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PASSPORTS TO RICHES: Semlex’s dubious dealings with African governments

17 min read. The Democratic Republic of Congo, one of the poorest countries in the world has one of the most expensive passports and Comoros issues diplomatic passports to non-Comorians. By TAMA MULE

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PASSPORTS TO RICHES: Semlex’s dubious dealings with African governments
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Albert Karaziwan is a multi-millionaire who in 1992 founded Semlex, a privately traded company owned primarily by him and his family. Semlex supplies passports and identification cards. In 2008, Karaziwan claimed that his businesses had a combined value of 100 million euros.

Karaziwan has had close ties with the governments of at least 18 African countries spanning the whole of the continent, including Kenya, Uganda, Tanzania, Libya, Mozambique, and the Ivory Coast. The most prominent among these, as far as his connections go, is the Comoros Islands, from where he holds three diplomatic passports. He has also twice attended the United Nations General Assembly as a part of the Comoros delegation. He was made a roving ambassador of the Comoros and at least eight of his staff were nominated for Comoros honorary consulships between 2010 and 2012. Another big partner of his is the Democratic Republic of Congo. He was seen at the United Nations General Assembly with the Congolese delegation early in 2017.

Despite these surprisingly powerful connections, Karaziwan is neither a citizen of Comoros, DRC or of any other African nation with which he has been able to secure incredible financial footholds and political appointments. He is a Syria-born Belgian citizen who for close to two decades has used Semlex and its various partners, as well as political clout and connections on the continent, to secure multiple hundred-million-dollar deals to provide passports and other identification documents to African countries at exorbitant prices and sometimes without going through open tender processes.

In the Comoros, presidential decrees and various documents have revealed that Semlex-supplied Comoros passports have been bought by foreigners. A parliamentary investigation into the sale of passports to foreigners found that more than 2,800 Comoros diplomatic passports have been issued since 2008 – in a country with a population of about 800,000. At least 184 of these passports were issued to non-Comorians.

Karaziwan became involved in a Comoros programme to raise cash by selling citizenships. The plan was aimed mainly at the Bidoon people of Kuwait and the United Arab Emirates who do not possess citizenship of any country. It offered Gulf governments a means of identifying these people without giving them local citizenship. It also provided the Comoros with much-needed revenue. The Comoros government received just over $4,500 for each citizenship issued, according to government documents from 2012. The Emirati government estimated that the number of Bidoon within the country ranged from 20,000 to 100,000. Currently at least 40,000 of these people carry Comorian passports.

However, the citizenships and passports were also being sold to non-Bidoon people, sometimes at much higher prices, according to Comoros investigators. Comoros passports are of value because they offer citizenship with no tax obligations, allow the opening of bank accounts In Gulf States and facilitate visa-free travel through the Gulf and to many major business hubs globally, such as Singapore and Hong Kong, as well as to tax haven countries such as Bermuda, the Cayman Islands, the Cook Islands, Mauritius, Saint Kitts and Nevis and Panama, according to U.S officials in the State Department who specialise in the region.

The Comoros government allowed some of these sales to be facilitated by a Dubai-based firm called Lica International Consulting, according to an agreement between the two entities reviewed by Reuters. Three sources, one with direct knowledge of Semlex operations, said Lica is controlled by Karaziwan while two of these sources claim that Lica is run on behalf of Karaziwan by a business associate named Cedric Fevre, a name that appears many times during this saga. Lica was supposed to vet the candidates for citizenship and pay the Comoros government $10,000 per document issued, according to the agreement between the company and the government.

The Iranian connection

A presidential decree revealed a list of 21 foreigners who had been proposed by Lica for Comorian citizenship, which had then been granted by the president, while a former Comoros government official said he knew of at least 23 other passports sold through Lica to non-Comorians. Two sources with knowledge of Karaziwan’s activities claimed that Lica asked for at least 100,000 euros for supplying a Comoros passport. A series of presidential decrees have revealed that some of the Comoros passports were sold to people who had been accused by the United States of breaking sanctions with Iran.

A decree from July of 2015 revealed that a man named Hamid Reza Malakotipour was granted Comoros citizenship. He had been sanctioned in 2014 by the United States government, which alleged that he was in possession of an Iranian passport and had used his Comorian citizenship to circumvent the sanctions placed on Iran by the United States and to supply the Iranian Revolutionary Guards in Syria.

Also revealed in the same decree was that a man called Mohammed Zarrab of Turkish- Iranian origin was issued with Comorian citizenship. He was accused by U.S prosecutors in 2016 of violating the U.S sanctions on Iran by using the U.S financial system to undertake hundreds of millions of dollars worth of transactions on behalf of Iran. His brother Reza Zarrab was also indicted on claims that he had transacted on behalf of the Iran-based Mahan Air, which had been sanctioned for airlifting weapons to Iran’s Quds Forces and Hezbollah. A Reuters investigation was unable to glean how the two individuals received their passports, and the extent to which Semlex and Lica were involved

In January 2018, the Comoros government cancelled a batch of passports that had been issued to foreigners, saying they had been improperly issued. A confidential list of the passport recipients reviewed by Reuters discovered that more than 100 of the 155 passports that had been cancelled belonged to Iranians, among whom were senior executives of companies in sectors that had been targeted by U.S sanctions. The government of Iran does not officially permit its citizens to hold more than one passport, but a source familiar with the process stated that Iranian military intelligence had given the green light for some of these senior officials so that business transactions and travel could be carried out with ease.

According to details contained in a database of Comoros passports issued between 2008 (when the government programme to sell citizenships began) and 2017, more than 1,000 people whose place of birth was Iran bought Comoros passports. Some of the names on this list include names such as:

  • Mojtaba Arabmoheghi, one of the top managers of the Iranian oil industry, who obtained a Comoros passport in 2014 while he was the chairman of Sepeher Gostar Hamoun. He was also a commercial consultant for a firm called Silk Road Petroleum in the UAE whose financial director, a man named Naser Masoomian, also acquired a Comoros passport on the same day.
  • Mohammed Sadegh Kaveh, who heads Kaveh Port and Marine Services, obtained a Comoros passport in 2015. Kaveh and his family are among the main operators of Iran’s Shahid Rajaee port that handles most of Iran’s container traffic
  • Hossein Mokhtari Zanjani, an influential figure in Iran’s energy sector and a lawyer who handles domestic and international disputes, acquired a Comoros passport in 2013.

On its website, Lica listed a Dubai-based company called Bayat Group as a partner, which, according to the latter’s website, specialises in providing citizenships of places such as Comoros, Malta and St. Kitts and Nevis. Bayat Group is headed by Sam Bayat Makou, an Iranian who acquired a Comoros passport in July of 2013, though this was among the passports that were cancelled by the Comoros government. Makou said that Iranians acquired Comoros passports because “Comorians have better visa-free access than Iranians” to many Far East countries. Bayat Group, according to Makou, had done work with Lica, which he claimed was licenced by the government of Comoros to market the passports outside the Bidoon programme.

In January 2018, the Comoros government cancelled a batch of passports that had been issued to foreigners, saying they had been improperly issued. A confidential list of the passport recipients reviewed by Reuters discovered that more than 100 of the 155 passports that had been cancelled belonged to Iranians, among whom were senior executives of companies in sectors that had been targeted by U.S sanctions.

The incumbent President at the time was called Ahmed Abdallah Sambi, and throughout his 2006-2011 tenure, he began to forge strong ties with Iran. Sambi had been educated in the Iranian holy city of Qom, and when he ascended to power, he visited Tehran in 2008. The then Iranian president Mahmoud Ahmadinejad was looking to cultivate relations with African and Latin American states as the West took increasing measures to distance itself from Iran. Following Sambi’s visit to Tehran, Ahmadinejad visited Comoros in 2009. In addition, Sambi is said to have had Iranians within his personal guard and was referred to as “The Ayatollah of Comoros” by some islanders.

Though Sambi left power in 2011, he declined to comment on the sale of the said passports to non-Comorians. The sale of these passports continued under his successor, Ikililou Dhoinine, who was in office from 2011-2016. Though Dhoinine has no obvious links to Iran, he declined Reuters’ requests to comment on the situation.

His successor Azali Assoumani came to power in 2016 and changed tack completely, severing ties with Iran and aligning with Saudi Arabia and other Gulf Nations at odds with Iran. He set up a parliamentary commission of inquiry to investigate the programme that sold citizenship to the Bidoon. The commission found that as early as 2013, the UAE informed the Comoros government that hundreds of passports had been sold to foreigners outside the programme. This was after UAE officials noticed people who were neither Comorian nor Bidoon travelling through the country on Comoro passports. A Comoros security source said that the Comorian intelligence services had received reports of people with Comoros passports being killed on the battlefields of Iraq, Syria and Somalia, a demonstration of how widespread the sale of Comoros passports had become. As a result, the United States has begun to perform more thorough background checks on people travelling with Comoros passports.

According to a parliamentary report, at least $100 million in revenue from the sale of these passports was never received by the government of Comoros and had gone missing, though the government has not released a statement explaining where they think the money could have gone.

The deal in the DRC

The investigation in the Comoros followed a report published by Reuters in April of 2017 that revealed that Semlex was the same company responsible for issuing biometric passports in the impoverished Democratic Republic of Congo for the exorbitant price of $185 per passport, making the DRC passport among the most expensive passports in the world. This in a country where the average national income is $394.25 a year.

Between October 2014 and June 2015, Karaziwan corresponded with Congolese authorities on the passport deal. Initially, in an October 2014 correspondence, he told Joseph Kabila, the incumbent president of the DRC, that Semlex would be able to provide the biometric passports at a cost of between 20 and 40 euros each as Semlex had its own printing facilities. Five days later, Karaziwan invited two members from Kabila’s inner circle, Moise Ekana Lushyma and Emmanuel Adrupiako, to Dubai to discuss a possible contact. By 13 November 2014, the price for the passports had risen to $120.

In the Comoros, presidential decrees and various documents have revealed that Semlex-supplied Comoros passports have been bought by foreigners. A parliamentary investigation into the sale of passports to foreigners found that more than 2,800 Comoros diplomatic passports have been issued since 2008 – in a country with a population of about 800,000. At least 184 of these passports were issued to non-Comorians.

Fiinally, in March 2015, Karaziwan was invited to Congo to finalise the proposal for the passport programme. In June of the same year, the final contract was signed by Karaziwan, the Congolese Finance Minister Henry Yay Mulang and the Congolese Foreign Minister Raymond Tshibanda. Semlex had agreed to invest $222 million into the project and the Congoloese government ageed to raise the price of the passport, charging its citizens $185 for every passport issued. (The steep rise is doubly shocking considering a rival proposal from another Belgian company called Zetes. Zetes outlined a plan and confirmed making an offer in 2014 to supply Congo with biometric passports that would cost $28.50 each.) From the revenue made from the passports, only $65 dollars would go to the Congolese government. The remaining $120 would be given to a group of companies that include, Semlex Europe in Brussels, Semlex World in the UAE, Semlex’s Lithuanian printer and a UAE entity called LRPS.

In a second agreement in June of the same year, the $120 was further divided up, with $12 from every passport sale going to Mantenga Contacto, a Kinshasa-based firm that would handle the projects “human resources issues, including supplying staff”. The three Semlex firms from the previous agreement were allotted $48 per passport issued, leaving out $60 of the money allotted to the consortium of companies going to LRPS, who would in return help with administration, logistics and relationship with the government.

Though LRPS was represented in the government talks by Karaziwan, it is currently owned by Makie Makolo Wangoi, according to a source familiar with the passport deal. A Bloomberg investigation into the business interests of the Congolese president and his family revealed that Wangoi was Joseph Kabila’s sister. Corporate records confirmed that she was a shareholder in several companies with other Kabila family members.

A Reuters investigation was unable to verify the status of LRPS, but its certificate of incorporation from Ras al Khaimah in the UAE revealed that it was established on 14 January 2015 just as Semlex was negotiating the passport deal with Kabila’s representatives. The certificate of incorporation does not reveal who owned the company when it was established, but a second document from that same year revealed that in late 2015, LRPS was owned by Cedric Fevre, a business associate of Karaziwan based in Dubai, who also ran Lica International Consulting, one of the firms implicated in the sale of Comoros passports to non-Comorians.

Though the computer-created document that revealed this information is unsigned, the metadata embedded in it shows that it was created in the UAE in 2015 and printed on 25 June of the same year. On that same day, Fevre transferred all 10,000 shares in LRPS to Wangoi, according to a source with direct knowledge of the deal. The only signed copies of the share transfer agreement are in the possession of Fevre and Wangoi, both of whom declined to respond to questioning from Reuters investigators.

A few weeks after the deal was signed, bank documents and emails revealed that two UAE-based companies made deposits of $700,000 to the private bank accounts of Emmanuel Addrupiako, one of the advisors that Kabila sent to the UAE to meet with Karaziwan during the initial talks for the passport deal. One of the companies that made the payments was called Berea International and the other was called Cedovane. The incumbency certificate for Berea revealed that the Semlex CEO, Karaziwan, was the director, secretary and sole shareholder of Berea. Another director of Berea was none other than Cedric Fevre, who is also a director of Cedovane.

The investigation in the Comoros followed a report published by Reuters in April of 2017 that revealed that Semlex was the same company responsible for issuing biometric passports in the impoverished Democratic Republic of Congo for the exorbitant price of $185 per passport, making the DRC passport among the most expensive passports in the world.

The payments were made through United Arab Bank (UAB). UAB documents show that on 29 July 2015, Cedovane paid $300,000 to a Royal Bank of Canada account held by Adrupiako in Quebec. The documents cite a “loan agreement.” Then, on 25 August, Berea International paid $400,000 to Adrupiako’s account with Jyske Bank in Denmark. According to bank emails and contact with Berea, Adrupiako told Jyske Bank that the money was to pay for a four-storey building that Berea was renting from him in Kinshasa. The transaction triggered concern in Copenhagen. Reuters visited the site of this four-storey building and found that it was still under construction and Berea had no visible presence there.

The passport contract in Congo runs for five years and does not specify how many passports will be produced, but in recent years DRC has issued nearly 2.5 million passports annually. Sources with direct knowledge of the Semlex-Congo deal said that on one occasion Semlex had claimed that it had produced 145,000 passports by the end of January 2017, earning LRPS nearly $9 million. A Reuters reviewed document then revealed that Semlex said it would be able to supply DRC with 2 million passports per year once everything was fully operational, a deal that would make LRPS $120 million a year.

Kabila was due to step down from DRC’s presidency in December 2016, but elections were postponed, and he retains power as tension, violence and calls for him to step down increase. Dozens were killed in violent clashes between protestors and police, and his domestic opponents assert that his authority has run out – though even if Kabila does step down, LRPS will continue to make money as Article 14 of the contract for the deal states that the agreement remains valid even if “institutional changes” occur within the country.

Other dodgy contracts

Karaziwan’s and Semlex’s exploits in Africa do not end with the Congo or Comoros. Early in 2017, the government of Mozambique terminated a 10-year contract with Semlex worth several hundreds of millions of dollars that had been awarded in 2009 by the previous government. According to sources close to Semlex, the deal was struck without an open tender, and the new government claims that only a fraction of the $100 million that Semlex had promised to spend on training, electronic scanners and other types of infrastructure was invested. The passports were going to cost citizens of Mozambique $80 each in a nation whose average income per capita was under $500 per year. Officials from the Mozambique Centre for Public Integrity (CIP) published a review of the contract in 2015 revealing that the state only collected 8% of the revenues from the ID documents produced between 2011 and 2014

In Guinea Bissau, Helder Tavares Proenca was listed as a Semlex agent in the country, according to Semlex documents reviewed by Reuters. In November 2005, Proenca became the defence minister and in early 2006 Semlex won contracts to supply the country with passports, visas, ID cards and foreign resident cards. Semlex documents revealed that Proenca was paid at least 80,000 euros between 2004 and 2009.

Proenca was assassinated in 2009, but in 2010, Semlex employees, including Karaziwan, discussed what percentage of revenue they would have to pay former and current Guinea Bissau officials to secure a further contract to provide the country with passports and identification cards for foreigners. A proposal was made to pay a commission of 20% of the price of a passport and 15% of the revenue that Semlex received for residence permits issued to foreigners. Karaziwan was asked to sign off on the offer on 24 January 2011 and the next day he replied, “You can confirm it.”

In Guinea Bissau, Helder Tavares Proenca was listed as a Semlex agent in the country, according to Semlex documents reviewed by Reuters. In November 2005, Proenca became the defence minister and in early 2006 Semlex won contracts to supply the country with passports, visas, ID cards and foreign resident cards. Semlex documents revealed that Proenca was paid at least 80,000 euros between 2004 and 2009.

However, the Guinea Bissau government says that Semlex did not win a further contract but other Semlex emails show staff describing certain payments as bribes. In November of 2010, Michele Bauters, the Semlex finance manager, requested an employee to detail how he had spent close to $80,000 euros provided for operations in Africa, to which he plainly replied that it had gone towards rent and utility bills while 10,000 euros had gone towards “pot de vin” (the French term for bribes). When asked about what had happened to half of the $10,000, he responded that it had gone to pay “a bribe that Albert Karaziwan made me pay recently”.

In Madagascar, there is evidence of Semlex benefitting disproportionately in comparison to the state in a deal that the two entities signed. Semlex extended an existing contract to provide passports to Madagascar in 2013, and more than doubled the amount charged. In the deal, citizens would pay 36.25 euros for a passport. Of this amount, 33.75 euros would go to Semlex, leaving the Madagascan state with only 2.5 euros for every passport issued. Previously, Semlex only received 15.50 euros for every passport issued. And not that producing these passports is restrictively expensive. An invoice from Imprimerie National, a French printing firm that provided Semlex with blank passports prior to Semlex setting up their own printing facilities in Lithuania, showed that Semlex paid between 1.75 and 2 euros per document for projects in Madagascar, Gabon and Comoros between 2007 and 2008.

Semlex appears again in Gambia in a much bigger way than the two instances mentioned above. While the country was ruled by the now deposed dictator Yahya Jammeh, an opaque deal was signed with Semlex to manage the provision of identity documents to Gambia. Gambia’s new president, Adama Barrow, seems to be pursuing widespread reformative policies, such as removing restrictions on free speech. However, leaked data, including contracts, emails and international correspondence from company and government insiders, have revealed that the new government is seeking to renew the contract with Semlex to provide identity documents to the country. The former interior minister under Jammeh, Ousman Sonko, had signed a 5-year contract with Semlex in June 2015 to provide biometric ID cards and border control systems for Gambia. Semlex would retain 70% of the profits from this deal with the rest going to the government. Overall the company was estimated to make $67 million over the course of the 5 years.

The deal was met with protests from several civil society organisations that believed that the contract would allow Semlex to gain control over the identities of Gambia’s citizens. According to critics of the said contract, its flaws touch a wide range of areas. For instance, a signed version of the contract obtained by the Organised Crime and Corruption Reporting Project (OCCRP) does not mention any form of government oversight. The contract prohibits government interference with any third parties that Semlex or its partners select to carry out the work and allows the firm to repatriate profits anywhere without limits on the timeframe or the amount. The contract further places no restrictions on Semlex’s role in collecting, storing, using or safeguarding citizens’ private data. It also does not spell out who is responsible for oversight or handling of identity cards and passports. It is not clear on who is considered a non-citizen or alien. Finally, the contract also stipulates that the deal will not be affected by any institutional changes: “The validity and continuity of this contact shall not be affected by any institutional change within Gambia.” This is almost like the contract signed by Semlex and the government of the Democratic Republic of Congo.

As a response to this backlash, the national assembly launched an inquiry into the arrangement, while the government issued a press release stating that while the Semlex contract would remain in place, it was under review.

Since the contract was signed in 2016, it has remained largely unimplemented. A local company called Pristine had been provided, without bids, two contracts from 2009 to 2020 to produce identification documents for the country and has continued to provide the documents. The owners of Pristine have told reporters that if they lose the contract to the more politically connected Semlex, they would be in a lot of debt, as the family that owns it has invested $4.3 million for the work required for the provision of the documents.

Jammeh, Gambia’s former ruler, confused matters further when he gave the firms Zetex (another Belgain company) and its local partner Africard the same deal that he had given Semlex. There has been no evidence that any work has been undertaken by these two companies.

In January 2017, Semlex was also granted a contract to provide voter cards to Gambia. This was again carried out with no apparent government oversight and critics of the contract fear that it might use its power over the voter cards to influence elections, as the company is dependent on the success of the regime for its own personal success.

The original Semlex deal in Gambia was orchestrated by Laurent Lamothe, the former Prime Minister of Haiti and the director of Global Voice Group, a US-based communications company. Lamothe began working with Semlex in early 2007. The two companies drafted contracts and agreed to create a local venture known as Semlex Gambia and a company named Biometric International Group to be run by Lamothe. According to one version of the contract, Biometric International would earn 20% of the joint venture revenues, which would be paid out as bonuses, though who the benefactor/s of these bonuses are remains unclear. In July of 2007, they sent an email with a formal submission to the Gambian government, though it is unclear whether Biometric International was involved at the time. In addition, no deal seems to have been finalised at the time.

In 2016, Jammeh’s office instructed that the deal with Semlex be cancelled in favour of a contract with Zetex and Africard. This led to conflicting claims over which company had the rights to the contract. It then emerged that none of the three companies – Semlex, Pristine or Zetex – had ever been subjected to Gambia’s public procurement process. The office of the president in Gambia is allowed to “exempt any procuring organisation from requiring the approval of the Authority with respect to any procurement in whole or part”. Such exemptions are legally required to be published in the official Gazette. The government, however, seems to be siding with Semlex. As mentioned above, it maintains that Semlex’s contract is valid though its terms require re-evaluation. Critics fear the re-evaluation of the contract will not be effective as the national assembly is only allocated 10 days to investigate and review the contract.

How do Semlex, Karaziwan and his consortium of associates manage to secure these deals up and down the African continent? An important player in helping them secure these connections is Zina Wazouna Ahmed Idriss (referred to as “Madame Idriss” in Semlex emails). She is an ex-wife or President Idriss Deby of Chad. An email written by the Semlex finance manager, as well as sources with knowledge of Semlex’s operations, described her role as acting as an intermediary to help Semlex win new business in Africa.

In 2007 and 2008, Semlex secured two deals worth $21 million euros to produce passports, visas and ID cards for Gabon. From 2008 to 2010, Madame Idriss received payments totalling 1.6 million euros from Semlex, according to a Semlex spreadsheet of costs related to her. The invoices described the payments as commissions for helping land business in Gabon. The payments were made in various forms, including money for hotels, ski lessons, dresses, flights, credit card payments and cash, according to a Semlex spreadsheet from 2011. Payments totaling 565,561 euros went towards a house that Madame Idriss became the owner of in the upmarket district of Waterloo in Brussels. The payment was listed as “Maison Waterloo”. An additional 9,000 euros went towards rent for an apartment in Monaco. Madame Idriss was nominated by the Comoros foreign ministry as an honorary consul of the Comoros to Monaco in July 2010, according to Comoros foreign ministry documents.

How do Semlex, Karaziwan and his consortium of associates manage to secure these deals up and down the African continent? An important player in helping them secure these connections is Zina Wazouna Ahmed Idriss (referred to as “Madame Idriss” in Semlex emails). She is an ex-wife or President Idriss Deby of Chad. An email written by the Semlex finance manager, as well as sources with knowledge of Semlex’s operations, described her role as acting as an intermediary to help Semlex win new business in Africa.

***

In May 2018, Comoros officials in Brussels raided the headquarters of Semlex following the Reuters report on the company’ dealings in the DRC. Francis Koning, a lawyer who represents Karaziwan and Semlex, claimed that unidentified third parties were manipulating Reuters with the aim of damaging the reputation of Karaziwan and his company. He said, “Semlex Europe has no role in the decision to issue passports. This is the sole prerogative of the Comoros authorities who are the only authorised representatives to do so.” He then added that Semlex “is neither responsible nor to blame for the actions or acts” that are alleged in the Comoros parliamentary report on the sale of passports, “supposing they even took place”.

This report has been compiled from a series of investigations carried out and published by Reuters.

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Tama Mule is an editorial intern at The Elephant and an undergraduate at McGill University.

Politics

Kibra: The Face of Kenyan Politics to Come?

4 min read. What does the Kibra by-election portend for the future of Kenya’s politics? Renowned photographer CARL ODERA captures the sights.

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“The most painful state of being is remembering the future, particularly the one you’ll never have.”― Søren Kierkegaard

Located about 6.6 kilometres from Nairobi city centre, Kibra is a sprawling informal settlement with an estimated population of about 200,000 people. Majority of Kibra residents live in extreme poverty. Unemployment rates are high, persons living with HIV/AIDS are many, and cases of assault and rape common. Clean water is scarce. Diseases caused by this lack of water are common. The majority living in the informal settlement lack access to basic services including electricity, running water, and medical care.

But this photo essay is not about the peddled quintessential cliché narrative depiction of Kibra as Africa’s biggest slum’ – itself a false assertion. Rather, Kibra has historically been Nairobi’s most vibrant political constituency; its residents often at the forefront of agitation for expansion of political space in Kenya; and, the most enthusiastic demonstrators at political meetings where the opposition is pitched against an apparently recalcitrant ruling elite. The Kibra by-election is also the political backyard of Raila Odinga, leader of the Orange Democratic Movement and the most enduring fixture in opposition leadership since the early 1990s. Currently, in an alliance with the President Uhuru Kenyatta, the Kibra by-election was occasioned by the death on the 26th of July 2019 of Ken Okoth, 41, the area’s dynamic, popular and highly effective MP.

*****

The demise of Ken Okoth left the seat open for a contest directly between Raila Odinga, whose family has dominated the area for decades and the Deputy President William S. Ruto who is determined to entrench himself as the only viable successor to Kenyatta who is currently serving his last constitutionally mandated term. As such the Kibra by-election of November 7 marked the unofficial commencement of the 2022 campaign season in Kenya with Ruto’s aggressive raid into Odinga’s ‘political bedroom’.

Deputy President William Ruto and Jubilee candidate McDonald Mariga in Kibra's DC Grounds on Sunday.

Deputy President William Ruto and Jubilee candidate McDonald Mariga in Kibra’s DC Grounds on Sunday.

ODM leader Raila Odinga with party flag-bearer Bernard Imran Okoth (left) sings the national anthem at a rally on Kiambere Road.

ODM leader Raila Odinga with party flag-bearer Bernard Imran Okoth (left) sings the national anthem at a rally on Kiambere Road.

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The by-election to fill the position left vacant following the death of the area MP, Okoth, attracted 24 candidates, ODM candidate Imran Okoth, Jubilee’s McDonald Mariga and Eliud Owalo of Amani National Congress, were the dominant players.

Endorsed football star McDonald Mariga

Endorsed football star McDonald Mariga

 Rally to drum up support for Imran Okoth, ODM's candidate for Kibra by-election.

Rally to drum up support for Imran Okoth, ODM’s candidate for Kibra by-election.

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Days to the parliamentary by-election there were reports of fracas between warring factions. Rowdy residents, for instance, kicked former Kakamega senator Boni Khawale out of Kibra upon his arrival in Laini Saba ward, claiming it was ODM’s bedroom.

Destruction of property was also reported.

Milly Achieng, a tailor-resident of Kibra told the Elephant that supporters of an opposing candidate recently went and attacked one of her friends and fellow party member and demolished her house. She was forced to flee Kibra with her children.

A family house demolished in a political violence encounter in Kibra.

A family house demolished in a political violence encounter in Kibra.

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The Kibra by-election received wide support from leaders across the political divide. Governors Charity Ngilu, Alfred Mutua, Kivutha Kibwana and Anne Waiguru joined Raila Odinga and the ODM party in drumming up support for its candidate, Imran Okoth. The leaders announced that this by-election was the beginning of a new political movement that would drum up support for the Building Bridges Initiative (BBI) and ultimately forge an alliance for the 2022 General Election.

Charity Ngilu campaigning in Kibra to get the vote for ODM candidate Imran Okoth within the Kamba community

Charity Ngilu campaigning in Kibra to get the vote for ODM candidate Imran Okoth within the Kamba community

Governor Waiguru at Joseph Kangethe Grounds in Kibra on Sunday the 3rd of November to drum up support for the ODM candidate

Governor Waiguru at Joseph Kangethe Grounds in Kibra on Sunday the 3rd of November to drum up support for the ODM candidate

Raila Odinga and Machakos Governor Alfred Mutua arriving for a rally organised to woo Kamba voters to rally behind ODM candidate for Kibra constituency.

Raila Odinga and Machakos Governor Alfred Mutua arriving for a rally organised to woo Kamba voters to rally behind ODM candidate for Kibra constituency.

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On November 7, 2019, the polling stations across the constituency were opened by 6 am to a smooth start of voting throughout the day amidst a reportedly low voter turnout. The voting stations were closed immediately after the voting exercise was concluded and voter tallying began thereafter. Residents stood in groups waiting for the results.

A man carries his disabled friend to a polling station in Kibra's Laini Saba.

A man carries his disabled friend to a polling station in Kibra’s Laini Saba.

ODM leader Raila Odinga at Old Kibera Primary school polling station to cast his vote.

ODM leader Raila Odinga at Old Kibera Primary school polling station to cast his vote.

An election official marks an indelible ink stain on Amani Congress Party's candidate Eliud Owalo at Old Kibera.

An election official marks an indelible ink stain on Amani Congress Party’s candidate Eliud Owalo at Old Kibera.

Amani Party Congress party leader Musalia Mudavadi (right) accompanies party candidate Eliud Owalo at Old Kibera Primary school to cast his vote.

Amani Party Congress party leader Musalia Mudavadi (right) accompanies party candidate Eliud Owalo at Old Kibera Primary school to cast his vote.

A man shows his finger marked with phosphorous ink after voting

A man shows his finger marked with phosphorous ink after voting

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As counting of votes for Kibra by-election continued on the night of November the 7, Jubilee candidate McDonald Mariga conceded defeat to Orange Democratic Movement (ODM) party aspirant Imran Okoth.

In a Twitter post, Mariga called Okoth and congratulated him for his victory and promised to work together after the elections.

According to the results announced by the Independent Electoral Boundaries Commission (IEBC) on Friday, November 8, Imran Okoth garnered 24,636 votes beating Mariga by over half the total number of counted votes standing at 11,230 votes. ANC’s Eliud Owalo was a distant third, managing to garner a paltry 5,275 votes out of the 41,984 votes cast.

A child in Kibra celebrating Imran Okoth’s victory

A child in Kibra celebrating Imran Okoth’s victory

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Though the Kibra by-election has been deemed a win for Raila Odinga and the handshake and a loss for Ruto and the “tanga tanga” movement, these political battles have yet to translate into tangible benefits for the ordinary mwananchi whom they purport to fight for.

Nancy Akinyi, a resident of Sarang’ombe Ward, Kibra constituency

Nancy Akinyi, a resident of Sarang’ombe Ward, Kibra constituency

Written by Joe Kobuthi

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The Diplomatic Gaffe That Could Sour Relations Between Kenya and Somalia

10 min read. Have Kenya’s close ties with its “Man in Somalia”, Ahmed Madobe, created a rift between Mogadishu and Nairobi? RASNA WARAH explores the precarious relationship between the two neighbouring countries.

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The Diplomatic Gaffe That Could Sour Relations Between Kenya and Somalia
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On Saturday 12 October 2019, a plane carrying a high-level Kenyan delegation arrived in the Somali port city of Kismaayo for the inauguration of Ahmed Madobe as the president of Jubaland, a Somali federal state that borders Kenya. The delegation included Aden Duale, the Majority Leader in Kenya’s National Assembly, and Member of Parliament Yusuf Hassan Abdi, among others.

The arrival of Duale and his entourage of mainly Kenyan Somalis in Kismaayo broke several diplomatic protocols. The delegation did not make a courtesy call to Somali president Mohammed Abdullahi Farmaajo in Mogadishu before embarking on their journey to Kismaayo, and was, therefore, perceived as snubbing a sitting head of state. The visit reignited fears in Somalia that Kenya is trying to assert its authority in Somalia through puppet regional leaders such as Madobe who do Kenya’s bidding.

The visit also contravened a directive by President Farmaajo that all international flights to Kismaayo should first pass through Mogadishu’s Aden Adde international airport for inspection. By ignoring the directive, Duale and his delegation not only spurned an ally and a neighbour, but deepened fissures between Somalia and Kenya, two countries that already have tense relations due to an ongoing Indian Ocean maritime boundary dispute.

Farah Maalim, the former Deputy Speaker in Kenya’s National Assembly, had warned that the visit could damage Kenya’s diplomatic relations with Somalia and with other countries in the region. He advised Kenya to cut its ties with Madobe in order to foster a healthier and more amicable relationship with the Federal Government of Somalia in Mogadishu and with President Farmaajo. (It should be noted that President Farmaajo did not support Madobe’s election in the Jubaland polls and had backed a candidate from his own Marehan clan for the state presidency.)

Kenya’s Man in Somalia

Sheikh Ahmed Mohamed Islam, better known by his nickname Madobe, is often viewed as “Kenya’s Man in Somalia” because of the critical role he and his Ras Kamboni militia played in helping the Kenya Defence Forces (KDF) to push out Al Shabaab from the port city of Kismaayo in September 2012. Yet, despite being viewed as an ally of Kenya in its war against terror, Madobe is a man who has himself been associated with terrorist activities and radical elements that wreaked havoc in Somalia after the fall of the Islamic Courts Union (ICU) in 2006.

It is common knowledge that Madobe was a high-ranking official of the militant Islamic group Hizbul Islam, which was formed in 2009 by Sheikh Hassan Dahir Aweys – who has been designated as an international terrorist by the United States – before he joined the Kenyan forces. Madobe was the governor of Kismaayo in 2006 during the short and ill-fated rule of the ICU, a militant coalition of clan-based entities, businesspeople and Muslim clerics who sought to bring about a semblance of governance in Somalia, but which was ousted by US-backed Ethiopian forces because it was perceived as an Islamic fundamentalist group that would bring about the “Talibanisation” of Somalia.

Sheikh Ahmed Mohamed Islam, better known by his nickname Madobe, is often viewed as “Kenya’s Man in Somalia” because of the critical role he and his Ras Kamboni militia played in helping the Kenya Defence Forces (KDF) to push out Al Shabaab from the port city of Kismaayo in September 2012.

Madobe later joined and then defected from Al Shabaab (formed after the collapse of the ICU), ostensibly after protesting against its brutal methods. He later formed the Ras Kamboni militia to fight his former allies and to regain control over the prized port of Kismaayo, which was under the control of Al Shabaab when his militia and the Kenyan forces entered Somalia. (This could have been his primary motive for collaborating with the Kenyans.)

In his book Dirty Wars: The World is a Battlefield, American journalist Jeremy Scahill says that Madobe’s change of heart vis-à-vis Al Shabaab came about after he spent two years in an Ethiopian prison after he was captured while fleeing Ethiopian and American forces when the ICU fell. He then became “one of the new generation of US-backed warlords drawn from the rubble of the Islamic Courts Union”.

Some observers believe that because he already knew the lay of the land, and had similar objectives as the Kenyan forces – to gain control of Kismaayo, Al Shabaab’s economic base – Madobe was identified (and probably presented himself) as a natural ally of the Kenyans. That he belongs to the Ogaden clan, which has for years sought to control southern Somalia – one of the most heterogenous regions of Somalia that is home to several clans and which is also politically dominant in north-eastern Kenya – could also have worked to his advantage.

In the early part of 2011, prior to joining forces with Madobe’s militia, the Kenyan government had plans to support Mohamed Abdi Mohamed Gandhi, the former Minister of Defence and an Ogaden from the Jubaland region, to administer a potential Jubaland regional authority called “Azania” (also known as the Jubaland Initiative). It is believed that Ethiopia – Kenya’s “big brother” when it comes to regional military matters – opposed the creation of the Azania “buffer zone” between Kenya and Somalia as it was viewed as an Ogaden-dominated Kenyan project. It is likely that, because of its propensity to support warlords in Somalia, the Ethiopian government encouraged Kenya to work with the battle-hardened Madobe, whom they trusted more than the suave and cultured anthropologist Gandhi, who did not command any militia in Jubaland.

In May 2013, less than a year after Kismaayo fell to KDF (then re-hatted as AMISOM) and his militia, Madobe declared himself president of the self-styled state of Jubaland, which was not recognised by the central government in Mogadishu. It is believed that the Federal Government of Somalia had been supporting a rival group headed by Barre Aden Shire, who declared himself president of Jubaland moments after Modobe did.

Despite an Ethiopia-brokered agreement in August of the same year that stipulated that Madobe’s “interim administration” should hand over the port of Kismaayo to the central administration in Mogadishu within six months, there have been no signs of a handover to date. Somalia’s fragile “federalism” project to create semi-autonomous states also seems to be suffering from a lack of clarity or direction. Meanwhile, eleven years after Kenyan boots entered Somalia, there seems to be no stabilisation plan for the region, nor any exit strategy for the Kenyan forces.

Clan politics and fears of secession

Some Somali analysts and conspiracy theorists believe that Kenya does not want to see a strong and stable Somalia because the latter would pose a threat to its own national political and economic interests. They say that Kenya seeks a weak – but friendly – Somalia because Kenya believes that a strong Somali state may revive aspirations for a “Greater Somalia” that would include the ethnic Somali-dominated Ogaden region in Ethiopia and the north-eastern region of Kenya.

The Somali analyst Afyare Abdi Elmi believes that both Kenya and Ethiopia have been manipulating Somalia’s political leadership and could actually be fuelling conflict in Somalia to maintain an upper hand in the country. In his book Understanding the Somalia Conflagration: Identity, Political Islam and Peacebuilding, published in 2010, he writes:

“Ethiopia, and to a lesser extent Kenya, have important stakes in either installing their own proxy government in Somalia or in perpetuating the Somali conflict for as long as they can. The strategies that Somalia’s hostile neighbours adopt differ. At a time when the world would not allow an opportunistic invasion, Ethiopia sent weapons and created warlords from different clans. After 9/11 Ethiopia and Kenya capitalised on the ‘war on terror’ and used it to their advantage. As such, Ethiopia invaded Somalia [in 2006] as part of a ‘war on terror’ campaign, albeit in pursuance of its own geographical interests. Kenya has also facilitated this invasion. This leads me to conclude that these countries are determined to block a viable and strong Somali state for as long as they can as their perception is based on a zero-sum understanding of power.”

However, Kenya’s and Somalia’s fears that ethnic Somalis within their territories pose a threat to national unity are not completely unfounded and have historical roots. In the 1960s, Somalia’s first president Aden Abdullah Osman supported secessionist movements in both Kenya and Ethiopia. Although the Somali government eventually entered into a truce with both countries and restored diplomatic relations, the 1969 coup d’etat revived ambitions of a Greater Somalia in President Siad Barre. In 1977, Barre initiated a war with Ethiopia in a bid to regain the Ogaden region. Memories of Barre’s attempts to take over the Ogaden in 1977 are still fresh in many Ethiopians’ minds

The Kenyan government, on the other hand, has been antagonistic and suspicious of its own ethnic Somali population ever since the people of Kenya’s Northern Frontier District voted for secession prior to independence in 1962. This resulted in the so-called Shifta wars that led to the militarisation and marginalisation of the region by the Jomo Kenyatta and successive regimes.

“Taming” the Somalis in Kenya’s north-eastern region has been one of the Kenyan government’s objectives since the Shifta wars of the 1960s that saw this region become a terror zone. “Collective punishments” of the region’s people by the government were common. Until devolution “mainstreamed” Kenya’s northern territories, the region had remained largely neglected and devoid of any meaningful development.

Some Somali analysts and conspiracy theorists believe that Kenya does not want to see a strong and stable Somalia because the latter would pose a threat to its own national political and economic interests. They say that Kenya seeks a weak – but friendly – Somalia because Kenya believes that a strong Somali state may revive aspirations for a “Greater Somalia”…

In its efforts to control the seemingly uncontrollable population, the Kenyan government relied on ethnic Somalis to carry out atrocities against their own people. For instance, the brutal operation known as the “Wagalla Massacre”, which resulted in the death of between 3,000 and 5,000 men in Wajir, was carried out under the watch of General Mohamud Mohamed, the army chief of staff in Daniel arap Moi’s administration, and his brother Hussein Maalim Mohamed, the minister of state in charge of internal security, both of who belonged to the Somali Ogaden clan that controlled politics in the then Northeastern Province. They were among a small group of Kenyan Somalis who were in positions of power in the Moi government. General Mohamed had played a key role in thwarting the August 1982 coup attempt, and had thus contributed to saving the Moi presidency.

It is believed that Moi appointed ethnic Somalis in important positions as they were considered “neutral” in terms of their ethnic affiliation, and could, therefore, be trusted to be loyal. Incorporating ethnic Somalis in his government was also probably a strategy to defuse any “Greater Somalia” sentiments Kenyan Somalis might harbour – a strategy that the Jubilee government has also adopted by appointing or nominating Kenyan Somalis in important government positions.

Many Kenyan Somalis believe that the Mohamed brothers used their influential positions to punish and evict members of rival clans from the then Northeastern Province. Others say that in his hallmark Machiavellian style, Moi used ethnic Somalis in his government to carry out atrocities against their own people – who could easily be divided along clan lines. While it is unlikely that these powerful brothers sanctioned mass killings, they probably played into the clan politics of the area.

Clan politics is also what probably drove Aden Duale and his delegation to make the visit to Kismaayo; Kenya’s north-eastern region is dominated by the Ogaden – Madobe’s and Duale’s clan. The visit symbolised Ogaden authority in Jubaland and in Kenya’s north-eastern region.

And so, because many federal states in Somalia are run like personal or clan-based fiefdoms, decisions made by Madobe could be construed to be at the behest of Kenya. By aligning himself with Madobe, Duale – and by extension, the Kenyan government – has affirmed that Kenya is not interested in a united, democratic Somalia, and that it is using proxies to achieve its objectives in this fragmented country. The visit to Kismaayo was also a slap in the face of the Federal Government of Somalia in Mogadishu, which is now likely to have an even more antagonistic attitude towards Kenya.

Clan politics is also what probably drove Aden Duale and his delegation to make the visit to Kismaayo. Kenya’s north-eastern region is dominated by the Ogaden – Madobe’s and Duale’s clan. The visit symbolised Ogaden authority in Jubaland and in Kenya’s north-eastern region.

Although many question the legitimacy of the government in Mogadishu – which is propped up mostly by the international community, mainly Western and Arab donors – the deliberate disregard for its authority by the Kenyan delegation is bound to deepen fissures between Kenya and Somalia, which could have an impact on how the Somali government views the presence of Kenyan soldiers on its soil. The Somali government, although relying heavily on AMISOM for security, has recently been making calls to strengthen Somalia’s national army to replace AMISOM.

The Al Shabaab factor

It must be noted, however, that Somalia and Kenya enjoyed “live and let live” relations until the latter’s incursion into Somalia in October 2011, which muddied the waters and painted Kenya as an aggressor nation in the eyes of many Somalis, not least Al Shabaab, which then made Kenya a target for its terrorist activities. Up until then – hosting the largest Somali refugee population – Kenya was viewed as a generous neighbour that came to the aid of people fleeing conflict. The decision to undertake a military intervention in Somalia was probably one of the biggest blunders of the Mwai Kibaki administration.

But even if Kenya’s intention is to create a safe buffer zone between Kenya and Somalia, the fact remains that apart from controlling the city of Kismaayo and its immediate environs, Madobe has little control over the rest of Jubaland state where Al Shabaab is still very much in control. There have been reports of his administration and KDF making deals with Al Shabaab to gain access to the territories that the terrorist organisation controls. Some of these deals are said to involve the smuggling of contraband into Kenya, as has been reported severally by the United Nations Monitoring Group on Somalia and Eritrea.

It must be noted, however, that Somalia and Kenya enjoyed “live and let live” relations until the latter’s incursion into Somalia in October 2011, which muddied the waters and painted Kenya as an aggressor nation in the eyes of many Somalis, not least Al Shabaab, which then made Kenya a target for its terrorist activities.

The reality in Jubaland and in much of the rest of Somalia is that the majority of the people have not experienced the benefits of a strong central or state government for more than 20 years. The concept of a government has remained a mirage for most residents living outside Mogadishu, especially in remote areas where the only system of governance is customary law or the Sharia. In fact, it has been argued that, with its strict codes and its hold over populations through systems of “tax collection” or “protection fees” combined with service delivery, Al Shabaab offers a semblance of governance in the regions that it controls.

Where AMISOM forces have liberated regions from the clutches of Al Shabaab, they have essentially left behind a power vacuum which neither the Federal Government of Somalia nor the emerging regional administrations can fill. This has rendered these regions more prone to clan-based conflicts, already apparent in Jubaland, where some members of the marginalised Bantu/Wagosha minority group have taken up arms in response to what they perceive to be a form of “ethnic cleansing” by both Al Shabaab and the new Ogaden-dominated administration of Ahmed Madobe.

All these developments do not augur well for peace-building efforts in the Horn, which have been made more precarious by Kenya’s relations with Madobe, who is not likely to cooperate with Mogadishu or cede control of a state characterised by clan-based feuds over resources.

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#FeesMustFall: Is the Makerere University Strike a Response to State Capture?

9 min read. Student protests in Uganda have highlighted a crisis in higher education and exposed the dark underbelly of a state struggling for legitimacy.

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#FeesMustFall: Is the Makerere University Strike a Response to State Capture?
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During the current lull in strike activity at Makerere University, it is possible to examine the root causes of sporadic strike action on the campus, both by staff and students. The strike was a student protest under the banner #FeesMustFall and was triggered by the proposed 15 per cent annual increase in fees for privately sponsored students (more than half of the student body).

It has been a tense two weeks, with the strike leader, one Siperia Saasirabo, reportedly abducted and held for a number of days, and the Guild President Julius Kateregga disappearing en route from an appearance on a morning television chat show and an extraordinary general meeting of the Guild. Both were reportedly dumped in public places, Kateregga with alleged soft tissue injuries.

An opposition MP told Parliament he was being held in a “safe house” run by the Special Forces Command (SFC) while the minister for higher education stated that he had information that Kateregga was merely taking time out from the pressure he had been undergoing. Kateregga says he made that statement at gunpoint.

The Budget Monitoring and Accountability Unit (BMAU) at the Ministry of Finance summarised the problem at Makerere and other government universities: there simply isn’t enough money to run them. Apart from Makerere and Kyambogo universities, the Government of Uganda has established six other public universities and two degree-awarding institutions. Three came into existence as recently as 2016/17. The major source of funding is tuition fees followed by government/public funding – which includes tuition fees, external grants and internally generated funding. The cost of funding public universities leapt from Shs.167.94 billion ($45,215,553.00) in FY 2012/13 to Shs.606.09 billion ($163,220,340.00) in FY 2017/18. The Ministry of Finance is unequivocal in stating that the government is unable to provide for all the financial needs of public universities and that funds are insufficient to produce “good outputs”. In fact for the last five years, cash releases from the Treasury have been below budget (BMAU Policy Briefing Paper (24/18, 2018).

It is, therefore, safe to conclude that private students subsidise government-sponsored students. This may not have been a problem in principle or in practice if the economy was such that they could afford it. The fact is that most courses charge close to half of Uganda’s income per capita of about $800 or Shs.2,971,608. Assuming parents have more than one child, payment for university education is out of reach for the majority.

The Budget Monitoring and Accountability Unit (BMAU) at the Ministry of Finance summarised the problem at Makerere and other government universities: there simply isn’t enough money to run them.

The major casualties of this are the quality of outcomes, staff development, and research. Because 59 per cent of Makerere’s budget goes towards payroll, and 11 per cent each on student costs and material supplies, less than 2 per cent is available for staff development. Research, a core function of the institution, is allocated under 1 per cent of the government budget (as distinct from external funding). Student welfare allowances can hardly compete and have been stagnant for over two decades. Research received Shs.30 billion ($8,079,015.00) against the expected Shs.50 billion ($13,465,025.00) in 2018/19. As a solution, the BMAU recommends diversification of income streams to reduce over-reliance on tuition fees. In the interim, financial brinksmanship has been the order of the day.

There are 20,091 government-sponsored students at Makerere of whom just over 4,000 are accommodated off-campus. An allowance of Shs.432,750 ($117) a semester was budgeted for each student to cater for their subsistence. The 2019/2020 allowances budget was reduced in order to rehabilitate the dental school whose dilapidated state and consequent interruption of admission of dentistry students made the news in 2017. According to The Observer of 17 July 2019, “285 million was diverted from the allowances vote and allocated to the Dental School. Another Shs.1.8 billion was allocated towards equipping the university library, while Shs.1.5 billion was allocated to the renovation of toilets in the halls of residence.” This was done in compliance with Parliament’s education and social services committee recommendations communicated on 18 June 2019.

During the current strike, there have been calls for Makerere to be managed by people with business skills as opposed to vice-chancellors elected from amongst academics. There is some merit in this argument; Makerere’s history of financial management does not inspire confidence. In 2016 the Auditor General qualified the university’s audit report, citing a number of significant anomalies that suggested sleight of hand in hiding income, debt, and payroll fraud. The report cited the following irregularities:

  • The budget itself was undermined by the fact that Shs.317,227,405 ($85,429.00) was charged against incorrect expenditure codes thereby misstating the balances in the financial statements.
  • Staff advances for various activities amounting to Shs.882,316,616 ($237,608.00) were not accounted for. “There is uncertainty as to whether the amount in question was properly utilised for the intended purposes.”
  • Revenues received from grants and investments were under-reported. Only revenue from 79 out of a total of 182 active grants was disclosed in the financial statements. The university administration also claimed it did not obtain any revenue from investments during the year under review. However its annual report for 2015 puts the cost of running projects from grants at US$50,000,000 in the year 2015. It also says that the university initiated an endowment fund in 2014 called the Makerere University Endowment Fund, whose investment activities and revenues to date have not been disclosed in the financial statements.
  • Fourteen retired members of staff were kept on the payroll, costing Shs.386,790 while overpayments to other staff cost a further Shs.172,560,
  • 2,494,991,040 ($671,902.00) in revenue was collected from short courses although this amount was not declared in the financial statements.
  • Revenue from tuition and functional fees was similarly misstated; the cash book showed 86,816,793,066 ($23,435,802) while the financial statements reported a figure of Shs.87,946,425,729 ($23,740,741.00). The Auditor-General stated: “I was not provided with a satisfactory explanation regarding this discrepancy. Under the circumstances, I am unable to establish the accuracy of the revenue reflected in the financial statements.”
  • Emphasis was placed on the under-statement of outstanding obligations. Out of 119,664,797,892 ($32,225,789.00) owed by Makerere by close of the financial year, “only Shs.47,167,283,674 ($12,702,173.00) was recognised in its Statement of Financial position and Statement of Outstanding Commitments, while the remaining Shs. 72,497,514,218 ($19,523,616.00) is only mentioned/disclosed in additional notes.”

The patronage economy

What is missing from the solutions proposed for Makerere by BMAU, such as the diversification of income and rationalisation of courses offered, is the elimination of waste. In addition to reducing waste and financial loss caused by sheer lack of capacity to run the business end of the university, the government needs urgently to address other areas of waste.

Shs.69 billion was lost to systemic waste across all spending entities in 2017/18. Some of the means by which this was achieved are examined here. Structurally, the ballooning number of administrative units – 134 districts and rising from the initial 29 in 1997 – is a huge drain on resources that doesn’t necessarily increase effectiveness (this writer has dealt elsewhere with the phenomenon of districts being unable to utilise funds for lack of skilled manpower). Each new district is entitled to three members of parliament, one a woman and one a youth. District leaders are elected but the president appoints a Resident District Commissioner (RDC) to each. The RDC wage bill is Shs. 15.8 billion ($4,259,292.00), 30 per cent more than Makerere’s annual development budget.

Similarly, ministries, departments and agencies (MDA) increase in number as service delivery becomes ever more inadequate. In 2016, 34 per cent of local governments were found to lack critical staff such as doctors. 116 were understaffed by up to 40 per cent. That year the most affected by understaffing were said to be public universities.

During the current strike, there have been calls for Makerere to be managed by people with business skills as opposed to vice-chancellors elected from amongst academics. There is some merit in this argument; Makerere’s history of financial management does not inspire confidence.

In order to lower the cost of public administration, a major restructuring was agreed by Cabinet in September 2018. Only four agencies (Kampala Capital City Authority, the Uganda Bureau of Statistics, Uganda National Bureau of Standards, and Uganda Communications Commission) and the National Medical Stores were either to be retained and the functions of the rest returned to their parent ministries or to be merged or disbanded. Over one-third of the government payroll is absorbed by the 10,000 employees of agencies, which have tended to duplicate work and serve mainly as sinecures for party apparatchiks. This would have freed up funds currently used for the higher salaries paid to agency executives as well as their pensions and gratuities. Since the announcement a year ago, there has not been a single closure; implementation modalities were reportedly still under review by August 2019. Furthermore, there are more agencies in the pipeline (i.e. the Skills Development Authority and Sector Skills Councils slated for 2021).

The lack of political will to conserve scarce resources is evident in other areas, as a recent review of the cost of political appointees by the Daily Monitor shows. There are now 170 presidential advisors – up from four in the 1990s – whose annual wage bill is Shs.29 billion ($7,817,689.00), with an additional Shs.24 billion ($6,469,812.00) for their ministerial vehicles (without fuel, drivers and guards). Again, the total exceeds Makerere’s research budget. The most recent appointees are musicians appointed to advise on Ghetto and Kampala Affairs. They join the relatively new Ministry for Kampala and the new position of Executive Director of Kampala Capital City Authority, both seen locally as political appointments.


Further savings could have been made by eliminating the Shs.30 billion spent every year on flying dignitaries abroad for medical treatment but they have been cancelled out by the inept procurement of a domestic specialised hospital that has left the country in debt.

The State House scholarships scheme could yield further savings. Under this scheme, students whose primary and/or secondary education has been paid for by the State are often sent overseas for post-graduate studies. Elections expense for the incumbent are another diversion of funds from productive expenditure. As with elections before them, the 2021 polls are being preceded by huge billboards, vinyl banners, cash and other handouts, such as Shs.80 billion ($21,544,040.00) worth of hoes for distribution – all paid for from the public purse. (Ugandan farmers clamour for much – seeds, fertilisers, herbicides, irrigation, information, advice, post-harvest technologies, feeder roads and access to markets – but there has been no shortage of hoes since the post-war period.)

The lack of political will to conserve scarce resources is evident in other areas, as a recent review of the cost of political appointees by the Daily Monitor shows. There are now 170 presidential advisors – up from four in the 1990s – whose annual wage bill is Shs.29 billion ($7,817,689.00)…

The unrest at Makerere is the fruit of the wider patronage economy and its untenable strictures. Public financial mismanagement and fraud lead to unforeseen and unnecessary austerity being visited on various sections of the community, including hospital patients, primary school children, farmers, road users etc. University students are in the best position to highlight this systemic injustice because unlike the general population at the receiving end of governance deficits, they are a homogenous group able to agree on a way forward, and the best equipped to analyse the issues. Striking Makerereans speak for all Ugandans.

State brutality

As is the norm, what began as a peaceful demonstration with perhaps a dozen women carrying placards immediately attracted the full retribution of the Uganda People’s Defence Forces, which had been camping on campus since late 2018 when the People Power movement gained national prominence. True to form, the method of work is to instill terror by attacking not only striking students but also firing tear gas canisters into the closed windows of halls of residence and hostels. There were night raids in which students were dragged out of their rooms, brutalised and their property vandalised. The partially sighted and deaf were not spared and their press conference was stopped by the Uganda Police, a de facto division of the army.

Initial reports on the night of 22nd October were from citizen journalists. The professional media was largely absent (which is understandable given recent threats of shut-downs to those covering “opposition” activities). Of those journalists that did attend, at least three have been hospitalised with injuries and a similar number have been arrested.

The most valiant efforts of government sympathisers to demoralise the students on chat shows and social media by branding them drug abusers were unable to stigmatise the students as “entitled” young people making a nuisance of themselves. Also new, a journalist accused of biased reporting (not for the first time) was heckled off campus by irate students.

The Uganda Journalist’s Association is boycotting all police pressers and other events, this time asking media house heads to join them, a major development in protest. Still, the repeated night raids amply demonstrated the extremes to which Uganda’s kleptocracy is willing to go to preserve itself. Student leaders continue to be suspended as they are identified. The police is visible everywhere on campus and Lumumba Hall was completely sealed off at the time of writing. The army is to be replaced on campus by 2,000 police officers.

If the military was predictable so was the president, his ministers and the diplomatic corps to whom Ugandans appeal during spates of state brutality. After the usual interval of a few days, the United States ambassador played her customary role, publicly expressing concern for the affront to freedoms of assembly, speech and expression guaranteed by Uganda’s constitution. After a further few days during which the public was fully appraised of his impunity, President Yoweri Museveni, the Commander-in-Chief, withdrew the army from the university, stating that he was unaware they were camped there (for a year) in the first place. He faulted the military approach to addressing the issue, saying the young people only needed guidance.

Initial reports on the night of 22nd October were from citizen journalists. The professional media was largely absent (which is understandable given recent threats of shut-downs to those covering “opposition” activities). Of those journalists that did attend, at least three have been hospitalised with injuries and a similar number have been arrested.

France’s ambassador remained focused on cementing relations with Gen. Kainerugaba, the president’s son who is responsible for the SFC, safe houses, #Arua33 and other atrocities. He hosted him at his residence at the height of the troubles. A French company is in negotiations for an oil concession. The European Union and other European members of the diplomatic corps then weighed in, saying much the same as the Americans, only to be contradicted hours later by the Minister for Security, General Tumwine, who advised students that strikers would be beaten and to ignore statements to the contrary.

The latest developments are that Gulu University’s peaceful march in solidarity with Makerere was intercepted by police and four students were arrested for the public order offences of illegal assembly and incitement to violence.

The Minister of Education and First Lady has not appeared before Parliament to make a statement on the unrest. Instead she wrote a long letter to “the children who call me Mama by choice” in which she compared Makerere’s fees with the higher fees charged by a private university. She then claimed that the strikers were mainly non-students hired to riot: “Next time you are tempted to point a finger at corrupt people, if you are guilty of any of the above, know that you too are corrupt; begin with yourself.” The minister finished with an elaborate exegesis of the Scriptures on the origin of authority and why we must submit to it.

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