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Friday, May 18, 2012

Parliament to probe KQ Rights Issue

Via Daily Nation Page 6 of 18th May 2012 (I do not have a link)

A parliamentary investigation has been ordered into the justconcluded Kenya Airways rights issue after questions were raised on the process.
Deputy Speaker Farah Maalim referred the matter to the parliamentary Finance committee yesterday after a member questioned how a stockbroker was picked and paid Sh100 million.
KQ plans to raise Sh2.7 billion for expansion and acquisition of additional aircraft in the rights issue which was launched by President Kibaki in March.
The government holds 23 per cent of KQ’s total issued capital.
Yesterday, Igembe North MP Ntoitha M’Mithiaru questioned the procedure of selecting stockbrokers for the submission of the provisional allotment letter and whether the service attracted a commission.
He also questioned whether the submission of the provisional allotment letter was a separate service from the advisory services provided by transaction adviser.
The transaction adviser in the rights issue was CFC Stanbic Bank Limited with CFC Stanbic Financial Services Limited as the lead transaction stockbroker. Standard Investment Bank Ltd was the lead sponsoring stockbroker.
Finance assistant minister Dr Oburu Odinga said the mandate for submission of the provisional allotment letter was with the lead sponsoring brokers who were competitively appointed by KQ.
Mr Maalim directed the Finance committee to report back to the House in a week’s time.
Sh100m Millions of shillings stockbroker was paid by Kenya Airways.

Below is the blogpost I had posted earlier in April 2012.

KQ Rights Issue Commission Scam

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