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

Tue Oct 14 09:02:36 EAT 2008

Eric, 

Thank you for your feedback. In general I believe we are in 
agreement, it is when we get to the finer details where fine tuning 
and compromise will be.

PS Ndemo should commit to putting Kenyan interests first and 
working towards removing obstacles that prevent local investors 
from succeeding such as policies that fail to take local investors 
into account. 

So that the message is not lost, this is not an argument that 
foreigners should be locked out, rather they should be allowed into 
the country under conditions favourable to Kenyans, the Nation and 
of course the investor.

If PS Ndemo proceeds with his new policy lacking significant 
amendments, while saying he has discussed it with stakeholders, 
there will be no point in participating in sham PR exercises that 
give the false appearance of consultative meetings. 

It is good see the debate take a Pan African dimension on other 
lists with views from other continental Africans and it is evident 
the present day issue of economic sovereignty also afflicts other 
nations such as Uganda.

I believe that an appropriate forum should host the policy 
discussions and until then, new policy should be suspended until 
the public and stakeholders have provided their input. The IGF 
would be great however it 
may not be within the scope of the IGF to do so. However if others 
do agree then let it be so.

PO

On Mon, 13 Oct 2008 06:18:19 +0000 "Eric M.K Osiakwan" 
<emko at internetresearch.com.gh> wrote:
>Peterson,
>
>Yes, i did spend sometime with this piece and it does echoes 
>exactly  
>our considerations. I think we agree on the principles of 
>empowering  
>local entrepeurs and investors to pitch up in a globalised 
>context.
>
>I would submit that the relevant forum, ie KICTANET or KICTB etc  
>should table a policy discussion on the various options and lets  
>apply our minds seriously to the substance and come out with a 
>clear  
>"win-win" situation because to a large extent i agree with PS 
>Ndemo  
>that we should not let the opportunity of outsourcing pass us by 
>but  
>we need to engage with the best output.
>
>One suggestion would be to include this in the Kenya IGF that is  
>coming up or in the EA IGF discussions or an entirely different 
>forum.
>
>Eric here
>
>
>On 11 Oct 2008, at 16:12, mwananchi at hushmail.com wrote:
>
>> Dear Eric,
>>
>> Some weekend reading for you, this article was directed at NEPAD
>> and the then Finance Minister and it covers some of the issues 
>we
>> have been discussing.
>>
>> Africa, Kimunya should seek monetary policies that serve local
>> interests
>> 
>http://www.bdafrica.com/index.php?option=com_content&task=view&id=8
>2
>> 62&Itemid=5821
>>
>> "This, however, remains the quintessential question of African
>> development: how to achieve economic independence in an
>> international and regional context where the profit motives of 
>most
>> investors and lenders rarely correspond to our growth and
>> development goals."
>>
>> We simply cannot achieve economic independence when over 80 
>percent
>> of the economy is in the hands of foreigners more so non 
>Africans
>> and PS Ndemo now wants to eliminate indigenous ownership
>> requirements. Local ownership requirements did not deter the
>> credible and serious Zain's, Vodafone's, France Telecom's, 
>Altech's
>> of this world from coming into Kenya. Has PS Ndemo forgotten 
>that
>> Kenya's FDI in the last year rose by over 1300 percent?
>>
>> Is it fair that some local individuals could use multiple 
>separate
>> companies in which they have substantial shareholding so as to
>> maximize their effective share of TEAMS while other legitimate
>> local and international investors are locked out? These and 
>other
>> criteria (total beneficial ownership etc) need to be looked at 
>and
>> analysed to get to the core of the matter.
>>
>> It is a pity that PS Ndemo seems to believe that it is a bad 
>thing
>> when Peterson asks the Government to listen to local investors 
>and
>> take their interests into consideration while striking a balance 
>in
>> the same way he listens to foreign investors and makes arbitrary
>> non-consultative policy changes just because the Nesbitt's of 
>this
>> world (who already have a tax holiday) have already arm twisted 
>him
>> behind closed doors into submission. We want these unnamed 
>vested
>> interests to take their case to the Kenyan public and to stop
>> coercing public servants behind closed doors, if they can 
>convince
>> the public openly that what they need is good for Kenya then the
>> public through their representatives will effect such changes
>> openly and transparently.
>>
>> As for the other matters, they don't require endorsement or
>> agreement, the facts stand on their own, they are facts anyone 
>can
>> verify by going to the High Court registrar, providing the case
>> number and obtaining the same documents and rulings. The near
>> collapse and disrespect of our institutions is as a result of 
>the
>> permeation and embrace of a culture of impunity. If these
>> institutions were respected by among others, PS Ndemo, it would 
>not
>> be an issue affecting the nation.
>>
>> I challenge anyone with any contradicting documents to dispute 
>the
>> facts by presenting the same rather than attempting to 
>assassinate
>> the messenger for blowing the whistle.
>>
>> Have a good weekend.
>>
>> Regards,
>>
>> Peterson
>>
>> On Fri, 10 Oct 2008 15:38:36 +0000 "Eric M.K Osiakwan"
>> <emko at internetresearch.com.gh> wrote:
>>> Dear Peterson,
>>>
>>> I go with you on the wheel that the vested interest of the 
>country
>>> in
>>> paramount.....
>>>
>>> The elements of my case though disappointing, i went with the
>>> established criteria since was applied across board but then in
>>> the
>>> situation where most of the local companies are majority owned 
>by
>>> non-
>>> Africans, then one needs to look into the criteria again.
>>>
>>> The larger question, we need to raise is how do we ensure that 
>the
>>>
>>> interest of other African investors can be unheld in another
>>> African
>>> jurisdiction, in the context of developing Africa by Africans. 
>You
>>>
>>> know the TEAMS process is still ongoing so lets allow the
>>> establish
>>> procedures and policies to work, am patient and dont have any 
>hard
>>>
>>> feelings at all.
>>>
>>> The other big question that we need to answer is, these huge
>>> infrastructure projects require huge sums of money, personally 
>am
>>> not
>>> a deep pocket in that sense but at least i can raise the money,
>>> may
>>> be from another African country or worse case outside the
>>> continent
>>> if the amounts are way over. The TEAMS model where public funds
>>> are
>>> used to underwrite the risk in order to ensure that the entry
>>> barriers for investment are  minimised so local investors and
>>> entrepreneurs can participate are innovative and i personally 
>want
>>> to
>>> give the TEAMS model a chance to succeed. We as Africans need 
>to
>>> evolve solutions to our unique problems, ofcourse borrowing in
>>> same
>>> cases from others who have gone ahead.
>>>
>>> Unfortunately, i would have to distant myself from some of the
>>> allegations though you establish them on factual basis, it 
>would
>>> be
>>> good for the right authorities to follow it through so that we
>>> have
>>> conclusive situations. Also, those involved must be given a 
>chance
>>> to
>>> present their side of the argument so that those in this forum 
>can
>>> be
>>> more knowledgable. Again, if we can keep it tactful, then the
>>> common
>>> good is preserved for the sake of posterity.
>>>
>>> Have a good weekend, good people.
>>>
>>>
>>>
>>> On 10 Oct 2008, at 20:16, mwananchi at hushmail.com wrote:
>>>
>>>> Dear Eric,
>>>>
>>>> At the end of the day, Kenyans only want the best for our
>>> nation.
>>>> Kenyans certainly are not against beneficial foreign direct
>>>> investment and welcome it provided it is conducted under
>>> policies
>>>> that result in a win-win situation for Kenyans and the 
>investor.
>>>> Unfortunately the country's policies particularly those being
>>>> fronted now do not reflect that wish, which is why it is
>>> important
>>>> that the Government pay attention to what local and would be
>>>> international investors are saying and strike a balance that 
>is
>>> a
>>>> win-win for both.
>>>>
>>>> In your case, had PS Ndemo stuck with his proposal that he 
>made
>>> in
>>>> 2007, Internet Research would not be experiencing any hurdles.
>>> The
>>>> local component would also have been preserved in a manner not
>>>> detrimental to your company.
>>>>
>>>> I hope that PS Ndemo will address the issue of your company.
>>> Kenya
>>>> as an African country should not be deterring Kenyan or any
>>> other
>>>> African investors who are credible and who operate and respect
>>> our
>>>> laws and institutions instead of trampling them underfoot and 
>in
>>>> the one case that has been mentioned, deliberately failing to
>>> meet
>>>> their obligations for over 4 years. These are the same types 
>of
>>>> investors who have been rejected by Altech, the nations of 
>Papua
>>>> New Guinea, Malawi, Nigeria. The same characters who failed to
>>> meet
>>>> their licence obligations for years in New Zealand and were
>>> lucky
>>>> to get token percentage ownership of what was left when 
>credible
>>>> investors took over and who in Lesotho have been engaged in 
>tax
>>> and
>>>> roaming link frauds.
>>>>
>>>> http://rapidshare.com/files/152715858/fraud_in_lesotho.pdf
>>>>
>>>> They finally found a safe haven to land in Kenya embraced by a
>>>> culture of impunity where it does not matter if you meet your
>>>> obligations or if you operate with cancelled licences provided
>>>> powerful vested interests pave and coerce the way for you.
>>>>
>>>> When we reject investors whom we know such as Eric and embrace
>>>> undesirable investors instead, it shows why we precisely are
>>>> lagging behind in FDI. Indeed if Kenya gave investors 5 years 
>as
>>> it
>>>> did in this particular case to pay licencing fees, the country
>>>> would be overwhelmed with numerous investors. As the occassion
>>> of
>>>> Moi Day graces us today, the Moi government despite its many
>>> flaws
>>>> was quick to realize what type of animal this was and 
>correctly
>>>> rejected them not just once but twice.
>>>>
>>>> Peterson
>>>>
>>>> On Fri, 10 Oct 2008 03:31:48 +0000 "Eric M.K Osiakwan"
>>>> <emko at internetresearch.com.gh> wrote:
>>>>> 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.
>>>>>
>>
>> --
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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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