From: Judy Miriga
Folks,
Kenya’s Coalition Government under the leadership of Kibaki and Raila should face Legal Justice over charges on Economic Theft engaging on illegal and unconstitutional business undertaking of special interest that saw the country drifting into Economic crisis from imbalances of such economic crimes. This behavior has made lives of many in danger, with cost of fundamental basic needs rising, poverty souring to an extend that nothing works.
The severe economic shocks reported by World bank, IMF with other International financial institutions is a showcase of the same.
This calls for the Judicial system of the Supreme Court to take urgent steps to institute investigation of the activities which led to this economic crisis and that Coalition Government be immediately and urgently charged against Economic Theft and Crime.
Judy Miriga
Diaspora Spokesperson
Executive Director
Confederation Council Foundation for Africa Inc.,
USA
http://socioeconomicforum50.blogspot.com
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World Bank Warns of More Severe Economic Shocks in 2012
Faridah Kulabako and Martin Luther Oketch
19 January 2012
Kampala — The World Bank has told developing countries to prepare for shocks that could be more severe than the 2008 crisis, warning of a possible slump in global economic growth.
World Bank said in its 2012 Global Economic Prospects report yesterday that the ripple effects of the financial turmoil in the Eurozone and weakening growth in emerging markets were lowering global growth prospects.
“The global economy is entering into a new phase of uncertainty and danger. Developing countries need to evaluate their vulnerabilities and prepare for further shocks, ” Mr Justin Yifu Lin, the bank’s chief economist said.
He said developing countries have less fiscal and monetary space for remedial measures than they did in 2008/09, which may constrain their ability to respond if international finance dries up and global conditions deteriorate.
Mr Hans Timmer, the director of development prospects at the World Bank, however, advised that countries should line up financing in advance to cover up budget deficits, review the health of their banking sector, and prioritise spending on social safety nets and infrastructure to prepare for the possibility of shocks.
The bank also cut its global growth forecast for 2012 to 5.4 per cent from 6.2 per cent for developing countries and 1.4 per cent from 2.7 per cent developed countries. The global growth is projected at 2.5 and 3.11 per cent for 2012 and 2013, respectively.
B Barton /WFP
Ploughing the fields in Uganda.
The report states that slower growth of the global economy is already seen in weakening global trade and commodity prices. Global exports of goods and services is said to have expanded by an estimated 6.6 per cent in 2011, down from 12.4 per cent in 2010 and is projected to rise by only 4.7 per cent in 2012.
Declining commodity prices are said to have contributed to easing of headline inflation in most developing countries. Uganda’s inflation for instance slowed from 30.4 per cent in October to 27 per cent in December 2011 due to increased food supply to markets, resulting into a marginal fall in commodity price.
Despite the volatilities in the global economy, growth in Africa remained robust, edging up from 4.8 per cent in 2010 to 4.9 per cent in 2011. just below the 5 per cent pre-crisis average.
Kenya: Finance Bill Row Hands Fraudsters Lifeline
Paul Wafula
20 January 2012
Delay in adoption of Finance Bill 2011 has handed mobile phone fraudsters a leeway to move on with illegal activities.
As a result, the country continues to lack the law to making it mandatory for mobile phone users to register their SIM cards.
In consequence, the Ministry of Information and Communication has been unable to direct mobile operators to immobilise unregistered numbers as a measure to curb mobile phone-crime.
It’s more than two years since the idea was first mooted and the ministry was banking on passage of the Bill to give it the legal mandate to enforce it.
The delay has been caused by a standoff between Parliament and the executive over a controversial amendment to the Bill, which legalises taxation measures, to control interest rate that commercial banks can charge borrowers, a proposal that has been opposed by Treasury.
Mobile service providers reckon that the lack of legislation makes it impossible to enforce compliance and are warning that it would need another three months to comply once the law is in place.
Three-month grace period
“We are very confident that we will be in a strong position to comply with the new legislation when it comes into place.
“This notwithstanding, and in order to minimise any negative impact on customers who may be having ancillary challenges such as inability to secure national identity cards or other forms of acceptable identification documents, we are in favour of a three-month grace period prior to implementation,” Safaricom’s corporate affairs director Nzioka Waita said.
Operators also cite the costs of carrying out the registration exercise as another barrier. “As an operator, we are currently shouldering the burden of registration ourselves.
“However, if the government places additional compliance and storage requirements on the industry, we shall be keen to discuss with the Government various options for meetings these costs,” Mr Waita said.
President Kibaki has in more than two occasions ordered for deactivation of the SIM cards, but the directive is yet to be acted upon, more than a year after the registration exercise expired.
MPs threaten Kibaki and Raila over taxes
MPs plan to strip President Kibaki, Prime Minister Raila Odinga and Vice President Kalonzo Musyoka off their hefty retirements perks in protest against a law compelling them to pay taxes.
They also vowed to campaign for cancellation of allowances paid to spouses of Mr Odinga and Mr Musyoka.
They want to punish the two leaders for complying with a directive by the Kenya Revenue Authority that all MPs pay full taxes on salaries and allowances backdated to last September.
The MPs also plan to frustrate passage of laws for implementation of the Constitution; and shoot down the Finance Bill when the House resumes in two weeks time.
The MPs, who are at the Mombasa Continental Resort for a workshop on the draft national population policy, were also seeking to placate public anger by passing a law that will exempt those who earn Sh30,000 a month and below from paying taxes.
Saboti MP Eugene Wamalwa and his Uriri counterpart Cyprian Ojwang accused President Kibaki, Mr Musyoka and Mr Odinga of “inciting the public against the MPs” by paying their tax arrears.
Deal with hypocrisy
Mt Elgon MP Fred Kapondi said: “We are going to deal with this hypocrisy and double standards exposed by these leaders whose spouses earn more than MPs in allowances which are not taxed.”
Speaker Kenneth Marende was at hand to support the MPs hardline position. He maintained that MPs had been assured by the government that they would not pay increased taxes for the remainder of the current term.
In a statement issued in Mombasa, Mr Marende said that MPs were ready to pay full tax on their income if taxation laws were amended.
“Allow me to reiterate the fact that both the Executive and Kenya Revenue Authority wrote to the Kenya National Assembly before the Constitution was passed stating the position with respect to taxation as it would apply to Members of the 10th Parliament,” he said.
The MPs, who have only been paying tax on their basic salary which stand at Sh200,000 per month, are under pressure to pay levies on their hefty allowances which make up most of the Sh800,000 earnings.
The MPs threatened to paralyse government operations by rejecting crucial Bills.
To begin with, the MPs plan to shoot down the Finance Bill when it is tabled in Parliament by Finance Minister Uhuru Kenyatta.
Mr Kapondi and Luka Kigen (Rongai) and Joshua Kutuny (Cherangany) warned that Parliamentarians would shoot down the Bill that gives the government authority to spend.
“Uhuru will not find it easy. Despite all the threats and tough talk. He will have to work hard to convince MPs to pass the budget,” said Mr Kutuny.
“This issue has united us more than ever before. We are going back to Parliament an infuriated group,” said Mr Kigen.
Mr Kapondi warned that the government “will be in for a rude shock. It is a false victory for them if they are already celebrating,” he warned, saying MPs had resolved to reject the bill to show their anger at the taxman’s move.
They also plan to reject several Bills expected in the House to implement the new constitution.
However they might be shooting themselves in the foot as Parliament failure to pass laws mandated by the new constitution opens the door for dissolution of Parliament.
Deputy Speaker Farah Maalim and Regional Development Minister Fred Gumo termed as insensitive the decision to tax MPs’ salaries and allowances at this point.