Nick, Odindo, Jaindi, Mutuma: Guys, this is staggering. The press must save Kenya from this disgraceful pass. Over to you. David
Wananchi,
I do not see how the Safaricom IPO can be stopped now without the GoK incurring hefty penalties. So many institutions engaged have spend huge sums
of money they just can't fold their papers and accept to walk away 'hand nothing'.
The reality is that *Continuous Disclosure* of info by companies trading at the NSE isn't enforced at all. In fact, a govt that thrives on opaqueness cannot be expected to legislate against opaqueness much less enforce such legislation if it existed.
When the UK Serious Fraud Office started investigating Vodafone UK, that company's subsidiary (Vodafone Kenya) is said to have quickly swallowed Mobitelea's 5% shareholding in Safaricom reverting back to owning 40%of Safaricom while giving Mobitelea 12.7% of Vodafone (K) itself. And, info from the grapevine has it that Mobitelea and Vodafone (K) are presently arguing over shareholding. So Vodafone is lying in the bed it made. Who knows! Mobitelea might have been deregistered already and another company assigned Mobitelea's interest in Vodafone Kenya.
There was fraud and govt covered up. Now they must keep covering up for as long as they can. But this is not all. There is a bigger problem that people are forgetting. Namely, that a big junk of proceeds from the Safaricom IPO will go to Telecom France (and the shadowy figures who facilitated their recent susipicious takeover of Telecom Kenya).
*Telecom France got 51% of Telecom Kenya at Sh23billion*! The takeover was suspicious indeed. The GoK thro' Telecom Kenya owns 60% of Safaricom (i.e. 60% of Sh200billion) which equals to Sh120billion. The French now own 51% of
Telecom Kenya which means they also own 51% of Telecom's holding in Safaricom (i.e. 51% of 120billion = *Sh61billion*) and this is in addition to 51% of other Telecom Kenya assets. What is depressing is the fact that the French who paid Sh23billion for 51% of Telecom Kenya will walk away with 51% of the proceeds of the IPO ( i.e. 51% of Sh50billion =Sh25.3billion). They will still own 51% of what remains of Telecom Kenya and its stake in Safaricom. This is daylight robbery. And the French are very notorious for such fraudulent activities outside of France.
*Scenario* Telecom Kenya is valued at about *Sh54billion* (although it owns * Sh120billion* worth of Safaricom shares in addition to numerous other assets) Telecom France pays *Sh23billion* for 51% of Telecom Kenya Safaricom IPO Telecom Kenya sells percentage of its holding to get approx * Sh50billion *Telecom France to get 51% of* Sh50billion *(IPO proceeds)* = approx Sh25.5billion* You buy a company at Sh23billion and get your money back immediately and continue to own the company! *
*I cannot understand how the French crooks could have been given 51% of our Telco for free. Someone tell me, please.
I'm surprised no one is talking about this.
Kanaka__,_._,___
_______________ "If my doctor told me I had only six minutes to live, I wouldn't brood. I'd type a little faster." -- Isaac Asimo, Columbian Author and Scientist _______________ PO Box 3234 00200 Nairobi, Kenya cell: +254 722 517 540 ____________________________________________________________________________________ Looking for last minute shopping deals? Find them fast with Yahoo! Search. http://tools.search.yahoo.com/newsearch/category.php?category=shopping --~--~---------~--~----~------------~-------~--~----~ YOU ARE IN KAZI AFRIKA GROUP UNSUBSCRIBE: kaziafrika-unsubscribe@googlegroups.com http://groups.google.com/group/kaziafrika?hl=en www.kazi-africa.com FOR A VERY PEACEFUL KENYA -~----------~----~----~----~------~----~------~--~---