----- Forwarded Message ----
From: "
mwananchi@hushmail.com" <
mwananchi@hushmail.com>
To:
j.maina@ymail.comSent: Thursday, October 9, 2008 7:47:34 AM
Subject: PS Ndemo and Econet scandal...
John,
Interesting discussion on Kictanet, perhaps one should have warned
you before hand that Kictanet is laden with vested interests who
will gladly forego accountability and transparency as long as they
themselves benefit or will benefit from Ndemo's rewards for singing
his praises and not holding him to account as the public servant he
is. Certainly he has done some good things for the country but he
has also enabled the commission of monumentally bad matters.
Whenever truth is told, hardcore supporters of Ndemo led by one
Brian Longwe (who has interestingly benefited in several ways since
Ndemo took office) predictably rush to chant "smear", "smear" in an
attempt to obfuscate the truth. God forbid should Longwe ever be
appointed to public office for that will mark the improper entrance
of an individual who believes that accountability and transparency
have no room and should exist in Kenya.
You may use the below as you deem fit, the truth needs to be told:
----
If Ndemo is so innocent why doesn't he invite the CID, KACC, the
Attorney
General's office and any other co-operating law enforcement
agencies such as the UK's Serious Fraud Office and independent anti-
corruption agencies to investigate the issue while inviting the
public to forward any evidence they might have of misconduct, law
breaking and corruption to the relevant agencies. Perhaps instead
of Brian trying to pull wool over wananchis eyes, he could suggest
this solution to the PS to help bring these matters to a logical
conclusion once and for all.
Facts do not lie, naysayers loudly declaring their unwavering and
blind support should present hard exonerating facts that rubbish
the tip of the iceberg below or continue in their rather misguided
act of aiding and cheering on the commission of corrupt and
economic crimes against the nation. The below are just the surface
of the scam that the PS has worked tirelessly to keep from public
view.
Fact 1:
Econet sought a gag order against its former Chief Financial
Officer, Mwaura Njiri, a Kenyan, who forced by his conscience
resigned when Econet sought to force him to sign a falsified
affidavit that was aimed at defrauding KNFC of their legitimate
shareholding in Econet Wireless Kenya. In attempting to do so
Econet filed the following case:
CASE NO 05/12059 IN THE HIGH COURT OF SOUTH AFRICA
(Witwatersrand Local Division)
Econet Wireless International Limited - 1st Applicant
Econet Wireless Kenya Limited - 2nd Applicant
Econet Wireless Ventures Limited - 3rd Applicant
v
Njiri, Elizaphanson Mwaura - Respondent
Entire Econet Court Filing:
http://rapidshare.com/files/152242137/EconetSA.pdfRespondent Njiri's Entire Court Filing response to Econet lawsuit:
http://rapidshare.com/files/152242138/NjiriSA.pdf5. Re Paragraph 7
"I have no knowledge whether the First Applicant is a subsidiary of
the Third Applicant. I do not know when the "group" was founded,
but I deny that it a leading telecommunications operator in Africa."
6. Re Paragraph 8
"I admit my citation and place of residence. I was employed by the
First
Applicant as Chief Financial Officer and also Head of Corporate
Finance
Development from July 2000 until 26th October 2004 when I resigned,
largely due to the deterioration in my relationship with the First
Applicant and Wazara. I admit that I played a central role in
establishing the Second Applicant for purposes of the said tender."
http://rapidshare.com/files/152242138/NjiriSA.pdfFact 2:
Mwaura Njiri under penalty of perjury unequivocally and in his
position as CFO stated the following regarding Econet's finances.
This is a damning indictment of the regulator for abandoning its
fiduciary duties to the Kenyan public by failing to eliminate the
licensee at the pre-qualification stage, thus the licensee was
licenced contrary to the tender rules considering their true and
correct balance sheets did not show a healthy turnover of over
US$100m. The secret of the hundreds of millions of dollars in
turnover is a story well told only that it neglected to mention
that those were worthless Zimbabwean dollars:
"17.1 The First Applicant's balance sheet at that point in time was
so bad that it was unable to obtain funds from any bank;"
http://rapidshare.com/files/152242138/NjiriSA.pdfDeloitte and Touche, Audited Financials of Econet Wireless Limited,
the only Econet company that could have claimed to their long lost
"Nigerian" operations that never were showing a mere turnover of
$8m at the time of licencing in 2003 when it was necessary to show
a consortium turnover of $100m which obviously the now insolvent
KNFC did not have:
http://rapidshare.com/files/152242139/Financials.pdfFact 3:
Mwaura Njiri, Econet CFO since its early days, under penalty of
perjury admits the Econet licence was cancelled by the Minister for
Information and Communications despite his best efforts to prevent
cancellation:
"32. Re Paragraphs 43
I admit the allegations contained herein and point out that when
this
eventuated Masiyiwa then requested me to assist the First Applicant
by
returning to Kenya and endeavouring to assist the Applicants by
requesting the Minister and the Kenyan authorities not to cancel
the licence.I agreed to so assist the First Applicant which then
provided me with the necessary air ticket to enable me to travel to
Nairobi together with the said Wazara for this purpose.While I
tried my best to so assist the First Applicant I was unsuccessful
in this regard."
http://rapidshare.com/files/152242138/NjiriSA.pdf Fact 4:
KNFC was essentially bankrupt or near bankruptcy at the time of
licensing
culminating in KNFC being declared financially insolvent in 2006.
Once again the regulator abandoned its fiduciary duties by
deliberately allowing parties who could not pay licence fees as
proscribed by the tender rules to be licenced contrary to public
procurement regulations.
"The Minister for Co-operative Development Njeru Ndwiga yesterday
confirmed that the Federation, which was said to have owned as much
as
80 per cent of Econet’s bid for the their mobile licence, cannot
meet
its financial obligations.
The union is indebted to the tune of Sh40 million against an asset
base of Sh25 million.
The minister said the cash-strapped Federation cannot honour its
financial obligations that include Sh1.3 million in salary arrears,
a
Sh10 million loan from the Co-operative Bank, Sh5.6 million in
statutory deductions and Sh800,000 in lawyers’ fees"
- The Standard 29/6/2005
" KNFC has liabilities in excess of 64 million shillings against a
total asset value of 20 million shillings."
- 21/1/2006
http://www.kbc.co.ke/story.asp?ID=34599Fact 5:
The Chief legal representative of the Government of Kenya is
Attorney General, Amos Wako. In 2007, PS Ndemo purported to settle
a case the government had already won upholding the cancellation of
the Econet licence by the Minister of Information and
Communications. The PS further claimed to settle a case that Econet
was destined to loose following a court order ordering them to
deposit $15million as security for their $1 billion case against
the Minister. Econet could not conceivably pay the $15 million for
they still owed the government $12 million.
Investigations are necessary to establish:
a) Whether PS Ndemo upsurped the powers of the Attorney General
b) What the Attorney General's role and legal rationale was in
arriving
at the "settlement"
c) Whether PS Ndemo acted against the interests of the Republic
d) Whether PS Ndemo defied a binding and final ruling by Kenya's
Judiciary
e) Whether PS Ndemo through his actions committed abuse of abuse
as
defined under the Economic and Anti-Corruption Act of 2003
f) Whether PS Ndemo committed any other unlawful acts through is
actions
g) Whether PS Ndemo by trampling a bonafide court ruling and a
Ministerial order contravened the Section 354 of Chapter XIII
(Miscellaneous Offences Against Public Authority) of the Laws
of
Kenya which in states:
“Any person who knowingly utters as and for a subsisting and
effectual document any document which has by any lawful authority
been ordered to be revoked, cancelled or suspended, or the
operation of which has ceased by effluxion of time, or by death, or
by the happening of any other event, is guilty of an offence of the
same kind, and is liable to the same punishment, as if he had
forged the document,”
Visual proof of PS Ndemo signing the bogus "settlement agreement":
http://rapidshare.com/files/152229210/en_bs_250707_econectknfc.mp4It cannot be wished away that a legal precedent has already been
established in Kenya for Government officials who claim to have
been acting on orders from above that they remain responsible for
actions carried out on the basis of their own personal actions and
thus PS Ndemo bears absolute and full responsibility for appending
his signature to the sham "settlement agreement" that he appended
his signature to on "behalf" of the Republic:
Magistrate Aggrey Muchelule had a stern warning to public officers:
"It does not pay to take illegal orders from your superiors.
However highly placed, you will still be responsible in the
fullness of time."
http://www.accessmylibrary.com/coms2/summary_0286-13141577_ITMhttp://news.bbc.co.uk/2/hi/africa/3591830.stmIt took 14 years after the fact to sentence Somaia and Oluga for
their fraud against the Republic, public servants should not chide
theselves that the passage of time makes one's illegal actions
forgotten. Those they enable to engage in illegal acts might get
away but the public servant will nonetheless carry their own cross.
Fact 6:
The Econet matter has recently been planned for Cabinet discussion.
This
warrants PS Ndemo's investigation for his role in disenfranchising
Kenyans and for continuing to make plans to legalise an illegal act
of disenfranchisement into law by arbitrarily gazetting regulations
that seek to place foreigners ahead of Kenyans:
"When contacted, Nyagah confirmed he had received the letter from
the KNFC interim board, seeking their intervention on the issue of
the shares, and their participation in rolling out the third mobile
operator’s services.
Nyagah, whose main docket covers the co-operative movement, said he
would
address the concerns raised by KNFC at the Ministry and Cabinet
level."
http://www.eastandard.net/InsidePage.php?id=1143995477&cid=14&j=&m=&d=
The Cabinet ought to act with no holds barred in looking into PS
Ndemo's
involvement in the matter as well as his recent pandering to
foreign interests at the expense of Kenyans. This is a serious
national security matter that involves critical infrastructure in
the country particularly coming at a time when foreigners
stranglehold exceeds 80% of the economy. The issue of allowing
foreigners to own 100% of ICT firms should be submitted to
Parliament for those are the elected representatives of the Kenyan
people, such critical decisions should not be left in the hands of
someone who recently signed away access to the Kenyan Economy to
Libyans and frequently echoes his admiration of foreigners. Let PS
Ndemo name the foreigners who have approached him and who despise
Kenyans so much that they would not dream of partnering with them:
"This rule is messing us up in terms of investments. There are
large companies which want to invest in this country without
partnering with other individuals," Bitange Ndemo, permanent
secretary at the Information Ministry, said in an interview.
http://africa.reuters.com/business/news/usnJOE4950WH.htmlDid PS Ndemo sign an agreement with Libyans promising them access
to sectors of the Economy? YES
http://www.eastandard.net/InsidePage.php?id=1143990641&cid=4Fact 7:
In 2006, Econet rushed to court and obtained exparte orders against
the
Government and the regulator causing a stay of the Minister's
decision to cancel the Econet licence by the Minister of
Information and Communications. The presiding and ruling judge,
Justice Ibrahim Mohammed in his eventual ruling admonished Econet
for abusing the court process and upheld the Minister's decision
that cancelled the Econet licence while canceling the orders that
Econet had improperly obtain. Case No 1640 of 2004 in the High
Court of Kenya that the Republic won is the same case PS Ndemo
misled the nation was a case in progress that was to be settled:
"Upon consideration, I am of the view that in effect, the Order No
5 to all intents and purposes is an ex parte quia timet injunction
disguised as “an order of leave operating as a prohibition”. This
Court has no jurisdiction to grant such an order in judicial review
proceedings and if it had, it has been granted improperly and in
breach of the principles of natural justice as there is no
returnable date for an inter partes hearing between the parties. It
is a permanent injunctive order which was given in violation of all
the cardinal principles of natural justice. To allow it to continue
to be in force for a minute longer would amount to a total
miscarriage of justice. This Court of course, cannot allow this to
happen. This court is supposed to be a harbinger and fountain of
justice and not a perpetrator of injustice."
Entire Copy of Court Ruling upholding the Minister's decision thus
permanently cementing the fact that the cancelled Econet licence
remained indefinitely cancelled:
http://rapidshare.com/files/152242136/Econet_v_Minister.pdfFact 8:
The Econet scam which the PS continues to deliberately aid was
named as scandal number 10 in Sir Edward Clay's list of 20 scandals
committed against the Republic:
http://rapidshare.com/files/152246719/20Scandals.pdfOnly the tip of the iceberg...
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