KNFC has a valid case, Econet too had to raise money (there is evidence supporting how this was done and why Econet took their former top level executive (also after he refused to co-operate in disenfranchising KNFC) to court in Johannesburg in a bid to gag him from spilling the beans, beans which a VP of the telecom vendor at the center of the unorthodox financing arrangement feared would rile Vodafone/Safaricom, Celtel, MTN etc). Why would anyone touch KNFC with a long pole when there are vested interests intent on derailing KNFC at every turn and corner while a PR machine touts the other party as the credible and righteous party with stories of "success and triumph" in other countries citing billions of profits in Zimbabwean dollars Z$ ambigiously as touted as $ "US dollars" yet it is no secret that Zimbabwe is a nation of poor millionaires where the average price of a home starts in the billions http://www.fingaz.co.zw/fingaz/2005/February/February24/7816.shtml If you were a financier who would you work with? The hapless KNFC you read about in the press or the over "glorified" entity (minus its unknown mishaps) that you read about in the press?

Even then according to the attached advertisement that was published in the Nation on April 12 2004 by KNFC's lead financier, the regulator is said to have refused to accept the replacement bid bond from KNFC and further to that KNFC's financier confirms in the ad as having raised the requisite licence fee but the regulator was not willing to issue the licence to them. The Econet PR machine that has its team of dedicated journalists in various newsrooms went to work to tout KNFC as having no funds or in the alternate of having failed to raise funds for the licence. Those in doubt do not need to look very far, the Co-operative bank is one such example of success from the co-operative sector. As always the PR machinery works overtime to paint KNFC as the impoverished villians and Econet as the righteous party with money overflowing from its pockets.

Unfortunately the truth should be told, contrary to what the Kenyan media reports, Econet has not won any of its huge and highly publicized endlessly filed legal battles. Where it was not likely to win it settled. Econet Wireless Nigeria is no more, it is now Celtel and NOT because Econet sold it to Celtel but because the Nigerian shareholders choose to do so. Econet simply got a taste of its own medicine when it was bundled out of Econet Wireless Nigeria and when it seemed Econet could retain its 5% shareholding + more, it was unable to match Celtel's superior offer for the shares at stake. As Business Day in South Africa and other Nigerian media reported on and around 30 June 2006 regarding the saga (contrary to Kenyan media reports indicating the opposite). Thus there is no West African battle that Econet has won except through its disinformation campaign:

       http://mybroadband.co.za/nephp/?m=show&id=3368

       ECONET's battle for control of Nigeria's cellular network, V Mobile, has been
       massively undermined by a court verdict damning Econet for misleading a judge
       and failing to admit it was $90m short of the cash needed to buy the business.

       The Nigerian court will be presented with the UK verdict showing that Econet had
       withheld evidence and failed to raise the cash.

       Econet CEO Strive Masiyiwa claimed to have raised $1,5bn to buy V-Mobile
       entirely, but accused the Nigerians of refusing to hand over the documents to
       conclude the deal. The court found that was not true.

       When Econet sought an order to block V-Mobile's sale to Celtel, it told the
       court it had more than enough funds to make the payment. "That was not the true
       position," Judge Morison said in his ruling. "There was serious nondisclosure or
       misrepresentation of the true position as to Econet's access to funds."

       The court was "seriously misled by evidence as to Econet's access to funds,"
       Morison said. He ended the injunction so Celtel could buy V Mobile as Econet
       lacked cash.

       Celtel CEO Marten Pieters said the ruling confirmed Celtel's purchase of V-
       Mobile was a professional and transparent process.
------------------

On 7/25/07, Joram Mwinamo <joram.mwinamo@gmail.com > wrote:

I also have a feeling there could be vested interests in Econet not coming in as the 4th mobile operator in this country as competition will seriously harm the mega profits being made right now. Im not saying anything but for people who couldnt raise the money,i dont see why their case was being heard even when econet offered to put up the capital. There is definitely more than meets the eye here and I dont see why things go in favour of the Cooperative that doesnt have cash.We want competition so that i can call at 2 bob a minute

However econet has had a few victories to similar battles in west africa where they were clearly the underdogs,im holding my breath

On 7/25/07, David Kiania | Asentric Consulting Ltd < kianiadee@gmail.com> wrote:

Herein lies poignant lessons for anyone looking to partner for whatever
reason. First avoid Farmers and amorphous bodies their interests are as
diverse as their membership. KNFC nees to tell us since EWK will be
settling the legal costs of the suits that they have terminated, what %
of the legal bills will they foot. Secondly can they or can't they raise
their portion of license fee which was a point of contention ab initial.
>From what I gather, they are broke and are not in a position to so of
the US$ 27m license fee, Econet International has already paid $12M
being the majority shareholder can KNFC raise $15M or are they seeking
to auction their shareholding and have and pocket the surplus. Me thinks
they want to cash out and pocket something.

Last but not least, the outcome will also be influenced by their
shareholders' agreement on liquidation and ownership transfer. Herein
lies the other lesson, during incorporation get a good lawyer, not a pal
because they will cost you nothing. From my experience get a lawyer (in
their personal capacity) with one of the big firms (K&S, HHM, etc) they
have great incorporation templates and are thorough not to mention they
know how to get things done right.

I have a feeling that EW Kenya may carry the day, after all the govt
needs to fund the Kshs 400 billion budget deficit and are in not
position to refund the $12M already paid, it's an election year :) Watch
what happens carefully .

Kiania D.

Mike Theuri wrote:
> It's a new twist for Econet Wireless as it prepares to roll out its
> services
> Written By:Emmanuel Toili , Posted: Tue, Jul 24, 2007
>
> It's a new twist for the third mobile service provider Econet Wireless
> International after the Kenya National Federation of Co-operatives
> limited-
> KNFC
> threatened to take a court injunction to stop the rolling out of the
> mobile
> services.
>
> Interim Chairman Stanley Muchiri said the Federation had neither
> withdrawn
> two
> court cases that prevented Econet Wireless International from
> providing the
> mobile services.
>
> The government and Econet Wireless International had last week signed a
> settlement agreement and agreed to settle the contentious issues out of
> court.
>
> KNFC who are allegedly the majority shareholders of Econet Wireless
> Consortium,
> want the Communications Commission of Kenya - CCK, to issue them a
> license
> as a
> partner.
>
> http://www.kbc.co.ke/story.asp?ID=43974
>
> ------------------------------------------------------------------------
>
> _______________________________________________
> skunkworks mailing list
> skunkworks@my.co.ke
> http://ole.kenic.or.ke/mailman/listinfo/skunkworks
> Blog http://skunkworks-ke.blogspot.com

_______________________________________________
skunkworks mailing list
skunkworks@my.co.ke
http://ole.kenic.or.ke/mailman/listinfo/skunkworks
Blog http://skunkworks-ke.blogspot.com

--
Our greatest fear is not that we are inadequate,but that we are powerful beyond measure.It is our light, not our darkness, that frightens us.There is nothing enlightened about shrinking so that other people won't feel insecure around you.As we let our own light shine, we consciously give other people permission to do the same.
As we are liberated from our fear,our presence automatically liberates others.