[kictanet] Ministry seeks more seats at KENIC

Fri Aug 17 12:37:34 EAT 2012

Kivuva

Clarification on your last paragraph.

*"We have been talking about corporate governance for a while. Kenic takes
Ksh 12Million from its account and invests it in a fixed bond in Amana
Asset Management  Company. Reminds me of African countries saving their
foreigh exchange reserves in offshore accounts then getting the same money
pumped back into the economy as loans. Building the KeNIC brand would be
futile with such practices. What does the community think?"*

About a year and a half ago as KeNIC was embarking on its Strategic Plan,
the Board realized that there was at any given time Kshs.10m sitting in its
CBA Bank account which was not earning any interest and in fact KeNIC was
actually paying ledger fees on the same!!

The Finance Committee of which I was then the chair deliberated on this
issue and recommended to the full board that at the very least this money
needed 'to work' for KeNIC. The board approved and we initiated a tendering
process where various fund managers and the bank were invited to pitch for
managing this cashflow for interest bearing purposes. The winning company
was Amana Capital which fitted our requirements then. These requires were
that:-

1. That the original capital will under all circumstances be fully
protected and that KeNIC WILL NOT loose this original 10m.

2. That the winning company accept to only 'EAT WHAT IT KILLS' which
basically meant that their remuneration will only be through a percentage
of the interest income earned. This was agreed at 12.5%.

3. This arrangement wasn't a bond or fixed deposit type but more like
Treasury Management for cashflow purposes.

At that time we felt that this best captured KeNIC's Investment Policy.

I want to assure the community that this money has not been lost or
laundered or anything of that sort as it is held in escrow and available
within 24-48 hours of its demand and that Amana Capital doesn't have any
access to it without the explicit authorization of KeNIC signatories.

Lastly, contrary to the implication that this money may be lost it is
actually earning over 300k in interest every month for KeNIC.

At least this was the case when I resigned in April this year.

I hope this clarifies the matter.

Ali Hussein

On Fri, Aug 17, 2012 at 11:52 AM, Kivuva <Kivuva at transworldafrica.com>wrote:

> It is coming out quite clearly that the very nature of the Public Private
> Partnership (multistakeholderism) that KENIC use is now at risk with the
> CCK taking over literally. I don't see a very big line between the Ministry
> of communications and CCK, they are all cut from the same cloth. If the
> ministry cannot influence decision with it's current numbers at the board,
> them it seems the latest move is a way of taking total control of Kenic,
> with capacity to veto decisions and dictate its stand. The community should
> debate and come up with a clear road-map. Since KENIC is a multistakeholder
> organisation, using PPP model, to change its status, you must get approval
> from the community. Its indeed commendable that the boards position is
> inline with the community's aspiration, as noted in the 56th Kenic Board
> meeting as it states: "KENIC’s structure is based on multi stakeholder
> partnership (MSP) model, touted  for  Internet  governance  worldwide.
>  ICANN  and  most  domain registries have adopted this approach. Licensing
> and regulation of KENIC by the Commission which is one of its stakeholders
> and board members would be seen as distorting this model framework by
> elevating government over the other stakeholders in management of these
> Internet resources"
>
> There has been talk that the AGM slotted for 24th August (date according
> to Business Daily article) is planned to be closed, to lock out the
> community. We must first ensure that the AGM us open to all and not closed.
> Making the AGM locked means there are people who fear reprisals form the
> community. Let's not beat around the bush, KENIC belongs to all of us.
>
> We have been talking about corporate governance for a while. Kenic takes
> Ksh 12Million from its account and invests it in a fixed bond in Amana
> Asset Management  Company . Reminds me of African countries saving their
> foreigh exchange reserves in offshore accounts then getting the same money
> pumped back into the economy as loans. Building the KeNIC brand would be
> futile with such practices. What does the community think?
>
>
> Regards
> --
> ______________________
> Mwendwa Kivuva (lordmwesh)
> For
> Business Development
> Transworld Computer Channels
> Cel: 0722402248
> twitter.com/lordmwesh
> www.transworldAfrica.com  | Fluent in computing
> kenya.or.ke | The Kenya we know
>
>
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-- 

*Ali Hussein|Managing Partner*

*
*Telemedia Africa
Azania Technology Group

Chaka Court, Argwings Kodhek Road

P O Box  14556-00100

Office: +254 737 751409

Cell:     +254 773/713 601113

*Nairobi, Kenya*

Twitter: @AliHKassim

Skype: abu-jomo

"You generally hear that what a man doesn't know doesn't hurt him, but in
business what a man doesn't know does hurt.". - E. St. Elmo Lewis, member,
Advertising Hall of Fame
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