US Democratic Presidential nominee Senator Barack Obama. Photo/REUTERS�

CHICAGO, Tuesday – A spokesman for Senator Barack Obama�s campaign is taking the Chicago Sun-Times to task for reporting on a verbal slip Obama made referring to �my Muslim faith.�

The Democratic Party nominee for president was discussing false rumours on ABC�s �This Week with George Stephanopoulos� when he made the gaffe, the Sun-Times reported yesterday.

Mr Obama suggested that GOP rival Senator John McCain was behind false rumours that he is a Muslim. Mr Stephanopoulos then reminded him that Mr McCain denied spreading the rumours.

�You�re absolutely right that John McCain has not talked about my Muslim faith,� Obama said before Stephanopoulos corrected him.

The Sun-Times says the verbal slip unleashed a barrage of Internet attacks, becoming a magnet for comments on the YouTube.com video site.

Pretty irresponsible

�Printing a blogger suspecting that Obama is a Muslim is pretty irresponsible and below the standards that we�re used to out of the Sun-Times,� Obama spokesman Bill Burton wrote in an e-mail message to the newspaper.

Meanwhile, Mr Obama has accused Mr McCain and Sarah Palin of �shameless� dishonesty with their claim to be �mavericks,� different from the unpopular President George W. Bush.

�They are not telling the truth,� he said in an interview with MSNBC news yesterday after the Republican running mates advertised themselves in a television spot as the �original mavericks� who would stand up for hard-pressed voters.

�When you have somebody who was for a project being presented as being against it, then that stretches the bounds of spin into new areas,� Obama said in response to Palin�s boast that she had intervened to kill a controversial federally funded �bridge to nowhere,� a project she initially supported.

The Obama campaign also unveiled an ad highlighting McCain�s lock-step voting record with President George W. Bush.

�Politicians lying about their records? You don�t call that maverick � you call it more of the same,� the announcer said, breaching one of the last taboos of US politics by accusing the Republicans of outright dishonesty.

Meanwhile, Mr McCain has gained huge support and now leads Democrat Barack Obama among white women voters since naming Sarah Palin as his running mate, according to a survey published on Tuesday. The Washington Post/ABC News poll found that much of McCain�s surge in the polls since the Republican National Convention is attributable to the shift in support among white women.

The race for the White House is now a virtual tie, with Obama at 47 per cent support of registered voters and Mr McCain at 46 percent, the poll found.

Before the Democratic National Convention in late August, Obama held an 8 percentage point lead among white women voters, 50 per cent to 42 per cent, but after the Republican convention in early September, McCain was ahead by 12 points among white women, 53 per cent to 41 per cent, the poll found. (Agencies)

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API/Source.nation.ke

By�Muchemi Wachira

Lands minister James Orengo on Tuesday presented himself to the Cockar Commission and denied being served with summons to appear before the inquiry.

MRS JACINTA MWATELA, who was replaced on Tuesday as deputy governor of the Central Bank of Kenya, is an extraordinary banker and public officer. Her story and record of service at the CBK offers an illuminating study on what personal commitment to probity by a public official can bring to public office.

Observers who have been keenly following the shenanigans at the Central Bank of Kenya know very well that her replacement and promotion to the position of permanent secretary for the Ministry of Northern Kenya and Arid Lands was not inspired by a sense of gratitude to the 30 years of exemplary service she has given to the CBK.

The truth of the matter is that somebody wanted her out of the way at the central bank in a hurry. It is an open secret that she was not in good books with the clique that wields power at both the Central Bank of Kenya and the Treasury.

Outspoken and uncompromising on issues to do with procedure and probity, she found herself on the wrong side with powermen over the manner in which the multi-million second generation currency printing contract was handled.

Last month, she rubbed the powermen the wrong way by the evidence she gave to the Chris Okemo-led parliamentary committee on finance and public administration that was investigating the Grand Regency saga.

Within the Central Bank itself, it was an open secret that she was among a group the insiders at the bank would derisively refer to with the code name, �The Three Musketeers�. Mwatela was perceived as the inspiration to a group of three tough women in the top management of the bank, who refused to play to the whims of politicians and influence-peddlers at the Central Bank of Kenya and the Treasury on matters of procedure and probity.

With her exit, the three musketeers have more or less been dismantled.

The manner in which Mrs Mwatela was replaced raises several broader policy questions. Can we� really � claim to have an independent central bank?

Why does the Government pretend to subscribe to the principal of central bank independence, but in reality treat the affairs of this critical regulator of the financial system as if it were another ordinary parastatal?

If we indeed believed in an independent central bank, the Government should have left the recruitment of the second in command of this key institution to its board.

The issue of Central Bank independence is as old as central banking itself. We need to renew our faith in this principle so that we can keep politicians and the Government away from the Central Bank as far as possible.

IT IS FOOLHARDY TO ENTRUST THE power of issuing paper money to the Government. Goldenberg happened basically because we had a central bank that was willing to cede power to ministers and permanent secretaries at the Treasury.

Why are were driving in the reverse in terms of the need to achieve independence and autonomy of the Central Bank of Kenya?

Last year, the Treasury tried to introduce changes to the Central Bank Act with the aim of introducing a chairman appointed by politicians.

Treasury�s argument at that time was that the current arrangement, which allows the governor to hold the positions of both chief executive and chairman of the board was not in line with modern corporate governance practice. Clearly, the intention was to get the Central Bank to cede space to politicians.

Fortunately, that move did not see the light of day. What Kenya needs is a central bank whose commitment to price stability cannot be influenced by either short-term considerations of politicians or the borrowing appetite of those big spenders at the Treasury.

Inflation is the cruelest form of taxation on the people. Yet only an independent central bank, operating autonomously without the influence of politicians, can deliver monetary conditions for non inflationary growth.

We should not allow politicians to come near the conduct of monetary policy. Faced with hyper-inflation, authorities in Zimbabwe recently ordered the removal of zeros from their currency notes.