Interesting clarification, Nick, but why is the govt apparently hellbent on protecting the underhand deal and the mobitelea link? And any plausible reason why the govt is defiantly proceeding roughshod with the sale, in the name of the public, despite such vocal objections? Is the govt depending on the sale for deficit financing of the budget? The whole thing reeks of something foul like anglo leasing. David Sent from my BlackBerry® wireless device -----Original Message----- From: Nick Wachira <nwachira@nation.co.ke> Date: Thu, 27 Mar 2008 18:58:45 To:David Makali <dmakali@yahoo.com> Cc:mmathiu@nation.co.ke,Joseph Odindo <jodindo@nation.co.ke>,Jaindi Kisero <jkisero@nation.co.ke>,Charles 'Mase' Onyango-Obbo <cobbo@nation.co.ke>,Peter Munaita <pmunaita@nation.co.ke>,Ochieng Rapuro <orapuro@nation.co.ke>,Albert Muriuki <amuriuki@nation.co.ke> Subject: Re: Safaricom IPO & Telecom France We need to check the facts first and there are problems in this story. Telkom Kenya gave up its 40 per cent stake in Safaricom late last year as BD reported in exchange of the government taking over Sh67 billion of its debts (the way Kenya did with KLM in the KQ transaction in 1996). In short GOK bought TKL's stake in Safcom for Sh68 billion, which Parliament approved. France Telecom does not own a piece of Safcom, but it is in the process of being awarded the fourth mobile phone license if this has not been done already. CCK should already have placed ads in the papers asking to public to petition if they objected France Telecom getting this licence. On Mar 27, 2008, at 6:41 PM, David Makali wrote:

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__,_._,___

...

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