Trip costs gov't 100m/-
May 12, 2004
SEVEN of the nine board members and two top managers of the Rural Micro Finance Support Project have left for a study tour in Bangladesh in a trip that has cost over sh100m.
By Felix Osike
SEVEN of the nine board members and two top managers of the Rural Micro Finance Support Project have left for a study tour in Bangladesh in a trip that has cost over sh100m.
The project was established by the Government to fight poverty.
The board members, fresh from a similar tour of Kenya recently, also trebled their sitting allowances from sh100,000 to sh300,000 per sitting per person.
The project is funded by the African Development Bank.
The project also receives co-funding from the Government.
The group left on Friday May 7 aboard Emirates Airlines. The trip will last 11 days ending on May 18.
Board members Yorokamu Katwiremu, Dr. Barbara Mugombe, Wilson Kwamya, George Beekunda, Dominica Abu and Charles Byanyima travelled club class.
On board the same flight were David Nambale, the secretary to the board and two managers Lucy Busingye and Wilson Wamatsembe who travelled on Economy tickets.
The board chairman, who is also former Central Bank Deputy governor, Robert Elangot and another board member Kenneth Mugambe did not travel.
Elangot defended the trip saying, “The Board must be exposed to the success of other places. The Grameen Bank is one of the most successful micro-finance institutions in the world,â€
He said the trip was approved by the African Development Bank.
“It is strange because in such a trip you need technical persons,†said a senior Ministry of Finance official yesterday.
According to documents seen by The New Vision, US$ 16,097 (sh31.3m) was spent on air tickets for the members while (sh4.9m) was to be paid to Grameen Bank in Bangladesh for unclear transaction.
The seven directors each received $300 (sh585, 000) per day for 11 days in allowances while the three managers were each paid $250 (sh487, 500) per day for the same period.
For the 11-day trip, each board member will receive sh6.4m while three managers will each go with sh5.3m.
The total allowances amounted to $23,100.
The total travel budget amounted to US $ 50,000. The same board recently spent another sh50m on a study trip to Kenya.
In a related development, the directors have given themselves a hefty pay rise.
When the current board was appointed in February 2002 they were given sh100,000 as sitting allowance and sh100, 000 as monthly retainer fees.
In a January 13 letter to finance minister Gerald Sendaula and Minister for General Duties in the Prime Minister’s office Prof. Mondo Kagonyera, the board chairman noted that, “the terms are far much lower than what is offered in other institutions.â€
The board also while defending the pay rise noted that the past performance of the project was viable and able to meet higher terms of remuneration that are commensurate with the, “current level of the board’s commitment and dedication.â€
The board thus proposed sitting allowance of sh300, 000 for the chairman, sh280, and 000 for sub-committee chairperson and sh250, 000 for members.
They also proposed sh700, 000 as monthly retainer fees for the chairman and sh600, 000 for members. They are also now entitled to sh200, 000 per person per day for local travel and per diem of $ 300 per board member per day.
According to an internal memo, the Board of Directors resolved on April 16 that the revised remuneration rates be implemented with effect from December 1,2003. As a result of the backdating, the arrears of the directors for the period December 2003 to April 16 amounted to sh17.9m.
The Board at its earlier meeting on September 10,2003 under minute 78.2 also resolved that the Secretary to the Board be paid the same sitting allowance at the same rate as members. The board now meets about three times a month.
Senior managers are also soon getting personal loans to enable them acquire and operate their own vehicles besides the project vehicles according to documents seen.
While arguing for a pay rise, the board said they had achieved a lot during their time including transforming the project into a full fledged limited liability company and recruiting competent management to manage company affairs.
They said they had also satisfactorily accomplished the ADB requirements.
Ends
SEVEN of the nine board members and two top managers of the Rural Micro Finance Support Project have left for a study tour in Bangladesh in a trip that has cost over sh100m.
The project was established by the Government to fight poverty.
The board members, fresh from a similar tour of Kenya recently, also trebled their sitting allowances from sh100,000 to sh300,000 per sitting per person.
The project is funded by the African Development Bank.
The project also receives co-funding from the Government.
The group left on Friday May 7 aboard Emirates Airlines. The trip will last 11 days ending on May 18.
Board members Yorokamu Katwiremu, Dr. Barbara Mugombe, Wilson Kwamya, George Beekunda, Dominica Abu and Charles Byanyima travelled club class.
On board the same flight were David Nambale, the secretary to the board and two managers Lucy Busingye and Wilson Wamatsembe who travelled on Economy tickets.
The board chairman, who is also former Central Bank Deputy governor, Robert Elangot and another board member Kenneth Mugambe did not travel.
Elangot defended the trip saying, “The Board must be exposed to the success of other places. The Grameen Bank is one of the most successful micro-finance institutions in the world,â€
He said the trip was approved by the African Development Bank.
“It is strange because in such a trip you need technical persons,†said a senior Ministry of Finance official yesterday.
According to documents seen by The New Vision, US$ 16,097 (sh31.3m) was spent on air tickets for the members while (sh4.9m) was to be paid to Grameen Bank in Bangladesh for unclear transaction.
The seven directors each received $300 (sh585, 000) per day for 11 days in allowances while the three managers were each paid $250 (sh487, 500) per day for the same period.
For the 11-day trip, each board member will receive sh6.4m while three managers will each go with sh5.3m.
The total allowances amounted to $23,100.
The total travel budget amounted to US $ 50,000. The same board recently spent another sh50m on a study trip to Kenya.
In a related development, the directors have given themselves a hefty pay rise.
When the current board was appointed in February 2002 they were given sh100,000 as sitting allowance and sh100, 000 as monthly retainer fees.
In a January 13 letter to finance minister Gerald Sendaula and Minister for General Duties in the Prime Minister’s office Prof. Mondo Kagonyera, the board chairman noted that, “the terms are far much lower than what is offered in other institutions.â€
The board also while defending the pay rise noted that the past performance of the project was viable and able to meet higher terms of remuneration that are commensurate with the, “current level of the board’s commitment and dedication.â€
The board thus proposed sitting allowance of sh300, 000 for the chairman, sh280, and 000 for sub-committee chairperson and sh250, 000 for members.
They also proposed sh700, 000 as monthly retainer fees for the chairman and sh600, 000 for members. They are also now entitled to sh200, 000 per person per day for local travel and per diem of $ 300 per board member per day.
According to an internal memo, the Board of Directors resolved on April 16 that the revised remuneration rates be implemented with effect from December 1,2003. As a result of the backdating, the arrears of the directors for the period December 2003 to April 16 amounted to sh17.9m.
The Board at its earlier meeting on September 10,2003 under minute 78.2 also resolved that the Secretary to the Board be paid the same sitting allowance at the same rate as members. The board now meets about three times a month.
Senior managers are also soon getting personal loans to enable them acquire and operate their own vehicles besides the project vehicles according to documents seen.
While arguing for a pay rise, the board said they had achieved a lot during their time including transforming the project into a full fledged limited liability company and recruiting competent management to manage company affairs.
They said they had also satisfactorily accomplished the ADB requirements.
Ends