Nevertheless, the deception by the GOK is not a good sign of things to come... The GOK knew that Mumias 1H 2006-7 was relatively poor but they hid that crucial information until AFTER the OFS was over. The share price plunged to around 25/- in the aftermath.
So there is a forensic report that is being "hidden" from the public... WHY?
Kimunya claims that a copy was given to the Transaction Advisers but we are buying the shares. Shouldn't we know about the shenanigans?
From the Business Daily 19 July 2007: Mr Kimunya, however, maintained that the report had been given to all transaction advisors who had used its insights to structure the deal. “I am assured that necessary accounting provisions and adjustments have been made in the Reporting Accountants’ Report,” said the minister.
Why haven't the criminal suits against the crooks (ex-CEO & CFO) been fast-tracked since this is important to the confidence in the firm?
My advice is to wait till the last moment before purchasing shares in the OFS.
- In case a major earthquake hits Nairobi where most of Kenya Re's assets are located i.e. buildings.
- In case some other lawsuit/evidence surfaces regarding corruption at Kenya Re.
- Try and gauge the level of interest thus applying for enough shares without locking up too much monies in the OFS since I expect a heavy refund.