Connect with us

Politics

Religious Charlatans and Why Christians Fall for Them

12 min read.

In a continent with crippled medical facilities, claims of divine healing and miracles by duplicitous evangelical/Pentecostal ministers have abounded, with disastrous effects. These fake pastors take advantage of the broken healthcare system and the helplessness of poor people to enrich themselves and to project a God-like image.

Published

on

Religious Charlatans and Why Christians Fall for Them
Download PDFPrint Article

The country has just gone through a population census conducted by the Kenya National Bureau of Statistics (KNBS) that was conducted in the last week of August 2019. The results of that census are yet to be analysed, but in 2009, the census found that more than 80 per cent of Kenyans identified themselves as Christians. The same proportion of Kenyans also indicated that faith was a central cog in their everyday life, that faith and prayers, not only ruled their daily lives, but also influenced their decisions and shaped their moral values.

In Kenya, as indeed is the case elsewhere in Africa, religious leaders enjoy high levels of public trust and respect, more than politicians, government bureaucrats, judges, magistrates, and even corporate leaders. This is not the case in the developed countries of the West especially (except in America) where religion is considered a private affair.

In the 1970s, through to the 1980s, till the beginning of this millennium, a crop of religious leaders in Kenya identified themselves as the “conscience of the nation” and the “moral voice of the voiceless”. They were regarded by the public as the “epitome of integrity”. Dubbed as “firebrands”, religious leaders, such as Bishop John Henry Okullu, at one time the provost of All Saints Cathedral in Nairobi, Bishop Alexander Muge, the soldier-turned-cleric, Archbishop David Gitari, all from the Anglican Church, plus Timothy Njoya of the Presbyterian Church of East Africa (PCEA) and Archbishop Ndingi Mwana ‘a Zeki of the Catholic Church, who served for long as the archbishop in Nakuru diocese, not only spoke truth to power, but also held to account former dictator President Daniel arap Moi and the ruling Kanu party hawks.

These architects of social justice condemned rampant institutional state corruption, abuse of human rights, the instigators of ethnic land clashes and faced Moi and Kanu’s monolithic one-party rule head-on, without fear. The constant harassment and death of some of these icons of democracy and pillars of social justice coincided with the explosion of evangelical/Pentecostal Christianity in the country. This type of Christianity prides itself in the democratisation of charisma, in which any charlatan, without any theological education or training whatsoever, simply emerges, starts a one-man church, ordains himself and thereafter, creates a business empire run solely by his family members.

This calibre of evangelical/Pentecostal leaders usually frown upon theological training and are impervious to any institutional systems of control because they would like to remain accountable only to themselves. This is not to state that there is indeed evangelical/Pentecostal clergy that is composed of men and women of integrity.

Social scientists theorise that this kind of behaviour by some of these religious charlatans is encouraged by the moral decadence of the political class and a corrupt state. The Kenyan state, as currently constituted, is characterised by wanton corruption, theft of public coffers, exclusion of minorities and certain regions of the country, rampant tribalism in the government, all of which have impoverished the masses and left them extremely vulnerable to these religious charlatans who have spawned a multi-million shilling industry.

Kenyan politicians are some of the highest paid public servants in the world, whose sole concern, it seems, is self-aggrandisement and primitive accumulation of riches. It is no wonder that religious leaders seem to gain trust in situations where the population is highly susceptible to political and socio-economic vulnerabilities. This, today, is the stark reality of many Kenyans. Unemployment is rife among the youth, the healthcare facilities across the country are wanting and cancer, among other life-threatening diseases, are claiming scores of Kenyans, while the government has yet to come up with effective policies that can mitigate these problems.

In situations like this, people become desperate and look to supernatural powers to find meaning and solace, hoping for divine answers to their pain and frustrations. Research in the global South points to similar scenarios, especially in Latin America where evangelical creed has been spreading like the Amazon forest fires that have been wreaking havoc in Brazil and Bolivia in the past several weeks.

SAPs and the proliferation of Pentecostal Christianity

The infamous structural adjustments programmes (SAPs) of the late 1970s and 1980s led to the collapse of social infrastructure, particularly in the education and health sectors, which put tremendous strain on public service delivery. The impact of SAPs was felt across the African continent. It also, in a manner of speaking, heralded the proliferation of evangelical/Pentecostal and charismatic churches that many politico-economy observers have directly linked to the SAPs crisis. Impoverished by the debilitating effects of SAPs, many Kenyans and Africans in general turned to the deliverance and faith healing ministries to cater for their daily existential problems and to dull their socio-economic sufferings.

Kenyan politicians are some of the highest paid public servants in the world, whose sole concern, it seems, is self-aggrandisement and primitive accumulation of riches. It is no wonder that religious leaders seem to gain trust in situations where the population is highly susceptible to political and socio-economic vulnerabilities.

Since then, Pentecostalism has become a thriving business and the shortest route to wealth accumulation and influence in a continent teeming with a population explosion, environmental degradation, climate change, ethnic conflicts and internecine wars, disease, massive unemployment and grinding poverty.

Evangelical pastors turned to employing all manner of tricks and techniques to exhort money from their gullible flock. They built costly magnificent churches, bought luxurious cars and houses, and generally continue to live opulent lives while their church members languish and wallow in grim poverty, misery and squalor.

The pastors tell the faithful to give money to God so that God can bless them in return. They dupe the flock by telling them that divine favours come to those who pay their tithes and offerings regularly. Often, they use the biblical injunctions such as “givers never lack” to squeeze money out of people. Pentecostal pastors also claim to have healing powers that can make the deaf hear, the blind see and the lame walk. Self-styled archbishop Gilbert Deya (of the babies’ disappearance scam saga) has been one such pastor.

In a continent with crippled medical facilities, often plagued by lack of medicine and medical equipment, claims of divine healing and miracles by some of the duplicitous evangelical/Pentecostal ministers have abounded, with disastrous effects. These pastors have always preyed on the impoverished masses that cannot afford proper medical care. They take advantage of the broken healthcare system and the helplessness of poor people. They offer ineffective prayers and supposed healing crusades to enrich themselves. The healthcare crisis in Africa has bred desperation and fomented the desire for miracles, faith healing and deliverance sessions in the hope of getting cured.

At prayer healing services in some Pentecostal churches, pastors invite people infected with HIV/AIDS to the pulpit for public healing prayers. After the dramatic prayers, the infected people are asked to throw away their antiretroviral medications and consider themselves healed.

The presumed healing prayers of the pastors are not free, and many desperate people spend a fortune paying for those prayers. These prayers continue to be administered, even as the believers’ conditions worsen and some eventually die. Desperation, stigma, family rejection and fear of witchcraft drives people into a never-ending search for miracles and cure from healing crusades and prayer rallies.

Moral failure of leadership

The growing rise of political influence and power among the Pentecostals has made them almost untouchable. Many have weaved their way into politics, becoming political influencers who shape debates and drive policy. Hence, anybody critical of the Pentecostal pastors is faced with their wrath, resistance, and condemnation from their enthusiastic members who are in government and politics.

When the former Attorney General Prof Githu Mugai published a proposed regulatory framework to control rogue clergy and religious organisations in Kenya, certain politicians, both from the ruling Jubilee party and the opposition, claimed that the government wanted to muzzle freedom of worship. The Religious Societies Rule published by the Attorney General Office in 2016 required, among other things, religious bodies to have a constitution that explicitly showed their doctrinal belief. It also required these bodies to be registered by the government, to be open to scrutiny, and above all, that pastors to have as a minimum a theology certificate from a credible and recognised institution of higher learning. Yet, the truth of the matter is that many Kenyans are still opposed and reluctant to see religious bodies regulated by the government, their public outcry about the pastors’ waywardness notwithstanding.

At prayer healing services in some Pentecostal churches, pastors invite people infected with HIV/AIDS to the pulpit for public healing prayers. After the dramatic prayers, the infected people are asked to throw away their antiretroviral medications and consider themselves healed.

The question of the day then has always been: are our Christians that gullible or are they just desperate? There is no doubt that many Christians are searching for a moral vocabulary when grappling with social and economic hard times. This is what makes them gullible. For many, church is a space to be in community with one another – a space for healing – both emotional and physically. It is a space for spiritual fellowship, for easing pain and negotiating identities and relationships. Peoples’ involvement in these type of churches cannot be exactly pinned on any particular issues. Instead, it is a function of a complexity of issues that are not just spiritual, but that are also personal and communal. During times of crisis, people turn to the church to be in community.

In many parts of Africa, the majority of the people are perpetually living in moments of one crisis after another. They feel lost, alone and in need of moral guidance. They look up to their clergy to provide a moral universe and leadership and space for healing. Indubitably, some rogue clergy have taken advantage of this perilous situation to speak the language that the gullible Christian wants to hear.

It is a challenge that many African governments grapple with every day. In 2004, the Nigerian Broadcasting Commission (NBC) banned the broadcasting of “miracles” on national television. Faith healing happens to be the greatest threat to scientific medical advancement and healthcare delivery in Africa. President Paul Kagame of Rwanda deregistered nearly 8,000 churches and demanded that the clergy get theological education before they open a church.

The greatest threat of Pentecostalism is its unregulated clergy and the moral failure of its leadership. Although other Christian denominations also suffer from this moral crisis, Pentecostalism seems to have been affected the most. Deeply embedded within the Pentecostalism’s ethos is a personality cult. Evangelical charismatic leaders are often virtually worshipped by many of their followers. Averse to proper theological education, they instead claim to have the power of the Holy Spirit as their sole teacher. Oftentimes, supported by their fanatical followers, these leaders, become small gods who cannot be questioned. In a “Christian” country like Kenya, these type of church leaders become very powerful and attractive to influential political elites.

In 2004, the Nigerian Broadcasting Commission (NBC) banned the broadcasting of “miracles” on national television. Faith healing happens to be the greatest threat to scientific medical advancement and healthcare delivery in Africa.

It is this power and godlike behaviour that leads many of the Pentecostal pastors to deal with the churches’ coffers as their personal money and church properties as their family business. While there are Pentecostal churches, such as Christ Is The Answer Ministries (CITAM), that have instituted structures and policies to handle cases of financial and pastoral misconduct, ineptitude and impropriety, many of these “personalised” evangelical churches find it hard to work within systems.

In Kenya, evangelical/Pentecostal and charismatic churches are under the Evangelical Alliance of Kenya (EAK), but it is not clear whether they have a system of checks and balances to regulate their churches. To the best of my knowledge, there is no body that regulates the so-called independent churches in Kenya and their ministers. A favourite Bible verse favoured by these pastors that says, “touch not my anointed” (Psalms 105:15) is always flashed by these ministers to fend off and stifle criticism of any kind.

Pastors Kanyari and Ng’ang’a are a power unto themselves. Many well-meaning Christians have decried such rogue religious leaders in Kenya, prompting observers to ask if religion is indeed the bane of Kenyan society. This is because of their recklessness, waywardness, lack of moral rectitude and their nefarious activities, not to mention the source of their wealth, which they always flaunt with abandon.

Kenya and Nigeria, comprise some of the most highly religious societies in Africa, but they are at the same time two of the most corrupt countries in Africa, if not in the world, according to Transparency International (TI)’s Corruption Perceptions Index. Since it was launched in 1995, Kenya has always been ranked in the bottom half of the countries surveyed – a paradox but one that we have to contend with.

The same is the case with South Africa, Uganda and Zimbabwe. An authentic church leadership has been always critical in fighting political and socio-economic ills in society. Yet, once it is co-opted by the state, it ceases to identify itself with the people and their societal struggles and finds itself silent in the face of wanton corruption perpetrated by the state’s aficionados.

The making of cult leaders

Ever since he burst into the public limelight in 2004, Prophet Owuor of the Repentance and Holiness ministry travels like the President of Kenya, his “presidential-like” motorcade complete with sirens, chase cars and top-of-the-range fuel guzzlers. Meanwhile, his fanatical followers clean the roads he is passing on with soap and detergent. Never mind that his members have never engaged in a public drive to clean the environment, even as a religious corporate responsibility.

In fact, Owuor’s rallies leave heaps of garbage at crusade venues, where tree branches are cut in celebration of purported miracles performed by the “Lord of the mightiest…mightiest of prophets,” of Yehovah, as Owuor is referred to by his followers. He is always received on a red carpet and his podium is decorated like that of a president, complete with a “presidential chair” called the “Lord’s Chair” that is always carried around wherever he goes. Prophet Owuor is clearly a man obsessed with temporal powers, even as he apparently flaunts his supposedly spiritual powers.

Ever since he burst into the public limelight in 2004, Prophet Owuor of the Repentance and Holiness ministry travels like the President of Kenya, his “presidential-like” motorcade complete with sirens, chase cars and top-of-the-range fuel guzzlers.

His retinue of security people (some of whom are believed to be from the disciplined forces) provide him with state-like security. A body count of his security detail revealed up to 24 armed men. Prophet Owuor’s religious high-handedness has led observers to wonder about the “securitisation of religion” and “religionisation of the state” in Kenya. His motorcade often causes a stir as ordinary motorists are forced off the road to make room for Kenya’s spiritual president.

The reasons for such overt displays of extravagance, opulence and power by these religious charlatans are ostensibly to pump up their egos and prove to ordinary mortals that they are extraordinary. This show of imagined “spiritual” power is obviously manufactured by people suffering from megalomania and a false sense of deep personal importance and self-love that implicitly suggests that they would like to be treated as demigods.

The tragedy of this crude display of raw power and ostentatious wealth is that it is all derived from manipulation, and very often through excessive and unsustainable debt. Followers who question the profligate lifestyle of Prophet Owuor have been known to be intimated and threatened with the curse of catching terminal ailments such as cancer and being involved in freak fatal car accidents.

The other cultish manifestation is the tendency towards the supernatural and the spectacular. The signs and wonders of “miracles” include healing, raising people from the dead, prophesying, and sharing of visions. Never mind that the majority of these miracles are frequently stage-managed using actors and actresses, psychological tools or modern technologies. Owuor has often circulated tens of images of him being transfigured, doubled and tripled. Similarly, he has circulated images of the sun clapping at him, the glory shining on him and other such theatrics. All these serve to attract and keep his members intact, and to maintain the hierarchical power structure. There is no mistaking that Owuor considers himself as the only “true” prophet.

His ministry was recently been embroiled in a sex scandal, in which his most trusted lieutenant and right-hand man was accused by several church women of cunningly sleeping with them. The women described Owuor’s acolyte and bishop of Kasarani area as a deceitful man who lured female worshippers to his house in Nairobi, oftentimes in the ungodly dark hours, to have carnal knowledge with them. The excuse he would use to entrap them was always prayers to cast out the demons that were hiding in their bodies. Why those demons needed to be chased away in the dead of the night and when the women were completely nude, only the bishop can explain. Until, the exposé in the last week of August 2019, the issue of sex pests within Owuor’s closely-knit inner circle was the worst kept secret.

The adoration and veneration of these so-called “men of God” is another distinguishing characteristic of cultism. The “Apostle,” “prophet” and “messiah”, is imaged as the chosen one, God’s messenger, the dispenser of blessings and curses, grace, health and even wealth. In the case of Owuor, he is the beholder of the golden keys to heaven, and he alone has the powers to bless people to eternity or lock them out completely. These spiritual elites also supposedly have one-to-one conversations with God, not once, but sometimes several times in a day. For Owuor, Jesus Christ actually comes down from his throne to lie and sleep on his feet.

For the Love of Money: Kenya’s False Prophets and Their Wicked and Bizarre Deeds

Read Also: For the Love of Money: Kenya’s False Prophets and Their Wicked and Bizarre Deeds

In seeking to display their cult-like tendencies, these type of leaders catastrophically end up dividing and isolating church members from their family, friends and even their community. Some of the Prophet Owuor’s followers that I spoke to recounted harrowing experiences and heart-wrenching stories of isolation of members who were portrayed as evil and sinful. Stringent control of church women on what they should wear, how they should wear it and even how to comport themselves are some of the control measures that afflict Owuor’s followers. One time as he held his crusade in Nakuru, I asked one of his adherents why some men and women were wrapped in curtains and he told me, “They are not to engage in sexual intercourse before and during the crusade. The Prophet demands that they abstain from connubial activities until he is done with the crusade.” Some of Prophet Owuor’s members have resorted to not shaking hands with non-church members.

Owuor’s ministry has a long list of do’s and don’ts for his followers, which include among other things, what to wear, how to speak and who to speak to. This exclusionism of members in his church has generated tremendous interest from a bewildered public. Testimonies of families breaking up are common in the church.

Another tell-tale sign of a cultist movement is the craze about possessing high-sounding titles. Owuor has more titles than any other religious charlatan I know of. Yet, followers of such leaders, educated or not, are always awed by such grandiose titles. They always seem to be intrigued by religious power and sometimes some just want to have a new religious experience.

Prophet Owuor has attracted a significant number of academics, civil servants and professionals who legitimise his cult-like image. Apparently, they are attracted by their leader’s lofty education status. It is through such obeisance of deep faith and trust, a great need to belong, sincerity, spiritual manipulation and vulnerability and isolation that gives rise to this kind of spiritual abuse.

Rogue clergy and religious charlatans are increasingly becoming a national crisis in Kenya. There has been pressure from the public for the government to tame this wayward “Christian industry” by introducing stiff regulations. Yet, the question of the people’s apparent gullibility cannot be wished away.

Why is it that they do not seem to learn from past experiences of busted rogue pastors? The Kenya government is, therefore, caught in between protecting freedoms of expression and putting a stop to religious malevolence. The government regulating the religious organisations is one thing, it is another for these faith-based organisations to also put their houses in order and regulate themselves as well if they hope to reclaim their integrity and respect.

Avatar
By

The author is a lecturer and researcher in Religion and Gender Studies.

Politics

No War, No Peace: Life and Death in Eritrea

Thirty years after Eritrea gained independence from Ethiopia, there has hardly been any meaningful development in this small nation in the Horn of Africa. On the contrary, the government’s authoritarian policies have undermined democracy and forced young people to flee the country.

Published

on

No War, No Peace: Life and Death in Eritrea
Download PDFPrint Article

Eritrea was an Italian colony from 1890 to 1941. Following the defeat of Italian forces by the Allied Forces during World War Two, Britain occupied Eritrea until its federation to Ethiopia in 1952. However, by 1962 Emperor Haile Selassie had annexed Eritrea, declaring that it was part of Ethiopia, and in this way ending the federation.

In 1961, a year before the annexation, the Eritrean Liberation Front (ELF) started an armed struggle for independence from Ethiopia. The armed struggle continued for 30 years against successive Ethiopian regimes until 1991, when the Eritrean People’s Liberation Front (EPLF), who had replaced the ELF, defeated the Ethiopian forces in Eritrea. Eritrea became formally independent following a United Nations-supervised referendum in 1993.

From the beginning, the EPLF (now the People’s Front of Democracy and Justice – PFDJ)’s strategy for achieving liberation and national unity was for it to dominate all social, political, and economic spaces. The PFDJ implemented a highly centralised and opaque two-track system of administration: an unseen, powerful inner circle of elites; and public structures that projected an image of egalitarian self-sufficiency. This centralised and opaque model of governance continues today.

Since liberation, PFDJ has banned all opposition parties and treats all non-mass-movement organisations (i.e. independent civil society) with suspicion; hence there are no independent national civil society organisations in the country. Without any consultation, the PFDJ has nationalised all land; it has established a unitary form of government, and it has changed the administrative boundaries within the country. Despite these totalitarian tendencies, in 1994, the PFDJ, as the Provisional Government of Eritrea, set up the Constitutional Assembly to draft the Constitution. The task was completed in 1997. But the Constitution remains unimplemented.

Border dispute

In 1998, hostilities and war between Eritrea and Ethiopia resumed over border demarcation issues, particularly in the town of Bademe. By December 2000, the two countries signed the Algiers Peace Agreement and established the Eritrea Ethiopia Border Commission (EEBC) to determine the limits of their shared border.

The EEBC delivered its border decision on 13th April 2002, placing the town of Bademe, the flashpoint of the border conflict, on the Eritrean side. The Ethiopian government contested the allocation of Bademe to Eritrea. Therefore, a situation of “no war, no peace” ensued between the two countries as President Isaias Afewerki refused any dialogue on the issue because the parties had agreed that the decision of the EEBC was final and binding.

President Isaias Afwerki, who is also the chair of the PFDJ, took advantage of the strained relationship with Ethiopia to:

  1. indefinitely postpone the implementation of the 1997 Constitution as well as the general elections;
  2. arrest and disappear dissenters, especially University of Asmara students and the members of the government known as G15 who promoted a democratisation process (2001);
  3. close the independent media and arrest journalists (2001);
  4. abolish the Eritrean National Assembly (i.e. the Eritrean Parliament) (2002);
  5. maintain a high level of militarisation of the country.

To maintain a high level of militarisation, the government vertically integrated the National Service to the National Development Programme (i.e. the Warsay Yikaalo National Development Programme) and to Education. This integration allows the Eritrean government to move students into the National Service and the National Development Programme from high schools (i.e. Grade 12) and indefinitely extends the period of service of the conscripts, hence taking full control over the working population.

In 1998, hostilities and war between Eritrea and Ethiopia resumed over border demarcation issues, particularly in the town of Bademe. By December 2000, the two countries signed the Algiers Peace Agreement and established the Eritrea Ethiopia Border Commission (EEBC) to determine the limits of their shared border.

Through the integration of the National Service into the Warsay Yikaalo National Development Programme and Education, the government has limited the citizenship rights of conscripts who while in service cannot: legally obtain a mobile phone or SIM card; get or renew a business licence; access land; and access travel documents and exit visas. Deserters or objectors are denied any rights and cannot access state services. Thus, the official Eritrean concept of citizenship is intrinsically linked to conscription and the fulfilment of National Service duties.

The National Service is a combination of military training and civil service, working for little pay in non-military activities such as agriculture, the construction of roads, houses and buildings and mining. The Warsay National Development Programme relies on the deployment of te National Service (Warsay) and defence personnel (Yikaalo) as a labour force. The programme operates under the umbrella of the Ministry of Defence.

Since 2003, the government has closed the University of Asmara (the only university in the country). It has also required that all Eritrean students complete Grade 12 at the Sawa military training camp. Students who have not completed their final year of secondary school at Sawa and have not sat for the National School Certificat, cannot access college education. The PFDJ has replaced Asmara University with regional colleges, which are administered jointly by an academic director and a military director.

National Service conscripts work for an indefinite period on development projects, the administration of ministries and local authorities, as well as in PFDJ-owned businesses. Such work is carried out for very little pay and in conditions that a UN Commission of Inquiry on Human Rights in Eritrea described as “forced labour”.

The Eritrean authorities’ control over the people includes the restriction of movement both internally and externally. Therefore, all Eritreans aged five and above cannot leave the country without an exit visa. The government will not issue an exit visa to any Eritrean above the age of five, irrespective of their situation (i.e. family reunification, health, etc.)

The government’s control over the Eritrean people is a political, social and economic process of deprivation and human rights violations for which it refuses to take any responsibility. It is systematically impoverishing the population. Therefore, Eritrean youth face having to choose between the life of slave labour or exile. They describe their situation as slavery: “[The] situation in Eritrea and long time ago with slaves is the same. We build the houses of the elites without money. We work on farms of government officials for no money. If you are educated, they deploy you to anywhere…for a short time, you can tolerate it…but this is for life.”

Faced with accusations of human rights violations, the government reverts to “threat” mode. It labels any reference to human rights violations as “lies” and “ploys” of its enemies to undermine the state. The PFDJ Head of Political Affairs, Mr Yemane Gebreab, dismissed the findings of the Commission of Inquiry on Human rights by saying: “….[it is] really laughable……There is no basis to the claims of the Commission of Inquiry…”

The Eritrean authorities’ control over the people includes the restriction of movement both internally and externally. Therefore, all Eritreans aged five and above cannot leave the country without an exit visa.

In addition to taking control over the working population, the government also took control of the economic sectors, including finance, import and export, transport and construction. It has achieved control over the economic sphere through a process of unfair competition with private business, facilitated by the fact that it does not pay taxes and does not comply with labour, environmental, and other regulatory requirements. Also, as the regime has control over the working population, it has unlimited access to a large pool of free labour, effecting a net transfer of the workforce away from the private sector. This policy of moving human resources to labour sites identified and controlled by the government has crippled the private sector, especially the agricultural industry, which still relies to a large extent on subsistence farming.

The government’s control and domination of the economy have not increased economic activity or productivity. The economy is stagnating, further weakening the private sector and restricting economic opportunities for Eritreans.

Notwithstanding PFDJ’s rhetoric, Eritrean youth experience the state as an albatross around their necks. They understand the state in terms of spy networks; as a human rights violator curtailing civil, political, and economic rights and as the as the source of torture and deprivation. They see it as the source of all restrictions and deprivations. This is the reason why they flee the country.

Peace Agreement with Ethiopia and its aftermath

In April 2018, the Ethiopia Prime Minister Abiy announced the acceptance of the EEBC decision, in particular the allocation of the flashpoint town of Bademe to Eritrea. In this way, he started a process that led to the signing of the Ethiopia Eritrea Peace Agreement in July 2018, thus ending two decades of “no war, no peace”. The land borders opened to much jubilation in 2018. However, by April 2019, the Eritrean government had closed them all. So far, the only achievements of the Peace Agreement are the reopening of embassies and telecommunication lines and the resumption of flights.

The signing of the Peace Agreement immediately raised expectations that there would be a normalisation of relations between the two states. It also raised expectations regarding reforms within Eritrea that would lead to a reduction in the number of Eritrean youth fleeing the country. Soon after the signing of the Peace Agreement, the Eritrean Catholic priest Aba Teklemichael pointed to the sweeping reforms implemented by Prime Minister Abiy in Ethiopia, and urged the Eritrean government to also undertake necessary reforms in Eritrea and to democratise the government. By Easter 2019, the Eritrean Catholic bishops were also calling for a constitutional government and the rule of law. They also encouraged the government to release political prisoners and start a process of reconciliation within the country. However, to date there have been no reforms in the country, a state of affairs confirmed by the UN Special Rapporteur on Human Rights in Eritrea who at the start of this year reported that she had: “ ……no tangible evidence of a meaningful and substantive improvement in the situation of human rights in Eritrea”.

The signing of the Peace Agreement immediately raised expectations that there would be a normalisation of relations between the two states. It also raised expectations regarding reforms within Eritrea that would lead to a reduction in the number of Eritrean youth fleeing the country.

The ongoing peace process is not transparent; it has mostly remained an elite political level agreement unable to deliver on the economic front or to resolve the issue of Bademe as both Prime Minister Abiy and President Isaias Afewerki have marginalised the Tigray People’s Liberation Front (TPLF) for political motives. The Eritrean government has increasingly identified the Tigray State and the Tigray People’s Liberation Front (TPLF) as an existential threat to Eritrea, thus justifying the maintenance of a high level of militarisation. Consequently, Eritrean youth continue to flee the country. In 2018, UNHCR ranked Eritrea as the ninth-largest refugee-sending state in the world.

Ailing health sector

The totalitarian agenda of the Eritrean government did not spare the health sector either. The task of reconstructing the Eritrean health system after the liberation struggle and following the 1998-2000 Eritrea-Ethiopia border war was monumental. It was an undertaking that the late and former Minister of Health Saleh Meki undertook with passion, commitment, and zest from 1997 to 2009 when Ms Amina Nurhussein replaced him.

In his efforts rebuild the Eritrean health system, Saleh Meki sought to establish strategic partnerships with critical international health institutions, private practitioners, faith-based organisations, such as the Catholic Church, as well as professional members of the Eritrean diaspora. The former Minister of Health carried on with his efforts despite the enormous pressure to conform to the dictates of President Isaias Afwerki, and the concerns generated by the closure of international non-governmental organisations, as well as the restriction of movement imposed on all organisations working in the country. Against all the odds, he re-established the medical school known as the Orotta Medical School.

Saleh Meki died on 2nd October 2009. Soon after his death, all the medical missions of international organisations that he had worked so hard to bring to Eritrea ended. By 2011 the Eritrean Government forced the closure of all private medical clinics. And, by 2018 a total of 29 Catholic health facilities providing maternal and child health support and serving some of the more remote communities in the country were closed. The seizure and closure, of the Catholic health facilities was carried out in complete disregard to the health and safety of the patients, most of whom were left to fend for themselves.

There was no clear justification for the closure of the private health facilities. However, the closure of the Catholic health facilities was justified as an enforcement of the 1995 Proclamation to standardise and articulate religions institutions (Proclamation No 73 of 1995). The Proclamation prohibits religious bodies from engaging in social and welfare services. This position is contested by all faith-based organisations, especially since there was no consultation in the development of the law. The Eritrean Catholic bishops’ communication with the government on the seizure and closure of their health facilities point out that the facilities operated by abiding with all the requirements of the Ministry of Health.

Poor COVID-19 response

The closure of health facilities has reduced the number of available beds and the overall capacity of the health system. Hence, Eritrea, with a score of 0.434, was ranked 182nd out of 189 countries by the 2019 Human Development Index. The low Human Development Index combined with a hospital bed capacity of 7 beds for 10,000 people, and no available data as to the number of health professionals (i.e. doctors and nurses) available per 10,000 people, suggests that the situation might be even more dire. And the poor connectivity of the country (i.e. mobile phones, internet, broadbands) means that the country’s capacity to deal with pandemics such as COVID-19 is low.

The low capacity of the Eritrean health system to deal with the COVID-19 pandemic was also of concern to the diaspora Eritrean Healthcare Professionals Network (EHPN), which urged the Eritrean government to immediately implement the World ealth Orbanization (WHO) and Centre for Disease Control (CDC) guidelines and advisories to contain the pandemic. EHPN expressed concern that the country lacks the necessary prerequisites to implement hygiene measures because: “There is a shortage of water, disinfectants, laboratories that carry out diagnostic tests and medical professionals, including nursing and technical staff. There is also a lack of functioning intensive care units with adequate ventilation equipment needed to properly treat patients. The reality is that many Eritreans will not be able to seek and obtain medical treatment in their homeland or neighbouring countries. In short, the Eritrean health system is not adequately prepared for COVID 19.”

Fears regarding the poor state of the Eritrean health system were further heightened when the Eritrean government refused COVID-19 emergency supplies donated by the Chinese billionaire Jack Ma and his Alibaba Group. Mr Hagos “Kisha” Gebrehiwet, the head of Economic Affairs in the ruling PFDJ, justified the rejection of Jack Ma’s donation by saying that it was unsolicited.

The government’s willingness to reject donations has, however, launched a COVID-19 appeal among citizens. The appeal is remarkable for the lack of information as to how the funds raised will be used. There is no single COVID-19 emergency response bank account designated for the appeal; hence, in the diaspora, funds are collected in different foreign bank accounts set up by Eritrean embassies. Consequently, there is a real danger that the funds will never enter the country and will disappear into the government’s opaque offshore financial system. Also, there is no information as to how the Ministry of Health will use the funds. Reports by Eritrean human rights activists say the appeal is coerced, confirming the lack of transparency and accountability of the fundraising process.

There is also no transparency in the COVID-19 data that the Eritrean government is providing. It reported the first four COVID-positive cases on the 21st and 23rd of March. One patient was an Eritrean national resident in Norway, and the other three positive patients were Eritrean nationals returning from Dubai. Because of these events, by 26th March, the government banned all commercial passenger flights for two weeks. It also closed schools. And, by 1st April, it imposed COVID-19 lockdown measures.

Fears regarding the poor state of the Eritrean health system were further heightened when the Eritrean government refused COVID-19 emergency supplies donated by the Chinese billionaire Jack Ma and his Alibaba Group. Mr Hagos “Kisha” Gebrehiwet, the head of Economic Affairs in the ruling PFDJ, justified the rejection of Jack Ma’s donation by saying that it was unsolicited.

The lockdown measures did not include the closure of the Sawa military training camp or the release of political prisoners. The government has recently released 27 Christian prisoners, who were imprisoned without charge or trial for as long as sixteen years. Their release is conditional on their family lodging their property deeds with the government as a guarantee that the people released will not leave the country.

While maintaining a strict lockdown, the Eritrean government has allowed mass gatherings to celebrate the graduation of the 33rd round of Sawa military training camp graduates as well as the transfer of Grade 12 conscripts to the facility.

From 1st April to 18th April, the Eritrean government reported 39 COVID positive cases, all linked to Eritreans visiting or returning from their travels. Then, for two months, there were no new cases reported. After that, the number of COVID-positive cases increased, and by the 12th of October, Eritrea reported a total of 414 COVID-positive patients and 372 recoveries.

Though the government makes repeated references to quarantine centres, it has not shared a list of the centres, their location or capacity. It is also not reporting the daily number of COVID tests. Nor has it reported any COVID-related deaths or any community transmission of the virus. It continues to attribute all the new COVID cases to Eritreans returning through “irregular land and sea routes” from Ethiopia, Sudan, Djibouti and Yemen. But there is no explanation as to why so many nationals are travelling despite the government’s strict lockdown procedure that prohibits all movement between towns and that restricts te movement of any vehicles, including buses and taxis, which require movement permits. Such permits are not easy to obtain.

Finally, there are only five incidents of Ministry of Information reporting the number of individuals tested or in quarantine:

  1. 3,000 quarantined – 8th May 2020;
  2. 5,270 quarantined – 3rd June 2020;
  3. 7,158 nationals returned through irregular land and sea routes. Not clearly stated but the implication is that they were all quarantined – 14th June 2020;
  4. 18,000 citizens allegedly returned through irregular land and sea routes. This movement occurred in the last four months. Again, not clearly stated but the implication is that they were all quarantined – the 12th October 2020;
  5. 41,100 tests – 12th October 2020.

In a recent report, the Eritrean Ministry of Information asserted that the rate of COVID infection in the country was “a paltry 0.02%”, based on one (1) positive result during 4659 random tests done in Asmara”. The data shared by the government (41,100 tests and 414 COVID-positive cases) suggests that the rate of infection is just 1 per cent.

The COVID lockdown in Eritrea, like in other countries, has brought economic activities to a standstill. The difference between Eritrea and other countries is that the Eritrean economy was already on its knees before the lockdown and the Eritrean government has not made any attempt – beyond extorting donations from its citizens – to alleviate the suffering of the people with economic support packages. Consequently, Eritreans are hungry and desperate and have started to ignore strict lockdowns. They are on the streets selling all kinds of goods. Women are out in the streets, making tea and cooking food for sale. Family and friends describe Asmara, the capital city, as full of mobile tea shops.

In a recent report, the Eritrean Ministry of Information asserted that the rate of COVID infection in the country was “a paltry 0.02%”, based on one (1) positive result during 4659 random tests done in Asmara”. The data shared by the government (41,100 tests and 414 COVID-positive cases) suggests that the rate of infection is just 1 per cent.

The Eritrean Afars have, through the Red Sea Afar Human Rights Organisation (RSAHRO), issued a press statement, describing their situation under lockdown as a: “… siege imposed by the Eritrean regime on the citizens of the region.”. They warn of the danger of hunger in their area. They also describe confiscation of boats, camels and supplies by the military, closed health centres, unprepared quarantine centres, as well as lack of medical supplies. The human rights organisation also accuse General Tekle Manjus of confiscating trucks of emergency food sent from Asmara for distribution among the Afar.

The Afar coastal area is not the only area in danger of hunger. The information from Eritrea is that hunger is very real all over the country. The government media and social media accounts do not report the danger of hunger or any of the difficulties that the people are facing during this COVID-19 emergency. Their postings give the impression that Eritrea is doing just fine.

Continue Reading

Politics

The Search for a Puppet Chief Justice

The emotional energy invested in controlling the recruitment of the next Chief Justice could turn out to be a source of great frustration when administrative fiat and bench-fixing do not deliver the anticipated results.

Published

on

The Search for a Puppet Chief Justice
Download PDFPrint Article

Anxiety over who will replace Chief Justice David Maraga exploded into the public domain on Friday, October 16, 2020, when a member of the Judicial Service Commission (JSC) alleged a plot to delay the recruitment process. Macharia Njeru, one of the two representatives of the Law Society of Kenya (LSK) to the JSC, claimed in a public statement that the Chief Justice and a few others were “hellbent on derailing the orderly recruitment of his successor and leaving the institution of the Judiciary in a crisis of leadership”.

LSK immediately dissociated itself from Macharia’s position and asserted that the “state capture of the Judiciary and the Judicial Service Commission would not be executed through its representatives”.

The parliamentary Justice and Legal Affairs Committee had earlier failed to prevail on Justice Maraga to take early terminal leave, and subsequently published a proposal to change the law on when to begin recruitment of a new Chief Justice. The Chief Justice will officially retire on January 12, 2021, when he turns 70, but he is expected to take leave on December 15, 2020.

Powerful individuals in the country’s politics cannot wait to see Justice Maraga’s back because of his surprising show of spine. On September 1, 2017, the mild-mannered and soft-spoken jurist led a four-judge majority of the Supreme Court to annul the presidential election in a decision that reverberated across the globe. Last month, Justice Maraga advised the President to dissolve Parliament for failing enact laws to increase representation of women in national elected leadership on the strength of a High Court declaration and six petitions.

Between the two monumental decisions, the Chief Justice has called out the President over judiciary budget cuts, disregard for court orders and verbal attacks on the institution he leads.

Justice Maraga’s name conjures up odium and foreboding in state organs at the executive and legislative levels, expressed through punitive budget cuts in the Judiciary, disregard of courts’ authority, and derisive rhetoric. None of these backhanded actions have brought the politically powerful any satisfaction, hence the abiding desire to find a more user-friendly Chief Justice.

Vacancies in the Judiciary can only be advertised fourteen days after they open up, according to the law, which means that the Chief Justice, who also chairs the JSC, plays no role in recruiting his successor. Previously, individuals in the presidency unsuccessfully sought to influence who becomes Chief Justice since the Constitution of Kenya, on its promulgation in 2010, retired Justice Evan Gicheru in February 2011. At the time, President Mwai Kibaki nominated the Court of Appeal’s Justice Alnashir Visram for Chief Justice without inviting applications or conducting interviews. He was countermanded by the newly-constituted JSC, which then conducted one of the most brutal public interviews for the position before choosing civil society icon and law scholar Willy Mutunga.

Justice Maraga’s name conjures up odium and foreboding in state organs at the executive and legislative levels, expressed through punitive budget cuts in the Judiciary, disregard of courts’ authority, and derisive rhetoric.

Dr Mutunga’s transparent recruitment freed him from the usual baggage that would accompany a political appointment to lead the transformation of the judiciary into an independent, publicly accountable institution [Full disclosure: I was communication advisor in the Office of the Chief Justice from 2011 to 2015]. By the time Dr Mutunga chose to retire a year early in June 2016, he had trebled the number of judges to increase efficiency, built confidence and secured the highest funding ever for the institution. He also ring-fenced decisional independence that would enable courts to act as a check on executive and legislative power.

After the Supreme Court upheld the 2013 presidential election, an internal corruption investigation in the Judiciary sucked the institution into a confrontation with the National Assembly, which petitioned the President to appoint a tribunal to investigate six members of the JSC. A five-judge High Court bench neutered the tribunal before it could sit and presented the first contest between Dr Mutunga and President Uhuru Kenyatta.

President Kenyatta would play possum with a list of 25 judge nominees presented to him by the JSC, first appointing 11 and then keeping the other 14 in abeyance for a year. An amendment to the law to require the JSC to send the President three names from which he could choose the Chief Justice was struck down on account of unconstitutionality.

When Dr Mutunga wanted to retire, the President declined to meet him, and the Speaker of the National Assembly refused to respond to his request to address Parliament. By the time interviews for Dr Mutunga’s replacement began in September 2016, the Executive was disoriented and unable to muscle its substantial vote strength in the JSC for a single candidate.

Although the presidency nominates two non-lawyers as members of the JSC in addition to the Attorney General and a nominee of the Public Service Commission, thus controlling 36 per cent of the vote, the Judiciary has five members – the Chief Justice as chair and one representative each for the Supreme Court, the Court of Appeal, the High Court and the magistrates – and has 45 per cent voice. The Law Society of Kenya’s two representatives – 18 per cent – provide an important swing vote for the Executive or the Judiciary whenever there is no consensus.

Justice Maraga of the Court of Appeal emerged as the dark horse in the three-month search for the Chief Justice on the strength of his electoral law jurisprudence. Earlier attempts to name Supreme Court judge Jackton Ojwang as acting Chief Justice were abandoned. Justice Ojwang trailed fellow Supreme Court judge Smokin Wanjala, Kenyan-American law professor Makau Mutua, and constitutional law expert Nzamba Kitonga.

When Dr Mutunga wanted to retire, the President declined to meet him, and the Speaker of the National Assembly refused to respond to his request to address Parliament.

The Supreme Court’s annulment of the presidential election in September 2017 produced voluble complaints from President Kenyatta, who threatened unspecified action against the Judiciary. The independence of the Judiciary, represented in the person of the Chief Justice, has clearly rankled President Kenyatta and his supporters. He subsequently began a systematic reorganisation of the Executive’s representatives to the JSC by picking a judiciary insider, Court of Appeal president, Kihara Kariuki, to replace Attorney General Githu Muigai. Even before the terms of public representatives Winnie Guchu and Kipng’etich Bett were midway, he recalled them and replaced them with Prof Olive Mugenda and Felix Koskey. And then he declined to gazette the re-election of Mohammed Warsame as Court of Appeal representative to the JSC. Judge Warsame was finally seated without re-taking oath courtesy of a court decision that obviated the need for his election to be gazetted. He joined the judiciary column led by the Chief Justice, Deputy Chief Justice Philomena Mwilu, who had been elected to represent the Supreme Court, and Justice David Majanja, who represents the High Court.

Fears have been rife that the election of the magistrates’ representative to replace Chief Magistrate Emily Ominde in December and the replacement of LSK woman representative Mercy Deche could provide an opportunity for the Executive to support pliant candidates, in addition to Macharia Njeru.

It is likely that urgent attempts to start the Chief Justice’s recruitment could exclude the two representatives of the magistrates and the LSK, thus denying the panel two critical voices. Voting strength in the JSC could also be significantly altered if some of the commissioners apply for the Chief Justice’s position. For one, it is not clear if the 62-year-old Deputy Chief Justice Philomena Mwilu, who already represents the Supreme Court in the JSC, will act as chairperson of the commission once Justice Maraga leaves.

Although voting is an important factor in choosing the next Chief Justice, qualification is probably more important. And the public scrutiny candidates are subjected to, complete with court oversight when required, means that a naked attempt to install a puppet would backfire.

Political horse-trading with Parliament is a necessity for nominees to the position of Chief Justice and Deputy Chief Justice to be confirmed during vetting. Often, politicians view the Chief Justice’s position as one of the spoils to be traded during ethno-regional deal-making. So far, the Chief Justice’s position has been occupied by a kaleidoscope of Kenyans – including many ethnic and religious colourations.

The law only provides for the Deputy Chief Justice to act as Chief Justice “[i]n the event of the removal, resignation or death” and only for a period not exceeding six months pending the appointment of a new one. It remains to be seen if legal experts will argue that retirement is not equivalent to removal, resignation or death. Should Justice Mwilu also throw her hat in the ring for the top job, she would not be able to cast a vote as a JSC member.

Another JSC member who has to weigh between voting and chasing the job is 66-year-old Justice Kihara Kariuki, believed to be a front-runner to succeed Chief Justice Evan Gicheru in 2011 but has bided his time, rising to President of the Court of Appeal before accepting to serve as Attorney General. Meanwhile, Justice Mwilu has been embroiled in petitions seeking her removal from office since the Supreme Court annulled the presidential election. Two years ago, the Director of Public Prosecutions and the Director of Criminal Investigations launched a highly publicised effort to arrest and charge her with corruption before the High Court discharged her and advised that complaints against her be first have been processed through the JSC. Justice Mwilu has since tied the JSC in legal knots over the involvement of the Attorney General and one other member in hearing the complaint against her, claiming that they have shown bias.

Although the Constitution allows a Chief Justice to serve for a maximum of 10 years, the practice so far has been to choose individuals who are close to the retirement age, with the effect that those chosen preside over only presidential petitions from one election cycle before they reach the retirement age of 70. If appointments continue to be short-term to limit the pain individuals can inflict on the institution, candidates in their mid-60s appear to be chosen to navigate the 2022 election and leave before the 2027 one.

Although voting is an important factor in choosing the next Chief Justice, qualification is probably more important. And the public scrutiny candidates are subjected to, complete with court oversight when required, means that a naked attempt to install a puppet would backfire.

Although the Supreme Court’s Justice Smokin Wanjala gave a good showing at the 2016 interviews and was ranked second, his age – 60 – means that if appointed, he would hold the job for 10 years. Law scholar Makau Mutua, 62, who was ranked third in the 2016 interviews for Chief Justice, could also give the job another try, as would former Attorney General Githu Muigai, who would similarly be hampered by fears of serving out the 10 years in the post.

The Executive’s frustration with the Judiciary has been expressed as blame for the slow pace of corruption cases, where the courts are criticised for not pulling their weight to deliver quick convictions. The most evident sign of frustration has been the President’s refusal to appoint 41 individuals nominated by the JSC as Court of Appeal and High Court judges. The law does not permit the JSC to reconsider its nominees after the names have been submitted to the President, except in the case of death, incapacity or withdrawal of a nominee. Last week, judge designate Harrison Okeche died after a road traffic accident before he could be sworn in because the President has not published the names as expected. It remains to be seen how the JSC responds.

Chief Justices chair the Judicial Service Commission, and preside over the Supreme Court, which decides the presidential election petitions. Besides the very constrained and collegial power in these two sites, the Chief Justice also exercises administrative power in empanelling High Court benches for constitutional references, and posts judges – powers shared with the President of the Court of Appeal and the Presiding Judge of the High Court.

A Chief Justice cannot direct judicial officers – from the lowliest magistrate to the Supreme Court judge – on how to decide a matter. Much of the power she or he wields is moral and symbolic. The emotional energy invested in controlling the recruitment of the next Chief Justice could turn out to be a source of great frustration when administrative fiat and bench-fixing do not deliver the anticipated results for those seeking a puppet Chief Justice.

Continue Reading

Politics

African Continent a Milking Cow for Google and Facebook

‘Sandwich’ helps tech giants avoid tax in Africa via the Netherlands and Ireland.

Published

on

Algorithmic Colonisation of Africa
Download PDFPrint Article

Google’s office at the airport residential area in Accra, Ghana, sits inside a plain white and blue two-storey building that could do with a coat of paint. Google, which made more than US$ 160 billion in global revenue in 2019, of which an estimated US$ eighteen billion in ‘Africa and the Middle East’, pays no tax in Ghana, nor does it do so in most of the countries on the African continent.

Google Street View of the building registered as Google's office in Accra

Google Street View of the building registered as Google’s office in Accra

It is able to escape tax duties because of an old regulation that says that an individual or entity must have a ‘physical presence’ in the country in order to owe tax.  And Google’s Accra office clearly defines itself as ‘not a physical presence.’ When asked, a front desk employee at the building says it is perfectly alright for Google not to display its logo on the door outside. ‘It is our right to choose if we do that or not’. A visitor to the building, who said she was there for a different company, said she had no idea Google was based inside.

Facebook is even less visible. Even though practically all 250 million smartphone owners in Africa use Facebook, it only has an office in South Africa, making that country the only one on the continent where it pays tax.

Brick and mortar

The physical presence rule in African tax laws is ‘remnant of a situation before the digital economy, where a company could only act in a country if it had a “brick and mortar” building’, says an official of the Nigerian Federal Inland Revenue Service (FIRS), who wants to remain anonymous. ‘Many countries did not foresee the digital economy and its ability to generate income without a physical presence. This is why tax laws didn’t cover them’.

Tax administrations globally have initiated changes to allow for the taxing of digital entities since at least 2017. African countries still lag behind, which is why the continent continues to provide lucrative gains for the tech giants. A 2018 PriceWaterhouseCoopers report noted that Nigeria, Africa’s largest economy, has seen an average of a thirty percent year-on-year growth in internet advertising in the last five years, and that the same sector in that country is projected, in 2020, to amount to US$ 125 million in the entertainment and media industry alone.

‘Their revenue comes from me’.

William Ansah, Ghana-based CEO of leading West African advertising company Origin 8, pays a significant amount of his budget to online services. He says he is aware that tax on his payments to Facebook and Google escapes his country through what is commonly referred to as ‘transfer pricing’ and feels bad about it. ‘These companies should pay tax here, in Ghana, because their revenue comes from me’, he says, showing us a receipt from Google Ireland for his payments. During this investigation we were also shown an advert receipt from a Nigerian Facebook ad that listed ‘Ireland’ as the destination of the payment.

Like Google, Facebook does not provide country-by-country reports of its revenue from Africa or even from the African continent as a whole, but the tech giant reported general revenue of US$ sixty billion as a whole from ‘Rest of the world’, which is the world minus the USA, Canada, Europe and Asia.

Facebook revenue by user geography

Facebook revenue by user geography

Irish Double

The specific transfer pricing construction Google and other tech giants such as Facebook use to channel income away from tax obligations is called an ‘Irish Double’ or ‘Dutch Sandwich’, since both countries are used in the scheme. In the construction, the income is declared in Ireland, then routed to the Netherlands, then transferred to Bermuda, where Google Ireland is officially located. Bermuda is a country with no corporation tax. According to documents filed at the Dutch Chamber of Commerce in December 2018, Google moved US$ 22,7 billion through a Dutch shell company to Bermuda in 2017.

Moustapha Cisse, Africa team lead at Google AI

Moustapha Cisse, Africa team lead at Google AI

An ongoing court case in Ghana — albeit on a different issue — recently highlighted attempts by Google to justify its tax-avoiding practices in that country. The case against Google Ghana and Google Inc, now called Google LLC in the USA, was started by lawyer George Agyemang Sarpong, who held that both entities were responsible for defamatory material against him that had been posted on the Ghana platform. Responding to the charge, Google Ghana contended in court documents that it was not the ‘owner of the search engine www.google.com.gh’; that it did not ‘operate or control the search engine’ and that ‘its business (was) different from Google Inc’.

Google Ghana is an ‘artificial intelligence research facility’.

Google Ghana describes itself in company papers as an ‘Artificial Intelligence research facility’. It says that its business is to ‘provide sales and operational support for services provided by other legal entities’, a construction whereby these other legal entities — in this case Google Inc — are responsible for any material on the platform. Google Ghana emphasised during the court case that Ghana’s advertising money was also correctly paid to Google Ireland Ltd, because this company is formally a part of Google Inc.

Rowland Kissi, law lecturer at the University of Professional Studies in Accra describes Google’s defence in the Sarpong court case as a ‘clever attempt’ by the business to shirk all ‘future liability of the platform’. Kissi is cautiously optimistic about the outcome, though: while the case is ongoing, the court has already asserted that ‘the distinction regarding who is responsible for material appearing on www.google.com.gh, is not so clear as to absolve the first defendant (Google Ghana) from blame before trial’. According to leading tax lawyer and expert Abdallah Ali-Nakyea, if the ‘government can establish that Google Ghana is an agent of Google Inc, the state could compel it to pay all relevant taxes including income taxes and withholding taxes’.

Cash-strapped countries

Like most countries, especially in Africa, Nigeria and Ghana have become more cash-strapped than usual as a result of the COVID 19 pandemic. While lockdowns enforced by governments to stop the spread of the virus have caused sharp contractions of the economy worldwide, ‘much worse than during the 2008–09 financial crisis’, according to the International Monetary Fund, Africa has experienced unprecedented shrinking, with sectors such as aviation, tourism and hospitality hardest hit. (Ironically, in the same period, tech giants like Google and Facebook have emerged from the pandemic stronger, due to, among others, the new reality that people work from home.)

With much needed tax income still absent, many countries have become even more dependent on charitable handouts. Nigeria recently sent out a tweet to ask international tech personality and philanthropist, Elon Musk, for a donation of ventilators to help weather the COVID 19 pandemic: ‘Dear @elonmusk @Tesla, Federal Government of Nigeria needs support with 100-500 ventilators to assist with #Covid19 cases arising every day in Nigeria’, it said. After Nigerians on Twitter accused the government of historically not investing adequately in public health, pointing at neglect leading to a situation where a government ministry was now begging for help on social media, the tweet was deleted. A government spokesperson later commented that the tweet had been ‘unauthorised’.

Cost to public

The criticism that governments often mismanage their budgets and that much money is lost to corruption regularly features in public debates in many countries in Africa, including Nigeria. However, executive secretary Logan Wort of the African Tax Administration Forum ATAF has argued that this view should not be used to excuse tax avoidance. In a previous interview with ZAM Wort said that ‘African countries must develop their tax base. It is only in this way that we can become independent from handouts and resource exploitation. Then, if a government does not use the tax money in the way it should, it must be held accountable by the taxpayers. A tax paying people is a questioning people’.

‘A tax paying people is a questioning people’

Commenting on this investigation, Alex Ezenagu, Professor of Taxation and Commercial Law at Hamad Bin Khalifa University in Qatar, adds that in matters of tax avoidance by ‘popular multinationals such as Facebook and Google, it is important to understand the cost to the public. If (large) businesses don’t pay tax, the burden is shifted to either small businesses or low income earners because the revenue deficit would have to be met one way or another’. For example, a Nigerian revenue gap may cause the government to increase other taxes, Ezenagu says, such as value added tax, which increased from five to seven and a half percent in Nigeria in January. ‘When multinationals don’t pay tax, you are taxed more as a person’.

Nigeria has recently begun to tighten its tax laws, thereby following in the footsteps of Europe, that last year made it more difficult for the digital multinationals to use the ‘Irish Double’ to escape tax in their countries. South Africa, too, in 2019 tailored changes to its tax laws in order to close remaining legal loopholes used by the tech giants. These ‘could raise (tax income) up to US$ 290 million a year’ more from companies like Google and Facebook, a South African finance source said. With US$ 290 million, Ghana’s could fund its flagship free senior high school education; Nigeria could fully fund the annual budget (2016/2017 figures) of Oyo, a state in the south west of the country.

Interior view of the Facebook office in Johannesburg, South Africa

Interior view of the Facebook office in Johannesburg, South Africa

Waiting for the Finance Minister

Nigeria’s new Finance Act, signed into law in January 2020, has expanded provisions to shift the country’s focus from physical presence to ‘significant economic presence’. The new law leaves the question whether a prospective taxpayer has a ‘significant economic presence’ in Nigeria to the determination of the Finance Minister, whose action with regard to the tech giants is awaited.

In Ghana, digital taxation discussions are slowly gaining momentum among policy makers. The Deputy Commissioner of that country’s Large Taxpayer Office, Edward Gyamerah, said in a June 2019 presentation that current rules ‘must be revised to cover the digital economy and deal with companies that don’t have traditional brick-and-mortar office presences’. However, a top government official at Ghana’s Ministry of Finance who was not authorised to speak publicly stated that, ‘from the taxation policy point of view, the government has not paid a lot attention to digital taxation’.

He blamed the ‘complexity of developing robust infrastructure to assess e-commerce activity in the country’ as a major reason for the government’s inaction on this, but hoped that a broad digital tax policy would still be announced in 2020.” Until the authorities get around to this, he said he believed that, ‘Google and Facebook will (continue to) pay close to nothing in Ghana’.

Comment

Google Nigeria did not respond to several requests for interviews; Google Ghana did not respond to a request for comment on this investigation. Neither entities responded to a list of questions, which included queries as to what of their activities in the two countries might be liable for tax, and whether they could publish country by country revenues generated in Africa. When reached by phone, Google Nigeria’s Head of Communications, Taiwo Kola Ogunlade, said that he couldn’t speak on the company’s taxation status. Facebook spokesperson Kezia Anim-Addo said in an email: ‘Facebook pays all taxes required by law in the countries in which we operate (where we have offices), and we will continue to comply with our obligations’.

Note: The figure of eighteen billion US$ as revenue for Google in ‘Africa and the Middle East’ over 2019 was arrived at as follows. Google’s EMEA figures for 2019 indicate US$ 40 billion revenue for ‘Africa, Europe and the Middle East’ all together. According to this German publication, Google’s revenue in Europe was 22 billion in 2019This leaves US$ eighteen billion for Africa and the Middle East.

This article was first published by our partner ZAM Magazine.

Continue Reading

Trending