Mwatela declines new job and reports at CBK

Central Bank of Kenya deputy governor Jacinta Mwatela on Friday officially declined her new job as permanent secretary and charged that her transfer could be linked to a proposed multi-billion shilling new currency project.

Mrs Mwatela, who has refused to leave her CBK office for the fourth day since she was moved to the Ministry of Northern Kenya Development and Arid Areas, received a letter informing her of the appointment but she returned it to Head of Public Service Francis Muthaura with a “Thank-You-But-No” note.

In an interview with the Saturday Nation from her CBK office in Nairobi, Mrs Mwatela said: “I have received the letter but I don’t think it is mine.

"It has my name and addressed to Jacinta Mwatela, permanent secretary, Ministry of Nothern Kenya Development and Arid Areas.”

In the letter dated September 8, Mr Muthaura notified Mrs Mwatela of her appointment as PS and explained her responsibilities, she said. She, however, said Mr Muthaura’s letter did not explain why she was being moved.

The 54-year-old Mrs Mwatela told the Saturday Nation she could not make a decision until Mr Muthaura clarified why she should have “two high profile responsibilities (CBK deputy governor and PS).”

She said her appointment as PS contravened Section 11 (2) of the CBK Act, which says a deputy governor should serve for four years.

She was appointed by President Kibaki on May 12, 2005, and her tenure ends on May 12, 2009, she said.

Attached

“I attached a copy of the Kenya Gazette which announced my appointment to a letter I sent to Mr Muthaura,” she said.

She said as far as she was concerned, her appointment had not been revoked, nor has she “lost her head,” been declared bankrupt or committed a criminal offence to warrant her removal as CBK deputy governor.

“I’m sure I have not been declared bankrupt by anybody.”

Mrs Mwatela said she was not being defiant but was only following the law.

She, however, said her transfer could be because of a new currency printing tender that was awarded to De La Rue.

“The procurement is illegal. It is in conflict with the Procurement Act. It is not me who is wrong. I did not write the law,” she said.

Accused

Kenya is one of the few countries still using old technology to print money and De La Rue has been accused of charging exorbitant rates.

A contract to print new generation notes was cancelled because of what former Finance minister Amos Kimunya said was lack of storage space.

The $25 million that had been paid to De La Rue for the job was however not returned.

On Friday, a jovial but tough-talking Mrs Mwatela also claimed that the Cockar Commission investigating the sale of the Grand Regency Hotel would not be there if the governor had listened to her advice.

Mrs Mwatela said since she started her career at CBK 31 years ago, all was well until the early 1990s when she ruffled Goldenberg architect Kamlesh Pattni’s feathers.

Mr Pattni, she said, threatened her, saying she would be removed like others before her.

“Nobody has questioned my performance for the past year. I am a law abiding citizen with the interests of the nation at heart,” she said.

On Friday, she challenged those who were unhappy with the system at CBK to liaise with the attorney general and amend the law to incorporate the changes they wanted.

Mrs Mwatela said Mr Muthaura had to comply with the CBK Act if she was to leave.

On why she would reject a PS position which is senior to deputy CBK governor, Mrs Mwatela asked why Dr Hezron Nyangito, who was to replace her had rushed to do so if her job was of a lower rank.

Dr Nyangito was Ministry of Health PS before being transferred to CBK in the Monday reshuffle. Asked if Dr Nyangito had reported for work at CBK, she said: “I have not seen him.”

Pressure

On Friday, pressure mounted on President Kibaki and Prime Minister Raila Odinga to rescind the decision to transfer Mrs Mwatela.
Human rights campaigner Harun Ndubi also urged Dr Nyangito to reject his appointment.

He accused the Government of interfering with and eroding the independence of CBK. Mr Ndubi warned that interference with the CBK could hurt the economy.

The Parliamentary Accounts Committee and Coast MPs Forum on Thursday said Mrs Mwatela’s transfer was unconstitutional and irregular.

The Law Society of Kenya described her removal from Central Bank as illegal, unconstitutional and unfair.