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
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"
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.
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.
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"
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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