I blogged on this issue last November.I notice its been the top content on this blog ever since.It never leaves the top 10 list.After many comments on my blog i.e. Patriotic Kenyan,Gathara and many others, i give you my final thoughts on it in a Q & A format.
How many shareholders does Safaricom K Ltd have?
Two,-Telkom(K) Ltd(60% of Safaricom) and Vodafone (K) Ltd(40% of Safaricom).
What about Mobitelea?
Mobitelea is a shareholder in Vodafone(K) Ltd which is a Private Limited Company.
What about Mobitelea's stake in Safaricom?
Its an Indirect stake, Mobitelea owns 12.5% of Vodafone(K) Ltd while Vodafone Plc holds 87.5% of Vodafone(K) Ltd.Vodafone(K) Ltd main asset is the 40% shares in Safaricom(K) Ltd.
If you take 12.5% of 40% you get the 5% indirect stake Mobitelea has in Safaricom.
How was business was done in the Third World during the 20th Century?
In those days there were no worldwide Mergers and Acquisitions firms,lawyers or clients to perform proper due dilligence and show you the ropes.Think Morgan Stanley,Citibank,PWC and lately Rennaissance.Most firms were based in the WEst and 1 or 2 Asian Capitals i.e. HongKong and Tokyo.Mumbai was the name of some exotic perfume.
If you wanted to take over a local firm or go into a joint Venture with a Third World Government,you allied yourself with a local political operative and he did the 'due dilligence' opened the right doors and he got a stake in the new firm as his Partnership contribution.
********************************************************************************
Say NO! to poor service and substandard goods in Kenya.
Visit here and make your complaint at www.complain2me.wordpress.com
Fighting to have service that is our money's worth.
Join the fight.
********************************************************************************
If you doubt me just look at the list of top civil servants and politicians of the 1960s Kenya and compare that with their business interests.
Why the IPO must go own
The Safaricom IPO will ignite significant foreign interest that will grow our markets and put Kenya in focus of all the top markets.The market Growth will create more jobs for everyone and grow the economy.
If we stop the IPO we can get back Mobitelea's stake
Ha, Not a chance the Mobitelea stake is parked in a private company Vodafone(K) Ltd.Government cant interfere with private property that is unconstitutional
Let me put the point across using a story:
There was once an old mzee who had 10 acres of land.He sold 4 acres to his Best Friend.The Best Friend then sold 1 Acre to a stranger the Mzee didn't like.The Mzee wanted that particular 1 Acre(that was sold to the stranger back).Do you think he got it back?
This is unfair Mobitelea's owners are getting away with free money
Life is unfair that why some people have first class degrees and are clerks while others have Certificates and are millionaires.Thats the case whether in USA or Kenya.
Apparently,this is the crux of Muthoni Wanyeki's Article in this week's East African.I respect Muthoni and she is one of the people i admire but i doubt her capacity to look at the big economic picture.
This is the best time to list Safaricom, you can never wait for the best time to do something..that time may never come.
What about the Privatization Act 2005?
It gives the Minister of Finance the power to Gazette it and decide when it shall come into effect.By the way Laws are never applied RETROSPECTIVELY.Do you know who the Minister of Finance is? i rest my case
The post above is by pesa tu and blogged here by assidous. I must give it to him, he has the real final word on the ownership controversy.
A conspiracy by Government, Mobitelea Ventures, Vodafone Plc and Telkom board to defraud the public of its shares in Safaricom
ReplyDeleteThe PIC in its report noted with concern that:
There were grievous discrepancies on the date provided by the various persons on the time of reduction of TKL shareholding at Safaricom from 70% to 60%.
None of the witnesses before the Committee could ascertain whether Vodafone PLC actually wrote to TKL asking for increase in their shareholding in Safaricom.
The Management of TKL was unable to justify the need to reduce TKL shareholding from 70% to 60%.
The Management of TKL could not confirm whether TKL was paid anything in return for the 10% shareholding irregularly ceded to Vodafone PLC.
The Shareholder Agreement was first signed between Vodafone PLC and KP&TC on January 25, 1999 when policy on investments required Kenyan ownership be not less than 70%. The policy was later amended to accommodate M/S Mobitelea Ventures.
The information provided by Mr. Gavin Darby that “M/s Mobitelea Ventures was identified as a local partner of Vodafone Group for the advisory role it played on local business practices and protocol challenge associated with investigating in Kenya” was misrepresentation of the truth since Mobitelea Ventures is ostensibly not based nor does it operate in Kenya.
The Shareholder Agreement was signed on January 25th 1999 long before Vodafone PLC came by Mobitelea Ventures Ltd.
No one else was able to ascertain the existence of the “competitive” process through which Vodafone PLC bought back 5% of Safaricom shares from Mobitelea Ventures as alluded by Darby (Vodafone PLC) through his letter to the PIC.
Vodafone PLC failed to appear before the Committee despite several requests to Messers Rhys Philip and Gavin Darby.
Mr. Michael Joseph, Chief Executive of Safaricom Ltd, tabled a letter dated 26th May 2000 before the Committee, ostensibly from VKL forwarding a bankers draft of US$ 22 million. The letter was found to be fictitious as it purported that the postal address of VKL was P.O. Box 40034-00100 Nairobi. In the year 2000 Kenya had not effected the postal coding 00100.
The 7th final Board of Directors meeting held on 27th September 1999 abetted the outright theft of public shares in Safaricom.
The meeting of Board of directors of Safaricom on 5th October 1999 was not properly constituted, as only the Chief Executive and the Company Secretary of KP&TC were present.
Safaricom Ltd is a Capital Investment by TKL. Any divestiture ought to be sanctioned by the parent Ministry and the Treasury. There was neither such request sought nor approval given.
Agreements entered between Vodafone (K) Ltd and Telkom (K) Ltd on Safaricom and those between the latter and the two shareholders were not authenticated by way of company seals. Some amendments made on the agreements were actually handwritten and may not have force of law.
TKL failed to invoke clause 12.3 (a) (Right of the first refusal) of the original cooperation and shareholders agreement. TKL and Safaricom management alluded not to know the nature of transactions between Vodafone PLC and Mobitelea Ventures.
It is appalling that Vodafone PLC a UK company involved itself in underhand activities of corrupt nature aimed at depriving Kenyan citizens of billions of shillings through M/S Mobitelea Ventures despite the fact that UK has been in the forefront of campaigning against corruption in developing countries.
The Parliamentary Investments Committee in its report held that “there appears to have been a conspiracy by some officers of Government, Mobitelea Ventures, Vodafone Plc and Telkom board to defraud the public of its shares in Safaricom. Neither the Management of Safaricom nor that of Telkom could produce the written request by Vodafone asking for increase in Vodafone’s’ shares from 30% to 40%. This supposition is further affirmed by the inexplicable disappearance of the records of Vodafone (K) from the Registry of Companies”.
Hi There I'd like to congratulate you for such a terrific made forum!
ReplyDeleteWas thinking this is a perfect way to make my first post!
Sincerely,
Laurence Todd
if you're ever bored check out my site!
[url=http://www.partyopedia.com/articles/buzz-lightyear-party-supplies.html]buzz lightyear Party Supplies[/url].
Hi I'd love to congratulate you for such a terrific quality forum!
ReplyDeleteJust thought this would be a nice way to introduce myself!
We believe the only way produce wealth it is usually a thoughtful belief to begin a savings or investing game plan as soon in life as imaginable. But don't worry if you have not thought of saving your assets until later on in life. With the help of honest work, that is reading up on the best investment vehicles for your money you can slowly but surely increase your riches so that it measures to a big sum by the time you hope to retire. Look at all of the applicable asset classes from stocks to real estate as investments for your money. A researched and diversified portfolio of investments in different asset classes will help your money swell through the years.
-Chandra Clavette
[url=http://urwealthy.com]currency conversion [/url]