Kivuva
Clarification on your last paragraph."We have been talking about corporate governance for a while. Kenic takes Ksh 12Million from its account and invests it in a fixed bond in Amana Asset Management Company. Reminds me of African countries saving their foreigh exchange reserves in offshore accounts then getting the same money pumped back into the economy as loans. Building the KeNIC brand would be futile with such practices. What does the community think?"
About a year and a half ago as KeNIC was embarking on its Strategic Plan, the Board realized that there was at any given time Kshs.10m sitting in its CBA Bank account which was not earning any interest and in fact KeNIC was actually paying ledger fees on the same!!
The Finance Committee of which I was then the chair deliberated on this issue and recommended to the full board that at the very least this money needed 'to work' for KeNIC. The board approved and we initiated a tendering process where various fund managers and the bank were invited to pitch for managing this cashflow for interest bearing purposes. The winning company was Amana Capital which fitted our requirements then. These requires were that:-
1. That the original capital will under all circumstances be fully protected and that KeNIC WILL NOT loose this original 10m.
2. That the winning company accept to only 'EAT WHAT IT KILLS' which basically meant that their remuneration will only be through a percentage of the interest income earned. This was agreed at 12.5%.
3. This arrangement wasn't a bond or fixed deposit type but more like Treasury Management for cashflow purposes.
At that time we felt that this best captured KeNIC's Investment Policy.
I want to assure the community that this money has not been lost or laundered or anything of that sort as it is held in escrow and available within 24-48 hours of its demand and that Amana Capital doesn't have any access to it without the explicit authorization of KeNIC signatories.
Lastly, contrary to the implication that this money may be lost it is actually earning over 300k in interest every month for KeNIC.
At least this was the case when I resigned in April this year.
I hope this clarifies the matter.
Ali HusseinOn Fri, Aug 17, 2012 at 11:52 AM, Kivuva <Kivuva@transworldafrica.com> wrote:
It is coming out quite clearly that the very nature of the Public Private Partnership (multistakeholderism) that KENIC use is now at risk with the CCK taking over literally. I don't see a very big line between the Ministry of communications and CCK, they are all cut from the same cloth. If the ministry cannot influence decision with it's current numbers at the board, them it seems the latest move is a way of taking total control of Kenic, with capacity to veto decisions and dictate its stand. The community should debate and come up with a clear road-map. Since KENIC is a multistakeholder organisation, using PPP model, to change its status, you must get approval from the community. Its indeed commendable that the boards position is inline with the community's aspiration, as noted in the 56th Kenic Board meeting as it states: "KENIC’s structure is based on multi stakeholder partnership (MSP) model, touted for Internet governance worldwide. ICANN and most domain registries have adopted this approach. Licensing and regulation of KENIC by the Commission which is one of its stakeholders and board members would be seen as distorting this model framework by elevating government over the other stakeholders in management of these Internet resources"There has been talk that the AGM slotted for 24th August (date according to Business Daily article) is planned to be closed, to lock out the community. We must first ensure that the AGM us open to all and not closed. Making the AGM locked means there are people who fear reprisals form the community. Let's not beat around the bush, KENIC belongs to all of us.We have been talking about corporate governance for a while. Kenic takes Ksh 12Million from its account and invests it in a fixed bond in Amana Asset Management Company . Reminds me of African countries saving their foreigh exchange reserves in offshore accounts then getting the same money pumped back into the economy as loans. Building the KeNIC brand would be futile with such practices. What does the community think?Regards
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