My life is in danger, says Leshomo and Why Mutula's Death Must be widened to open Intelligent investigations to Political and Poison Angle where leads have possible answers......More politicians may have be targeted, more specifically those opposed to loosers come-back and are supportive of the Constitution..... This matter must not be taken as simple......it is most definately mafia type of forcing people to do what "Birds of the Same Feather's want".........It is not different from that of 2007/8.......We are on Road-show people....... ----------------------------------Forwarded FYI --------------------------- |
Investigations into weekend killings in Bungoma underway
Published on Apr 29, 2013 http://www.ntv.co.ke
Police and politicians in Bungoma County convened an emergency meeting to try and establish the motive behind the recent killings in Kikweju village. The incident that took place on Friday and Saturday left six people dead and over 50 others with serious injuries. NTV's Loise Wangui brings us more from Kikweju village.
The powermen behind Raila Odinga unveiled GLANCE FACTS
•Raila Odinga has been a central player in Kenya's politics for over three decades now and during this period he has built, discarded, re-built or freshened up his kitchen cabinet many times over
Updated Sunday, March 31 2013 at 00:15 GMT+3
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The term 'Kitchen Cabinet' was coined some 200 years ago by opponents of US President Andrew Jackson to describe an informal coterie of trusted friends, associates and advisers on whom the leader relied upon to govern.
Members of kitchen cabinets enjoy inordinate access to the leader and are often in a position to influence – formally and informally – the leader's thinking, policies and decisions on critical issues of the moment.
Raila Odinga has been a central player in Kenya's politics for over three decades now and during this period he has built, discarded, re-built or freshened up his kitchen cabinet many times over.
So, who are the members of
Raila's kitchen cabinet today? Who are the people he has relied upon in moments of crisis and moments of good tidings to help him think through and move forward? Here we go.
Mohamed Jaffer: Most probably few Kenyans would recognize him even if he appeared on their doorstep with a briefcase full of cash. But the 65-year old Jaffer, the proprietor of the multi-million dollar investment that is the Grain Bulk Handlers Limited is a businessman extraordinaire. He is one of the wealthiest and best-networked tycoons in Coast region and beyond.
Jaffer enjoys a close friendship with
Raila Odinga, which dates several years back.
Those in the know say Jaffer is perhaps the only living person, besides President
Kibaki or retired President Moi, who can call the Prime Minister and request him to go to his home and the PM will invariably and obligingly honour the request. That is the ultimate definition of a powerbroker in any political lexicon.
Besides being politically suave, Jaffer draws significant influence from the fact that he has also been one of the largest – if not the largest – financial benefactor to political courses associated with the PM for years.
"Some ODM politicians often go to Jaffer to have him convince the PM on an issue they fear facing
Raila directly on," confides an insider, adding "the general public thinks Hassan Joho is the main guy at the Coast but nothing could be further from the truth."
Caroli Omondi: He is regarded as one of the smoothest operators in the Prime Minister's office. As the PM's Chief of Staff, Caroli is not just the gatekeeper but also holds the keys to sources of political fundraising.
Media barred from covering principal secretaries' interviews
Published on Apr 29, 2013
Interviews for Principal Secretary positions began Monday at the Kenyatta International Conference Centre. The media was however not allowed to cover the proceedings with the commission insisting the presence of media and the public may hinder their efforts of getting the very best for the jobs. NTV's Enock Sikolia was at the KICC and filed the following story.
Omondi has something of a fairly chequered history though. After graduating from the law school in 1991, Caroli worked at the State Law Office – Treaties and Agreements Department – for eight years where he established a very close relationship with the then Attorney General (now ODM senator) Amos Wako. While at the Treaties and agreements Department, Omondi, then working with Nicholas Biwott's daughter, was trusted by Wako to craft and draft the law that created independent power producers, something that introduced Caroli to the world of big money. And from that point he never looked back.
Omondi's initial influence around the PM emanated from the fact that he was one of the earlier 'investors' in
Raila at a time when the PM did not have much money. Besides contributing significant amounts of money to fund
Raila's campaigns, Omondi also donated premises to house ODM and other political outfits associated with the PM. These acts of carefully planned 'generosity' gave Caroli inordinate hold on the political machinery around the PM.
Omondi was the man entrusted with resource mobilisation during the presidential campaign as well the man who was in charge of distributing money to party agents countrywide during the elections.
At the PM's office, Caroli has been feared, loathed and loved by some in equal measures. Nevertheless, he appears to have grown umbilical-cord-like kind of links with the PM such that the two are almost permanently intertwined and none may survive without the other.
George Opondo: Everyone in
Raila's inner circle refers to him simply as the 'Kulei' of the PM – in reference to Joshua Kulei, then powerful Personal Assistant to retired President Moi during his days in power. To be mentioned in the same breath with or be compared to the former PA to retired President Moi is in itself a good pointer one's discreet power and influence behind the scenes.
Opondo, who hails from Uyoma in Rarieda, has been with the Odinga family for many years and initially served as PA to
Raila's father.
He is one of the very few people
Raila trusts to collect, handle and disburse funds for political operations. He is fiercely loyal to
Raila while at the same time studiously avoiding the limelight preferring to operate from the shadows and never speaking unless spoken to. However, the very fact that the PM trusts him with crucial matters of finances has given Opondo much clout in
Raila's inner circle and anyone who does business – political or otherwise – with the PM on a regular basis is bound to have to deal with Opondo at some point.
Eliud Owalo: He is the man
Raila trusted to run his presidential campaign. Owalo, a management consultant, initially served as founder member of Friends of
Raila (Fora) lobby group before he was tapped by the PM to be his Chief Campaign Manager. Not being an original member of Team
Raila, Owalo had several run-ins with politicians who wanted to influence decisions to serve their own selfish ends while sacrificing the PM's larger interests. This did not endear Owalo to a political clique from Nyanza but he soldiered on leading the campaigns, thanks thumbs up from the PM.
Owalo's strength around the PM has often been his independence of mind and apparent lack of political ambitions, something that meant
Raila could count on his (Owalo's) dispassionate judgment on crucial issues.
Perhaps a good measure of Owalo's credentials as a member of the trusted inner circle is the fact that Candidate
Raila Odinga trusted him enough to designate him as the person to spearhead the presidential election petition. The PM later amended the petition to become the direct petitioner.
By virtue of his position as Chief Campaign Manager, Owalo has enjoyed unlimited access to the PM.
Sarah Elderkin: She is a former journalist with the defunct Weekly Review magazine. Like some other members of
Raila's inner circle, Sarah's relationship with the Odingas dates back to Jaramogi Oginga Odinga's days.
She enjoys direct access to the PM. Sarah is
Raila's personal speech writer who cheerfully adopts the role of political attack-dog penning sharp articles in the media when the PM's integrity is question or is at stake.
As the PM's trusted communications advisor, Sarah wields significant influence on what
Raila says. She is regarded as one of the few people in the inner circle who will not shy away from telling the PM he is wrong and firmly stand her ground on a matter of principle. For this reason,
Raila values her judgment. Former journalist Salim Lone also happens to be a close confidant of the PM but his influence is mainly focused on maintaining international links for the PM. Those close to the PM describe Salim Lone as someone who approaches politics "too officially" to fit in well in the murky world of politics.
James Orengo: A lawyer by training, Orengo's relationship dates back to late 1980s when the two led the struggle for the country's second liberation. At some point in the 90s, Orengo and
Raila were political rivals competing for supremacy in Nyanza.
Raila emerged tops in that contest while Orengo lost his parliamentary seat.
To make a comeback Orengo had to eat humble pie and concede that he was not
Raila's equal. Since then, the two have become something of political Siamese twins. Today Orengo is one of the PM's most trusted political operatives.
Raila relies on him not just for legal advice but also on a wide range of political and business issues. This has made Orengo one of the most powerful players around the PM today.
Those in the know say Orengo completely eclipsed other political players previously close to the PM such as Prof. Anyang' Nyong'o and Dalmas Otieno whose influence these days is determined on an issue by issue basis or the prevailing politics of the moment.
Ida Odinga: Besides being the PM's wife, Ida is a powerful political player in her own right. She often influences key decisions including party issues.
Ida is someone few politicians around
Raila would dare to cross because she doesn't take prisoners.
There are other peripheral players around the PM such as the chairman of Royal Media Services
SK Macharia and Charles Njonjo whom
Raila has occasionally used to try and reach out to business elites in Central Kenya.
Johnston Muthama is another player who has gained access to the inner sanctums of
Raila's power network.
Muthama's clout grew tremendously when he delivered Kalonzo Musyoka and his Wiper Party to team up with
Raila and form the CORD team.
Business tycoon Peter Muthoka of Andy Forwarders is also another player with an inside track within
Raila's circle.
His influence grew during the elections by virtue of the resources he managed to contribute towards the
Raila Odinga-Kalonzo Musyoka presidential bid.
Raila, Kalonzo team's strategy in Opposition
Updated Sunday, April 28 2013 at 00:00 GMT+3
He has said as much – not once but several times – that he is not keen on returning to Parliament, yet supporters will not tire to persuade the Coalition for Reforms and Democracy (
CORD) leader
Raila Odinga to rethink his decision.
The latest pressure has come from his very own lobby groups, Friends of Raila (FORA) and Youths for Raila as well as the Luo Council of Elders from his rural backyard of Nyanza region.
Similarly, Raila's running mate in the March polls, former Vice-President Kalonzo Musyoka, is under pressure to find entry into the National Assembly. Senator for Machakos County Johnston Muthama has volunteered to spearhead these efforts at a local level.
Nonetheless,
The Standard On Sunday has established the Raila-Kalonzo supporters may well be acting like the proverbial mourners, who cry louder than the bereaved. Apparently, the two, alongside Senator for Bungoma County
Moses Wetangula, decided way back on a working formula for
CORD.
"After the ruling by the
Supreme Court — which surprised us and which absolutely we do not agree with — we took time off to South Africa and deliberated on all possible options, and agreed to play the role of an effective Opposition," says Wetangula.
The Ford-Kenya leader divulges that it was agreed that each of the three principals plays a crucial role in holding
CORD together and keeping the Uhuru Kenyatta-led Government on its toes. According to the agreement, Wetangula and Kalonzo are supposed to lead the
CORD forces from Parliament — Wetangula in the Senate and Kalonzo in the National Assembly. And as the group's captain, Raila is destined to lead from outside Parliament.
The trio's resolve is best demonstrated by Raila's constant reference to the Kiswahili adage, kuvunjika kwa mwiko sio mwisho wa kupika ugali (Down but not out). This allegory means, no matter the disappointments and misfortunes in life one undergoes, life has to continue.
To Raila, politics is daily food he must continue to eat. The import of this is that despite advice from some friends and foes that he takes a break from active politics, the former PM is not quitting just yet. The same is true of his partner, Kalonzo.
This agreement, struck in South Africa, informs the decision by the
CORD fraternity to appoint one-time Environment minister Francis Nyenze to the position of Leader of Minority in an acting capacity.
The Standard On Sunday has, however, learnt that disquiet is setting in over Nyenze's position, particularly the Orange Democratic Movement (ODM) wing, which has majority legislators within
CORD. According to our source, the politicians feel Nyenze lacks political clout and is ceding too much ground already to the Jubilee rivals.
Raila to work with governors on Cord pledges
Former Prime Minister Raila Odinga (Right) with Naivasha ODM chairman Peter ole Osono (center) and Joseph Nkaiseri (second left) at Naivasha's Great Rift Lodge on April 15, 2013. PHOTO / BILLY MUTAI
By ANTHONY KITIMO akitimo@ke.nationmedia.com
Posted Thursday, April 25 2013 at 14:23
Former Prime Minister Raila Odinga has said he will work with Cord's 24 governors to implement the coalition's manifesto.
Mr Odinga said Cord has majority governors elected during General Election and will use them fulfil promises they made during the campaigns.
Speaking at Mombasa County Hall on Thursday when he met governor Hassan Joho and ODM's 30 ward representatives, Mr Odinga said he will work with donors who are willing to fund Cord to fulfill its promises.
"We have to continue seeking more donors to help the 24 governors propel their agendas and that of Cord as they serve their people at their respective counties," said Mr Odinga.
He added: "We shall explore all the avenues to prove to Kenyans that Cord meant to transform their lives and we shall do so through supporting counties headed by our party governors."
Mr Odinga also urged the members of national assembly to address issues of debts inherited by County governments from previous local authorities.
He proposed the writing off of such debts to help the devolved governments run their systems effectively.
He also asked the national government to iron out issues on sharing of revenue from national parastatals such as port of Mombasa so that people in the counties can also benefit from them.
"The Transition Authority has stated clearly in its recent advertisement that harbours and ferries belong to county government. But the national government has not stated how the county will get its share," said Mr Odinga.
During the meeting, Mr Joho said the his office has inherited Sh2.8 billion from the Mombasa Municipal Council and urged the national government to release devolution funds to kick start county operations.
"It is frustrating that national government was supposed to release some funds to assist in the recruitment and other County operations but until today we have not received anything from the treasury. We are asking those involved to check on the matter to ensure County operations do not stall," he said.
Mr Joho also warned former council workers to shape up and embrace change so as to achieve the county's set mission.
The Orange legislators, according to an MP who declined to be named for fear of being accused of being divisive, seriously feel that
CORD lost out greatly in the recent formation of House Business and Selection committees because of poor negotiation.
A section of MPs polled by The Standard On Sunday are of the opinion that Rongo MP and immediate former Public Service minister Dalmas Otieno is better placed to spearhead the coalition's interests and negotiations in the House.
"Dalmas is a sober politician, who enjoys a lot of respect and goodwill from both sides of the political divide. He also enjoys substantial support from Jubilee, including (President) Uhuru and other former and present Kanu legislators," offers one MP.
The push for Dalmas to replace Nyenze is largely by ODM-allied MPs, who feel that despite being the majority party in
CORD and indeed in Parliament, they have missed out on all key positions in Parliament. Besides Wiper Democratic Movement's (WDM) Nyenze, the Minority leader in the Senate is Ford-Kenya's Wetangula.
However, pundits warn that a move to replace Nyenze could mark the end of the political marriage between ODM and WDM. Nonetheless, rescue could be on the way if former Kibwezi MP and leader of The Independent Party (TIP) Kalembe Ndile paves way for Kalonzo's entry to Parliament.
Kalembe has intimated that sitting Kibwezi West MP Patrick Musimba has agreed to step aside for Kalonzo. However, the former assistant minister has filed a petition against Musimba's election and wants the case determined first before he can play ball.
Muthama, who is pushing for the return of Raila and Kalonzo to Parliament, and Leader of Majority Aden Duale, have separately warned the two senior politicians may become irrelevant if they stay out of elective politics.
But Wetangula disagrees: "Is it possible for a politician of Raila's stature, who has a huge and intact political constituency to suddenly sink into irrelevancy? Of course that can never be true."
Former Sports minister and Budalang'i MP Ababu Namwamba is in agreement.
According to Namwamba,
CORD Alliance, "will hold fort for Raila – in and outside the two houses (National Assembly and Senate) – until the next elections when he is ready to take charge of the team again".
"This is because your stature has grown beyond Parliament and it will be unthinkable to have you their as minority leader, with our friend Duale as your opposite as majority leader," Namwamba told Raila during a recent luncheon the former Premier hosted for his presidential campaign team.
But before the next elections, Raila and Namwamba maintain this should be the last time Kenyans go to the polls with the Independent Electoral Boundaries and Commission (IEBC) as referee and under its current leadership and structures
"It becomes very difficult to appreciate lessons learnt from bungled electoral processes such as this one, that Kenyans had a lot of hopes in. One thing is clear, though, that most of our institutions are still open to manipulation and corruption," observes Namwamba.
Speaking during the function, Raila said they did everything right to win the elections, "but that was never going to happen".
"I have been around for some time and I know the strategies of winning an election. 1997, I made my debut to introduce myself to the Kenyan people and in 2002 I spearhead campaigns that made (Mwai) Kibaki president. And you all know the real winner of 2007 and this year's poll," Raila told his guests.
Motorcades and massacres: Is Kenya's state failing?
Posted Saturday, April 27 2013 at 12:50
In this column some time ago, I contrasted the response of Kenyan authorities to the massacre of 40 policemen by cattle rustlers in Baragoi with that of their Egyptian counterparts to the train accident that claimed the lives of 50 children.
I lamented the slow-motion, casual response of the Kenyan government and police. For about three days, the bodies of the slain policemen lay rotting in the valley where they had met their demise. The then police commissioner and the civilians heading the security docket remained proudly in office. By contrast, the Egyptians arrived swiftly at the scene of the accident, the minister in charge of transportation resigned, and those more directly culpable were charged. I concluded by saying that the killing of such a large number of police officers by a ragtag village militia, and the culture of lethargy of our public officials, had a bearing on the viability of the Kenyan state.
About a week ago, we again witnessed the same lethargic response by Kenyan authorities to the killing of 10 civilians by suspected Al Shaabab gunmen in Garissa as compared to that of their American counterparts to the bombing in Boston. In our case, there was a 24-hour lapse before we saw any statement from the authorities, much less action. It was only when President Uhuru Kenyatta ordered all security chiefs to the area that we saw the Inspector General of the Police, the head of National Intelligence, the permanent secretary in charge of security and other security chiefs pontificating about the actions they were going to take.
They looked somnolent; I had visions of them yawning after the cameras had withdrawn. In Boston, within minutes of the blast, local and federal agents swung into action. The mayor and police chief of Boston gave statements, as did the governor of Massachusetts and President Barack Obama.
What is it, we might ask, that determines this vastly different attitude towards public duty? The culprit is a culture that we have cultivated since Independence. While this culture has several negative aspects, its most crippling effect is an absence of personal responsibility, reinforced by lack of sanction for mediocrity and non-performance.
In the days of the Kanu dictatorship, what built careers was not merit or performance, but sycophancy. One could rob a parastatal dry — as happened with several of them — and still see a spectacular rise in one's career, as long as one sang — in the words of former president Moi — like a parrot. While such blatant profligacy is now disallowed by policy, instances of state-failure due to acts of omission or commission by state officials — which are never punished — characterise public service.
Thus, the former commissioner of police and the security minister could continue serving without any sense of shame after the worst massacre of police officers since Independence. And that is why the IGP and the group that accompanied him to Garissa will continue serving with pride, if a little somnolently. Had the American authorities acted in the wake of the Boston bombings the way their Kenyan counterparts did to the shooting in Garissa, the wrath of the American public would have been scorching, and many officials would not only have lost their jobs, but would also never have seen the inside of a public office for the rest of their lives.
The Failed States Index could be faulted on many levels, but it does indicate warning signs of a slide towards that ignominious state. Two of its indicators worryingly apply to Kenya: (1) Loss by the state of monopoly of coercive force; and (2) Prevalent use of public funds for purposes that do not advance the public good. Given that the Garissa incident is only the most blatant of a recent series of gun murders in the country, and unconscionably huge resources are being diverted to cater for our leaders' megalomania — salaries, Obama-like motorcades and security details in a country as poor as ours, retirement packages fit for a sultan, etc — we must ask: Is Kenya showing early signs of failed state status?
Tee Ngugi is a social and political commentator based in Nairobi
I hear this often on the streets of Nairobi, that I have to tone down my expectations, be more patient (it takes more time here in Kenya, they say) and that I shouldn't push too hard lest the people that I am relying on to get things done, decide that they don't want to go ahead and work with me.
We can appoint the most brilliant managers, corporate honchos and other smart types into high office but they will soon find out that the house is shiny on the outside and stinks on the inside. We have a pathetic work ethic, we take too much for granted and we expect to be told exactly what to do oftentimes, rather than take the initiative.
Speaking of which, the government sent in the military into Baragoi but we have not heard anything since, no one asks what happened and the families of the deceased young cops continue to wallow in grief. All the while, we are all busy attending homecoming parties for newly elected "leaders".
An interesting article; I have just looked at the index; and it appears that Kenya has a score of 98.4 on the scale and is in alert category. On that basis yes I think Ke is sliding in that direction on the basis of the theoritical criterion in the formulation of index. What I find even more intriguing is that Somalia remains top of the chart . The other issue which would be interesting here is impacts of failed states on neigbouring countries around them. Are they catalyst and do they destalise or encourage or neither and are neutral. The issue in your current Daily Nation article on human trafficking deserves also to be included for consideration in any analysis of failed states as it is a sign that a state (s) are failing to tackle poverty; existence of shanty towns within a city like Nairobi also should be considered , places like kibera and Mathare for examples as these have existed for many decades going way back in kenyan history.
Corporate Kenya faces exodus of CEOs into govt
President Uhuru Kenyatta and Deputy President William Ruto on April 23, 2013 when they named the first four Cabinet Secretary nominees at State House, Nairobi. The nomination of Cabinet Secretaries and pending recruitment of Principal Secretaries is set to change the face of Kenya's corporate sector.
By A JOINT REPORT, The EastAfrican
Posted Saturday, April 27 2013 at 15:14
The nomination of Cabinet Secretaries and pending recruitment of Principal Secretaries is set to change the face of Kenya's corporate sector.
Executives and senior managers from at least three Nairobi Securities Exchange-listed firms, an investment bank, three regulators and at least 20 well-known private companies and government entities are among those who have either been nominated to serve as Cabinet Secretaries, or shortlisted for the position of Principal Secretary in the new government.
Five of the 16 nominees for Cabinet positions are from the private sector, while 25 per cent of the 155 shortlisted candidates for Principal Secretary jobs are executives and senior managers from the private sector.
Kenyans are likely to be treated to a glimpse into the inner workings, deals and well-kept secrets in private companies as the Public Service Commission kicks off the vetting of the candidates seeking positions as PSs on Monday.
The candidates' experience, performance record and management styles are expected to come under scrutiny during the vetting.
If the PSC lean towards private-sector bosses for the PS jobs, many firms will be looking for new managers as business leaders leave high paying jobs for public appointments.
Of the 16 nominees for Cabinet Secretary posts announced by President Uhuru Kenyatta on Wednesday, two are bank executives (Adan Mohammed, chief administrative officer of Barclays Africa, and James Macharia, CEO, NIC Bank). Another appointee, Phyllis Kandie, is currently an associate director at Standard Investment Bank while the rest have been drawn from the academic, government and private companies.
Among corporate faces on the shortlist for Principal Secretary positions are NSE-listed power distributor Kenya Power's chief executive officer Joseph Njoroge and his chief manager for human resources and administration Ben Chumo; Betty Maina, CEO of the Kenya Association of Manufacturers, Sumayya Hassan-Athmani, the managing director of National Oil Corporation and Nancy Karigithu of the Kenya Maritime Authority.
Others are Prof Genevieve Were, Patrick Omutia, and Elizabeth Muchane, the deputy vice chancellor at Maseno University, the MD of the National Industrial Training Authority and the director of the Kenya School of Governance respectively.
The Principal Secretary shortlist also has Kenya Railways Corporation managing director Joseph Nduva Muli, Postbank managing director Dr Nyambura Koigi, Kenyatta National Hospital chief executive officer Richard Lesiyampe and Tea Board of Kenya chief executive officer Sicily Kariuki.
Regulators such as the Central Bank of Kenya, Insurance Regulatory Authority and the Dairy Board of Kenya may also find themselves looking for replacements as individuals holding key positions in those organisations have also been shortlisted. They include James Teko Lopoyetum, the director of operations and bank administration at CBK, and Sammy Makove and Machira Gichohi who are the chief executive officers at IRA and the Dairy Board.
Other individuals who have been shortlisted and work with the private sector include Kenya National Examinations Council chief executive officer Paul Wasanga and Kenya Investment Authority managing director Moses Ikiara.
Experts say those in most demand are people who are technologically literate, globally astute and capable of not only developing, but also executing strategy. This has heightened the battle for talent between government and the private sector.
James Wangunyu, chairman of Standard Investment Bank, said replacing Ms Kandie would be a challenge. "The industry has very few people who have her years of experience," he noted.
For years, Kenya's civil service has been seen as a training ground for middle-level managers who soon find themselves courted by the private sector, a trend that is quickly changing, as seen with executives leaving plum private sector jobs for State appointments.
"Some of these people leaving the private sector are driven by the need for challenge. They have achieved all they can in the private sector, so they are looking at a different challenge in the public sector," said Patrick Mutisya, a senior human resource consultant at Manpower Services, a management firm.
Analysts said a reformed public service, better pay, and improved terms of service could help rejuvenate service delivery, with the public sector taking on private businesses in the labour market.
"Given their private sector background, their management style is likely to be more hands on than previous ministers. We are likely to see them more involved in, say, recruitment as they understand how much their personal success is tied to the competencies of their team," said Mr Mutisya.
According to the Economic Survey 2012, private sector wages are more than double the public sector's. In 2011, private sector wages stood at Ksh587.2 billion ($6.9 billion) compared with the private sector's Ksh291.4 billion ($3.4 billion).
The executives' exit from private to public sector jobs is expected to intensify the revolving door that has characterised Kenyan firms in recent months, which have seen senior managers moving in and out of company boards and top tier corporate positions, as firms seek fresh brains and strategies to drive growth.
Why World Duty Free is so important to Pattni
Businessman Kamlesh Pattni. PHOTO / FILE
By Wachira Maina dn2@ke.nationmedia.com
Posted Sunday, April 28 2013 at 21:00
- Controversial businessman wants to prove he is owner of both the exporting and receiving firms in 1990s scandal, essentially plugging any holes that can be used against him
- By getting the court to declare him the owner of World Duty Free, Kamlesh Pattni becomes, in effect, the owner of both the company exporting the gold and diamonds and the company importing them. Even though in law a company and its owners are separate persons, firms act through their officials. In this case, Pattni, relying on the constitutional right against self-incrimination, would simply refuse to give evidence against himself as owner of Goldenberg International. End of case!
On February 14, 1998, Blue-Line Holdings, a company associated with Kamlesh Pattni, fabricated a rubber stamp for Dinky International — a company belonging to World Duty Free owner Nasir Ali — at a Nairobi stationery shop, D L Patel Press. The rubber stamp was then used to forge sale documents showing that Kamlesh Pattni had bought World Duty Free shares from Ali and Dinky International in 1992.
The CID, however, believed the forgeries had extended beyond the rubber stamp. They were right, as it turned out from a report by a Mr M. Allen, a UK Home Office forensic handwriting expert, that the documents on which Pattni had relied, including the Memorandum of Sale and Agreement and all the letters allegedly written by Pattni to Ali, were forgeries.
Also, none of the cheques allegedly paid by Pattni to buy WDF shares had ever been presented for payment. None were made out to either Dinky International or to Nasir Ali, the owners of WDF shares.
They were all drawn on banks associated with Pattni or politically connected individuals, and they were all in favour of companies that were not connected with Ali. Cheques from these same banks would be presented in a subsequent
More intriguingly, Ali also produced a letter from Pattni to him that refuted his (Pattni's) claims. When WDF completed refurbishing the airport to create the shops that he now claims from KAA, Pattni wrote to Ali, on May 16, 1992, asking WDF to lease him space for his gold and jewellery business.
If Pattni was indeed the beneficial owner of WDF shares in March 1992, why would he want to let space from the person from whom he was in the process of buying the company's shares?
Pattni produced in court copies of the letters he claimed he had written to Ali asking that WDF shares be transferred to him, but there was no evidence that these had ever been sent or even received by Ali.
Pattni also claims that by mid-1992, he had paid Ali all the money that he owed him for the WDF shares. However, in August of that very year — having met Ali in June — Pattni borrowed Sh25 million (about $300,000 at current exchange rates) from Ali. Later, he would say that during this same period — in 1992 — he had also bought Ketan Somaia's companies (for more than $40 million) and the Pan African Group (for $12.5 million).
The question suggests itself: If Pattni was so awash with cash throughout 1992, why did he need to borrow $300,000? More importantly, Pattni never repaid the money as agreed and Ali had to sue him.
If Pattni had already contracted for and paid part of the money to Ali, why did he not mount a counter-claim against Ali on this suit on the basis that Ali owed him money on the shares?
These details and dates make it clear that Pattni's WDF claims are flagrantly fraudulent. The question is; why does Pattni go to all this trouble?
Well, the timing is everything: The period when the WDF share transaction supposedly happened coincides with the period in which Goldenberg International said it had exported the bulk of gold and diamonds to World Duty Free in Dubai.
That fact is fundamental because there are two main planks to a successful prosecution of the Goldenberg scandal. First, evidence will be needed from Dubai, say, from the World Gold Council, Dubai, showing whether any gold from Kenya had actually got into the country.
Secondly, evidence will be needed from WDF, the alleged purchaser, that it never ordered or received any gold or diamonds from Goldenberg International.
By getting the court to declare him the owner of WDF from 1992, Pattni becomes, in effect, the owner of both the company exporting the gold and diamonds (Goldenberg International) and the company importing them (World Duty Free).
Even though in law a company and its owners are separate persons, companies act through their officials. In this case, Pattni, relying on the constitutional right against self-incrimination, would, as owner of WDF, simply refuse to give evidence against himself as owner of Goldenberg International. Criminal case dead.
Two, in a civil case for restitution, which the government might file if it lost the criminal case, it would help if the owners of Goldenberg also happened to own WDF in 1992 and 1993. That would mean Goldenberg was exporting jewellery to a sister company, WDF. Pattni would then be able to offer evidence that gold and diamonds were exported by Goldenberg International and received by World Duty Free. In short, there never was any loss, scandal, or even crime committed.
Unfortunately, Pattni's efforts to take over and control WDF have run into heavy headwinds arising from his inattention to the complexities of company law. Though the World Duty Free had a certificate of compliance to operate in Kenya, it was incorporated in the Isle of Man, a British island in the Irish Sea.
Lone wolf: Museveni's battle with his Cabinet
Uganda's parliament in session. President Yoweri Museveni has accused a section of his Cabinet of soliciting a $200m bribe from a Chinese contractor. Picture: File
By MICHAEL WAKABI, The EastAfrican
Posted Saturday, April 27 2013 at 15:08
President Yoweri Museveni is fighting almost single-handedly to rescue a number of important projects from what he sees as a bureaucracy gone adrift of national priorities. In this, the president is relying on an ever-narrowing circle of trusted aides.
In the face of an economy that is performing below potential, delays in the development of the petroleum sector and a real possibility that donors who support 30 per cent of the national budget may cut off funding altogether in the next financial year, Museveni needs to secure the country's energy supply to keep manufacturing ticking.
But his efforts to get the 600MW Karuma hydropower station off the ground remain hostage to vested interests, and the president has accused a section of his Cabinet of soliciting a $200 million bribe from Chinese contractor China Water and Electricity Corporation (CWE), which the Inspectorate of Government has recommended should be barred from bidding for the works.
A Cabinet meeting on April 12 endorsed a bilateral deal the president negotiated with China to fund the project and provide a contractor to execute the construction.
After just seven days however, on April 19, Energy Permanent Secretary Kabagambe Kaliisa was served with an interlocutory order stopping implementation of the recommendations of the Inspectorate of Government report.
The order had been sought by the Member of Parliament representing Kabale Municipality, Andrew Baryayanga, who had earlier opposed the IGG's investigation of the procurement process.
Undeterred by the Solicitor General's opinion, Mr Baryayanga on April 26 secured a constitutional court order stopping the Ministry of Energy, the Cabinet or the government of Uganda from implementing the recommendations in the IGG's report or interfering with the final process for the procurement of a contractor for Karuma Hydropower project.
Although an April 23 opinion by the Solicitor General advises Mr Kaliisa to stay put — since the High Court's order mentions neither the Ministry of Energy nor the Cabinet directive the PS was supposed to implement — the basis on which the order was sought rhymes with an opinion Attorney General Peter Nyombi had circulated on April 11 ahead of the April 12 Cabinet meeting that discussed the Karuma saga.
The EastAfrican has learnt that in that meeting, at which Museveni invited the IGG to present her report, only two ministers — Crispus Kiyonga (Defence) and Local Government's Adolf Mwesigye — spoke up in support of the president's position that the report be adopted.
That meeting resulted in an "Action Extract from Minute CT109 (CT2013)" that, among other things, ordered the minister of energy to cancel the procurement process for Karuma in favour of a bilateral arrangement with China.
However, CWE's supporters were this week understood to have been trying to front China Three Gorges Corporation, CWE's parent company, to be selected to replace its discredited subsidiary. Besides China Three Gorges not being an EPC contractor, its backdoor selection would be in violation of Ugandan procurement laws, which bar a sanctioned contractor, its associates and subsidiaries from participating in procurements for the duration of the sanction period.
While CWE has issued threats of legal action if its bid is cancelled, Frank Tumwebaze, Minister for the Presidency, defends President Museveni's action, citing the delays the Karuma project has suffered.
He also argues that while the Attorney General as the chief legal adviser to government is free to give technical guidance on legal issues, these have to fit within the policy guidance given by the president.
Mr Tumwebaze also says the Cabinet's decision to opt for a bilateral arrangement to implement the Karuma project is provided for by procurement laws and cannot be derailed by threats of legal action from any quarter.
"The president, as the chief guide on national priorities and policy, had to come in and give guidance on the process of Karuma, which had been derailed and delayed by corrupt tendencies. The president chose to take a bilateral approach, because the PPDA act provides exceptions for procurements that come under a bilateral arrangement," he told The EastAfrican.
According to him, Uganda is free to procure bilaterally and can ask the other party to select a contractor if it feels that it is getting better value for money. The $350 million Entebbe Expressway, which is also being funded by China, is a precedent.
Although Mr Tumwebaze defends President Museveni's actions as necessary, given the present circumstances where he cannot rely on his bureaucracy, critics see them as typical of the disregard for institutions he has exhibited over his 27-year rule.
"The president has to ensure that policy is executed and the perceived concentration of power around himself actually makes it easier for him to demand accountability from particular centres, as opposed to relying on a swollen and inefficient bureaucracy," he said in reference to President Museveni's insistence on vesting power in the energy minister in the new oil laws.
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