HARARE. – A cabinet minister was dismissed from his duty after he tried to divert a mobile tender in favour of his sidekick – a local partn...
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HARARE. – A cabinet minister was dismissed from his duty after he tried to divert a mobile tender in favour of his sidekick – a local partner in a mobile contract.
Intricate details of how a former communications minister in the Kenyan cabinet was dismissed from duty after a subsequent humiliating exposé in the courts are contained in write-ups availed by Strive Masiyiwa.
By tinzwei.com
The information has been backed by other independent observers based in Nairobi.
Corrupt to the core
The London-based Masiyiwa claims he received a threatening phone call from their local partner in a mobile venture after he was requested to “put up his share of the investment in a joint venture”.
The transaction which happened a decade back is still fresh on Masiyiwa’s mind.
“Building the network was going to require over $100m in shareholder funds (equity). Our partners, who owned 70% in terms of the agreement, wanted us to put up the entire $100m, even though we would only have 30% of the equity.
The information has been backed by other independent observers based in Nairobi.
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| Strive Masiyiwa |
Corrupt to the core
The London-based Masiyiwa claims he received a threatening phone call from their local partner in a mobile venture after he was requested to “put up his share of the investment in a joint venture”.
The transaction which happened a decade back is still fresh on Masiyiwa’s mind.
“Building the network was going to require over $100m in shareholder funds (equity). Our partners, who owned 70% in terms of the agreement, wanted us to put up the entire $100m, even though we would only have 30% of the equity.
This had not been our original written understanding when we bid for the license in a public tender.”
His suggestion to locate an alternative investor had irked the local partner.
“I suggested that we find other partners in Kenya who had the money to meet their investment obligations, but the partners refused. When we appealed to the regulator to let us bring in new partners.
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| Corruption Is Bad For Business |
His suggestion to locate an alternative investor had irked the local partner.
“I suggested that we find other partners in Kenya who had the money to meet their investment obligations, but the partners refused. When we appealed to the regulator to let us bring in new partners.
The Minister of Telecommunications stepped in and began to support the position of the local shareholders. I knew that legally the minister was overstepping his role. It was also clear to me that he was not acting in a fair manner.”
The truth shall set us free
The intended partnership had stalled progress – and even correspondence to partners yielded nothing. The telecommunications mogul then received a shocker from his staff.
“The minister has issued a statement in which he has cancelled our license and ordered us to leave Kenya.”
The truth shall set us free
The intended partnership had stalled progress – and even correspondence to partners yielded nothing. The telecommunications mogul then received a shocker from his staff.
“The minister has issued a statement in which he has cancelled our license and ordered us to leave Kenya.”
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| The Truth Will set Us Free |
After an appearance in the Kenyan High Court, the judge reinstated their license and rebuked the minister in open court. The minister appealed the ruling to no avail. During the appeal process the minister sent an envoy asking Masiyiwa for a meeting “to resolve the issue.”
He refused and the minister was subsequently dropped in a cabinet reshuffle for “sending the wrong message to investors by behaving like a cowboy.”
Understanding the Rule of Law
Aristotle said more than 2,000 years ago, “The Rule of Law is better than that of any individual.”
“It means that government officials are held accountable under the law; that laws are just, and applied equally to all; that laws protect everyone's fundamental rights; that the legal process is fair and efficient, and that courts operate with independence and integrity,” explains Masiyiwa.
Investors always check these facts before committing themselves in a country – this is called due diligence. How a country's legal system works is very important to how investors perceive risk in a country.
He refused and the minister was subsequently dropped in a cabinet reshuffle for “sending the wrong message to investors by behaving like a cowboy.”
Understanding the Rule of Law
Aristotle said more than 2,000 years ago, “The Rule of Law is better than that of any individual.”
“It means that government officials are held accountable under the law; that laws are just, and applied equally to all; that laws protect everyone's fundamental rights; that the legal process is fair and efficient, and that courts operate with independence and integrity,” explains Masiyiwa.
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| The Rule Of Law Is Better Than Of Any Individual |
Investors always check these facts before committing themselves in a country – this is called due diligence. How a country's legal system works is very important to how investors perceive risk in a country.
These days, investors have access to decisions made in your country's courts.” His revelation explains why some countries continue to be constrained in any meaningful investments.
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