Friday, August 17, 2007

Of Politicians and the bid to scuttle the Safaricom IPO







We know that the proposed Safaricom IPO has generated droves of interest from various parties.

Gargantuan investment banks like Goldman, Merrill, and Law firms like Clifford Chance are seeking to establish investment banking and advisory relationships in this formerly unexplored market, local investment banks & stock brokers are jostling it out amongst each other to win favored spots as lead brokers for the transaction, institutional investors hope the allocation is weighted heavily towards themselves, Safaricom employees can hardly wait to be rewarded for their efforts and lastly there is the general public; salivating in anticipation of the huge monetary gains, a possible repeat of the Kengen scenario where a few were lucky to their triple loot in the first day!

Ah but wait....., there are those that want to halt the machinery even before it starts. These opportunist naysayers aka our politicians want to throw a spanner in the works because of one small unresolved issue. Mobitela. That is the name of the mystery company registered in the islands of Guernsey that reportedly owns 5% of the gravy train that is Safaricom.

I have, for many reasons, been eagerly awaiting this IPO since the government announced the intention to float its 25% stake to the public a few months ago. My intent and desire to own a piece of this wonder cannot be measured numerically, only emotionally and that’s why I shuddered the other day when I read about the parliamentarians intention to block the sale until the shroud on the mystery ownership veil is lifted.

These pompous imbeciles whom we voted to represent their interests and whose only legacy in the 9th parliament shall be their gluttonous appetite for awarding themselves CEO like perks at the expense of the Mwanainchi and fanning tribal politics now want to block the planned privatization of East and Central Africa’s most profitable company? In doing so, consequently denying the government revenue to fulfill its budgetary allocations and the people of Kenya the chance to partake in the growth success of this local wonder whose services we use everyday? Not!

The web of complex transactions between Vodafone, Telkom, Safaricom and Mobitela, play out like exactly like the famed Kansas city shuffle, a classic con twist in which a combination of distraction and subterfuge cause the mark to turn their attention away from the plot which proceeds in the opposite direction move.

That Mobitela pulled a fast one and duped Kenyans is a fact. Someone (read the Moi-Kulei axis of evil) is getting dividend checks of 800 million plus a year, a fact that Micheal Joseph, the Safaricom CEO vehemently denied when he came out strongly other day to discredit claims of the existence of a third leg in the ownership structure.

Mars Kenya has written extensively on the issue and fact is that yes, Mobitela did acquire its position by strong arm fraud tactics and manipulation but we cannot change that now. The government has nothing to do with Mobitela since it’s seeking to divest its 25% share to the public. The Parliamentary Committee Report on Public Investments wants the Director of KACC to immediately institute investigations on the circumstances and manner in which the shares were transferred to Mobitelea with a view to taking appropriate action against any persons found culpable. The PIC also wants the Director of KACC, to include a progress report on the investigation in the Commissions quarterly report to the House for the next immediate period. What will this accomplish?

Raila “the Hummer” Odinga, who once claimed that the NSE was infiltrated by drug money proceeds has now found a new issue to politicize for political mileage. He and the ODM camp allege that there was no privatization commission to formulate and implement a programme to ensure transparency and accountability hence the privatization proceeds will find their way into the “election gravy train" Since when did these narcissistic MP’s look out for the interests of others besides their own? Have they suddenly had a fit of morality and bought back their conscience from the devil in this last minute bid to scuttle the largest IPO East Africa has ever witnessed?

If those egotistic scoundrels really want to protect investors and the general public, a good start would be to cough up the billions of shillings they have looted from coffers in the form of dubious allowances and benefits…and perhaps pay up all the back taxes they owe. Instead of political witch-hunting marked by staging euphoric tribal rallies where hate and propaganda is fanned by incitement, how about attending parliament to debate on legislative matters and enact good laws reflective of the people’s collective aspirations which are the fundamental cornerstone of our nation.


You morons, Leave THE SAFARICOM IPO ALONE!

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