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Wednesday, November 22, 2006

The Mystery Deepens while the Government Dithers

There's third Safaricom owner - Vodafone

Publication Date: 11/23/2006 (Daily Nation)

My comments in RED

Vodafone Group of the UK yesterday admitted for the first time that some shares in Kenya's leading mobile phone provider Safaricom are held by another company.

It has been reported as such in the Annual Report among other filings since 2003. Vodafone is a UK publicly listed firm, they had to "show" their hand! If it was a Chinese firm, we would have NEVER found out! The Chinese are the perfect partners for corrupt African politicians!

But the owners of five percent of Safaricom remain a mystery as Vodafone refused to release any details.

Not their responsibility BUT Vodafone should make a PUBLIC disclosure since this is bad for business! Furthermore the Kenyan government should make demand that Vodafone tell us what they know. If the Kenyan government does not OFFICIALLY demand the "truth" then Vodafone could go scot-free. Wako has never been one for the "truth" & ringera is a lame duck!

Vodafone confirmed that a company called Mobitelea Ventures Limited owns the other 5 per cent. "Vodafone Group Plc has a 35 per cent interest in Safaricom held through Vodafone Kenya Limited, a Kenyan holding company," said Mr Phillip Rhys, the company's official in charge of mergers and acquisitions in a statement sent to the Nation.

The other 60 per cent of Safaricom is held by Telkom Kenya. The government has recently been in negotiations with Vodafone which wanted to increase its stake.

The Government has been equally evasive about the identity of Safaricom's mystery shareholder.

This is where it gets interesting!
Why is the Government stalling?
Is this why the kanu & narc governments delayed the privatisation of Safaricom?

Why did moi & kibaki have this meeting all of a sudden?

After the story was broken exclusively by the Nation's sister paper, The EastAfrican, Information and Communications minister Mutahi Kagwe said the government was not interested in the details of the Vodafone shares, but only in the 60 percent held by Telkom.

Kudos to the East African. WTF is kagwe talking about? If Vodaphone would paid $55 Million for 30%, then Kenya lost an additional $5.5 Million from Mobitelea's 10%. Something is FISHY. Some ex-kanu (& current NARC) members are involved!

Contacted by the Nation, Investment Secretary Ms Esther Koimett: "I am not aware. We have got no such information. I have no idea and I'm not sure if the information is true." She said the Treasury did not know of any other arrangement apart from a 2000 shareholders agreement that, she noted, could have been renegotiated to include a third shareholder.

Wow, what insight! I am gagging on this! I see someone hiding the family silver!

Telkom Kenya, the main shareholder in Kenya's biggest mobile company, was equally in the dark. Managing director Sammy Kirui said their records show that Safaricom has two shareholders, themselves and Vodafone. "That was the position in 2000 when Telkom's shares were unbundled . As far as we know, the shareholding portfolios remains that way," the MD said.

Well, he better do some more reading! He should push to "recover" the 5% since Telkom can use the extra cash from the sale! Telkom is borrowing money for its restructuring & the money is being stolen right under their noses!

In Parliament, MPs Justin Muturi (Kanu, Siakago) and Joseph Lagat (Eldoret East, Kanu) differed with Information and Communication minister Mutahi Kagwe over the owners of Safaricom.

But Mr Kagwe said that records at the Registrar of Societies showed that Telkom and Vodafone were the only two companies owning Safaricom. "There are only two shareholders, Telkom and Vodafone," he said.

Well, someone is lying. Can't kagwe get the "ownership" details of Mobitelea?
I am surprised awori isn't making one his idiotic statements to protect the thieves!

I think the anglo-fleecing hyenas are back!


Kudrinketh said...

It's all adding up now,Moi pushing for Biwott to take over Kanu, Moi coluding with Kibaki to split loots and exchange notes on future loots.Kibaki scuttling Goldenberg and reappointing Saitoti,Anglo-Fleecing investigations not going anywere,Murungi reapointed.It is like a conglomerate of thieves.It gets worse,Kenyans will continuously tolerate all this thievery.I heard a minister the other day urging Kyuks to protect the precidency, what the same minister does not reveal is that when they steal our money,they do not share it with you.Heck, Gichuru is not even willing to share the loot with his kikuyu wife,what makes you think he cares about you.i'm sure they're laughing all the way to their cayman island bank while saying with glee KWANI MTA DO NINI?

Kenyanomics said...

Coldi, forget about GoK digging for the truth. The same Nation article you posted has Minister Kagwe saying that "the state is not interested in Vodafone shares but Telkom's 60%.” We might, however, see a useless inquiry. May be a “Who Is Mobitelea Commission”

Vodafone imported corruption during Safaricom's incorporation. But they have been caught with their pants down.

Vodafone is registered in Britain, the country that has been talking the corruption talk endlessly. Brits must now to walk the walk? They must force their own company to come clean.

Vodafone should, on the other hand, volunteer the truth before being embarrassmed.

coldtusker said...

kenyanomics - For any action to be taken against Vodafone, the Kenyan Government or agrrieved party needs to OFFICIALLY complain.

As kudri notes... this might never happen coz of the alliance between moi & kibz. Note the sudden "meeting" they had when this scandal was exposed!

bankelele said...

- the aggrived party in this matter can only be a Vodaphone shareholder
- confirms a long running nairumor that safaricom and kencel (now celtel) had the same ownwers. We hope (fingers crossed) that Telkom's 60% is intact (with no caveat's)
- it's now clear why Vodaphone have been so keen to buy 9 or 11% of Safaricom

Gathara said...

coldtuske & bankele,
If the aggrieved party can only be a shareholder, then Kenya's 33 million citizens are an aggrieved party by virtue of Telkom's 60% stake which is held in trust by GoK. We individually and collectively have every right to petition the UK government for action on this.

I have written to Vodafone AirTouch Plc asking for clarification on this matter. I urge all of you to do the same. Perhaps we can cause such a great stink that these guys have to respond. Ama nimekosea?

coldtusker said...

Not sure of the "legal" route but the "aggrieved" parties are Vodafone shareholders SINCE they can claim to have paid $55 Million for a 30% stake whereas they were informed it was 40%.

The government thru Telkom can claim that Telkom is entitled to 70%, not 60% under the circumstances i.e. Mobitelea did not contribute their share.

Regardless, only an OFFICIAL complaint of "bribery" by Vodafone will trigger an enquiry of Vodafone practices by HM Govt. No official complaint, no enquiry.
BTW, I don't mean a Kenyan "commission that wastes taxpayers money by producing a lousy reports that exonerates the crooks"...

Anonymous said...

As an investor this stinks. It seems the GoK is getting ready for some KANU tricks. Flot Safaricom and buy a stake for themselves. Indeed we have a government of thieves, by thieves and for thieves.

pesa said...

@Gathara:look at my new post before u go militant

Kudrinketh said...

How come the ever vocal British emissary is yet to comment on Vodafone corupt practices?

We already have a precedent from the International courts judgement on World Duty Free.But of course the sloth aka Wako tried to bury that under the table too.

Whatever happened to that privatisation legislation? how come our super lazy legislators(thieves)are not pushing for new legislation before the next wave of privatisations(lootings).I now fear that Kibaki and company might unleash unprecedented looting through further privatization since they look like they might get defeated.

coldtusker said...

kudri - The British AG put it clearly... he can't take any action UNLESS Kenya makes a formal request!

Remember how mo1 had his BS on "sovereignity"... while stealing or repressing, he used to invoke patriotism among idiotic/gullible Kenyans?

Why would the UK High Commissioner sya anything UNTIL the Kenya govt make a complaint. If you kick me the cops can take no action UNTIL you file an assualt charge. Then wako will enter a nolle prosequi (roocy kibz) & the lame court (appointed by kibz) rules against you!

coldtusker said...

pesa - it walks like a duck, quacks like a duck... chances are its a duck!

My point remains - Vodafone would have accepted 30% of Safaricom for $55 Million at the time. Instead they "gave away" 10% thus denying Kenyans today's 10% = $100 Million+ at today's valuation.


This is like the "scandal that never was" OR awori "supporting the anglo-fleecing hyenas" OR "exonerate the raiders on standard group" OR the other massive scams of the past!


Gathara said...

pesa tu,
Please check my response to your post here.

Anonymous said...

Mobitelea ..... seems to me like MOi BIwot Tele Alliance

Moi's crooked Swiss banker said...

Hello my subservient Africans in Kenya. I will share the insider news with you. Mr. Moi owns the other 5% of Safaricom. You do know that you have to pay the top dog his cut if you wanna operate in his country. Aight? Those were the good old days. Now it is a little harder to find corrupt presidents in Kenya. Kibaki is too honest. Dayum!

Gathara said...

Kibaki too honest? You must be delusional.