REVENUE STANDOFF

Senators Malala, Linturi accounts frozen

Senators claim they are intimidated to support the controversial formula

In Summary

• Senators Mithika Linturi and Cleophas Malala claim their bank accounts have been frozen

• Speaker Kenneth Lusaka says he has not received any communication from the affected members 

Kakamega Senator Cleophas Malala
Kakamega Senator Cleophas Malala
Image: /JACK OWUOR

Bank accounts of senators Mithika Linturi (Meru) and Cleophas Malala (Kakamega) have been frozen. 

The Star could not immediately establish which agency had frozen the accounts but received confirmation from Malala on the status of his accounts. 

“Yes (my accounts have been frozen), but I have decided to remain silent on the matter though I remain firm on my decision to save Kenya,” Malala said.  

The law only allows the Kenya Revenue Authority to freeze accounts without seeking a court order.

The Ethics and Anti-Corruption Commission and the Asset Recovery Agency, which can also freeze and individual's account on suspicion of fraud or other offence, both need court orders.

This means that anyone's accounts cannot be frozen through mere executive fiat.

The lawmakers claimed that freezing of the accounts was linked to their stand on the ongoing county revenue formula stalemate.

They claimed the move was part of a wider plan by state machinery to intimidate and beat them into submission over their stand on the controversial formula.

The Senate has been deadlocked on a new proposal prepared by Finance  and Budget Committee on how to share Sh316 billion to the 47 counties. Eight attempts have failed to bear fruit. 

Linturi and Malala belong to 'Team Kenya', a group of senators opposing the disputed formula that will cut funding to 19 counties by Sh17 billion.

On Thursday, there were indications that more senators could have been affected by the accounts' freeze.

However, some of the senators named denied while others could not be reached for confirmation.

Senators in the list included Johnson Sakaja (Nairobi), Fatuma Dullo (Isiolo), Ledama Ole Kina (Narok), Farhiya Ali (nominated) and Boniface Kabaka (Machakos). 

Kabaka, Sakaja and Ole Kina told the Star they are not aware of any accounts' freeze.

“There isn’t much to freeze in my accounts. I haven’t noticed,” Sakaja said.

The other lawmakers could not be reached for comment.

Speaker Kenneth Lusaka said he had not received any official communicated from the affected senators regarding the claims. He only saw a post on social media, he said. 

On Twitter, Kericho Senator Aaron Cheruiyot on Thursday alleged that the freezing of accounts was an act of intimidation by the ‘system’ to force the lawmakers to support the controversial formula.

“A number of senators who voted in support of Senator Linturi’s amendment to the Revenue formula report wake up to frozen bank accounts and fictitious tax demands from KRA. Shameful of the so-called system. The resolve is firmer. Kenya must win this war against impunity,” Cheruiyot's tweet read. 

'Team Kenya' has opposed the committee formula arguing that no county should lose money.

Sakaja, who is among those leading the team, amended the committee’s proposal so that the Sh316.5 billion allocated to the counties is shared equally.

Any other parameters of sharing revenue, such as population, land mass, agriculture and health should apply on any other amount above the baseline.

However, Linturi amendment's to Sakaja’s amendment reduces the baseline from Sh316.5 billion to Sh270 billion. The amendment was approved on the floor on Tuesday.

'Team Kenya' carried the day despite spirited efforts from the rival faction led by Majority leader Samuel Poghisio, Minority leader James Orengo and Majority Chief Whip Irungu Kang'ata.

Kang'ata has reiterated that the committee formula is a government agenda and at one time threatened to discipline Jubilee members opposed to it.

The sitting was however adjourned before the senators could vote on the final motion after the Speaker ruled that the members had to beat the 9pm curfew.

The team accused the speaker of adjourning the sitting unprocedurally. They said it was a delaying tactic to ‘intimate and whip’ more members from their camp to support the formula.

On Thursday, Ole Kina and Makueni Senator Mutula Kilonzo Jr said the ‘intimidation’ will not dampen their resolve.

“The fight will not come down. We are determined,” Mutula, who is the Minority Chief Whip, said.

Ole Kina said, “It is part of the intimidation and the message is very clear. What goes around comes around. If you see what is happening to the Moi bigwigs, it will happen to these ones who even hiding money in car washes.”

He added, “It is will not dampen our spirits. In fact, it is now affirming our support. It is giving us moral support and encouraging us to continue fighting.

Linturi and Malala join a long list of politicians and corporate titans whose accounts have been frozen on different grounds. 

In late May, ARA, on the strength of a High Court order, froze three bank accounts belonging to Mathira MP Rigathi Gachagua with more than Sh200 million over alleged money laundering. 

Last month, EACC froze accounts with Sh36 million belonging to a Treasury official.

Governors Mike Sonko (Nairobi) and Moses Lenolkulal (Samburu) have also had their bank accounts frozen by EACC over graft allegations.

(edited by o. owino)

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