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Breaking News: Raila Now Supports Safaricom IPO
Posted: March 28, 2008, 11:36 am by chris
ODM leader and Prime Minister designate has issued a statement supporting the Safaricom IPO with some reservations which he says "will be sorted out later."
I hereby reproduce the two statements he has made today.
Let me take this early opportunity to say that I HAVE NOT changed my position one inch. I will post a more detailed article later. Am still in shock.
STATEMENT BY HON. RAILA ODINGA, PRIME MINISTER-DESIGNATE, ON TODAY’S SAFARICOM OFFERING
As you are aware, President Kibaki this morning launched the Safaricom IPO. I want to state that despite our concerns about this offering, we want to encourage ordinary Kenyans to take advantage of this offering.
I discussed with President Kibaki in our meeting the contentious issues about this sale that we have raised publicly, and I am hopeful we will be able resolve them.
In the meantime, there are hundreds of thousands of ordinary Kenyans who are ready to buy Safaricom shares, and we do not wish to discourage them. We believe the shares are under-priced, and therefore their prices seem likely to rise.
But what we have strenuously objected to is that more than one third of these shares have been reserved for “foreign” investors, many of whom will no doubt turn out to be Kenyans with overseas funds.
This blue chip company was supported and built by the hard earned money of our taxpayers, and Kenyans should therefore be given the first opportunity to buy as many of them as they wish to. In addition, real efforts should be made to make these purchases more accessible by Kenyans in all the regions and in all walks of life.
There is also the continuing issue of the Safaricom shares worth five billion shillings owned by MOBITELEA, the identity of whose owners continue to be kept secret and who acquired the shares in mysterious circumstances and not as a “true investment.” They should not be allowed to unjustly enrich themselves by selling these shares as part of the share offering. It is imperative that authorities “ring fence” Mobitelea’s holdings so that they are not secretly offloaded now.
In conclusion, let me encourage as many Kenyans as possible to fully participate in this offering.
STATEMENT BY HON. RAILA ODINGA, PRIME MINISTER-DESIGNATE, ON TODAY’S MEETING WITH PRESIDENT KIBAKI
As spelled out in the National Accord and Reconciliation Act 2008, President Kibaki and I held our second meeting today to further discuss the formation of a Cabinet. This Act specifies, in Section 4 (3), that “the composition of the coalition government shall at all times reflect the relative parliamentary strength of the respective parties and shall at all times take into account the principle of portfolio balance.”
In addition to this provision, we also revisited the issues of the size of the cabinet and the allocation of portfolios to ODM and PNU. But we have been unable to reach a consensus so far.
On Cabinet size, PNU continues to prefer 44 ministries. Such a bloated cabinet, I am afraid, is not good for the country. We would like to see a lean cabinet, of no more than 34 ministries, since the President had already appointed 17 ministers. A lean cabinet is necessary not only because we need to contain public expenditure at a time when there is such abject poverty and deprivation among our people, but also because a leaner cabinet can more efficiently deliver on the services and policies that Kenyans need.
As discussions continue, we must keep in mind that the public would like to see us eliminate wasteful public expenditures, and a bloated cabinet would portray us as disconnected from the mood of the country and set a bad example for curtailing other wastefulness. .
The other key outstanding issue is portfolio balance. On that issue as well, no consensus has been reached, with the other side preferring to retain the most important ministries. This is contrary to the cardinal principle of power sharing that is at the heart of the new arrangements.
In signing the Agreement of Principles that was part of the Act, both President Kibaki and I agreed that “we were stepping forward together, as political leaders, to overcome the current crisis and to set the country on a new path. As partners in a new coalition government, we commit ourselves to work together in good faith as true partners, through constant consultations and willingness to compromise.”
This is the spirit we must resurrect as we continue our discussions.
What The Kroll report says about the Mobitelea ownership -
Cabinet Deadlock : Coalition Fails Before Starting
Posted: March 28, 2008, 10:39 am by Phil
Kibaki and Raila: Plastic Smiles?
Following a lengthy meeting earlier today at Harambee House between ODM captain Raila Odinga and PNU’s Mwai Kibaki, Raila has been addressing a press briefing at Pentagon House this afternoon in which he, not surprisingly, apportioned blame on the PNU side who he says are insistent on keeping the current portfolios while also unreasonably proposing an increase of the cabinet size to an unprecedented 44 members!
Raila said that on its part, the ODM is proposing a cabinet of no more than 34 members with portfolios equally shared between ODM and PNU in accordance with the peace accord signed exactly a month ago in which the parties agreed to share government positions equally.
As if this is not enough, the two parties have been driven further apart by the controversial, and massive Kshs. 50b Safaricom IPO which was officially kicked off this morning.
Raila’s remarks are an indication that a cabinet is not likely to be named soon and even if it was; it would be without the consent of ODM which is a key partner in the grand coalition government. How long the country can hold without a properly constituted cabinet is another question altogether.
Although Kibaki has been quoted as being optimistic that the cabinet stalemate would be resolved soon, observers are casting doubts about this and are now questioning the very feasibility of the grand coalition government in which the parties have strongly disagreed on the formation of the government as well as the hurried Safaricom IPO.
Chief Mediator Annan has reportedly told the two leaders that power sharing and naming of an acceptable cabinet is within the mandate of the two leaders, but in reality that responsibility is largely in the hands of Mwai Kibaki.
The first casualty of this development is this week's proposed joint tour to clash-ton Rift Valley by Raila Odinga and Mwai Kibaki. While addressing parliament on Tuesday, V-P Kalonzo announced that the two leaders would be visiting IDPs in the Rift Valley in a show of unity and to preach peace. It is unlikely such a tour will take place under prevailing circumstances. The Rift Valley PC had earlier embarked on a largely fruitless effort to convince IDPs that security has been restored and that they should go back home so they can receive free government fertilizer, farming implements and other relief assistance.
Going by the recent bold demands (on fertiliser prices, exam council fiasco, Safaricom IPO and cabinet appointments) issued by ODM leaders , it is apparent that the party is slowly but surely resigning to the fact that the grand coalition is unworkable because of PNU’s insistence (read - superiority complex) on retaining key cabinet dockets, impunity and also exhibiting reluctance in sharing public appointments. The ODM is now facing up to the fact that this coalition may fail before it starts. As days go by, it is becoming more and more likely that the much hyped ‘coalition of new possibilities’ will not hold. Not because it was poorly constructed but merely because some egos have refused to let go.
One scary possibility is the return to violence and its socio-economic effects. Indeed, a cursory glance around the continent shows that the failure many African peace deals have resulted into even deadlier anarchy and in some instances, secession or splitting of territories or elimination of the leaders of one of the warring factions in order to achieve lasting peace.
The threat of violence is further enforced by the National Accord and Reconciliation Act 2008 which is unclear about if there will follow a general election if the coalition is collapses or is dissolved. Section 6 of Act says that ‘The coalition shall stand dissolved if: (a) the Tenth Parliament is dissolved; or (b) the coalition parties agree in writing; or (c) one coalition partner withdraws from the coalition by a resolution of the highest decision-making organ of that party in writing.
Because of the unorthodox circumstances by which the PNU grabbed power, ODM has in the past opted for mass action, diplomatic pressure and political propaganda. This was seen by the party as better strategies than the option of challenging PNU in a compromised court or even in parliament where it enjoys a majority.
Let the anxiety continue. Waswahili walisema: ngonja ngoja huumiza matumbo. -
Safaricom IPO goes tribal
Posted: March 28, 2008, 8:32 am by Wanjiku Unlimited
Coming so soon after the bungled general elections and the subsequent flare-ups, the Safaricom IPO has since gone political and it follows that it will go tribal – if it hasn’t already. In the end, the Safaricom shareholding register will likely read more like a provincial rather than a national roll call. In a Television poll just yesterday, the question was ‘do you think the Safaricom IPO should be put on hold?” 55% said yes and 45% said no. True a TV poll may not be a true representative of the situation on the ground, but still the split was eerily similar to something we’ve witnessed recently. There are those, maybe not you, but there are those who will disregard the need for transparency and a clean fair market and go ahead to buy the shares based solely on where the leaders backing the IPO were born.
The IPO aside, what is more worrying is a scenario where the mobile telephone services themselves go the blue and orange way. If Kenyan politics are anything to go by, and speaking strictly of the telecommunications industry, hitherto blue political areas could go green. And orange areas could go red in defiance. Kenya has been painted oranges and bananas in the past. After the blue and orange elections fiasco, you can be sure every national debate is likely to take a tribal angle and Safaricom is no exception. Is Kenya now about to be painted green and red? We have a knack for sweeping things under the carpet. There is peace thank God but let’s not kid ourselves - tribal tensions are still simmering under the surface and although they may not manifest in uprooted railways, they may take on a mellower but equally lethal angle. To this end, Michael Joseph might want to book an appointment with one Linus Gitahi for some advice.
Nobody wishes for a repeat of the chaos but if God forbid they return, looting and burning will depend on, among other things, the colour of your kiosk. Quiet Celtel will either benefit from some free marketing or be drawn into Kenyan tribal wars. Or both.
Na bado. That is just one sector. -
Mobitelea?
Posted: March 28, 2008, 6:22 am by ritch
Blah blah blah
Fish cakes
Alas a fish cake.
Yet more fish cakes
Guess what ... yeah ... fish cakes.
The end of the fish cakes
