The SPECIAL SUPPLEMENT REPORT THE PARTNERSHIP NEW NATIONAL FOR PEACE CONSTRUCTION AUTHORITY TO REIN IN PROJECT FUNDED LEnhancingink governance for all COWBOY CONTRACTORS BY THE EU — PAGES 14 & 19 — PAGES 15 - 18 MARCH 2011 Issue No. 077 Kshs 40/= CDF set to be axed Obure now ready for By MUSA RADOLI THE future of the multi-billion shil- lings Constituency Development Fund (CDF) may be sealed forever under the new constitutional dis- cowboy contractors pensation as a technical committee at the treasury works out modalities By FAITH MUIRURI The body outlined in the National er things provide a legal and institu- value exceeds Kshs5 million will be that may decide its fate. Construction Authority Bill 2011, is tional framework for the development required to pay a levy equivalent to The CDF which has over the LANS are underway to replete with powers to sanction and of local construction industry (See 0.25 percent of the total value of work. years since its introduction been introduce a new set of blacklist rogue contractors who have special report on Pg 14) The new law comes in the wake transformed into a fat cow and po- rules to reign in on cow- in the past led to excessive losses in According to the law proposed by of hue and cry by local contractors litical tool by most legislators and boy contractors in the billions of shillings. the Minister for Public Works, Chris who feel that they might be losing out their cronies is likely to face the Pcountry. The law that proposes Already, the Constituency Devel- Obure, contractors who engage in pro- on some of the major capital projects axe as the government strives to opment Fund (CDF) board has en- fessional misconduct will be deregis- because new conditions set by donors the establishment of a National listed the support of anti-corruption tered and in some instances attract im- had blocked local firms. streamline national fiscal alloca- Construction Authority will help tions to conform to the demands of commission to recover substantive prisonment for a term not exceeding Local traders and firms involved to address massive corruption amounts of money lost through poor one year. in construction are questioning the the new constitution. witnessed in the construction in- The most critical issue being workmanship. Further, the law stipulates that con- checking on duplication of resourc- dustry over the years. The Authority seeks to among oth- tractors who undertake work whose Turn to Page 2, Col. 1 es as the 47 counties are expected to receive 15 per cent of the national cake to run their operations includ- ing 0.5 per as an equalisation fund to the marginalised communities. Considering the fact that the devolved county governments will be in charge of the constituencies under them, direct allocations to CDF will amount to duplication and wastage. Indeed the ministry of finance has already established a technical committee known as The Fiscal Decentralisation Kenya which is working out the technical fiscal mo- dalities that may eventually seal the fate of the Constituency Develop- ment Fund as Treasury seeks a new system of funding the grassroots. CDF currently enjoys 2.5 per cent of the national revenue which is transferred to the fund by the central government. Of the money collected, 75 per cent is divided equally among constituencies and 25 per cent shared on the basis of poverty index outlined by the Min- istry of Planning and National De- velopment. The Committee says that Local Authorities Transfer Fund (LATF) is also expected to be phased out. The Fiscal Decentralisation Road under construction: The establishment of a National Construction Authority will help to address massive corruption Turn to Page 2, Col. 1 witnessed in the construction industry over the years. Inset: Public Works minister, Chris Obure. Photo/File Varsity signs pact with CDF managers to sign Lake Victoria Basin water body performance contracts Commission to build —Pg. 6 —Pg. 13 office in Kisumu —Pg. 26 Constitution: Let experts Beware of conman offering Orphans graduate at PAGES take charge jobs to Mombasa residents Kaheti Youth Polytechnic ON OTHER —Pg. 9 —Pg. 20 —Pg. 30 The Link, March 2011 2 GOVERNANCE Obure now ready for cowboy contractors Varsities From page 1 told to align rationale of shifting towards China when the balance of trade is tilted to- wards the Chinese. with Vision Contractors who spoke on condi- tion of anonymity lament that most firms have dwindled due to the stiff 2030 competition from Chinese firms. By FRANCIS ONTOMWA “Many of us may be forced to close down or lay off staff due to un- UNIVERSITIES and mid- fair competition,” one of the contrac- dle level training institutions tor intimates. have been urged to impart The construction sector – housing knowledge and skills that are and roads – has attracted the highest relevant to vision 2030. number of Chinese companies with Director of Strategy Vision key roads in the country under reha- 2030, Andrew Toboso, has bilitation or construction by them. said that for Kenya’s gradu- Among the major projects under- ates to compete globally, it is taken by the Chinese firms include imperative that higher educa- the expansion of the Kisumu airport, tion courses remain pegged to rehabilitation of the Moi International demands at the global market. Sports Centre, expansion of Thika- “There are numerous op- Nairobi highway, the Sondu Miriu portunities for Kenyan gradu- power plant interface and oil explora- ates all over the world if our tion in northern Kenya. skills become competitive and market driven” he noted. However, most local companies A section of finished road along Thika Road in Nairobi. have been locked out as majority are Speaking during this year’s viewed as shadowy contractors who chitects, quantity surveyors or public part. projects are sometimes awarded fol- Masinde Muliro University have been paid for non existence health experts especially in regard to The report further states that fail- lowing hefty bribes by contractors. of Science and Technology roads or shoddy work. projects undertaken through the Con- ure to advertise tenders has often led In its report, TI blames cartels be- (MMUST)’s Careers Week A recent progress report by the stituency Development Fund (CDF) to single sourcing which is by defini- hind the endemic corruption and po- opening ceremony on Tues- National Anti Corruption Campaign kitty may have led to the shoddy work tion illegal since it contravenes gov- litical leaders who aid them in looting day, Toboso pointed out that Steering Committee (NASSC) reveals witnessed in many parts of the coun- ernment tendering and procurement State resources. all present fresh opportunities that public coffers have been looted try. regulations. The report concludes that the bil- for research and development dry as contractors inflate prices of “There are no clear tendering “In such underhand deals, some lions if salvaged could fund other anti- must be geared towards ad- construction. and procurement guidelines and/or committee members collude to “win” poverty programmes like housing, dressing emerging challenges “Some operate in cartels that deny procedures and tenders are not usu- tenders then sub-contract to their kin more roads and public works and help and opportunities globally. the government value for money ally advertised. This invites corrup- and kith. Usually, tender winners have assure pupils in primary schools 10 He criticized the move to paid,” adds the report addressed to the tion through irregular award of ten- the blessings of the sitting MP or are years of free education. disband certain course in the President Mwai Kibaki who is the pa- ders and nepotism. The lowest bidder given to his/her close relatives, friends However, with the new regula- arts, saying that they were tron of the committee. is not always awarded a contract and or associates,” says the report. tions, the sector is highly expected to needed for the country to The report by committee at the some contractors were said to be brib- A similar report by the Transpar- witness a rebound that will redeem make meaningful economic same time notes that failure to involve ing key CDF committee members to ency International revealed that major integrity and transparency in the man- progress. professionals such as engineers, ar- “win” tenders,” reads the report in construction and medical supplies agement of public resources. “What Kenya needs is a holistic approach to develop- ment, we need legal experts, social scientists, performing be impossible for the central govern- artists, sportsmen and others ment to continue rolling out cash to in the quest to realize vision the constituencies in the counties and 2030” he said. CDF set to be axed it also remains to be seen whether any The running theme during of the 47 counties will be keen to re- From page 1 working with the International Mon- He says that his team is working the four day workshop is “Ex- tain the CDF in their counties with ploiting versatility in career Kenya Team Leader Kamau Thugge etary Fund (IMF) after working with hard to ensure that under the new MPs wielding immense powers over prospects and opportunities in says that the technical committee has the treasury as an economic secre- constitution fiscal transition is also the funds. achieving vision 2030”. established that: “The CDF has no tary says that he was recalled from devolved accordingly to the county Though architects (the MPs) of the The director revealed of a place in a system where the governor Washington in the United States to be governments as stipulated by the con- CDF are expected to strongly resist comprehensive skills inven- is accountable for resources allocated in charge of the transition to the de- stitution, which means the constituen- that move, they may have no option tory currently undertaken in to the county.