[kictanet] [ke-internetusers] Re: PS Ndemo, ECONET Scandal aand Vested Interests

Fri Oct 10 06:31:48 EAT 2008

Dear Peterson,

Thanks for establishing a set of facts and am sure the right people  
would respond to the issues you have riased. I hope the discussion  
would continue on a factual basis and not degenerate.

I want to also present one set of facts regarding my participation in  
the TEAMS project. My company, Internet Research went through the  
entire process and indeed qualified to be allocated shares but at one  
of the proposed shareholders meeting, the issue of local ownership  
came up.

Majority of the proposed shareholders at that meeting made the  
argument that Kenyan tax payers money was being used to "underwrite"  
the risk associated with the project so only local operators or  
companies which meet the local ownership structure should be allowed.  
My company and a few others which did not meet the criteria establish  
at that meeting, gracefully exited.

My lawyers represented me at the said meeting and further on, the  
explanation of local operators meant East African companies which  
again, i did not qualify to. Now, while i really wished i was part of  
the project, i did see much reasoning in the principles established.  
However my other company which had majority Kenyan ownership got  
allocations and is since part of the TEAMS shareholders.

Eric here

On 10 Oct 2008, at 06:10, mwananchi at hushmail.com wrote:

> John,
>
> Dr. Bonny Khalwale on Wednesday in parliament as Chairman of the
> Parliamentary Accounts Committee in Parliament questioned why the
> Government, presumably through the Info. and Comm. and other
> related dockets was jeopardising our national security by selling
> shares in the telecoms sector to foreigners.
> http://www.nation.co.ke/News/politics/-/1064/478582/-/ywrqttz/-
> /index.html
>
> Dr. Khalwale was obviously not aware of PS Ndemo's latest and
> seemingly hurried initiative to abolish local shareholding
> requirements in the ICT sector and it should no doubt be brought to
> Parliament's attention and the public's notice.
> http://africa.reuters.com/business/news/usnJOE4950WH.html
>
> It is time PS Ndemo presented himself in his official capacity to
> Kenyans before the Parliamentary committee and named the foreign
> companies that have threatened not to invest in Kenya because they
> cannot allegedly partner with Kenyans! Kenyans should never condone
> blackmail, let alone from foreigners whose sole goal is to make hay
> while the sun shines from Kenyans without engaging in knowledge and
> technology transfer, indigenous wealth creation and other derived
> benefits that newly industrialised countries (China, India etc)
> have reaped from enforcing local ownership requirements.
>
> It is time such critical decisions that affect the nation were
> taken out of the hands of individuals who through possibly coerced
> strokes of pens to gazettements seriously compromise the nation's
> march to progression in indigenous ownership of sectors of the
> economy. Such critical decisions should belong in the hands of
> Wananchi through Parliamentarians who should debate and ratify such
> critical and arbitrary gazettements.
>
> Recently we saw the results of ill advised policies that favour
> foreigners at the expense of indigenous Kenyans. We saw Safaricom's
> share price become thoroughly depressed by foreigners who were in a
> rush to dump the shares. The greatest sufferers were local
> investors many of whom were already short changed with their paltry
> 21 percent share allocation. Yet the powers that be, sought to
> favour foreigners who have no allegiance to the nation at the
> expense of Wananchi.
>
> What has PS Ndemo done to improve and increase local ownership in
> the ICT sector before concluding that such efforts and approaches
> were futile and that Kenyans were useless investors? If Ndemo truly
> had the interests of Kenyans at heart he wouldn't be putting
> foreigners ahead of Kenyans! Similarly why has Ndemo been appending
> his signature to documents that favour Libyans amongst other
> foreigners that undermine Wananchi while holding a public office
> that demands maintaining public trust and protecting public
> interest?
> http://www.eastandard.net/InsidePage.php?id=1143990641&cid=4
>
> The Law regarding Acting on behalf of foreigners interests:
> http://www.kenyalaw.org/kenyalaw/klr_app/view_content.php?ContentHis
> toryID=12838
>
> Why is PS Ndemo purporting to fix what is not broken? Kenya
> recorded a 1330% increase in FDI in 2007, perhaps PS Ndemo could be
> excused for the oversight at the time of his arbitrary
> pronouncement. Surely something must be working right..
>
>   http://africa.reuters.com/country/TZ/news/usnLO172755.html
>   The report showed that FDI to Kenya rose to $728 million in
>   2007 compared with $51 million in the previous year, a rise
>   of close to 1,330 percent. "Kenya's FDI increased due to
>   large privatisation sales in the telecommunications industry
>   and investment in railways," Naiko said.
>
> The Econet sham has been misused repeatedly by PS Ndemo as the
> reason for his rationale in first reducing local shareholding
> requirements from 30%, down to 20% and now to his envisioned ZERO%.
> Instead of looking at the root cause of the matter which are
> unfavorable policies towards local investors, a hostile lending
> environment towards startups, poor vetting, poor tendering
> procedures, poor due diligence and irregularities by the regulator
> and reforming those, he appears keen to lambast and blame anything
> and everything else on Wananchi rather than address the root causes
> by instituting and promoting professional changes and improvements
> in the afflicted public institutions. Indeed how did bankrupt KNFC
> and Econet meet the US$100m threshhold of turnover for tendering
> when Deloitte and Touche audited accounts show Econet's largest
> operation (before they were bundled out of Nigeria for not having
> paid for their shares) having a turnover then of a mere US$8
> million and KNFC's total assets valued at Ksh 20million as of 2006?
> The poor financials and the exercise of due care in conducting due
> diligence by the regulator are the reasons why the licence fee
> could not be paid to the GK within the proscribed period and it has
> nothing to do with the vast majority of local investors whom Ndemo
> is trying to vilify. PS Ndemo and Treasury should let the public
> know if Econet has forfeited and paid in full its US$1.3 million
> bid bond to the exchequer for failure to pay the licence fees in
> cash as required:
>
> Audited Financials:
> http://rapidshare.com/files/152242139/Financials.pdf
> Miscellaneous:
> http://rapidshare.com/files/152242138/NjiriSA.pdf
> http://rapidshare.com/files/152242137/EconetSA.pdf
>
> For all we know PS Ndemo could have been misled by vested and
> powerful interests in the matter. Naturally the principles of
> justice dictate that he ought to be given the accordance of the
> benefit of doubt but if his deliberate actions show otherwise then
> the wheels of justice must run their course. If it takes 14 years
> as it did for the eventual trial and judgement of Oluga and Somaia
> for fraud against the Republic, then so be it.
>
> This is why if Ndemo is indeed innocent, he should not hesitate to
> speedily request KACC, the CID, Kenya's numerous independent anti-
> corruption organisations, any willing international partners with
> forensic investigation capacities, members of the public to work
> towards investigating the matter. It is also important that the PS'
> accomplishments on behalf of the nation are not blighted by a few
> but serious malfeasances if he was indeed misled. PS Ndemo's
> involvement in the matter is a serious issue considering what the
> law states about deliberately subverting directives and rulings
> such as the Minister's cancellation of the licence, given that
> deliberate ignorance of court rulings and Ministerial cancellations
> is classified under law as fraud.
>
> The law as regards Misleading the public:
> http://www.kenyalaw.org/kenyalaw/klr_app/view_content.php?ContentHis
> toryID=12843
>
> Section 354 of Chapter XXXV (Miscellaneous Offences Against Public
> Authority) of the Laws of Kenya:
>
>     “ANY PERSON WHO KNOWINGLY UTTERS AS AND FOR A SUBSISTING
>     AND EFFECTUAL DOCUMENT ANY DOCUMENT WHICH HAS BY ANY
>     LAWFUL AUTHORITY BEEN ORDERED TO BE REVOKED, CANCELLED
>     OR SUSPENDED, or the operation of which has ceased by
>     effluxion of time, or by death, or by the happening of
>     any other event, is guilty of an offence of the same
>     kind, and IS LIABLE TO THE SAME PUNISHMENT, AS IF HE HAD
>     FORGED THE DOCUMENT,”
> http://www.kenyalaw.org/kenyalaw/klr_app/view_content.php?ContentHis
> toryID=9961
>
> Amos Wako as the AG should let Kenyans know whether he was
> consulted by PS Ndemo, what his legal opinion was if any, by
> releasing the relevant correspondence, and if so, what rationale he
> employed in purporting to settle a case the Government had already
> won through a final court ruling!
>
> Judge's final Ruling upholding cancellation of licence:
> http://rapidshare.com/files/152242136/Econet_v_Minister.pdf
>
> video of PS Ndemo personally signing the sham "settlement
> agreement":
> http://rapidshare.com/files/152229210/en_bs_250707_econectknfc.mp4
>
> Laws of Kenya regarding the Giving of advice:
> http://www.kenyalaw.org/kenyalaw/klr_app/view_content.php?ContentHis
> toryID=12842
>
> AG Wako has shown previously that in matters where the Government
> will ultimately prevail, the Government will not hesitate to uphold
> the public interest even where the outcome could embarrass the
> executive as was the unprecedented case of Kenya Duty Free v GK
> where the Government's winning defence was that the former
> President had taken a US$2 million bribe from the applicant.
> http://www.freshfields.com/news/mediareleases/mediarelease.asp?id=10
> 19
>
> It is an inescapable fact that PS Ndemo seems to wish away that the
> Econet licence was Scandal number 10 in Edward Clay's list of 20
> scandals committed against the nation:
> http://rapidshare.com/files/152246719/20Scandals.pdf
>
> What happened to Ndemo's rather reasonable previous requirement in
> 2007 about local ownership, did vested foreign and "local -
> Mobitelea like" interests twist his arm and coerce him to change
> his mind??
>
>   What we are saying is that a foreign investor needs time to
>   (get to) know whom he can work with," Ndemo says. "In three
>   years he can do a private placement or in five years do an
>   IPO (initial public offering) or introduce employee option
>   plans, but they must give 30 per cent to locals."
>
> The issues are very simple, Ndemo should come clean and cease
> condoning and abetting the commission of illegal acts against the
> public trust and interest that involve a permanently CANCELLED and
> thus null and void license; open the matter to public scrutiny and
> investigation and mostly importantly it is his duty as a Kenyan to
> find constructive ways of promoting indigenous Kenyan ownership
> instead of working day and night to find ways to increase ownership
> by foreigners at the expense of Wananchi. It is indeed absurd that
> when Mama Mboga attempts to make a living without having a valid
> licence, she will certainly face the wrath of askaris, how
> foreigners can blantantly walk into Kenya, disenfranchise their
> local component with blessings from vested interests and when their
> licence is cancelled continue to operate without a valid licence
> and without a new tender being called reeks of impunity at best.
>
> When 48 members of Parliament in 2003 rose up to be counted, they
> surely knew what the animal they were pointing out, the same animal
> that now disrespects Kenyan institutions as it continues to run
> around while flashing a long cancelled and now null and void
> licence as part of a grand and colossal fraud.
> http://www.telegeography.com/cu/article.php?article_id=2030
>
> Peterson Olale
>
> On Thu, 09 Oct 2008 15:59:44 +0000 John Maina <j.maina at ymail.com>
> wrote:
>> Brian
>>
>> We dont dispute that.
>>
>> We are asking about the fact that the government is ignoring court
>> injuctions which were shown there
>>
>> Why ignore court cases?
>>
>> JM
>>
>> ----- Original Message ----
>> From: Gakuru Alex <alexgakuru.lists at gmail.com>
>> To: j.maina at ymail.com
>> Cc: kictanet at lists.kictanet.or.ke
>> Sent: Thursday, October 9, 2008 4:54:50 PM
>> Subject: Re: [kictanet] Econet Haters.... :-D
>>
>> Brian,
>>
>> As kictanet chairman with all the 'forum powers',  I honestly feel
>> that it is unfair for you to drag on this conversation at least
>> from a
>> "fair play" perspective....
>>
>> If you choose not to kill the thread, at least you should avoid
>> being
>> a discussant?
>>
>> regards,
>>
>> Alex
>>
>
> --
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Eric M.K Osiakwan
ICT Integrator
Internet Research
www.internetresearch.com.gh
emko at internetresearch.com.gh
42 Ring Road Central, Accra-North
Tel: +233.21.258800 ext 2031
Fax: +233.21.258811
Cell: +233.24.4386792

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