It’s Our Turn to Eat, by Michela Wrong, tells the story of John Githongo — the famous whistle-blower of corruption under the Kibaki Administration in Kenya. Before picking up the book, I was concerned that I would be reading a lot of what I already knew — considering A. I wrote a paper on him several months ago, and B. I had explored a lot of the inner-workings of Kenyan politics during many-a-nights after Kiswahili class at a nearby bar with my professor going hours-on-end. As I began reading, however, I was enthralled by the insider and historical perspective that Wrong presents. I suppose to be expected, given Michela Wrong is a longtime friend of John Githongo and the first person he reached out to in his self-imposed exile in London.

The book contains a pleasant balance of story-line and history, culminating in one of the best overviews of Kenyan governance I have ever read. It’s Our Turn to Eat is a damning account of not only the Kenyan government, but of the international aid community that has completely failed to hold the Kenyan government to account — and in some cases is seemingly complicit in the massive-scale corruption taking place. The scale of the Anglo-Leasing scandal (the government contracting scheme uncovered by Githongo) amounted to 5% of GDP, over 16% of government gross expenditure in 2003-4, outstripping the country’s total incoming foreign assistance for the year (which was $521 million), and represented 3/4 the amount of incoming remittances from Kenyans abroad. In fact, the amount stolen would have been enough to supply every HIV-positive Kenyan with anti-retroviral for the next ten years.

However, concerned Ambassadors were pressured by their respective governments and aid agencies to take a sideline because they were under pressure to INCREASE aid in order to meet the Millennium Development Goals. The coziness between the government and the aid community is illustrated by the fact that two consecutive World Bank country chiefs lived in a guest house on the Kibaki compound! The latter even after the Githongo Report was released and Anglo-Leasing was out in the open!

Wrong points out that China’s African policy inhibits the West’s ability to take a hardline on corruption:

“The media in Kenya were increasingly complicity, the political class supine, and what did the donors’ reaction – if there was any – matter when China stood ready to lend to African governments, no questions asked?”

A quote from John Githongo resonated with me:

“There’s a condescending, implicitly racist argument with regard to Africa, which says that “excesive enthusiasm” in the fight against corruption somehow undermines the task of fighting poverty. But corruption, systemic corruption, is the most efficient poverty factor on the continent.”

As many economists and advocates call for a full-on cutting off of foreign assistance — to hold African governments to account to their people — Michela Wrong writes:

“This book does not seek to argue that donors should cut all aid to Africa, on the ground that ‘It’ll only be stolen,’ as the cynics claim. It does, however, hope to alert Western readers to the damage well-meaning thoughtlessness routinely causes.”

This is another quote that resonates with me, given my work with Transparency Solutions — donors MUST do their due diligence and have the oversight mechanisms in place to hold their programs accountable and ensure they are achieving the appropriate outcomes and not only emboldening corruption! I’ve read and have witnessed so many cases where money was sent to an NGO in Kenya that either didn’t exist (was a front) or that diverted those donations!

A Kenyan journalist, Kwamchetsi Makokha, says:

“Fundamentally the West doesn’t care enough about Africa to pay too much attention to how its money is spent. It wants to be seen to do the right thing, and that’s as far as the interest goes.”

I really hope that we can grow awareness of these problems among the donor and aid communities, and encourage THEM to be more accountable to the programs they fund. By not doing so, they are running the risk of doing more harm than good. I set up Transparency Solutions to help provide investors and donors with the tools they need to do this, it’s just a matter of generating the will-power on their part to invest in them!

The following is from a final paper I wrote for my International Corruption class at American University a few months ago:

It was February of 2005, and a startled Kenyan government was in the midst of an international manhunt. Police cars scoured the streets of Nairobi in the dark of night; officers knocking on doors, barking dogs in tow. The Kenyan High Commission in London had deployed its own search team. The man they were looking for: freshly resigned Permanent Secretary of Ethics and Governance, John Githongo.

Days earlier, on the morning of February 6^th, 2005, Mr. Githongo had arrived, suitcases in hand, on the front steps of a London flat owned by friend and former colleague Michela Wrong. He had snuck away from his hotel where he was staying on official business. After settling in, he told his confidant, “One of the first things I need to do is resign”.

***

John Githongo was born in 1966, about three years into Kenya’s independence. His father was a prominent Kenyan who served as a Permanent Secretary in Kenya’s first President Jomo Kenyatta’s cabinet. Githongo, along with many children of Kenya’s elite, attended the prestigious St. Mary’s School. He continued his studies at the University of Wales, studying philosophy and economics. Despite his privileged upbringing, Githongo remained quite grounded to the realities facing his country.

John Githongo began his career as a correspondent for a weekly business publication called Executive Magazine. An interview with Uganda’s soon-to-be President, Yoweri Museveni, launched the young and aspiring journalist to a new post at the East African newspaper. He eventually left journalism to join his father in co-founding Transparency International’s Kenya division (TI-Kenya).

While at TI-Kenya, Githongo maintained a discreet dialogue with the up-and-coming opposition to President Moi, led by Mwai Kibaki. After Kibaki was elected, largely on an anti-corruption platform, an opportunity was afforded to John Githongo – a government post dedicated to the eradication of grand corruption. He later recalled in a BBC interview, “[It was] a feeling of great opportunity. We had a 70% majority, so we had a gigantic mandate to implement extremely radical reforms. So it was an exciting time when we thought we could achieve great things.” Prior to his appointment, Mr. Githongo met with President Kibaki and told him, “Sir, we can set up all the anti-corruption authorities we want, spend all the money we want, pass all the laws on anticorruption, but it all depends on you. If people believe the president is ‘eating’, the battle is lost. If you are steady on this thing, if the leadership is there, we will succeed.” To much public applaud, 37 year old John Githongo was appointed days later as Permanent Secretary of Ethics and Governance.

Githongo’s appointment was much to the pleasure of the international community – a symbol of stark contrast from the ghastly corrupt administration of Daniel arap Moi. BBC reporter Fergal Keane wrote of the new anti-graft czar, “From the outset Githongo impressed. Not for the quality of his rhetoric but the sheer force of his integrity. At a time when it could be dangerous to take on powerful people he was fearless.” The job, as Githongo soon found out, did certainly prove to be dangerous. Soon into his appointment, he received a tip that led him to uncover one of Kenya’s largest corruption scandals carried out by the very government with which he pledged to combat such graft.

The Anglo-Leasing Affair, as it became known, comprised of up to $600 million in government contracts to shell companies for products and services never delivered. The money, rather, was funneled back into the pockets of Kenyan politicians. As Githongo dug deeper and began asking questions, he was rebuffed by his political colleagues and was met by an apathetic President unwilling to give Githongo the tools to summon or prosecute those implicated. He began getting phone calls from Ministers and aides, some discrete and others quite blunt. He later told the BBC, “The general message was back off. Keep off. Others were more direct. Some would say, ‘Listen, what you are doing now is dangerous to your physical security.’” To ensure his safety, Githongo travelled around Nairobi with two bodyguards.

The Ethics Minister and former journalist began wearing a wire under his shirt, recording his meetings as he built his case. Many politicians and officials he met with were candid about their involvement in the Anglo Leasing scandal. Some, unknowingly being recorded, attempted to coerce Githongo into dropping his investigation. Kiraitu Murungi, the Minister of Justice, during one such meeting produced a file on John Githongo’s father about a debt owed on a failed land deal. Githongo told the BBC, “The Minister of Justice was telling me that if I ease off my inquiries, then my father’s loan matter would be made to go away. Call it blackmail, or bribery, call it what you want. But he was telling me that the message he had been sent to communicate was that I should back off.” Githongo came to realize his government appointment was for little more than show. “They had been counting on me to do nothing. People would tell me: ‘This is the way things are. It’s just the way things are done. We just have to do it with greater finesse; more carefully than the others.”

While touring Europe on official business two years into his appointment, John Githongo called two taxi’s to his London hotel. He paid one to drive off any which way, and the other to take him to the home of former colleague and confidant, Michela Wrong. That night, he carefully crafted his letter of resignation. By his side sat all of the documentation he had gathered on the Anglo-Leasing scandal.

Once his whereabouts were discovered, the Kenyan government placed a conspicuous tail on him, just to ensure that he knew that they knew where he was. The London police provided him with protection, incase his enemies decided to silence him for good. Githongo was invited by Paul Collier and Oxford University to serve as a visiting scholar – providing him a safe environment to continue his work. Later, he was appointed to serve on the global board of Transparency International as well as the board of the International Centre for Transitional Justice. Githongo also spent time writing for the Economist. In March of 2008, he was appointed Vice President of Policy and Advocacy at World Vision International.

In 2006, Githongo released a full report of his findings. The dossier was submitted to President Kibaki on November 22^nd, 2005, and was leaked to the media in February 2006. The detailed and politically damaging report presents a nearly day-by-day account of Githongo’s investigations, discussions, suspicious, and findings. The report raised strong and mixed feelings. To some, Githongo was (and is) described as a slanderous traitor having aired his country’s dirty laundry from nearly 4,000 miles away. Chris Murungaru, former Minister of National Security, went so far as to suggest Githongo may be guilty of espionage for releasing “state secrets” while in Britain.

After the report was leaked to the media, President Kibaki reshuffled his cabinet, firing three ministers implicated in the Githongo report (2 of those ministers have since been rehired). The Kenyan Anti-Corruption Commission (KACC) summoned more than 30 people in their investigation. Prosecution, however, has been basically nonexistent. The US has leveraged the Foreign Corrupt Practices Act (FCPA) to deny visas to certain government officials, and the British have followed suite. Foreign assistance to Kenya, however remained at its preexisting levels, leading former British High Commissioner to lambast the World Bank for “feeding the pig of corruption” after extending $120 million in loans just as Githongo’s allegations were surfacing.

During the recent campaign, opposition leader Raila Odinga announced that if he were to win the election he would bring back John Githongo. When asked about this and whether he would serve in a Raila administration, Githongo told BBC HARDtalk, “I will go back to my country. I am not sitting here waiting to be given a government job. I have a very good job as it is. I am a Kenyan, I want to serve my country, [however] I am not at the current time interested in serving in any particular administration.” When asked if he believes Raila’s promise to combat corruption if elected, Githongo responded, “I would like to. But I have heard politicians across the continent of Africa say the same thing. Seeing is believing. Seeing is believing.” A somber look of disgust casts over his face.

Githongo did return in 2008, where he was immediately served with a summons to appear in court on slander charges brought on him by former National Security Minister Chris Murugaru – one of the ministers ousted in the dossier. He has not appeared personally in court on these charges, as his attorneys have been instructed to act on his behalf. In spite, Murungaru continues to release statements saying Githongo is evading the charges leveled against him. Githongo’s defense is that he did not release the report to the public. Githongo continues to live in Kenya, frequently returning to London to continue his work as Vice President of Policy and Advocacy at World Vision International.

His being thrust into the political realm has led many to wonder if he is posturing to run for the Presidency of Kenya. When asked by Alan Cowell of the New York Times if he intended to run for office, Githongo replied, “I have no rural constituency. I have betrayed my entire tribe and the elite around the president – which still has them spluttering with rage. But then I don’t really give a hoot about that. So my attitude is that I’m going to continue here [in London] for a while, forcing a change.”

Githongo’s experience uncovering, exposing, and attempting to combat corruption from within the government, combined with his academic and journalistic mindset, make him a sharp and fascinating intellect on the topic of good governance and anti-corruption efforts. He often shares his brilliantly crafted thoughts on the subject in interviews and on panel discussions.

When asked why fighting corruption is so hard, Githongo says, “Because it means taking politically expensive decisions that affect you as a person, and your friends, and your family. It means making extremely expensive political choices. But in Africa, unless you make them, one is unable to inspire the confidence of people. Corruption in Africa is not so much about amounts of money lost…it’s about inequality. It’s about a small group of people who acquire a disproportionate amount of wealth corruptly, and then flaunt it. [It is the] Conspicuous consumption that they illustrate…in extremely poor societies that causes the anger.” This is especially true in a country where over half the population lives below the poverty line, yet the government spends $12 million on luxury cars.

John Githongo, does however, observe significant changes taking place in Kenyan civil society. He praises advances in the role of media and the use of mobile phones to make information more widely available. His conversations at the grassroots level illustrate to him Kenyan civil society is fully aware of what is going on in their government. People are drawing the correlation between the gross income disparity in the country and the corruption of government leaders. The level of anger over corruption is much higher today, because with scandals such as the collusion driving up petrol and maize prices, the people are directly feeling the pain. This, he hopes, will lead toward a grassroots movement against corruption.

John Githongo has laid out six primary lessons learnt from the fight against corruption over the last ten years:

• Prosecution is the most blunt instrument in the fight against corruption
  • By creating expectations that success means “frying big fish”, you are only setting yourself up to failure
• Perceptions are often more powerful that reality where corruption is concerned
  • There are political implications that come along with anti-corruption efforts that can be extremely divisive and used in dangerous and sometimes violent ways.
• Corruption Pays for Politics – Need to Fix Politics First
  • As Africa has democratized, resources have had to be mobilized to compete in politics — Corruption pays for politics.
• Myth of Anti-Corruption Agencies as One-Stop-Shop has been dispelled
  • Fighting corruption is about creating a culture that involves all of the people.
• There needs to be a “denationalization” of the fight against corruption
  • Historically, governance reforms have been imposed by the West in the form of conditionalities
  • There needs to be “country ownership”
  • Draw a correlation between corruption and people’s poverty and pain — grassroots driven change
• The “most insidious effect of corruption” is that it undermines confidence in political leaders, governing institutions, and even the people themselves.
  • This is worse that the sheer amount of money lost

The story of John Githongo is one that pains any Africanist. It is the story of a man who sought to effect substantive change in his country, only to be turned on by those that had inspired the very hope within him. It is the story of institutionalized corruption in Africa. But, also, it is the story of a man who has persevered in his fight against corruption and remains unwavering in his integrity. The story of John Githongo is not quite over yet.

“There ought to be a way to use interactive media, especially the Internet…to report in real time allegations of corruption.” These were the words of Secretary of State Hillary Clinton during a plenary Q&A session at the 8^th Annual Forum on the African Growth and Opportunity Act (AGOA). Secretary Clinton called on youth and civil society to leverage new technologies to combat corruption through increased transparency.

* * *

As I flew into Jomo Kenyatta Airport in Nairobi, Kenya exactly two years ago, I had no idea the life-changing experiences that lay before me. I had studied the economic development of sub-Saharan Africa in great detail. Over the course of the following months, I lived it – and in no way did it resemble anything I knew prior.

My experience in Kenya was much unlike that of the many American tourists that find themselves in four-star air-conditioned tents while on safari. Rather, I was immersed in the local hustle and bustle of the dusty Nairobi city center. When I wasn’t in the office of the local e-commerce company I was working for, I was out exploring the country. I visited health clinics, children’s homes, Kibira schools, and rural villages. My feet were well traveled and had the sandal-tan-lines to prove it.

Corruption was, and still is, a well known problem in Kenya. There are two types of corruption anywhere you go in the world: that driven by desperation and that inspired by greed. Both have the same negative social impact, but each requires a unique approach toward amelioration. Chai, the Swahili word for tea, is commonly used as a term meaning a bribe. Police officers, during Kenya’s early years, were so underpaid that they would literally ask for tea, a staple source of sustenance, as what today we refer to as a bribe. This is corruption driven by desperation, and it still exists worldwide today.

Addressing need-based corruption requires raising living standards, lifting people out of extreme poverty, increasing wages and salaries relative to the cost of living, and so on. History has shown us that the best long-term and sustainable strategy for this in the developing world is attracting foreign direct investment (FDI). Filling the short-term transition period is often the generosity and assistance provided by donors worldwide and the admirable work being done by the non-profit sector.

However, when a country like Kenya is in need of outside assistance and investment, and the conscience of the developed world is prepared to deliver at almost all costs, it is the greed-based corruption of the gatekeepers that then stands in the way. Such corruption dramatically decreases the effectiveness of outside help designed to assist during the transition period. And it dramatically decreases the attractiveness of the foreign direct investment coming into the country to spur and sustain economic growth.

When left unchecked, the problem perpetuates itself. Donors send computers or toys to a children’s home where administrators turn the items around for profit and pocket the money. A multi-million dollar infrastructure project must be repeated only a few months later because the project manager sold necessary parts on the black market and covered it up.

Meanwhile, honest and hardworking organizations and businesses are being held back from achieving their full potential. The mere perception and stigma of corruption that hovers over the country like a rain crowd keeps donors, investors, and prospective clients from feeling safe or comfortable enough to put their money in Kenya.

I mentioned I was working for an e-commerce company at the time. It was my first introduction to “social enterprise”. These guys had created a way to leverage e-commerce and gift vouchers to revolutionize the way Kenyans abroad remit back to their loved ones. Through this website, you could pay school fees and electricity bills directly, deliver pre-paid phone minutes to a specific phone, send gift-vouchers for groceries or books; heck, you could even purchase and have delivered a goat. This company had found a solution for the challenge faced by many developing nations: how to target and harness the power of incoming remittances.

After my first week in Nairobi visiting local non-profits, I knew that what they needed were not $20 donation checks, per se, but real tangible supplies. Using our preexisting business plan, the company I was working for could easily create a new medium whereby anybody in the world could donate a physical object (or package of objects) and know exactly where their donation went! And that’s exactly what we did.

The challenge we faced, though, was that which I have already mentioned: a lack of transparency under the raincloud of perceived corruption. How can somebody tell apart our honest hard-working company from a fraudulent company in the same region. How can donors and investors follow through to make sure the computer or sewing machine actually made it to the school, and remains at the school four months later?

This is the social challenge that transformed itself into a business opportunity – today, International Transparency Solutions, LLC. Just as VeriSign built confidence around the infrastructural security of e-commerce in the 1990s, Transparency Solutions seeks to build confidence around honest businesses and organizations in the developing world.

By establishing a network of Transparency Professionals on-the-ground in countries around the world, we will be able to collect and deliver to donors and investors the intelligence and oversight capabilities that allow them to invest more responsibly, effectively, and with increased confidence.

For investment-seeking institutions that meet our designated standards of transparency and accountability, we will be able to offer a “Certification of Anti-Corruption” seal that can go on their website and solicitation materials. This will dramatically increase their ability to be recognized for their due diligence and stand above the stigma of corruption.

Through these services, we hope to see a shift in the cost-benefit analysis that individuals and organizations make when considering corruption. We provide the information and the tools investors and donors need to make the most optimal decisions for them – putting their money into transparent and accountable institutions. By incentivizing these characteristics, the opportunity cost of corruption rises. As the reward on greed-based corruption declines, investments and donations rise with increased transparency, and need-based corruption can be something of the past.

Through the very technologies that Secretary Clinton mentioned last week, we CAN work together toward growth and opportunity. We CAN address the social challenges that stand in our way. And we WILL.

* * *

International Transparency Solutions is currently putting together seed funding and lining up pilot-clients to conduct a pilot of their services this Fall in Nairobi, Kenya. For more information visit http://www.transparencysolutions.org

Author Bio: Marco Puccia is Founder and CEO of International Transparency Solutions, an early-stage social enterprise designed to connect investors and donors with the developing world. He also blogs about the interrelationship between business and international development at http://www.marcopuccia.com.

I came across this video on Hulu in a series called Vanguard, and thought it worth sharing. About a month ago I dedicated a post to the Role of China in Africa, which I highly suggest you check out! I wrote about many of the issues and concerns raised here, but the video delivers some great imagery to the concepts and realities of China’s growing foothold in Africa.

We are taken to the country of Angola, a country scarred by almost 30 years of civil war. After the war, Angola sought financial assistance from the West, but was unable to secure investment due to the many conditionalities attached. The Chinese, however, were quick to court the Angolans – particularly given the wealth of natural resources (diamonds, minerals, and oil) and the country’s strategic coastal location. Five years after the end of Angola’s civil war, with the help of China, the country had become Africa’s fastest growing economy.

Angola has seen rapid growth in the local Chinese population. At the time of filming this video, China had an estimated US $6-11 billion extended to the Angolan government in loans. Under the loan agreements, 70% of all projects were to be built by Chinese companies – importing their own labor and materials ranging from light bulbs to heavy machinery.

For Chinese expats living in Angola, life is less glamorous than what they imagined – notably the level of poverty that they witness. Creating an incentive to stay, though, the average Chinese worker in Angola makes about three times (3x) what they would make in China.

The negative arguments remain, however:

• The Chinese “Mutual Respect for Sovereignty” policy gives Angolan politicians a blank check for bad behavior (Rise in Corruption)
• Chinese investment does little for Angolan employment
  • Angolans at bottom of the totem pole in their own country
  • Continued reliance on the informal sector
• No utilization of local resources (everything is imported from China) means that Angolan businesses hardly benefit
• Once the natural resources have been depleted, the Chinese will leave and what will Angola be left with? Is it worth it?

What do you think?

Also, don’t forget to take a look at my first post on China in Africa.

Here’s your Daily Brief for August 28th:

Nigeria’s Own Banking Crisis – Unrelated to the global financial “meltdown”, Nigeria is facing a similar crisis within its financial and banking infrastructure as a consequence of alleged corruption. After having to bailout several banks, Nigeria’s Central Bank has teamed up with fraud police in an effort to locate and recoup billions of dollars owed to five major banks in the form of bad loans. Not only are they going after defaulters, but also the bank executives that issued the loans. However, Nigerians remain skeptical that the wealthy debtors and executives will be held accountable.

How to Make an Advocacy Video about Africa (via Aid Watch) – I completely forgot about this, but it correlates well with yesterday’s post on “How Not to Write About Africa”. It’s a list of stereotypes that MUST be included in any advocacy video about Africa (yes, sarcasm!).

Today, a follow-up was posted on the Aid Watch blog linking the following “Doctors Without Borders” videos that have masterfully used these techniques:

Note: This video is not for the weak stomached!

If you haven’t yet, take a look at yesterdays post and share your thoughts! Do these videos go too far in painting a helpless image of African countries? Or are they justified because they provoke a reaction?

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