<html><head><style type="text/css"><!-- DIV {margin:0px;} --></style></head><body><div style="font-family:times new roman, new york, times, serif;font-size:12pt"><div><br></div><div style="font-family: times new roman,new york,times,serif; font-size: 12pt;"><br><div style="font-family: arial,helvetica,sans-serif; font-size: 13px;">----- Forwarded Message ----<br>From: "mwananchi@hushmail.com" <mwananchi@hushmail.com><br>To: j.maina@ymail.com<br>Sent: Thursday, October 9, 2008 7:47:34 AM<br>Subject: PS Ndemo and Econet scandal...<br><br>
John,<br><br>Interesting discussion on Kictanet, perhaps one should have warned <br>you before hand that Kictanet is laden with vested interests who <br>will gladly forego accountability and transparency as long as they <br>themselves benefit or will benefit from Ndemo's rewards for singing <br>his praises and not holding him to account as the public servant he <br>is. Certainly he has done some good things for the country but he <br>has also enabled the commission of monumentally bad matters. <br><br>Whenever truth is told, hardcore supporters of Ndemo led by one <br>Brian Longwe (who has interestingly benefited in several ways since <br>Ndemo took office) predictably rush to chant "smear", "smear" in an <br>attempt to obfuscate the truth. God forbid should Longwe ever be <br>appointed to public office for that will mark the improper entrance <br>of an individual who believes that accountability and transparency <br>have no room and should exist in
Kenya. <br><br>You may use the below as you deem fit, the truth needs to be told:<br>---- <br><br>If Ndemo is so innocent why doesn't he invite the CID, KACC, the <br>Attorney <br>General's office and any other co-operating law enforcement <br>agencies such as the UK's Serious Fraud Office and independent anti-<br>corruption agencies to investigate the issue while inviting the <br>public to forward any evidence they might have of misconduct, law <br>breaking and corruption to the relevant agencies. Perhaps instead <br>of Brian trying to pull wool over wananchis eyes, he could suggest <br>this solution to the PS to help bring these matters to a logical <br>conclusion once and for all. <br><br>Facts do not lie, naysayers loudly declaring their unwavering and <br>blind support should present hard exonerating facts that rubbish <br>the tip of the iceberg below or continue in their rather misguided <br>act of aiding and cheering on the commission of corrupt
and <br>economic crimes against the nation. The below are just the surface <br>of the scam that the PS has worked tirelessly to keep from public <br>view. <br><br>Fact 1:<br>Econet sought a gag order against its former Chief Financial <br>Officer, Mwaura Njiri, a Kenyan, who forced by his conscience <br>resigned when Econet sought to force him to sign a falsified <br>affidavit that was aimed at defrauding KNFC of their legitimate <br>shareholding in Econet Wireless Kenya. In attempting to do so <br>Econet filed the following case:<br><br>CASE NO 05/12059 IN THE HIGH COURT OF SOUTH AFRICA<br>(Witwatersrand Local Division) <br><br>Econet Wireless International Limited - 1st Applicant<br>Econet Wireless Kenya Limited - 2nd Applicant<br>Econet Wireless Ventures Limited - 3rd Applicant<br>v<br>Njiri, Elizaphanson Mwaura - Respondent <br><br>Entire Econet Court Filing:<br><a href="http://rapidshare.com/files/152242137/EconetSA.pdf"
target="_blank">http://rapidshare.com/files/152242137/EconetSA.pdf</a><br><br>Respondent Njiri's Entire Court Filing response to Econet lawsuit: <br><a href="http://rapidshare.com/files/152242138/NjiriSA.pdf" target="_blank">http://rapidshare.com/files/152242138/NjiriSA.pdf</a><br><br>5. Re Paragraph 7 <br>"I have no knowledge whether the First Applicant is a subsidiary of <br>the Third Applicant. I do not know when the "group" was founded, <br>but I deny that it a leading telecommunications operator in Africa."<br><br>6. Re Paragraph 8 <br>"I admit my citation and place of residence. I was employed by the <br>First <br>Applicant as Chief Financial Officer and also Head of Corporate <br>Finance <br>Development from July 2000 until 26th October 2004 when I resigned, <br>largely due to the deterioration in my relationship with the First <br>Applicant and Wazara. I admit that I played a central role in <br>establishing the Second Applicant for purposes of
the said tender." <br><br><a href="http://rapidshare.com/files/152242138/NjiriSA.pdf" target="_blank">http://rapidshare.com/files/152242138/NjiriSA.pdf</a><br><br>Fact 2:<br>Mwaura Njiri under penalty of perjury unequivocally and in his <br>position as CFO stated the following regarding Econet's finances. <br>This is a damning indictment of the regulator for abandoning its <br>fiduciary duties to the Kenyan public by failing to eliminate the <br>licensee at the pre-qualification stage, thus the licensee was <br>licenced contrary to the tender rules considering their true and <br>correct balance sheets did not show a healthy turnover of over <br>US$100m. The secret of the hundreds of millions of dollars in <br>turnover is a story well told only that it neglected to mention <br>that those were worthless Zimbabwean dollars:<br> <br>"17.1 The First Applicant's balance sheet at that point in time was <br>so bad that it was unable to obtain funds
from any bank;"<br><a href="http://rapidshare.com/files/152242138/NjiriSA.pdf" target="_blank">http://rapidshare.com/files/152242138/NjiriSA.pdf</a><br><br>Deloitte and Touche, Audited Financials of Econet Wireless Limited, <br>the only Econet company that could have claimed to their long lost <br>"Nigerian" operations that never were showing a mere turnover of <br>$8m at the time of licencing in 2003 when it was necessary to show <br>a consortium turnover of $100m which obviously the now insolvent <br>KNFC did not have:<br><a href="http://rapidshare.com/files/152242139/Financials.pdf" target="_blank">http://rapidshare.com/files/152242139/Financials.pdf</a><br><br>Fact 3:<br>Mwaura Njiri, Econet CFO since its early days, under penalty of <br>perjury admits the Econet licence was cancelled by the Minister for <br>Information and Communications despite his best efforts to prevent <br>cancellation:<br><br>"32. Re Paragraphs 43<br>I admit the allegations
contained herein and point out that when <br>this<br>eventuated Masiyiwa then requested me to assist the First Applicant <br>by <br>returning to Kenya and endeavouring to assist the Applicants by <br>requesting the Minister and the Kenyan authorities not to cancel <br>the licence.I agreed to so assist the First Applicant which then <br>provided me with the necessary air ticket to enable me to travel to <br>Nairobi together with the said Wazara for this purpose.While I <br>tried my best to so assist the First Applicant I was unsuccessful <br>in this regard."<br><a href="http://rapidshare.com/files/152242138/NjiriSA.pdf" target="_blank">http://rapidshare.com/files/152242138/NjiriSA.pdf</a><br> <br>Fact 4:<br>KNFC was essentially bankrupt or near bankruptcy at the time of <br>licensing <br>culminating in KNFC being declared financially insolvent in 2006. <br>Once again the regulator abandoned its fiduciary duties by <br>deliberately allowing
parties who could not pay licence fees as <br>proscribed by the tender rules to be licenced contrary to public <br>procurement regulations.<br><br>"The Minister for Co-operative Development Njeru Ndwiga yesterday <br>confirmed that the Federation, which was said to have owned as much <br>as <br>80 per cent of Econet’s bid for the their mobile licence, cannot <br>meet <br>its financial obligations. <br><br>The union is indebted to the tune of Sh40 million against an asset <br>base of Sh25 million. <br><br>The minister said the cash-strapped Federation cannot honour its <br>financial obligations that include Sh1.3 million in salary arrears, <br>a <br>Sh10 million loan from the Co-operative Bank, Sh5.6 million in <br>statutory deductions and Sh800,000 in lawyers’ fees"<br>- The Standard 29/6/2005<br><br>" KNFC has liabilities in excess of 64 million shillings against a <br>total asset value of 20 million shillings." <br>- 21/1/2006 <a
href="http://www.kbc.co.ke/story.asp?ID=34599" target="_blank">http://www.kbc.co.ke/story.asp?ID=34599</a><br><br>Fact 5:<br>The Chief legal representative of the Government of Kenya is <br>Attorney General, Amos Wako. In 2007, PS Ndemo purported to settle <br>a case the government had already won upholding the cancellation of <br>the Econet licence by the Minister of Information and <br>Communications. The PS further claimed to settle a case that Econet <br>was destined to loose following a court order ordering them to <br>deposit $15million as security for their $1 billion case against <br>the Minister. Econet could not conceivably pay the $15 million for <br>they still owed the government $12 million.<br><br>Investigations are necessary to establish:<br> a) Whether PS Ndemo upsurped the powers of the Attorney General<br> b) What the Attorney General's role and legal rationale was in <br>arriving <br> at the
"settlement"<br> c) Whether PS Ndemo acted against the interests of the Republic<br> d) Whether PS Ndemo defied a binding and final ruling by Kenya's <br> Judiciary<br> e) Whether PS Ndemo through his actions committed abuse of abuse <br>as <br> defined under the Economic and Anti-Corruption Act of 2003<br> f) Whether PS Ndemo committed any other unlawful acts through is <br> actions<br> g) Whether PS Ndemo by trampling a bonafide court ruling and a <br> Ministerial order contravened the Section 354 of Chapter XIII<br> (Miscellaneous Offences Against Public Authority) of the Laws <br>of <br> Kenya which in states: <br><br> “Any person who knowingly utters as and for a subsisting and <br>effectual document any document which has by any lawful authority <br>been ordered to be revoked, cancelled or suspended, or the <br>operation
of which has ceased by effluxion of time, or by death, or <br>by the happening of any other event, is guilty of an offence of the <br>same kind, and is liable to the same punishment, as if he had <br>forged the document,”<br><br>Visual proof of PS Ndemo signing the bogus "settlement agreement":<br><a href="http://rapidshare.com/files/152229210/en_bs_250707_econectknfc..mp4" target="_blank">http://rapidshare.com/files/152229210/en_bs_250707_econectknfc.mp4</a><br><br>It cannot be wished away that a legal precedent has already been <br>established in Kenya for Government officials who claim to have <br>been acting on orders from above that they remain responsible for <br>actions carried out on the basis of their own personal actions and <br>thus PS Ndemo bears absolute and full responsibility for appending <br>his signature to the sham "settlement agreement" that he appended <br>his signature to on "behalf" of the Republic:<br><br>Magistrate Aggrey
Muchelule had a stern warning to public officers: <br><br>"It does not pay to take illegal orders from your superiors. <br>However highly placed, you will still be responsible in the <br>fullness of time."<br> <br><a href="http://www.accessmylibrary.com/coms2/summary_0286-13141577_ITM" target="_blank">http://www.accessmylibrary.com/coms2/summary_0286-13141577_ITM</a><br><br><a href="http://news.bbc.co.uk/2/hi/africa/3591830.stm" target="_blank">http://news.bbc.co.uk/2/hi/africa/3591830.stm</a><br><br>It took 14 years after the fact to sentence Somaia and Oluga for <br>their fraud against the Republic, public servants should not chide <br>theselves that the passage of time makes one's illegal actions <br>forgotten. Those they enable to engage in illegal acts might get <br>away but the public servant will nonetheless carry their own cross.<br><br>Fact 6:<br>The Econet matter has recently been planned for Cabinet discussion. <br>This <br>warrants PS
Ndemo's investigation for his role in disenfranchising <br>Kenyans and for continuing to make plans to legalise an illegal act <br>of disenfranchisement into law by arbitrarily gazetting regulations <br>that seek to place foreigners ahead of Kenyans:<br><br>"When contacted, Nyagah confirmed he had received the letter from <br>the KNFC interim board, seeking their intervention on the issue of <br>the shares, and their participation in rolling out the third mobile <br>operator’s services. <br><br>Nyagah, whose main docket covers the co-operative movement, said he <br>would <br>address the concerns raised by KNFC at the Ministry and Cabinet <br>level."<br><br><a href="http://www.eastandard.net/InsidePage.php?id=1143995477&cid=14&j=&m=&" target="_blank">http://www.eastandard.net/InsidePage.php?id=1143995477&cid=14&j=&m=&</a><br>d=<br><br>The Cabinet ought to act with no holds barred in looking into PS <br>Ndemo's
<br>involvement in the matter as well as his recent pandering to <br>foreign interests at the expense of Kenyans. This is a serious <br>national security matter that involves critical infrastructure in <br>the country particularly coming at a time when foreigners <br>stranglehold exceeds 80% of the economy. The issue of allowing <br>foreigners to own 100% of ICT firms should be submitted to <br>Parliament for those are the elected representatives of the Kenyan <br>people, such critical decisions should not be left in the hands of <br>someone who recently signed away access to the Kenyan Economy to <br>Libyans and frequently echoes his admiration of foreigners. Let PS <br>Ndemo name the foreigners who have approached him and who despise <br>Kenyans so much that they would not dream of partnering with them:<br><br> "This rule is messing us up in terms of investments. There are <br>large companies which want to invest in this country without <br>partnering
with other individuals," Bitange Ndemo, permanent <br>secretary at the Information Ministry, said in an interview.<br><br><a href="http://africa.reuters.com/business/news/usnJOE4950WH.html" target="_blank">http://africa.reuters.com/business/news/usnJOE4950WH.html</a><br><br>Did PS Ndemo sign an agreement with Libyans promising them access <br>to sectors of the Economy? YES<br><a href="http://www.eastandard.net/InsidePage.php?id=1143990641&cid=4" target="_blank">http://www.eastandard.net/InsidePage.php?id=1143990641&cid=4</a><br><br>Fact 7:<br>In 2006, Econet rushed to court and obtained exparte orders against <br>the <br>Government and the regulator causing a stay of the Minister's <br>decision to cancel the Econet licence by the Minister of <br>Information and Communications. The presiding and ruling judge, <br>Justice Ibrahim Mohammed in his eventual ruling admonished Econet <br>for abusing the court process and upheld the Minister's decision
<br>that cancelled the Econet licence while canceling the orders that <br>Econet had improperly obtain. Case No 1640 of 2004 in the High <br>Court of Kenya that the Republic won is the same case PS Ndemo <br>misled the nation was a case in progress that was to be settled:<br><br>"Upon consideration, I am of the view that in effect, the Order No <br>5 to all intents and purposes is an ex parte quia timet injunction <br>disguised as “an order of leave operating as a prohibition”. This <br>Court has no jurisdiction to grant such an order in judicial review <br>proceedings and if it had, it has been granted improperly and in <br>breach of the principles of natural justice as there is no <br>returnable date for an inter partes hearing between the parties. It <br>is a permanent injunctive order which was given in violation of all <br>the cardinal principles of natural justice. To allow it to continue <br>to be in force for a minute longer would amount to
a total <br>miscarriage of justice. This Court of course, cannot allow this to <br>happen. This court is supposed to be a harbinger and fountain of <br>justice and not a perpetrator of injustice."<br><br>Entire Copy of Court Ruling upholding the Minister's decision thus <br>permanently cementing the fact that the cancelled Econet licence <br>remained indefinitely cancelled:<br><a href="http://rapidshare.com/files/152242136/Econet_v_Minister.pdf" target="_blank">http://rapidshare.com/files/152242136/Econet_v_Minister.pdf</a><br><br>Fact 8:<br>The Econet scam which the PS continues to deliberately aid was <br>named as scandal number 10 in Sir Edward Clay's list of 20 scandals <br>committed against the Republic:<br><a href="http://rapidshare.com/files/152246719/20Scandals.pdf" target="_blank">http://rapidshare.com/files/152246719/20Scandals.pdf</a><br><br>Only the tip of the iceberg... <br><br>--<br>Click for a credit repair consultation, raise your FICO
score.<br><a href="http://tagline.hushmail.com/fc/Ioyw6h4d7lzmxrPK8SDbjIEfKVScUQcpfeHX7tKvMt8q94vNzWZnrv/" target="_blank">http://tagline.hushmail.com/fc/Ioyw6h4d7lzmxrPK8SDbjIEfKVScUQcpfeHX7tKvMt8q94vNzWZnrv/</a><br><br></div></div></div><br>
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