Wednesday, July 02, 2008

Grand Debate

[EDIT – at the end of the session, members of parliament passed a motion of censure against the Minister for Finance – Amos Kimunya, MP for Kipipiri]

Live on TV - all stations

Is the debate to censure Finance Minister Amos Kimunya for his role in the controversial sale of the Grand Regency Hotel.

Before a rather hostile opposition side, He’s just given a statement where he:

- Outlined his long history as an accountant and a crusader for reforms, revenue gains and tax savings for the Kenyan people numerous times such as with De La Rue, pending contractor bills, Safaricom, Telkom Kenya
- On Safaricom. Mobietelea was there long before he was in government or parliament
- On Alcazar - reputed owner of 11% in Safaricom – he says after Vodafone (K) and the Kenya government, no one else owns more than 1% of the company (after the IPO)
- On the Grand Regency Hotel: it was sold for $45 million {~ billion shillings} in May 2008
- The central bank made the sale and was not under duress.
- The ministry of lands, attorney generals office, prime ministers’ office have all received various reports
- More info forthcoming tomorrow

Safaricom IPO
Day 18 - Deals 5,266 Turnover 439, million ($6.86) million Ave 7.29 Closing 7.25 High 7.50 Low 7.20 Last 7.30 Volume 60.3 million shares - Market still absorbing supply but its very well supported at these levels. The move higher depends on how much more de-leveraging has to be done.

Day 17 - Deals 4,671 Turnover 302 million ($4.7 million) 7.35 High 7.50 Low 7.25 Last volume of 41 million shares - orderly and some sellers came off 7.50 to sell lower. Strong demand at 7.25. Remains constructive. 6.65-8.15 range.
commentary and data courtesy of Rich.co.ke - N.S.E Data Vendor

23 comments:

coldtusker said...

SafCon - who are these 'foreigners' and their names. They were supposed to be long-term shareholders but they sold on Day 1.

Furthermore, why were they sold the shares at 5.50 when it was widely known that the entire 2bn could have been sold for at least 6.50.

GRH - Well, why hide the details? Why not an open auction?

Anonymous said...

Amos Kimunya is being mobbed for asking MPs to pay tax on their salaries!

Facts are emerging slowly and even the politics and misinformation by Orengo cant cover it up...

On the plus side:- whoever is planning to steal in this government had better watch out.

Keep it up you greedy, conniving politicians!

fimbo said...

If ministry of lands, attorney generals office, prime ministers’ office received various reports, where are the copies?

Anonymous said...

Hahaha there is no such thing as a "Vote of no Confidence" for ministers.

This is a ridiculous circus to keep your eyes off the MP Salary issue.

Constitution Says (section 16):
3) The office of a Minister shall become vacant -

(a) if the president so directs; or

(b) if the holder of the office ceases to be a member of the National Assembly otherwise than by reason of the dissolution of Parliament; or

(c) in the case of a Minister who, immediately before the dissolution of Parliament, was a member of the National Assembly, if, when the
Assembly first meets after that dissolution, he is not then a member
thereof.

(4) Whenever a person is elected to the office of President, the offices of all Ministers then holding office shall become vacant upon the occasion of the President first making one or more appointments to the office of
Minister.

Wapi vote of no confidence? Bamm!

adam23 said...

Coldtucker,

Per CFA code of ethics, there is responsibility/duties to client, and this includes maintaining all client information confidential, so if Kenyans wants/needs foreign investors, they must play per these investment regulations...not local shenanigans.

Valuation, valuation...and the need to buy an undervalued stock. As politically unstable as Kenya is, why would a foreigner want to invest long term especially in stocks...common guys...be real!!

To y'all...

Our fellow MPS...by their demonstration, ain't they misusing tax payers money, or I forgot they don't pay taxes. They should pass their grievances to the probe team and let them do their investigation. They should focus on how to boost their constituent not just talk and more talk...What a waste of time and money, but not cause a upheaval in the whole country.

Maishinski said...

Yup, its all a stage-managed circus!

Quite effective I must say, as media attention has been effectively diverted from MP salaries.

Constitutionally, a "Vote of no confidence" only applies to the Government - not to office holders.

Parliaments has absolutely no powers to influence the sacking of a minister. they can frustrate him to resigning - like Dr. Karanja in 1988 - but thats just about it.

The coalition agreement makes it even harder for a minister to be fired - as the two principals would have to be in agreement about it.

Don't be fooled - this is all about TAXES ON MP SALARIES.

They dont pay tax - but they are wasting taxpayer's money right under Kenyans noses!

AAARRGHH!

coldtusker said...

MPs: Yes, they are using GRH to hide/derail kimunya's taxatin proposals. Kenyans should focus on each matter separately.

GRH: My contention is NOT the price the Libyans are paying but the process. An auction will allow ALL interested parties to bid be it Serena, Fairmont or local investor groups. There should be a 10$ non-refundable deposit.

Adam23: To protect client confidentiality, the auction process would use sealed bids. Any breach should be penalised.

Anonymous said...

@ all, whether MPs are using this issue to duck their paying of taxes is not the matter at hand.

The pressing matter @ hand is that Public Assets must be
a) sold by tender/bid
b) after advertising the sale and invitation of bids in at least 2 national papers that have in circulation for at least 2 years.

Don't you see gova advertising all their junk whenever they're selling it... e.g. sale of boarded vehicles (whatever is this boarded vehicles maneno!)

So, eye on the ball. Revoke the sale and let it be sold via the right channels. Reserve price can be set as the alleged KES 2.9B

coldtusker said...

My bad... I meant the winning bidder shud deposit 10% (not 10 dollars) as security deposit...

We would have praised kimunya for his honesty & brains had he allowed for a public/transparent auction.

Proud Kikuyu Woman said...

Whatever, at least they are barking at someone. Anyone really expects any of our MPs to 'blow the whistle' on themselves? Tutangoja kweli.

bankelele said...

Coldtusker: I agree, the foreign investors that African markets are courting are long term investors, not one day speculators, but Morgan Stanley has said no names please- I believe new Panari is worth about 3b in assets, good will/on-going concern not included
- There was no harm in advertising the hotel for sale (unless it had already been sold), and telling his MP’s what the value/who the valuers were in 2008

Fimbo: MP’s challenged that point. But when were they briefed – after or before the sale?

Maishinski & Proud Kikuyu Woman: Circus or not, The Minister had burnt his bridges, snubbing parliament, side-stepping laws (to expedite privatizations) and notice the luke-warm support from the government side

Maishinski said...

CT, True, flouting the law is inexcusable. At least there is consensus on that when it comes to Procurement. Hopefully other matters will follow.

Kimunya should reveal all the facts as to why the sale was expedited without following the proper channels.

If the transaction was not legal then it should be revoked.

I also theink the AG should be replaced. He's a master of CYA. So much happens under his watch and he easily gets away!

I suspected the real motivation for our MPs was to punish him for Tax on salaries because of the unprecedented hype behind this saga. Even Anglo leasing and Goldenberg - which involved ACTUAL AND MONETARY LOSS - did not attract that much drama.

More facts need to come out. Is 2.9 billion a good deal or not? What are the professional valuers saying? Perhaps an international firm can be hired to value this hotel?

Will Kenya gain or lose if the bid is revoked? Who else is interested in the property.

We need facts - not drama.

Still - the Finance minister has no excuse for flouting the rules (unless he did it within the law - in which case he must come out and state which law gave him powers to do what he did).

Anonymous said...

As much as the MP may have been getting even with the 'tax on salary' proposal; could it be that Kenyan's (including the greedy hyena's) have taken a firm step towards corruption? What happened after stolen election may confirm this change of events.

Anonymous said...

Firm step alright... All this hullabaloo is most likely because they didnt all get "a chance to eat"!

These politicians have no morals and no ethics. Corruption and rule of law is the last thing on their minds.

Example: The very people advocating for muderers to be freed without following the due process laid down by law - are now baying for Kimunyas blood.

Rule of law is used as tool of convenience to settle political scores. However when roles are reversed, the law does not apply!

Isnt it a Miracle that hardliners from both PNU and ODM are for teh VERY first time singing the same tune againsta common enemy?

Anyone who thinks this is not about MP salaries is lying to himself....

Anonymous said...

All, you are diverting our attention from Orengo-when can we trust the hyena's behemoth social irresponsibility? Lucky he might last the entire tenure but when can we slay the dragon with the force of the tongues of our 'seers'? What good is he then rather than a liability to the good and the evil?

We need to up our bar and ensnare such arrogance to kenyans and wash them clean with their own blood.

Anonymous said...

Anon - what the hell are you talking about?

Love they neighbor.

Anonymous said...

Tis a tough thing to think that Orengo and kilonzo should be in a probe team in which both were whistleblowers,would they find something other than that against kimumya?

propaganda said...

According to the Wako report (which I have seen) the case against CBK/Kimunya boils down to one big issue: Was Grand Regency a public property under law (therefore requiring Public Procurement, Privatisation or Govt Land Act)?

KACC told CBK yes, but Public Procurement Board said no, so CBK went with the second opinion. They differed on whether the court deal that allowed the takeover changed the hotel from an asset under charge to CBK (yaani security for money owed) to public property.

Akina Orengo are using a layman's understanding of this and other odd circumstances around teh deal to make it look like a scam. But there is no proof anyone has public money in their pocket.

Anonymous said...

scam or no scam Kimunya has handled the whole matter in a most unprofessional manner. It is especially because of his very background in fighting corruption that we expected and held him to a higher standard ... the lack of transparency, accountability and consistency amounts to a betrayal of the very people who trusted him and his competencies. Sideshow or not the guy deserves what is coming to him!

Anonymous said...

Emerging facts:

1. Orengo lied about 1.8 billion and published photos of innocent people.

2. Amos wako was involved in the deal.

3. Mutula Kilonzo lied about the hotel being sold for 4 billion shillings. Actually the hotel was sold to Pattnia at 4 Million dollars.

Why are they going after NCIS guy?

The real objective is to make Kimunya pay for Taxation proposal - and also get some additional benefits like :
- Excuse to block Finance
(read mp TAXATION) bills in parliament

- chance to Take an underbelt swipe at Kibaki (ultimatum followed by vote of no confidence)

- Destabilize PNU control of national security (possibly with dangerous intentions).

- grand opposition gets a chance to gain some political mileage by organizing demonstrations.

- Confuse Kenyans and give them something new to talk and argue about (Moi successfully used this tactic over and over again!)

Kenyans have yet again been taken for a ride. There is more than meets the eye. These MPs are not human and they have no morals. We all know that. Its not what they say - its what they do that betrays them!

tengeza said...

I think this whole thing boils down to the damn Procurement Act. It has everyone in ministry locked up in, in my opinion, a stupid law that is not applicable in the building industry. I can understand Kimunya side stepping the laid down procedure to sell or privatise stuff. I personally will not hire a "procurement officer" just to sell a building. Not only would I waste money, since I would have to pay the officer for services rendered but also delay the selling process since the money has to pass through the procurement officer before getting to me.

By the way, nothing stops the procurement officer from changing the price during the transaction (get more pay less) and pocketing the rest?

Anyway, This is politics. I want to see how this game will play out. ODM wanted the finance post, lost it and have now found a chance to tarnish Kimunya. What will PNU do?

Anonymous said...

One guy who needs to be Fired is AMOS WAKO.

He has been in that post for too long. He is the Mobutu seseseko of Attorbey generals.

Anonymous said...

Look at Merende - he has been an exemplary speaker so far. No one though someone could fill Ole Kaparo's shoes.

Amos Wako is a liability to Kenyans. He must be replaced with a fresh UNCORRUPT person.

Wako subverts justice by issueing Nulle prosequis on behalf of the state:

- Lucy Kibaki Assault Cases - AMOS wako terminated them
- Chomondoley murder cases - AMOS wako terminated them
- Corruption cases - AMOS wako denies he was involved. If that is the case what is he doing in government?
- Goldenberg - AMOS wako misadvised the Gava. Do Kenyans need this level of incompetence? He hates Kimunya for bringing this to light.

AMOS Wako is a public liability and should be fired IMMEDIATELY.

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