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Saturday, November 30, 2013

REPOA: Independent regulator for MPs, leaders` perks crucial


Civic United Front (CUF) National Chairman Prof Ibrahim Lipumba
An independent institution for setting payments and benefits for legislators and other public officeholders is crucial for Tanzania to accelerate the rate of pro-poor economic development.

This is contained in a study released yesterday by Research on Poverty Alleviation (REPOA).

Repoa says that in order to promote accountability, transparency and impartiality in the allocation of financial resources public office holders or legislators should not be allowed to determine or set their own remunerations.

The findings proposed an alternative framework for determining and setting pay and benefits for legislators and public servants.

Presenting the findings  of the report titled,  “Can Africa Afford the Cost of Democracy” in which Dr  Theodore  Valentine argues that new institutional arrangements combined with other changes in  the socio–economic system may give incentives office holders to pursue national interest over self interests.

He said the new arrangements would also enhance the impartiality of the remuneration system and lead to improved governance.

 Dr. Valentine also says that greater transparency in remuneration determination process and outcome is required since public office holders are paid from public funds, so their pay packages should be known by the public.

He cited Kenya, saying over a five-year term the official earnings of Kenya MPs and public officials earn up to $1,000,000 in salaries and allowances – including sitting allowance.

“With nearly 350 national legislators within the new governance framework the total compensation cost of the legislature during its five- year term could amount to about $350m,” Dr. Valentine says.

He adds: “Kenya is not alone among the Sub Sahara African countries where legislators’ remuneration increased significantly in recent years. In Uganda between 2005 and 2012 MPs remuneration soared even higher than in Kenya to 141 times per capita GDP.”

Civic United Front (CUF) National Chairman Prof Ibrahim Lipumba agrees, saying there is need for the new constitution to state categorically that an independent institution which will determine and set remunerations and benefits for high public office holders.

He argues that in Tanzania the compensation cost of legislator has increased 40 times per capita GDP.

“This is very high for a poor country like Tanzania because in other developed countries the ratios are much lower,” he says.
Prof Lipumba adds that the setting of the payments should be transparent.

He gives an example of Canada, saying the salaries for high public leaders such as President or Prime Minister are posted on websites to be accessed by the public. “This is contrary to Tanzania where the payments of the president or prime minister are not known by the public.”

REPOA Executive Director Prof Samuel Wangwe said an independent institution for setting payments for public leaders and legislators would help to determine the payments based on the status of the country’s economy.

He said Tanzania is a poor country but the compensation cost of the legislature is too high compared to developed countries such as Norway.
He said Tanzania ranks third in East African countries whose compensation cost of legislators was high after Kenya which becomes first followed by Uganda.
SOURCE: THE GUARDIAN

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