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A Working Paper reveals the political stakes in the Kenya-Somali Illegal Sugar Trade!

The Danish Institute for International Studies (DIIS) have had a study into the border trade and sugar exports through Somalia into Kenya. How it is used and how it gets to the market. Clearly, the market for sugar is there in Kenya. As the Sugar Industry is struggling to deliver enough sugar and the state has embargoed imports. Still, the same actors and the same politicians are doing behind closed doors agreements that put the sugar in stores through the porous borders of the Kenyan-Somalian border.

The paper itself paint the picture very well and show the importance of the export, since the magnitude on both economies are affected by it. It is also implicating big names and their organizations. As the politicians has another black-market cartel item to sell to the public. What was striking was that the importers together with local merchants are repacking the sugar into bags of the State Owned Entity (SOE) of Mumias. The Company that has been saved the state after devastating corruption and also lacking investment into the mills. Therefore, the politicians has used this name to trade illegal sugar with name. That they even used the stickers to prove it was of Kenyan quality while selling it to the public.

The quotes I have taken, is what see as important. But its compelling to show the this illegal imports into Kenya affects the politicians and the economy in general. Take a look!

The Amount of Money:

Raw sugar accounts for 10% of total Somali imports rated at US $188 billion (Observatory of Economic Complexity 2016). In other words, sugar importing is enormously lucrative and important for the local economy on both sides of the border. The sugar imported from Somalia is central for covering the production and import deficit in Kenya. Most sugar enters through Kismayu port where it is manually loaded onto trucks and driven to the Kenyan border. There it is re-loaded onto other trucks, four-wheel drive vehicles and even donkey carts to cross the border on the so-called ‘rat routes’ that circumvent the border posts to avoid the payment of bribes, random checks by the Kenyan Revenue Authority (KRA), and the occasional confiscation. Based on interviews and observation JFJ estimates that 150,000 tons of illegal sugar entered Kenya from Kismayu in 2014 (JFJ 2015). This amounts to US $400 million worth of annual revenue divided between KDF, Al-Shabaab, local businessmen and politicians, as well as local police and border patrols, including the KRA (though this is not formal revenue) (JFJ 2015)” (DIIS Working Paper, P: 10, 2017).

KRA:

The investigator explained how his unit, in collaboration with the Kenyan Revenue Authorities (KRA) and the Kenya Bureau of Standards (KEBS), had planned the raid of a warehouse in an industrial area of Nairobi. They had found tons of processed Brazilian sugar allegedly smuggled into Kenya via Somalia, and it was now being repackaged from 50 kilo sacks into 500 gram and 1 kilo bags bearing the Kenyan brand Mumias Sugar and with added stickers from KEBS showing that the product meets Kenyan standards of production and quality. The repackaged sugar is – when not confiscated by the authorities – sold to retailers as refined Kenyan sugar at a huge profit. In 2014 a one kilo sugar bag sold for KES 133 in Nairobi supermarkets, and by May 2017 prices had gone up to KES 170 with some supermarkets rationing it to one package per customer” (DIIS Working Paper, P: 12, 2017).

Political Influence:

Like the former Nairobi governor Evans Kidero, the Garissa governor Nathif Jama Adam, and the Garissa-born majority speaker of parliament Aden Duale are rumoured to be implicated in the sugar trade (Rawlence 2016: 236). These rumours reach all the way to Nairobi where they can be voiced more freely than in the north. The power of the people implicated by the rumours is more distant in Nairobi, whereas in the northern parts of Kenya the secrecy associated with the rumours points to the importance and power of those involved” (…) “With devolution, local government has become more powerful and more is at stake for locally elected officials due to their increased budget responsibilities and decision-making powers. Concomitantly, local government has become more vulnerable to pressures from local stakeholders like strong businessmen, militias and other state actors. The porous border, the circumvention of border patrols, and the implication of government officials ranging from KDF to KRA means that much of the sugar is not declared to Kenyan customs officials, making Garissa county one of the largest illicit markets in the country. The flow of goods across the border and further into Kenya formally falls under the responsibility of KRA and the national government. Yet the county government is responsible for local revenue collection and enforcement at local markets and car parks, and they also issue licenses for traders. In that sense the warehouses in the region fall under county administration. The latter thus plays an important role in the possibilities for the redistribution of smuggled goods” (DIIS Working Paper, P: 15, 18, 2017).

This here is evidence of cartels, illegal trade that is benefiting the political elites in Kenya and in Somalia. They are both having knowledge of it and its undermining the embargoes and also the activity itself. Since the politicians are the ones that has put in the provisions and the laws to stop imports to secure the local sugar industry.

This paper shows how much money that is involved. It is big business and the cartels are earning fortunes on lie, where they take foreign cheap sugar and trade it as Kenyan sugar with stickers of authenticity of KEBS. That is clearly a violation in itself, but combined with the illegal sugar, they are even using sophisticated methods to trade it to the public. To make the sugar seem like Kenya, when it isn’t.

That this money is shared by many different part of government officials was implicated int the trade from Kenya Defense Force Officials, Kenya Revenue Authority Officials, Border Patrol, Politicians and even Somali terrorist organization Al-Shabab. So the Kenyan are sending military to Somali to fight Al-Shabab, but at the same time giving them revenue with illegal sugar trade. That is a striking a fact considering the use of military to secure safety for Kenyans. Therefore, the cartels are also making sure the reason they are fighting inside Somalia are funded by the stakes into the illegal sugar industry. That should put some alarm bells on. That the politicians are playing with matches and should know that this cartel plus funding of Al-Shabab might hurt them in the long-run. Instead of being just a profitable business.

This is eye-opening and also a tale of corruption and sugar-cartels using the porous borders between the republics in favor of those dealing illegal sugar and selling it on the Kenyan market. Certainly, this sort of thing will implicate bigger names, than the ones mentioned in the paper. If investigated and looked through. You could certainly also find many bigger names who has created massive wealth within short amount of time. Peace.

Reference:

Rasmussen, Jacob – ‘SWEET SECRETS: SUGAR SMUGGLING AND STATE FORMATION IN THE KENYA–SOMALIA BORDERLANDS’ (December 2017) – DIIS Working Paper 2017:11

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FinTech Companies in Kenya: Are now evading the personal space of costumers to provide them services!

Today, I will write about how international businesses are using their power and their markets strategy, while people are giving up their private communications and other vital information for simple transactions between family and friends, also when borrowing micro-credit or buying solar-cells through credit. This is all based on the Privacy International recently released report and the quotes are taken from there. It shows vital information taken from citizens who uses apps and financial services in their daily lives. Clearly, they have accessed certain freedoms for the trade with these Kenyans. The business transactions and the trade is not only making direct profits for the corporations allowing direct transactions, but also delivering services like payday loans and buying equipment. Still, it has a special price and they have to sign-up to give away certain aspects of their lives to gain this. That is what is interesting because it says something of how much of the personal space these corporations are getting from the persons they are profiting from!

The term ‘fintech’ has been defined by PricewaterhouseCoopers (PwC) as: “a dynamic segment at the intersection of the financial services and technology sectors where technology-focused start-ups and new market entrants innovate the products and services currently provided by the traditional financial services industry.” (Privacy International, P: 10, 2017).

Yet a change that has not been much explored is that M-Pesa also produces a vast amount of data for the telco Safaricom. Each of the millions of transactions that take place a year tell a story. They tell the story of how the small business is operating: the money they’re sending to their suppliers, the transactions that are taking place. But it tells other stories as well: the money that comes in and then is sent to the hospital. The school fees paid by the biological father, unknown to anyone except the mother, father and Safaricom. But there is also a way in which this data is known by third parties. The transmission of the content of the money transfers over M-Pesa is encrypted. However, the details of any transactions are sent, unencrypted, by plain SMS. Even if M-Pesa transactions themselves are sent via secure and encrypted means, the account information is not. The messages that someone sends for receiving or sending money include the name of the recipient (from the registration of the SIM), the amount sent, and their current balance. This facilitates the gathering of personal data by apps. The fact that the transactions can be tracked becomes a large part of the power of the lenders, as in the Kenyan example, leaves a trail via the M-Pesa SMS messages for both customer and retailer. As shall be illustrated, this is an aspect of M-Pesa of which fintechs are able to take advantage” (Privacy International, P: 29, 2017).

Tala App:

From the data provided by the app, decisions are made about whether and how people repay their loans. One of the key pieces of data is to analyse the content of SMS messages for the records of M-Pesa payments. These are very valuable records to analyse; for example, if the person seeking a loan has a small business, it is a good measure of the health of the business and the money entering and leaving the business. But, according to Tala, it can also be used to analyse how people are actually using their loans, as frequently the money they receive from Tala will leave someone’s M-Pesa account immediately (for example, to pay school fees or a hospital loan, or an individual). But the analysis of the data by Tala extends beyond this, to make analyses based on data and information that are, at best, unexpected to be used for credit scoring. For example, Tala analyses call logs: their analysis has found that people who make regular calls to family are 4% more likely to repay their loan. To do this analysis, they need to know who your family is: from the content of text messages that call someone “mama”, and the pattern of calls” (Privacy International, P: 30, 2017).

Branch:

One difference from Tala is that Branch also makes use of Facebook for authentication; as discussed below, this is allowed under Facebook’s terms and conditions. Another factor that Branch uses for its decision-making is the behaviour of your friends, and their repayment patterns for Branch loans. How does Branch know who your friends are? They have a refer-a-friend feature (as does Tala), which is one source of this data. But they can also see your Facebook friends, and your call log to know who is contacted regularly” (Privacy International, P: 31, 2017).

M-Kopa:

The data that M-Kopa gathers from the device via the SIM is information like location (using cell data, not GPS), the charge level in the battery, and what devices are plugged in. They will also soon be gathering data on the television programmes watched. This specific data on programming is not data that it is planning on selling, but rather to use to develop its own services in the future. M-Kopa’s website states that, “After completing payments, customers own the product outright.” However, the customer does not own their data. The terms and conditions of a M-Kopa loan make the company’s position on data clear: “M-KOPA shall have absolute and sole ownership of … the data which is obtained by the Customer’s use of the Device.” Customers have no right to even see their own

data, apart from the provisions under Credit Reference Bureau rules. For M-Kopa, it ultimately comes down to a business decision: “If data privacy was important for the Kenyan consumer, we would do it,” states Chad Larson, the Chief Credit Officer at M-Kopa. At the same time, both M-Kopa and its investors have a viewpoint that their use of data is ethical” (Privacy International, P: 32, 2017).

Control over the data:

A significant issue with the fintech companies in Kenya, is that they keep access to the data. They keep the data—and, in some cases analyse it, even if the user has stopped being a customer of theirs, and has deleted their app. Branch is explicit that it keeps the data even after a user uninstalls the app, and admits it is possibly doing further analysis on it, “we have that right.” Tala encourages people, even if they have been rejected for a loan, to keep the app; if they do delete it, Tala retains their data. This is so that, if the customer returns later, they can reinstall the app, go through some simple KYC checks, and be able to borrow again. M-Kopa, on the other hand, continues to collect data from the device even after the loan has been repaid” (Privacy International, P: 33, 2017).

Just as this reveals that Safaricom, the partly owned Vodacom Telecom Business have no trouble through the M-Pesa, the Cellphone Mobile-Money Transactions, that they can hold onto all information between all parts of the transactions. Like how a person send the messages of giving money to friend/family and at what point they picking up the mobile-money. This personal data is all incorporated into their apps, as they provide the services and keeps this fintech data on each of their clients.

As we see with the Tala App, which is also used to get loans. Tala analyses the personal SMS’s from the client to either give or not accept proposals for loans from their services. Tala are looking into the M-Pesa messages given to the client and are scanned by the app. To see if the client can actually be able to repay the debt possible sign-off from Tala. This proves that the Tala App is checking the credit history done with the services of M-Pesa, which is Safaricom/Vodacom. Branch another Fintech app is taking it further, they are also analyzing your behavior and who is your refer-friend on Facebook. They are clearly entitled to the private information of your networks before you get a loan. So they know exactly, who and when you contact friends and family on social media before giving you a loan. It shows how personal and how much information on app can get before you get the services needed from them.

M-Kopa are another one, who is directly saying that all information collected from their costumers are their to own and to use for later costumers. It can also be used after the usage. More of these Apps seems to do so. They are keeping this personal data even after the transactions, the loans and the purchase. This can be used to further get clients and knowledge of when the costumers need it more. So they can get them “addicted” to the services. We have no idea how they store this personal data or who they trade it with after gathering it all.

This should all be scrutinized and questioned, as it breaches with personal space collected with marketing and simple ploy to generate enough information to be able to gain the services from the companies. These companies are vultures of the costumers private space and uses it as leverage for their trade.

It is worrying how far they are taking it and how much personal information they are gathering to give them these services. Peace.

Reference:

Privacy International – ‘Fintech: Privacy and Identity in the New Data-intensive Financial Sector’ (November 2017)

President Kenyatta orders that imports of Sugar and Milk Powder to be tariff free until August 2017, who in the Jubilee will eat the spoils?

President Uhuru Kenyatta finally found a solution to the rising the prices and inflation on basic foods. Therefore on the day there is 30,000 tons Sugar coming in at Mombasa this morning.

This after the first Executive Order of Kenyatta this year said: “That the drought and the famine in parts of Kenya is a national disaster, duty shall not be payable for the following items- 

(a) Sugar imported by any person, with effect from the date of Notice to the 31st August, 2017; and

(b) nine thousand tonnes of milk powder imported by milk processors, with the authority of the Kenya Dairy Board, with effect from the date of this Notice to the 31st August, 2017 Dated the 11th May 2017” (The Kenya Gazette, Vol. CXIX – No. 62, Nairobi, 12th May 2017).

So as this happens, you can wonder if the Sugar millers and Sugar exporters are connected with the government. Since the 30,000 tons just appear on the day after the gazette. That means, someone knew about the plans of the government and let it happen. It isn’t just appearing from the sky, that a holy angel sends 30,000 tons of sugar to Kenya and the Port of Mombasa on the day after the Executive Order was signed and than relieved to the public by Cabinet Secretary for the National Treasury Henry Rotich. He is just a useful CS, who certainly will have his pieces of deliverance of all the duty free goods.

That the government, close connections with the Jubilee government and the Sugar cartels will surely gain profits on these exported foods. This been in a country where the tariffs has been a 100% on Sugar and added VAT 16 %. Therefore, this reactions seem to be a ploy to earn monies on gullible people and think that the people will take it as goodwill. This is happening at the same time, as the prices on sugar is still on a two year low worldwide. President Uhuru Kenyatta and Deputy President William Ruto, might think the Kenyans doesn’t see through this. But they should question the companies, the boats and who orders the duty free goods to Kenya from today and until 31st August.

Like who earns the profits on the sugar and the milk powder in these months. They are clearly planning it and not only for the famine and drought. But for sole purpose of gaining massive amount of funds in the period of campaigning. This just appearing and ordered in the critical time. The Jubilee government doesn’t know how to be subtle. Can wonder if any of the corporations and importing businesses owned by the Kenyatta’s or Ruto’s would benefit from this. I wouldn’t be shocked, neither if anyone else of the Jubilee government got a payday and huge amount of Bob’s in their accounts. Peace.

The law: 

Kenya: At the moment, Sugar is not sweet for Jubilee!

The prices of Sugar in Kenya is special experiment, as the taxation on imports of sugar is a 100% and also 16% VAT on the sugar imported. Secondly, the industry is controlled by the state, there been talk of privatization of millers owned and the Kenya Sugar Board who regulate the industry. As well as the Ministry of Agriculture is making sure the output of the farmers are corrected.

Therefore, as the prices worldwide is sinking and going-low, the prices of sugar are going up. This is happening in the months right before election time.

The government must know the industry is struggling as the only private miller Mumias are again on a downward spiral:  Already, the miller has been closed for three months. According to managing director Errol Johnson the closure was meant to fix equipment, which had contributed to the company’s poor performance due to inconsistent maintenance. The closure from April 11 came barely a month after the cash-strapped miller received Sh239 million from the government, as part of the bailout strategy” (BiznaKenya, 2017).

That the Mumias miller proving the big-problems in the Sugar industry, as it has been evident for years. The agricultural output and yields haven’t been the issue alone, it is denial of the state to figure out working changes to the millers, the import and also control it has over it. That the government has the oversight and the insight to the issues, are clearly that the Jubilee haven’t been interested in-changing it, as the benefit of this system. Therefore, President Kenyatta and Deputy President Ruto hasn’t touched it or done anything else than bailing out Mumias on the last dive of the company. Therefore, the reports shown here. Proves the initial factors to the grand issues and why the prices are sky-rocketing, while the international prices are falling. Take a look!

Barriers for Sugar Productions:

Sugar milling is a high fixed cost business requiring substantial economies of scale in cane crushed to break-even” (…) “Existing relationships of patronage between governments and large milling companies serve to align the incentives of government and millers such that new entrants would find it difficult to compete with incumbents and obtain the same benefits” (Chisanga, Gathiaka, Onyancha & Vilakazi, P: 12, 2014).

Government ownership in the sector remains large, despite higher relative efficiency in the private sector and long term plans for privatization. While some privatization has taken place over the past decade, government-controlled factories held a 37 percent production share, with additional non-controlling shares in other firms. Part of the argument in favor of privatization is the relative efficiency of production in private mills over those controlled by the government” (…) “The local sugar milling market is quite concentrated, and combined with the barriers to trade this suggests that the largest players have significant power over prices. Mumias, the largest sugar company, had a market share of 38 percent of domestically produced sugar in 2011, lower than its typical market share due to cane shortages. Combined with the government-controlled share of the industry, this implies that essentially two entities control at least 75 percent of local production. The shares of local producers in domestic market sales vary quite widely depending on the period, as the volume of imports fluctuates a great deal. For example, Kenya Sugar Board data from the first two quarters of 2012 show importswere approximately 33% of local production” (Argent & Begazo, P: 5-6, 2015).

Kenya National Bureau of Statistics, a government (Jubilee) body, reports that 2.2 million Micro Small and Medium Enterprises (MSME) have closed shop in kenya over the last five years. These are some of the reasons that inform our opposition to Jubilee. Personally, I think Uhuru and Ruto are fine Kenyans; wonderful husband to their spouses; incredible fathers to their children; and great benefactors to their elite friends, but have terribly failed in the duties of the office of the presidency” (…) “All sectors of Kenyan economy has been negatively affected by the floods of cheap imports, brought into kenya by unscrupulous businessmen connected to those in power, having unbridled freedom to import anything of their choice without paying taxes: From sugar industry; to textile; to agriculture, denying kenya the much needed revenue for development. Over the weekends, the leaders behave like Frank Lucas, donating part of the proceeds from these imports to the same societies they are killing by giving out these import certificates” (Sadat, 2017).

That the government haven’t made sure the industry and financial markets been sufficient is proven with the macro problems in Kenya. The import sanctions together with the stronghold control of certain millers and Kenya Sugar Board, there are patronage and cartels that sets the prices and the payments for the yields. Together with the storage and cane production that is initial to the issues that are there today. That President Kenyatta and DP Ruto hasn’t taken charge and paid amends is the reason for the prices at this point. That the Sugar Barons, Sugar Cartels and Sugar Companies are connected with government is understood as the politicians are taking handouts from them as well.

As the COFEK open letter to Kenyatta said so well and I will end with:

No one in your government can categorically state how much stocks are being held in the strategic grain reserves. Casual talk of wanting quality of the same maize, from the millers lobby, heightens speculation that your government is unwilling to walk the talk on cutting the cost of living. As things stand, it is fair to say that your Government has taken a holiday on consumer protection as cartels take over the all-important food security sector. It follows that your government, is therefore, in breach of Article 46 of the Constitution you swore to protect. Needless to mention, it is a tall order for you to protect and uphold the sovereignty, integrity and dignity of the people of Kenya if they remain hungry – with a single or no meal at all, thanks to the high cost of living. Your government supposedly offers huge subsidies to farmers through farm inputs like fertilizers which do not get to them. It’s the middlemen and cartels who end up smiling to the bank as farmers toil in vain” (COFEK, 2017).

Peace.

Reference:

Argent, Jonathan & Begazo, Tania – ‘Competition in Kenyan Markets and Its Impact on Income and Poverty – A Case Study on Sugar and Maize’ (January 2015)

BiznaKenya – ‘Mumias Sugar to close indefinitely over cash problems’ (08.05.2017) link:https://biznakenya.com/mumias-sugar-close-indefinitely-cash-problems/

Chisanga, Brian; Gathiaka, John; Nguruse, George; Onyancha, Stellah & Vilakazi, Thando – ‘Competition in the regional sugar sector: the case of Kenya, South Africa, Tanzania and Zambia – Draft paper for presentation at pre-ICN conference, (22 April 2014)

Consumers Federation of Kenya (COFEK) – ‘Cofek open letter to Uhuru Kenyatta on high cost of living’ (02.05.2017) link: http://www.cofek.co.ke/index.php/news-and-media/1718-cofek-open-letter-to-uhuru-kenyatta-on-high-cost-of-living?showall=&start=1

Sadat, Anwar – ‘REVEALED: WHY The ECONOMY is Almost COLLAPSING Under Uhuru Jubilee Regime, GoK’s Kenya Bureau of STATISTICS Exposes Shocking Numbers’ (07.05.2017) link: https://www.kenya-today.com/opinion/revealed-economy-almost-collapsing-uhuru-jubilee-regime-government-body-kenya-bureau-statistics-exposes-shocking-numbers

Kenya: EACC investigation into Gov. Hassan Joho and Tom Mboya Primary School verifying his education!

Answer from the School to EACC:

 

Opinion: Everybody hates Governor Joho!

The Presidency and Regime under Uhuru Kenyatta and Deputy President William Ruto, must have some grand issues with Mombasa and Coast Region as they every week for the last month has attacked with all sorts of tricks against the Orange Democratic Movement (ODM) Deputy and Governor Hassan Ali Joho. That the Jubilee Alliance Party (JAP) and their cooperative measures to marginalize the opposition figure isn’t really working.

They have detained the man for wanting to see the first relaunch of the ferries as the Jubilee held rallies in his back yard as far back as the 13th March 2017. They have since then blamed his government for lacking accountability and transparency, like the Central Government haven’t had enough issues with corruption scandals.

So President Kenyatta should be cautious attacking fellow peers in midst of re-election rallies, but it isn’t like he cares. Since he feels like he is Teflon and cannot be touch. When they attack his educational background, as they have attacked him before his accountability as a Governor. Therefore, all we see is steady attacks on the character of Joho.

Also said he was meddling with drug-dealers and importers, as they we’re having drug cartels, like the sugar cartels supporting Jubilee and Kenyatta. But hey, not that anyone really looks into the donor funding to the Jubilee from the Sugar and Coffee Cartels to the Kenyatta government. Still, all problems of crime in Mombasa County is Joho’s fault. As the corruption of the Ports is Joho’s fault, not that this has been issue since the independence. That even Jomo Kenyatta was working against the corruption on the Ports of Mombasa, even President Daniel Arap Moi we’re complaining when needed about the graft at Mombasa.

So after decades upon end with independence and second generation Kenyatta, the problems are still there. If they seriously wanted it to change, than John Githongo would still have a job and not been kicked-out the door by former President Mwai Kibaki! But that is a story the ruling regime doesn’t want to eat, still they easily eats of state coffers and thinks side-stories of undressing leaders of opposition makes the world and Kenyan citizens forget that.

I am sure Cabinet Secretary for Interior Joseph Nkaissery is trying to find the next charge he can put on the ODM Governor, as he has tried to revoke his guns and take away his security guards. So, there aren’t that many tricks left in the basket of peddling nonsense into the public sphere. They have used all sorts of demagoguery and misused their place as key leadership. Instead of being noble and show character, they have gone straight for the heart and attacked the character instead of the polices.

So the Jubilee has misused their opportunity to gain and show that they are better than Governor Joho, they have lost on public display, they have used the Kenya Revenue Authority (KRA) looking into his tax-record, Kenya National Examination Council (KNEC) looking into his educational history and also the added accountability, where the leadership of Jubilee claimed his county got 40bn shillings instead of the 16 billions shillings Joho claims the Mombasa County received from the Central Government.

The Jubilee under Kenyatta and Ruto have used all tools and tried to destroy the legitimacy of the leadership of Joho. Just like they fear him more than Raila Odinga, Stephen Kalonzo Musyoka or Musalia Mudavadi. Since they are all walking around like kings, while all of business of Joho is on the front pages.

That the state and their top leadership continues to pound on Joho, shows how little character themselves have, that they have to go after a governor when themselves going into National Elections. That they are going after a local politician, when they should go against the faces who could be Presidential Candidates. Since they are not touching the NASA/CORD leadership, instead they pick Joho as prey, but instead of clearing the flesh of the bones. They are instead creating their own wounds. Peace.

Kenya Revenue Authority: “Re: Notice under Section 59(1) of the Tax Procedures Act, 2015” – A notice on Gov. Hassan Ali Joho (14.03.2017)

Kenya: Misleading Media Reports on Regulatory Tool for Curbing Counterfeit Devices on Mobile Networks (18.02.2017)

kenya-18-02-2017-p1kenya-18-02-2017-p2kenya-18-02-2017-p3

The Kenya Human Rights Commission to Commence contempt Proceedings against Fazul Mohammed and the NGO Board (07.01.2017)

khrc-07-01-2017-p1khrc-07-01-2017-p2

#SafaricomKPMGScandal: The madness from the CEO Bob Collymore continues as the plan to deflect the scandal in the press is not fulfilled!

BobCollymore

There are days and a fortnight since the unintended release of draft papers on the KPMG Audit report that alleged conspiracy of corruption and illegal tender buying of the central leadership in the Safaricom Limited Kenya. The State-own telecom Company, which are partly owned by the Vodafone as well have entitled themselves into hole because of their leadership. These allegations have not stopped and the press is still just spreading the words of Bob Collymore, not the words of the report and what it really means.

It’s like the KPMG draft report wasn’t released as the biased bought media through the massive war-chest of PR money can silence the Kenyan Media and even create a many Twitter Bots and Social Media bots to try to dismiss the leaker and blogger Cyprian. That is just weak-tea… If you are having trouble with the allegations coming from an internal report, it is time to respect the knowledge that those who have read it, presume they understand the implications and the effects of actions from the Safaricom leaders and what this decisions did with the monies the company profits are used.

KPMG Safari FP 2016

The Kenya National Police Service should use their detectives to find out who leaked it to the blogger is nonsense, as the facts and questionable behaviour of the Safaricom leaders should be questioned and briefed, as this thieving is the cardinal sin, not the ones that strawmen spreading it online. It’s like putting the blame on the nail for the existence of plywood for the wall. You need the nail to put the plywood on the wall. The wood is needed to be there before the nail puts it together. The nail is the leak, as the wood was already there for the taking!

That CEO Bob Collymore didn’t want this out, is because Vodafone was asking into the affairs of the business and the model of procurement from Safaricom. The audit from KPMG was certainly not entailed to enter public space, but when your corporate governance is so shady, the dirty laundry would by some time end in the hands of a whistle-blower, apparently, it did.

BDSafaricomResults0705

That Bob Collymore and Safaricom have used the WPP-Scangroup to marketing and PR, so that these issues could go away; as the PR Firm gained a tender worth Ksh. 2.1 billion between December 2013 and January 2014. Certainly their business must be thriving as the closeness between Collymore and their CEO Bharat Thakrar, who even attended the recent wedding of Collymore. That is a bit close relationship between the corporate leaders, isn’t it?

As we can question the media’s view on the release of the KPMG draft report as the Standard Group’s Management Editor Joseph Odindo sent a memo to all editors ordering them to kill any story relating to Safaricom and the KPMG Audit. So when a chief editor says to all of the leaders who picks stories to Publish are dwelling away with the ones connected to Safaricom, that shows again how embedded the Kenyan Press are with the Company. It is not a conspiracy, as this is one of many who are already implicated to shut this story down. And the reason why I write again about it; that is why KTN News only dropped the Safaricom Press Statement, but not questioned a single word in the leaked draft report like they would catch Ebola or a deadly disease by doing so.

Safaricom Article

What does such a CEO Robert (Bob) Collymore of Safaricom Limited do as a credible leader and business-man to be parts of the Global Compact Board of United Nations for good governance in business, as the Safaricom scandal shows that his hands are dirty and need a clean before he shows etiquette and ethical leadership towards others in words in the United Nations board, as his company is run by single tenders and by close relationships of leaders who have taken orders instead of following companies own procedure for procurement, and that man should give ethical advice in the United Nation board? Dumb-Dumb, part of the leaders who runs the world, aye? Ban Ki-Moon should re-evaluate the board and he may have more corrupted leaders in the United Nations boards, as even Bob Collymore has showed in the paperwork.

The news that inspired me the most was not the connection between media themselves and the Safaricom advertisement money. But that even the fried of Bob Collymore, the other CEO of WPP-Scangroup Bharat Thakrar also attacks the blogger Cyprian, trying to shade him with allegations of working with the rival company Transcend Media Group and the lawyer Mike Njeru. I am just waiting for Tintin, Mr. Smurf and Cinderella to have love-affair. That is as plausible that a blogger Cyprian who writes fiercely with notions of BS, have a connection with other party that Honourable Thakrar claims. Collymore have already used all kind methods to silence the released papers that makes him look foolish, as they have had property deals, tender agreements for M-Pesa another ones that are questionable, together with the level of paying of media and even entering media house with Police Officers to intimidate them for writing about the scandal.

M Pesa Started

When you goes this far and when you use these methods, even wants to use the police to arrest the man who has not done anything illegal, if it is illegal to write about corruption and violence, then I, myself is a common criminal, therefore that the CID is written up about Cyprian is nonsense, as the Safaricom Limited deals are the shady ones, not the writing about it. That it is not what the CEO Collymore wants, that is understandable as nobody wants their bad tenders or the shady agreements into the public space, therefore the KPMG Audit was not a planned release of information or something that the Safaricom Limited wanted to for-see as the business would rather see without it. That is something we all understand. Still, the Cyprian leak is not his making, it is Safaricom and CEO Collymore has done the bad deals, not the blogger or the media.

So if CEO Bob Collymore wants to be brave now, is to go through the fire and swallow the nonsense and take responsibility of the Huawei, One-Campus and the other deals that was disclosed in the KPMG audit report, though I doubt he has the heart to do so. Why he doesn’t have the heart? Because as pointed out he has used all kind of money and intimidation towards media even to silence the story, while also writing Cyprian up to the CID. That is just showing how wrong from the start of the leak Mr. Collymore has been. If he was a man of fair and justice, if he was a man of honour he would have cleared the agreements and signed tenders with fellow companies to show that he wanted a clean slate after doing corrupt business. Instead he has tried to mute the discussion and laundry in the public. Well, Mr. Collymore you should plea now and stop paying media to cover your dishonesty. This because the papers are leaked and will stay leaked. You cannot go back in time and become Marty McFly, you are a real man Mr. Collymore and the responsibility for Safaricom Limited is in your hands. So now time to take that responsibility and step your game up and stop with them shadow games, you and your PR Team is not good at it. Peace.

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