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ODM alleges Telkom fraud

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Friday, 16 November 2007

ODM headquarters has released a statement alleging a plot to sell of Telkom Kenya for a price that it deems far below its true valuation. The party claims that this sale, to be executed at lightning speed is intended to provide funds for the PNU's campaign effort.

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trying times
written by Ker Wasswa , November 16, 2007

It is on issues like this that one feels the pain. I believe all privatisation in a country of our resources is criminal. I believe also that there should not be any such activity surrounding the election period.

The government is being incredibly irresponsible. The Safaricom IPO, and the sale of Telkom are both neither urgent nor necessary.

It is at times like this that you wish the opposition had come up with a better candidate. So the horror of Raila would not force people to support Kibaki.
Do Kenyans know anything about real business or are we a nation of rent-seekers?

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written by Kamale , November 16, 2007

I think ODM would have done a better job if they had not fudged the figures as they did: e.g. If the sale of Telkon will cost Kenyans 420B, then this must be the valuation of Telkom. But they also tell us that Telkom is worth $200 (Kshs. 14 billion!) so even if the government was selling Telkom for 420 billion, that would be an insane premium to ask anyone!

Perhaps a request for information from the treasury would have been helpful! Fortunately, the Treasury has debunked the lies by ODM by providing the true facts including the figures and the chronology of events to show that the process has not been rushed!

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re: trying times
written by aeichener , November 16, 2007

Do Kenyans know anything about real business or are we a nation of rent-seekers?

Well, everybody should ask her own relatives about this.

In my perception, it's a nation of rent-seekers.

There are some Kenyans who have business minds (totally independent of their ethnic affiliation), but they are few and far in between.

Alexander

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stealing me softly
written by emmo opoti , November 16, 2007

I am as always passionately opposed to privatisation. We are a desperately poor country and there is no reason why we should be selling our best assets (like Safaricom and Telkom). Not even to fund short term budget deficits.

It seems to me however that the ODM are merely playing to the gallery (as usual) for this is the one area in which the Kenyan political and academic class are in total agreement. I cannot for the life of me tell what is the difference between the Molasses deal, Ruto's land scandal and this Telkom privatisation (or indeed less controversial ones like KenGen or Kenya Airways. Their one unifying and defining characteristic is that a someobody X gets wealthy by buying for a very low price an asset Y that is transferred to him by a party Z that should properly be looking after the property for another party W.

But the Kenyan people do not mind do they? Everyone assumes they could be the next NSE billionaire, so nice and mum it is. Privatisation is the quickest way to increase the income gulf, it puts a damper on innovation, rewards sloth and proximity to power rather than hard work and discipline, it creates little or no wealth, no jobs and quite simply robs the poor to pay the rich.

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liars!
written by gichangi , November 16, 2007

The philosophy behind privatisation is something we can leave for another day. I have not participated in any yet but I am thinking that many young Kenyans have. It seems to be the gateway to the stock exchange.

This incident however best captures the inability of the ODM front guard to think clearly and in a manner befitting people who may very soon be government officers. I always wonder, what do they think they will do when they get into office? They have wrecked the name of the Stock Market, the property market and now want to use this matter to score cheap political points.
Do they realise that all these actions of theirs are creating a world where investors will put a greater risk premium on anything with Kenyan stamped in it? What are the chances of success for the London bond now?

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WAKE UP RUTO
written by mwakenya , November 16, 2007

these guys are just demagogues drumming thier scare tactics the bid was open it is not even yet closed where did he get his fuzzy maths from is it from his past corrupt deals in moi govt or sale of molasses plant. the fact is we cannot be financing this parastatals the govt should be busy serving kenyans in other ways .ruto is busy telling us about tresury mudavadi was the last finance minister what did they leave there negative balance with added service to people kibaki govt is almost balancing it with taxpayers money shouldn't we commend that

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written by Kamale , November 16, 2007

I cannot honestly imagine they had Ruto read this statement and even let him make reference to Mobitelea in the presence of Mudavadi who was communication minister when Safaricom was sold!

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written by chris , November 24, 2007

It is rumoured that Raila has gone to meet representatives of Energem Resources, a company which owns 55% of Spectre International (the company that owns Kisumu Molasses plant). Presumbaly he's gone to get more campaign funds from them, possibly in return for a promise to hand them the Kenya Pipeline Company if and when he comes to power?

The reference to Kenya Pipeline Company in the ODM manifesto is very conspicuous. Having opposed the privatization of Kengen, Telkom and Safaricom, why now is Raila saying very clearly that he will privatize Kenya Pipeline Company if he is elected president?

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DIRECTOR
written by SHIMBA MWANYUMAH , December 02, 2007

All these guys are thieves. Kenya is like Chicago of 1940s, the only difference our leaders in govt and opposition are the Al Capone!

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