Kenya MPs reject reappointment of anti-graft boss
* Justice minister says Kibaki was within the law
* Parliament likely to cut $9 million in funds to watchdog
* U.S. government says deeply concerned
(Updates with justice minister comments)
By Wangui Kanina
NAIROBI, Sept 3 (Reuters) - Kenyan lawmakers angered by what they see as President Mwai Kibaki's illegal reappointment of the head of the anti-corruption commission have staged a protest vote to defeat a government motion in parliament.
Kibaki has been under heavy fire from critics since Monday, when he renewed the contracts of Justice Aaron Ringera and two deputies for a second five-year term without consulting members of parliament or the watchdog's own advisory board.
But Justice and Constitutional Affairs Minister Mutula Kilonzo told a news conference that Kibaki had not broken any laws and an impression created that he had flagrantly disregarded the law was wrong.
"The re-appointment of Ringera and his assistants is clearly within the mandate of the president," he told a news conference."
"Under the Anti-Corruption and Economic Crimes Act, no procedure is set out for reappointment," he said, adding that it was only when making initial appointments did he have to refer to parliament.
Critics say the commission has shown scant commitment to fighting corruption. Anti-corruption watchdog Transparency International ranks Kenya at 147 out of 180 countries worldwide in its corruption perception index.
The dispute has seen independent MPs lining up with members of the unity government against Kibaki and his cabinet allies.
High-level corruption in east Africa's biggest economy is cited as an important deterrent to doing business in Kenya, which has otherwise been one of sub-Saharan Africa's most attractive spots for foreign investors.
Legislators showed their displeasure at the president's move during a stormy session late on Wednesday, voting 59 to 36 to defeat a procedural motion by the government that would have adjourned the house for a six-week recess.
On Thursday, deputies were also expected to amend the Appropriation Bill, which allocates budget funds to ministries, to strip out the 694 million shillings ($9 million) currently allocated to the Kenya Anti-Corruption Commission (KACC).
"By reappointing Ringera, Kibaki has basically shot himself in the foot, further weakening his government. It's like putting a red rag in front of a bull, with the bull being parliament and the public," political commentator Robert Shaw told Reuters.
Ringera, who has led KACC since its formation in 2003, has said his work is hampered by poor court systems and laws. The watchdog receives about half its funding from the treasury.
"POOR PERFORMANCE"
The U.S. Embassy in Nairobi said in a statement it was deeply concerned about what it called the "unilateral" move.
"The reappointment, and the manner in which it was done, raise profoundly troubling questions, particularly given the poor record of performance of the KACC over the past five years," the U.S. statement said.
Government spokesman Alfred Mutua accused the United States of "poking its fingers into our nose," and asked it and other foreign governments to keep out of Kenya's domestic issues.
Kibaki and Odinga formed a unity government last year to end weeks of violence that followed a disputed presidential election. Critics say they have done little to tackle a raft of scandals mostly in the skewed distribution of oil and maize, but also in the immigration, tourism and financial sectors.
Shaw said the stand-off over the KACC could be an opportunity for an image makeover for Kenya's parliamentarians, who are widely disdained by locals as selfish and lazy.
"Parliament has powers to check the executive's excesses," he said. "This may give them a chance to use those powers and hasten the positive changes the country needs." (Editing by Giles Elgood) ($1=76.40 Kenyan Shillings)
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