparency Forum.

The Kenyan police force has held the top position as the nation's most corrupt institution since 2002.

Source:assetrecovery.org

Namibia: China Blocks Namibia on Internet

  • NAMIBIA has disappeared off the face of the earth as far as the Chinese government is concerned, at least.




People in China keen to read about the fate of fellow countryman Yang Fan following his appearance in a Namibian court in the Nuctech corruption case, were left none the wiser as all Chinese search engines are blocking a list of keywords pertaining to the probe, including Namibia.
Type in 'Namibia', and Chinese search engines spit out no results. The same goes for 'Namibiabribery investigation', 'Yang Fan bribery investigation', 'Nuctech bribery investigation' and 'southern Africa bribery investigation'.
Also for 'Hu Haifeng', Chinese President Hu Jintao's son, who as former Nuctech chief is linked to the case. The Anti-Corruption Commission (ACC) in Namibia is interested to question Hu junior, although he is not a suspect in the case.
Searching for any of the above keywords on a Chinese search engine produces an error message, which translated freely, means: "The search results may contain content not in line with relevant laws, regulations and policies," Times Online reported.
According to the newspaper, The China Digital Times - a US-based blog run by Xiao Qiang - of the Berkeley China Internet Project at the University of California, posted a copy of a notice it said had been issued by the Communist Party's propaganda department shortly after Yang, and co-accused Teckla Lameck and Kongo Mokaxwa appeared in court the first time.
The notice, issued to all search engines, read: 'Hu Haifeng, Namibia, Namibia briberyinvestigation, Nuctech bribery investigation, southern Africa bribery investigation. Please show no search results for all the above keywords.'
The Chinese government censorship is the latest in a series which includes micro-blogging sites like Fanfou, Digu and Jiwai, the Edmonton Journal of the University of Canada states. Also blacklisted is Facebook, while Zuosa, YouTube and Twitter are all intermittent. "Nobody is exactly sure what the crackdown is about or when it will end," the Journal says.
Sensitive anniversaries like Tiananmen Square and the outlawing of Falun Gong, as well as the upcoming 60th anniversary of the republic may all have played a role, it believes. According to Times Online, however: "China is always nervous about publicity surrounding the business activities of family members of its leaders, since the average citizen has long suspected that they enjoy huge privileges and unfair advantages."
The search ban on Namibia has sparked widespread criticism worldwide. "No more Namibia: China blocks search results for entire country," the OpenNet Initiative reported on its website.
"According to the Chinese government, Namibia a southern African country with a population of two million does not exist," said the group a partnership of the Citizen Lab at the Munk Centre for International Studies, University of Toronto; Berkman Center for Internet and Society at Harvard University; the Advanced Network Research Group at the Cambridge Security Programme, University of Cambridge; and the Oxford Internet Institute, Oxford University.
"Namibia, what Namibia?" The Dark Visitor, a website on Chinese hackers, reacted. Radio Netherlands Worldwide reported that "China's authorities appear to be blocking news" about the probe, with "state media making no mention of the case".
The on-line edition of Financial Times for China refers to a "sweeping campaign to purge any mention of a corruption investigation in Namibia from the Internet because it involves a company formerly run by the son of China's president".
Meanwhile, one of many posts on Twitter reads: "China gets overzealous and blocks all searches with 'Namibia' in it. If only that darn bribery scandal hadn't got out."

Source:assetrecovery.com

Namibia Seeks ‘Cooperation’ From Hu’s Son in Graft Probe


The Namibian government is asking for "cooperation and assistance" from the son of China's president in a probe involving a Chinese maker of security scanners, according to Paulus Noa, director of the African country's Anti-Corruption Commission.

Hu Haifeng, the son of Chinese President Hu Jintao, is the former president of Nuctech Co., which sells equipment such as radioactivity monitors and x-ray inspection systems. Two Namibians and a Chinese representative of Nuctech were arrested last week after commission investigators found that $12.8 million for security scanners had been paid to a consulting company, Agence France-Presse reported.

"We would like to talk to him," Noa said, referring to Hu Haifeng in a telephone interview today from Windhoek, Namibia's capital. "We don't suspect him, we are just trying to get information from him about his company."

The probe threatens to embarrass President Hu, who is waging a crackdown on officialcorruption in China. Hu Haifeng is no longer head of the company, but is the party secretary of Nuctech's parent company, Tsinghua Holdings Co., according to Tsinghua Holdings' Web site. Tsinghua University, from which Nuctech claims its origins, is the alma mater of President Hu.

Zhou Liying, a spokeswoman for Nuctech in Beijing, said the company had no comment on the arrests in Namibia. Leonard Nambahu, Namibia's ambassador to China, said in a telephone interview that his embassy has not been involved in the Nuctech issue.

Noa said that a bail hearing will be held today for the three defendants. He said his office hasn't been able to contact Hu Haifeng or Nuctech company officials.

"There has been some indication that some officials from Nuctech will come to Namibia, even though we haven't seen any official information in writing," Noa said.

In 2006, Nuctech won a contract to provide scanners for liquid explosives to all security checkpoints and airports in China, the company said in a statement at the time.

--Paul Richardson, Michael Forsythe: Editor: Ben Richardson.

Source:assetrecovery.com

Congo's Kabila cleans out judiciary in graft swoop

  • Send feedback


Democratic Republic of Congo's President Joseph Kabila has sacked one in 10 of his country's judges and prosecutors to try to stamp out corruption in the judiciary, Congo's justice minister said on Thursday.

The president of the Supreme Court and the State Prosecutor were amongst those ousted after recommendations made by a Congolese legal disciplinary body.

Kabila has run the rich but notoriously corrupt nation since 2001 but he has come increasingly under pressure to deliver on promises that he made during a 2006 presidential election campaign to eradicate graft that is undermining development. Thursday's sacking of 165 of the 1,650 judges and prosecutors would prepare the judiciary to launch the fight againstcorruption, Justice Minister Luzolo Bambi Lessa said.

"Resulting effects will be felt in other parts of the civil service. We had to start somewhere," Bambi Lessa said, adding that the Congolese military legal system would be targeted next.

Rights groups have been pushing for Kabila's government to step up efforts to improve the rule of law in the vast nation, which is still struggling to stamp its authority on various rebellions and poorly governed regions.

The United Nations has its largest peacekeeping mission in Congo and donors have flooded the country with aid but critics say there has been little progress since the 2006 poll, which was meant to draw a line under years of war and chaos.

The army and the country's mineral sector are often highlighted amongst the most corrupt institutions.

"The most corrupt are gone, but there is still some work to do. Big corporations have many magistrates in their pocket -- some companies even have 'their judge'," Kinshasa-based lawyer Camille Yuma told Reuters after the sackings. (Reporting by Thomas Hubert; Writing by David Lewis; Editing by Alison Williams).
Source:Assetrecovery.com

Rwanda: High Court Clerk Gets Five Years Over Corruption

Kigali - A former clerk in the High Court, Jean Damascene Gashumba has been sentenced to five years in prison after being found guilty of corruption.

The decision was pronounced Wednesday by Nyarugenge High Instance magistrate Saouda Murererehe. Gashumba was arrested on June 24 after receiving Rwf40,000 to 'fix' a closer date of hearing in one of the cases filed at the court. "Court, after thoroughly examining the case, finds Gashumba guilty of corruption and hence sentences him to five years in prison," Murererehe ruled.

"We analysed the evidence he gave us to prove his innocence but all his arguments were not convincing." According to prosecution, a lady identified as Betty Mukamusoni bribed Gashumba to arrange a closer trial date for her brother.

During the trial, Gashumba had pleaded with court saying he was framed, insisting that he did not know anything about the money that was planted in his laptop bag. By press time, it was not clear whether Gashumba would appeal against the ruling.

Meanwhile, the same court heard the case of incarcerated city lawyer Olivier Muhizi, who is also accused of having tried to bribe a judge to pass a ruling in the favour of his client.

The same judge adjourned Muhizi's ruling to a later date after some complexities arose in the case that she said will require court to carry out its own investigations.

Muhizi was arrested last month as he tried to hand $2000 to Janvier Muhire, a magistrate in Kagarama Lower instance court in a case involving someone claiming the rights to his father'sproperty.

"On July 21, we are going to carry out our own investigations because we have identified unclear elements in this case, the verdict is therefore postponed to August 3," Murererehe ruled.

Muhizi had claimed during the trial to have been framed, saying the money he was giving to the judge was a 'loan' as a friend.

Source:assetrecovery.com

  • Send feedback

Zambia: Speed Up Health Ministry Investigations, Says TIZ

TRANSPARENCY International Zambia (TIZ) has appealed to investigative wings to speed up the investigations at the Ministry of Health to avoid loss of vital evidence and time.

TIZ executive director, Goodwell Lungu, said it was unfortunate that some files had already gone missing but was still confident that the missing information would be reconstructed using records from other institutions.

Mr Lungu, who was responding to a Press query, said yesterday that it was easy to get bank records and reconstruct the expenditure pattern and also get some documents from institutions that the ministry dealt with.

"We are sad that the files can go missing. As TIZ we hope that the missing files are not a deliberate attempt by ministry officials or other interested parties to deliberately hide wrongdoing that could have been contained in those missing files," he said.

He said TIZ was aware that reconstructing the evidence was a tedious process but added that it would work in the best interest of transparency and accountability.

Meanwhile, the Government will soon come up with a roadmap to improve audit and procurement systems in different departments and public institutions to guard against misuse of public funds, Finance and National Planning Minister Situmbeko Musokotwane has said.

He said in Lusaka yesterday that officials in his ministry had in the last four weeks been working with the Office of the Auditor General and other institutions to draw up the roadmap for improving procurement, audit and stores in various departments in light of the corruptionscandal at the Ministry of Health.

The minister, who was addressing a workshop on the Impact of the Global Financial Crisis on Corporate Governance in Zambia, organised by the Economics Association of Zambia, Institute of Directors and the University of Zambia Business and Economics Association at Intercontinental Hotel said the roadmap was already in shape.

"Officers from my ministry have been working with their colleagues for about four weeks to look at what has transpired and what we can do to ensure that systems of procurement, audit and stores in Government are enhanced to ensure transparency.

"We are at a stage where we are almost siding with the shape of the roadmap in view of what has transpired. This is really the most appropriate approach," he said.

Dr Musokotwane said the Government was finalising discussions with the cooperating partners that had expressed concern over the revelations of financial scandals at the Ministry of Health and subsequently put on hold their funding.

He said the Government wanted the donors to have confidence in the systems being put in place.

Dr Musokotwane said the major challenge in the implementation of public programmes was the lack of capacity by the civil service to implement the good plans.

He said citizens must be vigilant to guard against mismanagement of public resources and that the Government on its part had given 100 per cent freedom to the law enforcement organs to investigate such vices and bring to book all the culprits.

The minister said the Government was putting in place measures aimed at improving corporate governance in the public sector through appointment of independent people on audit committees in ministries and adopting other elements of good corporate governance from the private sector practices.

At the same function, University of Zambia head of economics department, Manenga Ndulo said there was need for the Government to take appropriate measures to improve the structural challenges in the public service by reducing on the inertia and wastage of public resources.

Source:assetrecovery.com

Kenya: Corruption And Tribalism Will Be Country's Downfall

Nothing illustrates the bad publicity streak that Kenya is in at the moment better than the old adage that it never rains but pours.

In a short span of two weeks, we have moved from zero to over 10 reported cases of swine flu and had our annual honours on the unwanted side of corruption rankings reaffirmed.

Nothing unusual there, one might say.

But as far as diplomacy, appeal to new investors and tourists go, the opening of an envelop containing names of the masterminds of the costly post-election violence at the beginning of last year at the International Criminal Court today -- and the ensuing ridicule by US President Barack Obama on Saturday over tribalism and, again, corruption --takes away any claim the country may have had left of belonging to the league of civilised nations.

These two events point to the growing isolation of Kenya by the international community and a rapid fall into a pariah state that has seen several qualified Kenyan professionals miss out on influential jobs in global policy making bodies.

Former UN secretary-general Kofi Annan may have acted too indecisively to prevent the Rwanda genocide 15 years ago but no one in Kenya, with the exception of politicians, can charge him of impatience in handing over the envelope to ICC prosecutor Louis Moreno Ocampo.

Had he followed the dictates of the Waki commission into post-election violence to the letter, he would have done so late last year.

President Obama, Kenya's most visible son by descent in the global arena sounded, during his first trip to Sub Saharan Africa, like someone who has given up on the country rising above the twin preoccupations of tribe and sleaze to bring about meaningful change such as prosperity of the masses and credible elections.

He is not alone. Anti-poverty and human rights activist U2's Bono wrote in a New York Times column on Friday that despite "Kenya's unspeakable beauty and recent victories against the anopheles mosquito, its still-stinging corruption and political unrest" was testament to the dark side of the continent.

Three world opinion shapers, three indictments of Kenya splashed in the headlines of major papers across the world.

It is hard to see what powerful tools and persuasive messages our spin doctors -- government spokesman Alfred Mutua and the Brand Kenya team -- can summon to water down the import of the assessment from such forces.

But there is hardly time for Kenyans to sit down and feel sorry about the state of affairs.

It is time to reflect on why corruption and tribalism are so engrained in our national psyche to an extent that the potentially liberating factor of ethnicity has entrapped us into poverty and conflict.

Overtly all Kenyans confess to being abhorred by tribalism, but in private they will routinely exhort their kin not to mingle with people from one region or another.

The decibels get overt expression during political contests, with even the most minor of cultural differences taking the proportions of the antagonism between the good and evil in religious doctrines.

That is hardly a way to cultivate strength from diversity, but political leaders revel in it because it ensures them an extra vote.

The same goes for corruption which has become an institution.

While corruption on a grand scale in public offices galvanises the country into spontaneous condemnation, greasing palms is an integral part of every day life as competition for resources and opportunities demands more than merit for one to succeed.

From securing placements in schools, ensuring the dead are preserved well in morgues, accessing relief food, and getting the vital document on time, a Kenyan's life is pronounced with informal taxes that have discouraged investors looking into opportunities in the country.

For too long now Kenyans have blamed the leadership for what is rotten in our society.

It is time to take a deep look into ourselves and become the change we want to see.

Corruption rules as illegal imports flood Kenyan market


The taxman is losing an estimated Sh100 million every week in a tax evasion scheme involving unscrupulous importers working with corrupt customs and airport officials, according to the findings of a Sunday Nation investigation.

The epicentre of the operation in which importers bring in items ranging from top-of-the-line household goods to vehicle spare parts – all tax free – is Eastleigh, the bustling business centre just east of Nairobi’s central business district that has become notorious for illicit trade and huge cash transfers.

Goods ordered online from Dubai, China, Turkey, India and Singapore are flown into the underutilised Eldoret International Airport and ferried to Nairobi by road. Some of these duty free goods enter Kenya through Wajir airport which the government recently upgraded to international status, our investigations show.

Eldoret airport, for long considered a hotbed of corruption, was temporarily closed by the Narc government when it came to power in 2003. It was quietly reopened and, since then, it has been business as usual.

Perhaps unaware of the colossal tax losses the operation inflicts on the economy, shoppers flock to Eastleigh to order or buy various goods, attracted by the huge bargains – upwards of 100 per cent – the traders offer.

A genuine leather sofa set that retails for Sh350,000-500,000 in city furniture shops fetches as little as Sh150,000 on the Eastleigh black market. Vehicle tyres that sell for Sh5,000-8,000 in the retail market go for Sh3,000 on the black market. Chinese tyres for commercial vehicles will cost you Sh25,000 in Eastleigh instead of Sh40,000 charged by normal shops.

The Sunday Nation trailed the illegal business and learnt that the goods are not smuggled; they are cleared through normal channels and sent by road to Nairobi under the watch of customs officers blinded by generous bribes.

The shady business operates on trust. A buyer pays a deposit and is charged for freight depending on the weight of the cargo. He or she is then given a code with which to claim the goods once they arrive in Nairobi. But the traders assume responsibility until the items are collected in Eastleigh or otherwise delivered to the buyer’s destination of choice.

“The system has gained popularity over time because of the level of efficiency exhibited by the importing companies. You won’t lose even a penny in the transaction,” a businesswoman who uses the system regularly but who refused to be identified discussing her business associates, said.

A potential buyer usually contacts one of a number of offices scattered throughout Eastleigh or their branches in Dubai, India, China or Turkey. Some of the goods are ordered on the Internet, and the trader does not have to travel to the countries of origin.

Once the trader has bought the goods, they are weighed and a charge is levied according to the weight and not the value. The charges range from Sh280 to Sh350 a kilogramme.

The trader does not have to worry about any extra charges or how the goods will be shipped. Once the goods arrive in Eastleigh – usually in four or five days – all the buyer needs to do is give the code and pay the requisite amount. Payments can be made either upon ordering or on delivery, depending on the agreement reached.

The trade, our investigation established, has been supplying the retail clothing business in Kenya and may have contributed to the explosion of “exhibition” stalls that sell clothes in city and town centres and supply shops countrywide.

Illicit trade

Our findings were corroborated by Kenya Revenue Authority chief of investigations Joseph Nduati, who acknowledged that the agency is aware of the illicit operations at Eldoret airport and that the nearly duty free goods are on sale in Eastleigh.

“We are aware of the tax evasion going on at the two places and have put in place adequate measures to seal the loopholes,” he said without giving specifics. In spite of the measures he alluded to, the illegal operation continues.

KRA cannot quantify how much tax revenue the government is losing because it does not have a specific code for businesses in Eastleigh.

“Eastleigh is part of the East of Nairobi tax band which stretches from Tom Mboya Street to Jomo Kenyatta International Airport,” said a senior KRA official, who cannot be named as he is not authorised to speak to the media.

But the official put the losses at a “conservative figure of Sh100 million” a week.

This would translate into nearly Sh400-Sh500 million a month and about Sh6 billion every year. The estimated annual loss is enough to build and furnish about 20,000 classrooms at Sh300,000 per unit.

While KRA acknowledges the problem, little seems to have been done to stem the trade. This has led to speculation that top government officials could be involved in or are beneficiaries of the operation.

The booming trade in Eastleigh has brought down prices of popular electronic items like TVs and music systems and clothing. Our investigation shows that a suit that sells for about Sh7,500 in upmarket shops goes for Sh2,000 in Eastleigh. An 18-inch TV set sells for as little as Sh5,000, while a flat screen model goes for Sh20,000. Similar models sell for between Sh15,000-Sh43,000 in other parts of the city.

Eldoret International Airport manager Peter Wafula attributed traders’ preference for the airport to the faster clearance of goods.

Mr Wafula said clearing goods in Eldoret takes two days, unlike in other airports whereas it takes on average five days, making Eldoret the port of choice for many businessmen. But he noted that although some security agents had become suspicious of the faster cargo clearance, he argued that the airport’s operations conform to the security standards set by the Kenya Airports Authority.

According to KRA, clothes, including mitumba (second-hand clothes), should attract 35 per cent import duty, 20 per cent excise tax and 16 per cent VAT, while furniture attracts 25 per cent import duty, 20 per cent excise duty and 16 per cent VAT.

The clearing and forwarding agents in most of Eastleigh’s shopping malls have a standard charge for any imported item. One agent reported a roaring trade that had enabled him to open offices in Dubai, China and India to take advantage of the boom. The Dubai office also serves those who import goods from Turkey.

Our enquiries led us to the legendary Garissa Lodge on First Avenue and Stage Market next to the Country Bus Station opposite Muthurwa out of which illicit trade kingpins are making small fortunes.

One businessman gave us a telephone number for his agent in Dubai who, incidentally, is a Kenyan. Such agents, we were told, are helpful to those making an inaugural trip to Dubai or China. They help in purchasing goods at reasonable prices and leave the responsibility for packaging, freight and delivery to the agents and their Kenyan godfathers.

The merchants put light cargo on charter flights to Eldoret International Airport. But they recommend sea shipments for bulky goods like furniture.

“This is because the ship charges according to the size of the cargo while aircraft charges are according to weight,” said a man who gave his name only as Abdullahi and who helps with clearing goods in Eastleigh.

But KRA says it is determined to wipe out the illegal trade and end tax evasion by the traders. Mr Nduati said KRA would seal the loopholes exploited by those who pretend to be re-exporting the goods, closely check the goings-on at Eldoret airport as well as goods destined to and from the Export Processing Zones and smuggled goods from neighbouring countries.

“We have prioritised these areas, and KRA has already put systems in place to check these illegal schemes,” he said. He, however, said the authority would not focus on how to deal with traders operating in Eastleigh.

Just a market

“Eastleigh is just a market, and it can be transferred elsewhere. The most important question to answer is: what brings goods to Eastleigh?”

He said KRA would ensure goods in transit get to their destinations by identifying the exit points of the goods. To this end, the tax collection agency has beefed up its checks at the Isebania, Busia and Malaba border posts.

“We are demanding returns on transit goods at their points of exit,” Mr Nduati said. He added that KRA had also taken care of the EPZ goods by ensuring thorough audits.

He said he was not worried by the amount of goods brought in through Wajir as it is “negligible”.

He, however, said officers had been dispatched to the airport to enforce the rule which demands that all planes to and from Somalia land at the airport for inspection to curb smuggling.

Obama in Africa: Welcome Back, Son. Now Don’t Forget Us.



When President Obama delivered his Inaugural Address six months ago, there was a line in it that many Africans felt was written specifically for them — a kind of shout out across the Atlantic that the new, young president had not forgotten the fatherland.

“To those who cling to power through corruption and deceit and the silencing of dissent,” the new president said, “know that you are on the wrong side of history.”

This, of course, could apply to a large chunk of the world. But in Africa, where Big Men still rule for decades, and corruption leaves the children sick and the schools bare, and government soldiers rape and kill with impunity, those words seemed to have extra resonance. Olara A. Otunnu, a former Ugandan foreign minister, remembered how that single line from the inaugural speech was “cheered throughout Africa and people were texting it to each other over their phones.”

“People were saying, ‘Our son is there, in the White House, God bless us.’ ”

On Friday, when President Obama stepped off Air Force One in Ghana for his first presidential visit to sub-Saharan Africa, it was clear he was stepping onto a continent of stratospheric expectations. He was mobbed at the airport by drummers and dancers and seemingly the entire Ghanaian government, as if his arrival were a long-awaited homecoming.

In a way, it was. And it will be extremely interesting to see how Mr. Obama, who is celebrated for his coolness, his detachment and his hyper-rational outlook, manages all this hype.

After all, he is only human, despite what the ubiquitous, savior-like posters on the back of African buses might lead people to think. And he has a portfolio of problems to solve with more obvious American interests, like two wars, Iran’s nuclear ambitions and the economy.

But talk about hitting the reset button, in a place where it could really matter. There is no denying that Mr. Obama, by the sheer dint of his Kenyan heritage, coupled with his progressive politics, his youth and his seemingly intuitive grasp of how people across the world interconnect, has an unprecedented opportunity to rewrite the America-Africa equation.

Still, how to get involved? And when?

P. L. O. Lumumba, a leading anticorruption activist in Kenya, said that the masses were ready to line up behind Mr. Obama and that he should use his incredible bully pulpit to pressure corrupt governments to reform themselves. This wouldn’t have to cost a lot of money. The audience is there. All that needs to be crafted is the message.

“The Obama administration should be tough as tough can be,” said Mr. Lumumba, who is named after one of the leading lights of Africa’s independence era, Patrice Lumumba, a Congolese hero who was assassinated in 1961 with the help of the C.I.A. Mr. Lumumba’s namesake brings up a compelling point. Mr. Obama spoke of the “wrong side of history.” Guess who was often on the wrong side of African history?

Take Congo, where American officials during the cold war backed the kleptomaniac dictator, Mobuto Sese Seko, for decades. Or Somalia, where the United States bungled a huge relief mission in the 1990s, setting the stage for the chaos there today and leading the Clinton administration to inaction over the Rwandan genocide, which cost one million lives while the whole world watched.

Clearly, Mr. Obama has not forgotten Rwanda. In a news conference in Italy before he left for Ghana on Friday, he said: “There are going to be exceptional circumstances in which I think the need for international intervention becomes a moral imperative, the most obvious example being in a situation like Rwanda where genocide has occurred.”

He also hinted at a broader Africa agenda, like helping the continent feed itself — points he punctuated with his own experience in the hardscrabble Kenyan village where his extended family lives.

But, as Ghana shows, all is not grim in Africa. “Part of the reason that we’re traveling to Ghana is because you’ve got there a functioning democracy, a president who’s serious about reducingcorruption, and you’ve seen significant economic growth,” he said at the news conference.

American officials, like Representative Donald Payne, a New Jersey Democrat who heads the House subcommittee on Africa, insist that Africa policy will now be more nuanced. “The whole thing can’t be the U.S.’s war against terror, whatever that was,” Mr. Payne said. Instead, he predicts the Obama administration will “concentrate on things that would prevent terror, like higher education.”

Africans have always had divergent views on America, Mr. Otunnu said. On the one hand, Africans idolized the United States as the land of opportunity and unimaginable wealth, the place they could hope one day to see with their own eyes, or better, to live in. They welcomed initiatives like the billions of dollars President George W. Bush spent fighting AIDS. On the other hand, the United States also evoked the dictators it had supported, and what were seen as harsh, neocolonial policies.

But with Mr. Obama in office, Mr. Otunnu said, “that changed suddenly overnight. The U.S. now has a very different meaning to Africans.”

Some of this, of course, is that Barack Obama is seen as kin. But there’s also the fact that he was an underdog in a fierce campaign and a black man elected in a white country, validation that America was indeed the land of opportunity. More than anything, his triumph served as a sharp contrast to a continent where name, class and ethnicity are still destiny, and, just in case destiny is ever interrupted, where many elections are still blatantly rigged.

The issues that many Africans are urging Mr. Obama to push — like more freedom, more democracy, less dictatorship, less corruption — are issues that previous American administrations have tried to push. In many cases, for example in Kenya or Zimbabwe, the American government must step gingerly, pressing reluctant leaders to implement reforms that the vast majority of people support.

Often, this is a complicated dynamic. Most of the American diplomatic corps are white and thus open to the brand of attack that bashes any criticism from white men as neocolonial meddling.Robert Mugabe, Zimbabwe’s dictator, remains a virtuoso at playing that game.

But with Mr. Obama, this won’t wash. Or at least, not as well.

“He’s not your typical Anglo-Saxon,” Mr. Lumumba said. Until this trip to Ghana, President Obama had stayed away from Africa. Darfur continues to be a mess and Congo a bloodbath, but Mr. Obama has said relatively little about either. His trip to Ghana is only a one-night stop.

But Mr. Otunnu said that Africa can wait. It’s how the traditional African chief works.

“He meets, he consults and then he decides,” Mr. Otunnu said. “The chief doesn’t rush.”

AllAfrica News: Latest

Pambazuka News :Comment & analysis

AfriGator

AfrigatorAfrigator