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Fake Answer in BBC's Weekly Quiz

Posted: September 20, 2007, 12:39 am by Kenyanomics

I am a confessed addict of BBC’s Weekly world news quiz. This Friday’s marking scheme was somehow fake. The correct answer to Question 7 was B, but someone at BBC screwed-up. Nini hii:

Spam Email from Nation Newspapers????

Posted: September 18, 2007, 6:31 pm by Kenyanomics

I believe the following email was a spam.

From: Nation Media Group (Nation_Media_Group_rqgvybv@cmpgnr.com)

Dear KENYANOMICS

Thank you for the continuous support you have given nationmedia.com and for choosing to make it your preferred source of information on Kenya and the East African region. We also want to thank you for the feedback on our news, the interactive forums and also the news updates from all over the world that you (our members) send to us for publishing.
We have received a lot of requests for delivery of hard copies of our publications to Kenyans in all major cities of the world. In this regard, we are writing to know if you would be interested in this kind of service.
Kindly respond to this mail indicating the following:-

· If you would like to receive delayed hard copies.

· Which publications

· Town of residence

· Country of residence

Available publications on this service are:-

Publication	Indicate preferred publication	Indicate acceptable price
Daily Nation (Monday Friday)
Saturday Nation
Sunday Nation
Business Daily (Monday Friday)
The EastAfrican (Weekly)
Taifa Leo (Monday Saturday)
Taifa Jumapili

We would also appreciate if you spread the word to other Kenyans interested in getting a hard copy through this initiative. We would also like to clarify that due to logistical issues; the copies will always be a few days late, depending on your location.

Reducing Poverty through Economic Freedom

Posted: September 13, 2007, 1:24 pm by Kenyanomics

The following piece appears in today's In Brief, a publication of the Foundation for Economic Education

The worldwide obsession with poverty eradication is a major threat to economic freedom in developing nations. Through central planning, governments and aid agencies are busy blocking poor people’s road to prosperity. The United Nations' Millennium Development Goals (MDGs) -- which seeks to magically reduce worldwide poverty by half before 2015 -- is the most popular, and disastrous, plan। The MDG Secretariat is urging developed countries to double their foreign aid, which will be used to promote UN programs on extreme hunger; primary education; gender equality; child mortality; maternal health; HIV/AIDS, malaria, and other diseases; environmental sustainability; and global partnership for development. The UN claims that poverty would be history if those issues were addressed. But it ain’t so! Things would be worse, considering that poor nations are being encouraged to spend more on the aforementioned programs. This would widen avenues of corruption and increase budget imbalances, both of which have crippled Third World economies for decades.

Then enter the Bretton Woods Poverty Reduction Papers (PRSP) that . . . read the entire article here
Microeconomics of Love in Kenya

Posted: September 10, 2007, 2:13 am by Kenyanomics

Kenyan sisters watch out sababu those jamaas are getting a little picky. Saturday Nation reported that Kenyan men salivate for the lady who works part time, has no kids, is chocolate brown in complexion, alafu si mnene na simwembamba (she must be medium sized). Also, the lady has to be younger and shorter than him. She must earn less. It’s advisable for her family not to interfere with the relationship. Same or lower education level is a plus. Do you—or does your lady—fit the gold standard?

Despite those demands, 85 percent of Kenyan jamaas still think you love them because of their money; only 76 percent attribute your relationship to pure love and affection. I could not help noticing that ‘strong and independent ladies tend to intimidate mature Kenyan men;’ it gets worse as men get older.

Read Kwamchetsi Makokha’s report on the survey.

Bottomline: The survey asked what Kenyan men want in a woman, but what do Kenyan women want in a man? That can help us find the balance, i.e., equilibrium in economics.
Main Looters in The Kroll Report

Posted: September 3, 2007, 2:24 am by Kenyanomics
The Kroll Report in HTML

Posted: September 2, 2007, 8:54 pm by Kenyanomics

Here is a condensed version of The Kroll Report .

Phillip Moi and the Looting of Kenya

Posted: September 1, 2007, 3:53 am by Kenyanomics

Following is an exert from The Kroll Report.

Click here for a condensed version

["PHILIP MOI

It is understood that Philip has an estimated wealth of approximately $770 million and controls more hidden cash than Gideon, even though significant attention has been directed at the latter.

Whether by design or otherwise, the media more commonly associates Philip with motor vehicle tax fraud and other low-down economic vices. Therefore, unlike Gideon who would mainly wait for government-funded projects to broker deals, Philip's money machine was continuously churning out liquid cash on daily basis.

At a local level there is no single company in which Philip holds shares directly. He use proxies who range from low key Asians and houseboys who know little about the wealth in their names.

Business Links

NAME OF COMPANY/TYPE OF OWNERSHIP STRUCTURE	DESCRIPTION OF BUSINESS
Source material indicates the following ownership:
Gateway Properties	1992 documentary evidence
Paradise Holdings
Sheraton Holdings
Hahuru Investors
General Commodity Dealers
Kiharu Investors
Concord Holdings	Connected to Goldenburg
Panafcon Engeneering	Tiger farm Ltd
Ecta Kenya Ltd
Source Enquiries indicate the Gideon owns the following:
Property Ownership	Owned in Italy and Sultanate of Brunei
Cut Tobacco
Bank Accounts	Sultanate of Brunei
Sandhurst Matrix Inc.
Saphire	Managed by Mr Sevak
Garian Investments	Director - Clemente

Prelimirary results of global searches conducted under Garian Investments and Sandhurst Matrix Inc have rot revealed any findings. Further searches are required.

Finance

United Kingdom

HSBC and Standard Chartered Plc

Sources[1] reveal that Philip operates accounts in London's branch of HSBC and Standard Chartered Plc. During the last quarter of 2003, it is understood that he issued cheques against accounts held in these banks for the purchase of equipment for manufacturing cooking fat.

"The HSBC account was also used sometime back when he personally went to London to buy equipment for his cigarette company Cut Tobacco Ltd.

Barclays Bank

We have uncovered documentary evidence of two Barclays Bank cheques for the sum of £500 000 written out and signed by Philip Moi for and behalf of Gateway Properties Inc, on 18 September 1993 and 1 October 1993, respectively. The cheques were received by ANZ Grindlays Bank on 3 November 1993.

The details of Phiiip's account are as follows:

Name of Bank: Barclays Bank Plc

Address: Barclays Business Centre, Hampstead Kgh St^reet Branch, 28 Hampstead H Street, London NM 1QB

Sort Code: 20 36 16

Account Number: 90391158

As this information dates back ten years ago, it is possibly connected to Goldenberg.

Switzerland

Credit Suisse. Zurich

Rosanna Moi indicated that in October 2002, Philip lost US$15 million to an Italian family on a deal that failed to deliver. This money was paid to his family through Philip's Sandhurst Matrix Inc account held at Credit Suisse, Zurich.

Sultanate of Brunei

Philip is a close friend of Prince Hamid of Brunei[2]. Moi's family has invested heavily through Prince Hamid. The precise details of Philip's investments through these investments are not known. Philip's wife was planning to spend the vacation of Christmas 2003 in Brunei with their children.

Business Associates

Zara/Rosanna Moi

During the beginning of December 2003[3], Philip made his move through Zara. She left the country for Italy, from where she visited Leichtenstein and Lugano located inside the Swiss canton of Ticino. It is believed that Ticino, though a remote area, consists of over 100 banks. Zara/Rosanna Moi, Philips Italian wife, estimates Philip's worth to be US$750 million[4].

Philip real'ses that his wife is relatively unknown and more so her Italⁱan connection, and thus instead of him travelling, possibly leaving a wide trail, he prefers to use his wife. Zara claimed, following her trip in December 2003, that most of Philip's money is invested overseas.

Source enquiries indicate that major international drug barons mostly favour the Lugano destination and therefore it is not surprising that Philip's wife should visit the place soon after the change of government in Kenya. It has been reported that Philip is expected to mount massive fronts to cover for his wealth.

It alleged that Zara laments that government could be monitoring her husband's movements and as such Philip has kept them at the minimum. Mostly he prefers to hold his meetings at night often meeting his Asian intermediaries in their homes at night.

It has been reported that whilst Zara has been running errands overseas for Philip concerning their foreign accounts, it is apparent that she is not in control of Philip's overseas accounts in her name.

According to source enquiries, Zara is fully aware of where Philip's money is hidden and indeed confirmed having made several trips overseas on his behalf, delivering confidential information to his intermediaries.

Dr Clemente

Philip totally refuses to visit Italy and instead he has been using an Italian doctor named Dr Clemente to recover his money. Clemente is a listed director of Garian Investments, a company owned by Philip through his proxies. However, it would appear that Clemente may have reached some understanding with that family, because he left Nairobi late 2002, abandoning his practice, along with Rangers Restaurant, which he was running with Philip's wife. Therefore, part of the reason Mrs Moi was visiting Italy was to meet Dr Clemente to discuss this money.

Akasha Family

According to source enquiries, where narcotics are concerned it is understood that Philip dealt in Hashish, Madrax tablets, and Shang grown mainly around Mt. Kenya with the Akasha family. On hard drugs, Philip dealt mainly in Cocaine, providing cover to some Italian families dealing with drugs in Malindi and through his wife's family connections in Italy, they would receive bigger cuts once drugs are exported. The drug carte' in Malfndi was able to at times offload twenty-foot containers without docking facilities in Malindi. Hollowed furniture was also stuffed with drugs and exported. The Italian drug cartel operate the busiest Casino in Malindi where bets were quoted in Italian Lira and predominantly frequented by Italians[5].

Muzahim

Muzahim, who has been known to be a car dealer, a drug baron and involved in dealing with counterfeit money, has for the last fifteen years operated as Philip's partner in all the above vice. Philip provided the cover and Muzahim managed the operations[6].

Jointly, they made counterfeit dollars for Somalia, Zaire, Sudan and, Liberia. Muzahim has full documentation of all his dealings with Philip, including bank accounts used. He also has documentary evidence reflecting deals done by Philip on his own, which he used to obtain from Philip's employees whom he used to pay handsomely.

When Muzahim and Philip fell out, Philip paid an assassin to eliminate Muzahim but unfortunately the would-be assassin confessed to Muzahim and got paid off[7]. Muzahim would like to cut a deal to provide information on Goldenberg.

It has been learned through source enquries that Muzahim has indicated his willingness to sell information along with documentary evidence based on Philip[8].

Business Associates and Front Men

MUKESH GOHIL

Personal Details

UK Companies House records reveal that Mukesh Gohil, a British national, was born on 2 October 1956.

His address is given as PO Box 56947, Nairobi, Kenya.

Properties

United Kingdom

Address locator research within the United Kingdom has uncovered eight distinct addresses pertaining to a Mukesh Gohil: one of which relates to a Mukesh P Gohil and another to a Mukesh S Gohil.

The address details are given as follows:

Name	Address
Mukesh Gohil	7 Wilkins Close, Hayes, Middlesex, UB3 4LL
Mukesh Gohil	41 Oswald Road, Southall, Middlesex, UB1 1HN
Mukesh Gohil	7 Shaftesbury Road, Luton, Bedfordshire, LU4 8AL
Mukesh Gohil	128 Yorkshire Road, Leicester, Leicestershire, LE4 6PJ
Mukesh Gohil	60 Sandringham Crescent, Harrow, Middlesex, HA2 9BT
Mukesh Gohil	16 Paxford Road, Wembley, Middlesex, HAO 3RQ
Mukesh Gohil	12 Pasture Road, Wembley, Middlesex, HAO 3JD
Mukesh Gohil	87 Milton Avenue, Barnet, Hertfordshire, EN5 2EY

Property ownership database searches have been conducted on the above addresses with a view to establish the registered owners. However, without specific identifiers for the subject of this enquiry, in the form of a middle name or initial of the middle name, it has not been possible to distinguish the identity of the individual. As such, the resu^lts of all properties owned by a Mukesh Gohii in the United Kingdom have been listed below.

7 Wilkins Close, Hayes. Middlesex. UB3 4LL

According to Lard Registry records, Mukesh Gohil and Pratixa Gohil have beer the owners of the above property since 19 June 1996.

As at 2 November 2001, the Land Registry received an application to register a mortgage charge dated 31 October 2001, in favour of Nationwide Building Society of Nationwide House, Pipers Way, Swindon, SN38 1 NW. The mortgage is for an undisclosed amount.

41 Oswald Road, Southall, Middlesex, UB1 1HN

According to Land Registry records, Premkunwar Gohil and Harji Laxman Gohil, both of 162 Hambrough Road, Southall, Middlesex, UB1 1JE and Nalin Gohil and Hansa Gohil, both of 164 Hambrough Road, Southall, Middlesex have been the owners of the above property since 15 August 1996.

Details of the registered mortgage charge remain undisclosed.

7 Shaftesbury Road, Luton, Bedfordshire, LU4 8AL

According to Land Registry records, Sahida Begum has been the owner of the above property since 8 November 2001.

As at 8 November 2001, the Land Registry received an application to register a mortgage charge dated 5 October 2001, in favour of Alliance and Leicester Plc of Mortgage Customer Services, Customer Services Centre, Narborough, Leicester LE9 5XX. The mortgage is for an undisclosed amount.

The price stated to have been paid on 5 October 2001 was £58, 000.

28 Yorkshire Road, Leicester, Leicestershire. LE4 6PJ

According to Land Registry records, Mohanlal Lalji Gohil and Kamlaben Mohanlal Gohil have been the owners of the above property since 27 September 1974.

Details of the registered mortgage charge remain undisclosed.

60 Sandringham Crescent. Harrow, Middlesex. HA2 9BT

According to Land Registry records, Narendra Shamji Gohil and Mukesh Shamji Gohil have been the owners of the above property since 25 September 1990.

As at 13 November 1991, the Land Registry received an application to register a mortgage charge dated 31 October 1991, in favour of Nationwide Building Society of Nationwide House, Pipers Way, Swindon SN38 1NW. The mortgage is for an undisclosed amount.

16 Paxford Road, Wembley, Middlesex. HAO 3RQ

According to Land Registry records, Mukesh Gohil has been the owner of the property since 14 October 1994.

As at 2 October 1992, the Land Registry received an application to register a mortgage charge dated 2 July 1992, in favour of Cheltenham Gloucester Plc of Barnett Way, Gloucester GL4 3RL. The mortgage is for an undisclosed amount.

12 Pasture Road, Wembley, Middlesex, HAO 3JD

According to Land Registry records, Mukesh Keshavlal Gohil and Kundan Gohil have been the owners of the property since 7 July 1989.

As at 3 March 2003, the Land Registry received an application to register a mortgage charge dated 27 February 2003, in favour of Cheltenham Gloucester Pic of Barnett Way, Gloucester GL4 3RL.The mortgage is for an undisclosed amount.

87 Milton Avenue. Barnet, Hertfordshire. EN5 2EY

According to Land Registry records, Mukesh Gohil and Maithri Gohil both of 32 Cardrew Close, Finchley, London N12, have been the owners of the property since 13 September 1988.

As at that date, the Land Registry received an app cation to register a mortgage charge dated 8 July 1988, in favour of Nationwide Building Society of Nationwide House, Pipers Way, Swindon, SN38 1 NW. The mortgage is for an undisclosed amount.

Directorships

Global directorship searches conducted under Mukesh Gohil have revealed the following companies:

United Kingdom

Within the United Kingdom, Gohil is listed as a director of three companies, the details of which are provided below.

Armada Services Ltd

Incorporated on 8 January 2001, Armada Services Ltd is a private limited company. Although listed as currently active, the company has a proposal to strike off the companies house register. According to corporate records, the nature of business is described as "Business and Management Consultancy".

Details are listed in the Appendix.

Technology 4 All Ltd

Incorporated on 10 April 2001, Technology 4 All Ltd is a small private limited company. The company is listed as currently active and according to corporate records, the nature of business is described as "Software Consultancy and Supply".

Details are 'fisted in the Appendix.

Aandatta Ltd

Incorporated on 21 May 1979, Aandatta Ltd is a small private limited compary. The company is listed as currently active and according to corporate records, the nature of business is described as "Other Wholesale".

Details are listed in the Appendix.

Australia

Within Australia, Gohil is listed as the director of Shantilal Brother (Australia) Pty Ltd and South Austral Pty Ltd. Company details are not available on global directorship searches.

[1] Laundryman

[2] Laundryman

[3] Laundryman

[4] Laundryman

[5] Laundryman

[6] Laundryman

[7] Laundryman

[8] Laundryman"]

Gideon Moi and the Looting of Kenya

Posted: September 1, 2007, 3:46 am by Kenyanomics

Following is an exert from The Kroll Report.

Click Here for a condensed version

["GIDEON MOI

Modus Operandi

In November 2003, Gideon travelled from Kenya through a circuitous route that took him to South Africa, Namibia, the United Kingdom and eventually Luxembourg[1].

Gideon spent a night in Namibia. Ex-President Moi enjoys a private and very cordi relationship with President Nujoma. During his visit, Gideon was meant to meet Nujon privately under intervention of his father. It is not known whether the meeting actually to place.

Ex-President Moi has invested heavily in Namibia and Nujoma personally protects investments. It is understood that Gideon is not comfortable with South Africa and all his actions are aimed at transferring his assets from there. There are indications that such a transfer is most likely to be Namibia.

Gideon has been known to frequently visit the Grand Cayman and Cayman Brac in the past travelling via Miami, USA.

Business Links

Gideon's business links are detailed below. The table illustrates ownership of businesses where:

1. Gideon's ownership has been alleged by sources

2. Gideon's ownership has been refuted by sources

3. Client material indicates Gideon's ownership

4. Client material indicates a business previously owned by Gideon

NAME OF COMPANY	OWNERSHIP STRUCTURE
Ownership of the following Gideon’s interests has been alleged by Msamaha:
Kent Ship Maritime
Sielei Properties Ltd
Giant Holdings Ltd
Revak Ltd
Sudbury Ltd
Sudbury Investments
Giant Forex Bureau
Westfield International Ltd
Chesco Ltd
Hampstead Enterprises
Metipso Services Ltd
Maternity Shop
Eagle Airlines
Chemusian Company
Fresh Produce Ltd
Siginon Freight
Cartrack Kenya Ltd
First American Bank	Owned by Gideon, James Kanyotu & Naushad Merali, Biwott
Equatorial Bank	Owned by Gideon, Kanyotu & Merali
The Sasine Group of Farms	Owned by Gideon, Kanyotu & Merali
Cable & Wireless	Owned by Gideon, Kanyotu & Merali
The Duty Free Company	Owned by Gideon, Kanyotu & Merali
Everready Comapany (H. Young)[2]	Owned by Gideon, Kanyotu & Merali
Tobacco Farm in Malawi	Gideon 100%
Chester House	Gideon 100%
Safaricom Kenya	Biwott, Charles Field Marsham and Gideon 40%, the Post Office 60%.
Msamaha alleges that the follwing companies are owned bybthose detailed and NOT Gideon:
Sian Roses	Kulei 40%, Moi 60%
Mugoya Construction
Equity Stockbrokers
First Force Security Services
Regent Management
Client material indicates the following ownership:
Giro Bank	Held under Asian nominee businessman
Taurino Enterprises	Gideon and Cyrus Jirongo

Client material indicates the following previously owned:
Safariland Club	Was owned by Gideon, Mukesh Gohil and Pattni. Since taken over by Merinda Investments
Gideon’s possible interest?
Trans-National Bank	Gideon’s interest unknown

Properties

United Kingdom

It has been reported that Gideon has two properties in London held under a trust set up by Mukesh Gohil[3]. The name of the trust and the addresses of the properties are not known.

It has been reported that Gohil is the keeper of Gideon's funds in the UK.

South Africa

It has been reported that Gideon owns a number of properties in South Africa. His front man, Harbinder Singh Sethi, has 74 properties listed under 'closed corporations', ail of which ale registered in his name.

It has been reported that during_October_2003, Dr Kiplagat organised the sale of a Durban-based residential property belonging to Gideon for an amount of US$650 000.

Finance

United Kingdom

Mukesh revealed that by the year 2002, Gideon's cash in various banks overseas amounted to £550 million[4]. Mukesh indicated that this amount is for the deals in which Gideon has involved him. Mukesh further indicated that all Gideon's cash left the country through Citibank. Mukesh maintains that Gideon has colossal amounts of money in London although he has not revealed the identity of the banks.

Grand Cayman

It has been alleged that according to one of Gideon's aides, Ken Boit, during one of their visits to the Grand Cayman, he learnt from the former about a law in that jurisdiction known as " confidential relationships preservation law", similar to codes in Switzerland which made it a criminal act for anyone to reveal information about someone's banking or financial associations[5]. During their visit, Gideon would leave, alone, to attend to his business for hours, usually assisted by an intermediary who resides in Georgetown, the capital of Grand Cayman.

Luxembourg

Kulei used banks in Luxembourg for ex-President Moi’s confidential banking[6]. During ex-President Moi’s last term in office, he visited Luxembourg with Gideon in the company of only one state house aide, who was Chief of Protocol at the time. The purpose of this trip was to introduce Gideon to his bankers. The aide believes that ex-President Moi actually transferred all dealings in his accounts to Gideon during this visit. What is not clear is whether Gideon was able to move these accounts elsewhere or shield their direct connection to them. During this trip to Luxembourg, four banks were visited by both ex-President Moi and Gideon, who would be picked from their hotel by a "simple" car which appeared to have been arranged for in advance. They would leave the aide waiting in some room while meetings were held behind closed doors in yet another room. The aide only recalls their visit to CitiCorp (probably CitiBank) and Union Bancaire Privêe. He does not remember the other two banks visited.

Dubai

Allen & Overy

A law firm in Dubai named Allen & Overy holds all of Gideon's accounts[7]. Allen & Overy is a highly reputable international law firm with operations in 25 major cities worldwide.

The chairman of the law firm who runs all of Gideon's businesses is called Saimon Roadrodearek, a Greek national who is a lawyer by profession.

The address is PO Box 3251, 1603 API World Tower, Sheikh Zayed Road, Dubai, United Arab Emirates. The contact telephone numbers are: + 971 50 6524166 and + 971 4 3323190.

South Africa

It has been reported that Gideon has accounts held in South Africa and possibly Malawi[8]. Gideon's front man who operates from South Africa is Harbinder Singh Sethi.

Kenya

Within the local scene, the following are the main banks that have been used extensively by Gideon for all kinds of transactions over the years[9].

Eurobank

Eurobank is currently under liquidation. It is alleged that Gideon has used Eurobank for payoffs related to parastatal deposits, from both NHIF and NSSF. He has also used it for small land transactions, mainly to channel through his share of the proceeds once allocated, land has been sold to a parastatal[10]. Usually, a company is floated for each and every, transaction with nominees representing his interest.

Giro Bank

It is alleged that Gideon under a front of Asian nominees owns Giro Bank[11]. Most of the cheques to Commissioner of Lands for land allocated to his companies were obtained from Giro Bank. A good example was 158 acres of military land in Embakasi allocated to a company named Torino Enterprises Ltd controlled by him and Cyrus Jirongo.

Trust Bank

Trust Bank is under liquidation. It is alleged that Gideon was heavily involved with Ajay Shah the key person behind this bank. Some of the most outrageous deals involving the duo are believed to have led to the collapse of this bank. However, when information started leaking out about his involvement, the governor of Central Bank was prevailed upon to close it promptly, thus making it easy for them to recover and destroy all compromising information[12].

Ketan Somata fnanced Trust Bank[13]. Separately, Ajay Shah controlled a finance company in which Ajay and Ketan became partners. Ajay was Ketan's operator. While Ketan did the dealing with the politicians, Ajay handled the money. At some point, Ajay and Ketan split up. Ajay took over Trust Bank and Ketan bought Delphis Bank (former BCCI).

Citibank

It is alleged that Citibank has been the prime exit point for Gideon's cash to his off-shore accounts. Money generated from his numerous deals would be converted and transferred to overseas. During the last five years of Moi's rule, Gideon would often boast that any deal below a million US dollars is not worth his while[14].

ABN-AMRO

It is alleged that Gideon used ABN-AMRO in a similar fashion to Citibank, to move illegally obtained cash emanating from corrupt deals to safe havens in off shore destinations. The funds were easily accessed through their wide branch network and correspondent banks in all key destinations[15].

Fjrst American Bank

Client material suggests that Naushad Merali and ex-President Moi control First American Bank in the background. The bank purchased the local operations of ABN -AMRO. In one masterstroke, tracing the trail of Gideon's money prior to, the acquisition of ABN-AMRO may at best prove to be futile if not strenuous.

SAMUT Trust

All of Gideon’s monies invested in Kenya are held by a trust named SAMUT[16]. Registered in Kenya, SAMUT is the only trust to which Kulei transferred monies and shares held by him on behalf of the Moi family during 2001 and 2002. Msamaha indicated that around 80 percent of all of Kulei's holdings for the Moi family have now gone into SAMUT. Kulei still holds the remaining 20 percent, mostly the flower business and Trans-National Bank.

Business Associates

Mukesh Gohil

It has been alleged that sometime between December 2003 and January 2004, Mukesh Gohil had dinner at an Asian restaurant in Ukay Centre in the company of a relative of Krishan Behal and another individual who over the years has been dealing in properties on their behalf.

Mukesh boasted that without him Gideon is a lost man and as such is not able to keep track of his own money. Mukesh revealed that Gideon has been known to call him in Dubai to ask trivial questions about money already in his accounts.

Without divulging the specific reason for Gideon's need for him, Mukesh revealed that Gideon needs to have him around. Gideon has fallen out with several of his very close aides, many of whom were instrumental in his deals and most surprising, all are Kalenjins. Examples are Ken Boit, Donald Kipkorir, Ken Kiplagat, Sirma and Kogo. Gideon feels betrayed that his own people are deserting him while those of Asian origin are standing by his side.

A source claims that Gideon may be assessing the extent of damage that could be occasioned by the above individuals if he fails to honour their demands. Each individual is demanding serious amounts of money from Gideon for services rendered or a share of the deal money brokered by them.

It is very possible that Gideon needs Mukesh to help piece together the level of involvement and damage thereof.

Habinder Singh Sethi

It is believed that Sethi holds many of Gideon's assets in Southern Africa under his name Sethi[17]. Together they own a ranch.

Prior to elections, ex-President Moi and Gideon flew to Eritrea and then on to Malawi where they met with Habinder Singh Sethi. It is understood that Sethi flew the Moi's to South Africa carrying cases of dollars. The amount contained in the cases has not been disclosed.

Joshua Orwa Ojode

The current. Assistant Minister of Lands and Settlement, Joshua Orwa Ojode, is very close to Gideon[18],. Ojode is working alongside Gideon to undermine the current government.

Jared Kamgwana

Jared Kamgwana holds the office building Chester House in Nairobi in which Gideon Moi holds a 50 percent interest[19].

Dr Kiplagat

According to sources, Dr Kiplagat has shown a clear indication of his intentions to make revelations surrounding Gideon Moi.

Source enquiries indicate that the widely reported December 2003 altercation between Gideon and Kiplagat is over a financial rather than politically related matter as alleged[20] and, it appears to have been instigated by the sale of the Durban-based residential property.

It has been reported that after selling a property in Durban worth US$650 000 Gideon made arrangements for the proceeds to be remitted through the account of Kiplagat's law firm. This was done through a branch of Stanbic Bank in Durban. When Kiplagat received this money, he prepared a fee note of US$1.5 million for services rendered to Gideon on various matters and instead of remitting the US$650 000 to Gideon, he gave him a credit note for the same amount against the fee note.

Kiplagat then demanded the payment of the balance, which, it is believed, incensed Gideon to the extreme. Since the meeting of December 2003 held at Kabarak, Gideon has been trying to meet Kiplagat to no avail. In the meantime, Gideon has been sending Chepkonga to pressure Kiplagat to pay him.

As such, when Chepkonga found Kiplagat's vehicle at Fairview Hotel, he called Gideon. When the argument ensued with Gideon making threats, it is understood that Kiplagat cited "your father is no longer the President of this country and the days you used to order people around are long gone". He then ordered Gideon to move to another table causing the fight to break out.

Donald Kipkorir

Similarly, Dr Kipkorir has shown a clear indication of his intentions to make revelations surrounding Gideon.

[1] Laundryman

[2] Everready Company in Nakuru operates under the name of H. Young belonging to Schwartman.

[3] Msamaha

[4] Laundryman

[5] Laundryman

[6] Laundryman

[7] Msamaha

[8] Msamaha

[9] Laundryman

[10] Laundryman

[11] Laundryman

[12] Laundryman

[13] Source A

[14] Laundryman

[15] Laundryman

[16] Msamaha

[17] Msamaha

[18] Msamaha

[19] Msamaha

[20] Launryman"]

Biwott and the Looting of Kenya

Posted: September 1, 2007, 3:42 am by Kenyanomics

Following is an exert from The Kroll Report.

See a Condensed Version Here

["NICHOLAS BIWOTT

Modus Operandi

Biwott has been described as a skilfull businessman. Over the years, he has accumulated as much power and has established an enviab^le business empire, touching on almost every sector of the Kenyan economy, whilst he has remained in active politics.

The sectors among which Biwott has huge interests include energy, tourism, mining, real estate, telecommunications, air transport, construction and agriculture. He imports fuel and sells it to local distributors of petroleum products.

It is understood that Target 3 incorporates a different company for every new piece of property he acquires, be it land, residential or commercial property.

Biwott and his influential business partners have invested heavily outside Kenya with commercial interests in Israel and Australia.

Business Links

Biwott's business links are detailed below. The table illustrates ownership of businesses where:

1. Biwott's ownership interests have been confirmed by Msamaha

2. Client material indicates Biwott's ownership

3. Open source research indicates ownership

4. Open source research indicates law firms that represent Biwott's interests

NAME OF COMPANY	OWNERSHIP STRUCTURE DESCRIPTION
Ownership of the following companies has been confirmed by Msamaha:
Kobil Petrol	Biwott 100%
Barshrim Investment	Biwott 100%
Kipsinde Farm	Biwott 100%
Rono Ltd	Biwott 100%
HZ Construction and Engineering	Biwott 100%
LZ Engineering	Biwott 100%
LZ Engineering	Biwott 100%
Yaya Centre (worth KSh 3.5 billion)	Biwott 100%
Premier Group of Companies	Biwott 100%
Air Kenya Aviation Ltd	Biwott 100%
Pete Aviation and Electronics Ltd	Biwott 100%
Ziba Management & Services	Biwott 100%
HZ Group of Companies, Israel	Biwott 100%
Lima Kenya	Biwott 50%, Moi 50%
Air Kenya	Biwott 50%, Moi 50%
National Milling Company	Seven Shareholders including Moi and Kulei
Safaricom Kenya	Biwott, Charles Field Marsham and Gideon 40%, the Post Office 60%
Client material indicates ownership of following companies:
Uhuru Highway Development Real Estate Company
Bidco
A 10,000 hectare ranch in Australia
Trinity Enterprises	Biwott, Moi. Corporate documentation indicates witness to signatures as M. H. da Gama Rose
Banque Belgalise	Biwott is reputed to own 40%. Akbar Esmail his nominee. Used in Trans National Bank laundering system
Team Simoco
Client Source indicates ownership of the following:
Kenoil-Kobil	National chain of petrol stations. Biwott controlled 17% of private oil industry in Kenya.
Petrol Stations in Uganda)	Operated through Kenol-Kobil (Worth KSh 17billion)
Wstmont	An independent power producer company owned by Biwott and Harbinder Sethi Singh
Grand Dian Reef Hotel	Once placed under the receivership when hotel defaulted on KSh500 million loan acquired from Kenya Commercial Bank
Regional Air	Newly formed company managed by Biwott’s son-in-law Charles Field-Mahsam. Has a code-sharing arrangement with British Airways
H Young and Company	Steel manufacturers—one of largest in East Africa
S. R Telecommunications Co. Ltd	Receives contracts from government-owned telecommunications monopoly company, Telkom Kenya
Lima Ltd	One of the best-established agricultural machinery firms in Kenya. Owned jointly with powerful politicians and their families
First American Bank	Merali, Biwott, James Kanyotu, Gideon
Pan African Bank	Biwott, Moi. Apparently a wholly owned subsidiary of Banque Belgouse.
Trans-National Bank	Moi, Biwott, Nyachae, Kengwana
Government of Kenya	Moi, Biwott, Saitoti, Sally Kosgei, Chrysantus Okemo, Mark Bor, JK Musyimi, Mr Deche
Open Source indicates law firms representing his interests:
Shappley & Berret Advocates
Esmail & Esmail
Da Gama Rose Advocates
Law firm established by daughter Rita Biwott

Properties

Kenya

According to Source A, Biwott bought a house in Riverside Drive from the Irish embassy that was paid for offshore. The date of the transaction remains undisclosed. Source A arranged the introduction in order to avoid his home being taken. Biwott was said to have paid about KSh19 million shillings for the house.

Separately, it is believed that Biwott has commercial and residential properties in various parts of the country. He also has interests in a number of tourist hotels.

Finance

Kenya

Middle East Bank

Biwott purchased the Middle East Bank using Akber Esmail as a nominee[1]. It has been reported that at the time Kassam attempted to buy the bank. As such, he called at Saitoti's office in which he found Biwott whilst Esmail was told to wait outside. Kassam was instructed to abort negotiations in order to facilitate the purchase of the bank by Biwott and Esmail. Shortly afterwards Esmail was appointed chairman.

Behind the control of Middle East Bank, Biwott and ex-President Moi initially used the bank to launder funds siphoned from the Turkwell Gorge Hydro-Electric Dam Project ("Turkwell Gorge")[2].During this time money was simply converted and foreign currency would then be allocated by Central Bank of Kenya owing to the exchange control regulations existing at the time.

Trade Bank

Having used Middle East Bank to launder funds, Biwott transferred his operations to Trade Bank, then owned by Alnoor Kassam.

Kassam assumed the operations of Trade Bank from Gad Zeevi and Biwott[3]. Ex-President Moi and Biwott owned Lima Limited and Lima Finance, the latter which was sold by them to Zeevi and the Kassam brothers. Zeevi and lqbal Kassam effectively bought off all assets of Lima Finance in order to form Trade Bank Ltd. The only way one could obtain a bank license in Kenya was to have Moi or Biwott as a partner.

Akber Esmail was on the Board of Director of Trade Bank representing Biwott and Zeevi.

Source A has denied that Trade Bank was involved with Goldenberg.

Export Financing Fraud

It is alleged that Trade Bank was involved in export financing fraud to a quantum of about KSh700 million.

The process was such that Trade Bank would produce fraudulent documents that were submitted to and accepted by officials at the Central Bank.

The named officials that were involved in the fraud within the Central Bank of Kenya were Eric Katut, the governor of the bank; Royunga, the deputy governor; Mumelo, the head of foreign exchange. They are believed to have been aware that the documents were fraudulent.

The documents were very basic, consisting of the bank's letter headed paper with a straightforward description that detailed, for example, that the individual/s was exporting 20 tons of fish. Central Bank officials would receive cash payments by officers of Trade Bank for approving the documents.

The officers of Trade Bank involved in payments were Ian Rayner, the managing director of the bank; Suleiman Muranga, the head of foreign exchange; and Gideon Ndambuki, the general manager of the bank. It is alleged that the governor did not receive any payments.

During the time, Rayner and Muranga revealed that Royunga and Mumelo received kickbacks. Significant amounts were involved, believed to be in the region of hundreds of thousands of shillings. Rayner was at the center of the payments, he kept the paper trails and knew exactly who was receiving what amount.

It is understood that all the parastatal money that was deposited into Trade Bank came through bribing the officials. Rayner was privy to all accounts receivables and knew about the bribery involved. He paid bribes to Saitoti and Moi, amounting to about KSh 1 million. Rayner assisted government officials in various ways: he managed a block of buildings owned by Saitoti; and he helped Moi buy a farm in Karoi. It is believed that Rayner is currently resident in the United Kingdom.

Kassam played a significant role in the fraud. He was involved in buying treasury bills with the excess cash. Trade Bank benefited by acquiring liquidity. Kassam squared the bills at the end of the day and as such, there appeared to be no theft by officials at the bank.

Trade Bank's Overdraft

Trade Bank had an overdraft with the Central Bank for which it began to incur serious penalties. When the auditors raised this concern, Kassam felt compelled to bring it to Biwott's attention. Biwott subsequently summoned Kitut, informing him that Trade Bank was facing problems due to Gad Zeevi's bad practice of leaving his companies in debt. Biwott requested that Kitut help the bank.

The situation was resolved over a three year period during which various sums were credited to the bank on an annual basis: in the frst year, KSh80 million; in the second year KSh180 million; in the third year KSh280 million.

It is understood that Trade Bank debts occurred as a direct result of Biwott and Zeevi having borrowed numerous sums of money from the bank, unknown to the minority shareholders.

Yaya Center

JVhen Trade Bank took over the Yaya Center from Kassam, Biwott insisted that KSh150 million was written off his debt. As such, Trade Bank suffered the loss, falling into bankruptcy, imposing a heavy impact on the depositors.

Consequently, Kassam had no choice but to write off the debt. The only other alternative would have been to liquidate the bank.

There was a certain level of bribery involved in the transaction for the Yaya Center. Some money had to be paid in order for Trade Bank to acquire the loan. It has been alleged by Geoffrey Kenoi that Saitoti approached Kassam directly and asked for KSh4 million.

Solomon Muthamia

Solomon Muthamia, the then forex dealer at Trade Bank, entrusted with laundering the proceeds of Turkwell Gorge on behalf of Biwott and Moi, skimmed off close to KSh100 million at a tender age of 27 years. Biwott's funds were channelled to bank accounts located in Germany and the UK. Muthamia simultaneously opened personal accounts with the same banks, facilitating the transfer of funds for his own use. With the safety of dollars in Europe, Muthamia was able to issue foreign cheques to local Asians during the foreign exchange crunch during which process he made hefty profits. Eventually, Muthamia's dealings were discovered by the Central Bank forcing him to flee from Trade Bank. Muthamia, through his connections with Kilonzo, the former police commissioner, was able to prevent any investigation from going ahead. The precise details of how this occurred are not known although it is believed that Muthamia's cousin is married to Kilonzo.

Muthamia began the operations of Eurobank using the proceeds made from his clandestine dealings.

Pan African Bank

Kobil banked with the Pan African Bank ("PAB")[4].The then chief executive of the bank, Mohammed Assam, was the "bag boy" for Biwott and Zeevi. Assam often visited Biwott at his top floor offices in the Yaya House, Nairobi. A lot of money disappeared into the Pan African Bank and Aslam kept accounts on the side for Biwott. The money was recycled through unidentified Swiss and German banks.

The bank account of the Kenya Pipeline was held at PAB. A lot of Biwott's money from proceeds of oil deals was hidden at PAB.

Switzerland

Credit Suisse and Citibank

According to Source A, Zeevi and Biwott used Credit Suisse in Geneva and Citibank in Zurich. Zeevi apparently secured a $12 million line of credit from Credit Suisse which gave a guarantee Citibank Nairobi, the principal lender to HZ, Kenoil and Kobil. The general manager of Citibank Nairobi was Terry Davidson who continues to work in the same position at an unidentified bank in Nairobi. Source A opines that Davidson should be approached and interviewed.

Banque Cantonale Vaudoise

Client material revealed that significant amounts of money are being moved from Banque Cantonale Vaudoise on behalf of Biwott.

Corporate records indicate that the head office location of the bank is the following:

Place St. Francois 14, CH-1003, Lausanne, Vaud, Switzerland.

The bank was established in 1845. In December 1993, the bank bought out Banque Vaudoise de Credit and two years later it merged with Credit Foncier Vaudois.

The ownership structure indicates that 67.89 percent is owned by the State of Vaud, where private shareholders maintain a 32.11 percent holding.

The chairman of the bank is Olivier Steimer and the chief executive officer is Alexandre Zeller.

Belgium

Banque Belqolaise

It has been reported that Biwott and ex-President Moi are joint owners of Bangue Belgolaise, in Belgium, 40 percent of which is owned by Biwott[5]. On the contrary, Msamaha alleges that the bank is owned solely by Biwott. Akber Esmail is on the board of directors of the bank, believed to be associated to Kenya's Middle East Bank based in Nairobi[6].

Address searches are continuing.

Business Associates

Gad Zeevi

According to Source A, Gad Zeevi, the business partner of ex-President Moi and Biwott, was expelled from Uganda in 1972 along with other Israeli nationals in the wake of the Entebbe raid. He moved to Kenya where he entered into the construction industry.

According to Source A, HZ Construction and Engineering ("HZ") was created by Zeevi, Biwott and ex-President Moi. The company made a fortune out of the Turkwell Gorge project. Biwott arranged for Zeevi to get the contract. The original cost of the contract was between $70-80 million although it reached about $270 million. The money was mostly recycled through the Pan African Bank, although some of it went through Alnoor Kassam's Trade Bank.

According to Source A, the profit from the Turkwell Gorge project was used to purchase Kenoil. As Minister of Energy, Biwott also controlled the Kenya Pipeline, a government corporation. When Mobil ceased to operate in Kenya, ex-President Moi and Biwott acquired the assets and created Kobil.

Biwott never openly accepted bribes, he did not have to as he was making money out of the oil prices[7]. Moi on the other hand needed the money.

Zeevi fell out with ex-President Moi and Biwott over Zeevi's investment in oil refineries in Puerto Rico. Moi and Biwott felt that they should have had a share in the investment because he had made his money in Kenya.

Zeevi now lives in Israel and is under investigation for his corrupt dealings with Chernoy, an infamous money launderer from Russia.

Akber Esmail

Akber Esmail is the personal lawyer of Biwott and Moi. Although Esmail began working as Zeevi's lawyer, he sided with Biwott against Zeevi when the partnership broke up in 1989. Akber and his mother, Shrin Esmail, controlled business shares as nominees for Biwott and Moi[8].

It has been reported that over 90 percent of assets owned by Biwott, ex-President Moi and Kulei are held under Esmail and Merali who operate as the front men for Moi. That said, between 1980 and 1990 the main beneficiaries were Kulei, Biwott, Esmaii and Merali, However, the larger part of the theft of funds occurred after 1990. Source B believes that not only is this period far more relevant but that it will probably be easier to uncover the loss of funds[9].

Naushad Merali

Naushad Merali is one of the richest Asian businessmen in Kenya who owns substantial holdings in numerous businesses. As a significant player, he is linked to people such as Biwott, the Mois, the Kenyattas.

Merali was initially an accountant at Ryce Motors in Kenya. After a visit to Japan (date unknown) he secured a contract to supply Daihatsu 4x4s to government parastatals, cuts of which were rumoured to go to ex-President Moi. He quickly rose to become one of the three richest Asians in Kenya and operated as a front man for ex-President Moi. Merali is very close to ex-President Moi.

Merali has been involved in deals with the following:

· Daniel Arap Moi

· James Kanyotu -Moi ally and former head of Special Branch

· Muhoho Kenyatta - Holds shares in Commercial Bank of Africa

· Uhuru Kenyatta - Holds shares in Commercial Bank of Africa

· Nicholas Biwott

· Horatius Da Gama Rose

· Mike Eldon

· Stuart Armitage

· The Ndegwa family - (former Central Bank of Kenya governors)

· Rashid Sajjad - Connected to the controversial Mombasa tycoon Mohammed Bawazir

Horatius Da Gama Rose

A Kenyan national, Horatius da Gama Rose is one of the lawyers who represents Biwott's interests. Corporate records indicate that his Kenyan address is PO Box 76317, Yaya Centre, Nairobi, Kenya.

Da Gama Rose owns the Da Gama Rose group of companies. His other interests include Maisha Plc, Maisha International Ltd and Symphony Global Technologies Plc.

Da Gama Rose has been involved in questionable links with Merali, Moody Awori, and Michael Somen. He was linked to Kanyotu in unscrupulous gold businesses in Congo.

His company Symphony Global Technologies, of which the managing director is Eldon, has apparently been given a questionable contract worth KSh1.9 billion to computerise the treasury.

Mohammed Bawazir

Mohammed Bawazir was very close to Biwott and ex-President Moi and was one of the former president's most important bagmen in the multiparty elections in the early 1990s. Bawazir was one of the largest importers of commodities into Kenya[10].

Based in Mombasa, Bawazir is an old coastal tycoon who owned a sugar company. According to Source A, the general manager of the sugar company was Rashid Saiiad who then broke off from the company. Bawazir and Sajjad funded the ethnic clashes of 1992. Sajjad was a very significant individual for KANU at the coast. Sajjad was the owner of Kenya Ports Authority from the mid 1990s to 2001/2. He was a very powerful individual right up to the elections.

Mohammed Aslam

As'am had knowledge of a lot of overseas operations of Biwott. During the time that the Cuko enquiry was taking place, Aslam indicated that he was going to give evidence against ex-President Moi and Biwott. However, he died two days before he was due to appear at the enquiry. His widow believes that he was poisoned by Biwott.

Alnoor Kassam

It has been reported that Alnoor Kassam befriended Biwott in the mid-eighties during the time that the former operated his own banking institution Diners Finance (1985-86). Biwott, Kassam and Kulei were partners in a company called Data Center. It is believed Biwott and Kulei wrote cheques for their equity and appointed Mica Chasren (governor of the Central Bank after Kitut) their representative in Data Center to look after their interests. Chasren was chief financial officer for Unilever while he was at Data Center.

It is alleged that Kassam, with a 25 percent holding, approached Biwott expressing his interest in buying the remaining 75 percent of Trade Bank. Biwott agreed to the offer although Zeevi initially declined it but later met with lqbal Kassam, Alnoor's brother in New York where an agreement of sale was drafted.

According to source enquiries, Zeevi told lqbal that he owed Trade Bank KSh400 million. lqbal had not been aware and it then became apparent that the bank was operating two sets of books. Zeevi then informed lqbal that if they were to take over the bank, it would have to be a long-term loan for five years. The deal was agreed between both parties, subject adequate security.

With the full knowledge about the financial situation of the bank, Kassam nevertheless pressed on with the deal because he needed a bank licence. Although he operated Dine Finance, he could not get a bank licence.

It has been alleged that Kassam put together a plan. He took "early payment” offering a discount oninterest. Diners Finance was open 24 hours a day, seven days a week, and paid slightly higher interest than other the banks. A lot of deposits were made. Kassam then approached the Central Bank illustrating that he had cash. Holding the financial licence, Aqbar Esmail asked for KSh2 million to distribute. He used this money to pay off Saitoti, the then Minister of Finance. Kassam obtained his licence but continued to feel the need for a bank.

Source reports indicate that the levels of debt at Trade Bank were irregular. According to banking regulations, more than 10 percent of the bank's assets cannot be lent to one company. As such, the KSh400 million that was owed by Zeevi and Biwott was held through four to six companies, amounting to about 20 percent of the bank's assets.

lqbal Kassam and Akber Esmail were horrified resulting in friction between Esmail and Zeevi.

According to source enquiries, two years later Zeevi and Biwott stopped paying interest. As part of the deal when the Kassam brothers bought the bank, they were supposed to give security but Zeevi would not give security. Kassam threatened to foreclose. At that point, Diners Finance was very successful. It was earning US$40 million per annum — an average spread of KSh600 million per year.

In June 1989, Kassam threatened to foreclose on the bank and HZ Construction. This was a great risk to Kassam as Biwott was my partner in Data Center.

It has been alleged that Kassam approached Biwott who was sitting in his office with Zeevi. He was instructed to remove the receivers, to which Kassam demanded that the debt be paid. There was a verbal threatening confrontation between Kassam and Zeevi which forced Biwott to ask Zeevi to leave the room. Biwott then told Kassam to remove the receivers or face losing the bank. Storming out of the office, Biwott summoned him back and demanded that Zeevi pay KSh100 million. The sum was paid although Biwott warned Kassam that if he were to ever do that again, the former would not be responsible for what happened to him.

According to a source, Biwott and Zeevi parted ways about 12 months thereafter. Biwott accused Zeevi of being responsible for the debts. Biwott cited that Zeevi had lied to him and left the companies in a bad state. Over the next two years, Kassam pressed Biwott to pay.

It has been alleged that Kassam received instructions from ex-President Moi not to foreclose on Biwott.

Kassam paid bribes to the former president on about seven to eight times, on each occasion he paid cash of between KSh2 to 4 million.

Charles Field-Marsham

A Canadian national, Charles Field-Marsham is the son-in-law of Biwott. According to Source A, Field-Marsham used to manage the Yaya Center and is now in Canada. He has a lot of Biwott's money[11].

Corporate record searches indicate that Field Marsham is listed as the executive of the following Biwott companies: Lima Ltd, Safaricom Kenya, Pete Aviation & Electronics Ltd and it is believed that he owns a percentage in HZ Group of Companies

Rublic record searches reveal that Field Marsham founded a company named Kestrel Capital in 1995. He has been involved in financial advisory and corporate restructuring work in Kenya since 1993. He worked previously in the Corporate Finance Department of Credit Suisse First Boston, an international investment bank, in New York and London. He holds a BA in Economics and Political Science from McGill University.

Joseph Schwartzman

Joseph Schwartzman is the chairman of a company named H.Young. Schwartman connected to Naushad Merali.

Ben Sassoon

Ben Sassoon is a representative of The Risk Athisory Group (TRAG). Sassoon works for Biwott and has been used in various Biwott scams. It has been reported that Sassoon was implicated for diamond smuggling.

Danny Vardi

An Israeli national, Danny Vardi is a former Israeli Defense Force commander who is related to Zeevi through marriage but apparently dislikes him intensely. It has been reported that Vardi was used to assassinate witnesses in the Ouko case and was involved in instigating ethnic clashes in 1992[12].

Vardi is an advisor to the Israeli government of natural gas projects.

Corporate record searches indicate that Vardi is an executive of Biwott's company, Ziba Management Services Ltd.

David Bartknowski

An Israeli national, David Bartknowski is Gad Zeevi's former CFO.

[1] Source A

[2] Source Enquiries by the Laundryman

[3] Source A

[4] Source A

[5] Source B

[6] Source B

[7] Source A

[8] Source A

[9] Source B

[10] Source A

[11] Msamaha

[12] Source A"]

How Joshua Kulei Helped Loot Kenya

Posted: September 1, 2007, 3:22 am by Kenyanomics

Following is an exert from The Kroll Report.
Here is a condensed version

Modus Operandi

It has been reported that over the years, Kulei has represented ex-President Moi in over 50 companies operating in Kenya, across all sectors of the economy.

The local companies in which Kulei has presided as director could not have generated enough dividends to account for liquid cash and assets that he is believed to control. Going by the dividend payout and based on the profits declared for tax purpose, his actual wealth does not relate in anyway to his source of income.

Kulei is a very wealthy person in his own right. About three years ago, Kulei encountered serious problems with the Moi's when Gideon kept convincing his father that Kulei may have more money than him as a result of using ex-President Moi's name. It is understood that this was during the time that Kulei contemplated leaving Kenya to live in London.

Kulei was warned after December 2003 by the DPP that the Moi brothers had a contract out have him killed[1]. According to client information, he was nearly arrested in relation to the Kenya Pipeline fraud.

Kulei has now relinquished all of the assets held under his name on behalf of the Moi family, with the exception of ex-President Moi's flower business, the Trans-National Bank and NAS.

Business Links

Kulei's business links are detailed below. The table illustrates ownership of businesses where:

1. Kulei's ownership has been confirmed by sources

2. Kulei's ownership has been refuted by sources

3. Client material indicates Kulei has a shareholding interest

4. Client material indicates Kulei is a nominee director

NAME OF COMPANY	OWNERSHIP STRUCTURE
Ownership of the following companies has been confirmed by Msamaha:
Trade World Kenya	Kulei 100%
CFC Kenya	Kulei 12.5%
CMC Holdings	Kulei 15 — 20% & client material indicates
Hotel Intercontinental Nairobi[2]	Kulei 19%
Sian Roses[3]	Kulei 40%, Moi 60%
Ngata Flower Farm	Kulei 50%, Moi 50%
Equator Flowers, Eldoret	Kulei 50%
Bamburi Cement	Kulei 14% & client material indicates Kulei also nominee director
KTN (owned by Standard Newspapers)	Moi, Gideon, Kulei
National Milling Company	Kulei, Biwott and six others
Kenya Aerotech Ltd	Moi, Kulei nominee director and ten others
Regent Management	Not Known
Siginon Freight	Gideon 12.5%, Kulei 12.5%, 75% Kabarak High School & client material indicates Kulei nominee director
National Milling Corporation	Seven shareholders including Moi and Kulei
Msamaha alleges that the following companies are owned by those detailed and NOT Kulei:
Stoney Athi River	George Saitoti
Heritage All Insurance Company[4]	CFC Bank
NIC Bank	owned by the Ndegwa Family
Trans-National Bank[5]	Moi, Biwott, Nyachae, Kangwana, Gideon and five others
A Laikipia Ranch	100% Moi
An Eldoret Farm	100% Moi
A Rift Valley Dairy farm	100% Moi
The Kabarak Farm	Given by Moi to University of Kabarak
The Mau Farm	Given to the AIC (Church) by Moi
The Cherangani Farm	Now owned by the government
The Kilgoris Farm	Leased by Moi
American Life Insuaracne Company[6]	Trans-National Bank, Moi, Biwott, Kulei
Kobil and Kenol Petroleum[7]	Moi 50%, Biwott 50%
Nairobi Airport Services	Owned by Moi, Mungai and Ndegwa
Rai Plywood of Eldoret	Moi 6%, 94% Rai family
Safaricom Kenya	Biwott, Charles Field Marsham and Gideon 40%, the Post Office 60%
Africa Cargo Handling	Since sold to Kenya Airways
Kenchic Limited[8]	Moi, Charles Njonjo, P. K. Kani, J Kiereini
Morris and Company	Kulei used to be a director but left in 1992
Capital Project Transport	Boinett 50%, Phillip Murgor 50%
MDI Consultancy	Miles Donnelly
Anhalt Road Apartment	Miles Donnelly
A Dairy farm in the UK	Msamaha refutes ownership
Hotels in the UK	Msamaha refutes ownership
Firestone Africa	No Comment[9]
Kenya Commercial Bank	No Comment
Kamsons Limited	No Comment[10]
DT Dobie Car Distributors	No Comment[11]
The Paper House Ltd	Kulei became director at AGM
Rift Valley Agencies
Gambit Holdings Ltd
Great Rift Transporters
Client Material indicates Sovereign Group owned by Sovereign Holdings Ltd.
Sovereign Group (owned by Sovereign Holdings Ltd, UK)[12]	Kulei, William Smb, N. R. Pavitt, Secretary Grace J. Kipyator

Member Associations

Client material indicates that Kulei sits on the board of governors for the following schools and universities:

· Member, Board of Governors:Sacho High School

· Moi High School Kabarak

· Sunshine Secondary School

· Moi Educational Centre

· Kabarak University Council

· Client material indicates that Kulei is a trustee of the following:

· Sunshine Educational Trust

· Client material indicates that Kulei is member of the management board of the following:

· The Moi Africa Institute, Kabarnet Gardens, Nairobi

Properties

United Kingdom

It has been reported that Kulei holds serious investments in London, including a palatial residence in up market London, where his children have always attended school[13]. Further sources confirm that Kulei has two properties in Surrey, the larger of which is owned by ex-President Moi, one of which is the Cobhams property below detailed in the report dated 1 December 2003[14].

19 Eaton Park, Cobham. Surrey KT11 2JF[15]

Kulei took out a loan from HSBC in October 1997 for the amount of £1.63 million. The funds were used for the purchase of the property located in Cobham, Surrey, under the name of Broadlands Overseas S.A ("Broadlands").

In December 2002, Broadlands took out a loan of £1.1 million to refinance the Cobham property. During the same month, Broadlands took out a loan to refinance the property located at Lowdnes Square. The full address is Flat 11, No 49 Lowdnes Square.

Source enquiries have estimated that the total mortgage on the Cobham property is about £1.4 million. According to Msamaha the property is valued at around £4.5 million.

Flat 11, No 49 Lowdnes Square, London

Source enquiries have estimated that the total mortgage on the Lowndes Square property is about £1.4 million. According to Msamaha the property is valued at £2 million.

Kenya

Courtyard Property Investment Ltd[16]

It has been reported that Kulei took out a loan in January 2001 for the amount of £650 000 from Hoares Bank to purchase property in Nairobi under the company name of Courtyard Property Investment Ltd.

Regent Management[17]

It has been reported that Kulei had huge real estate holdings believed to be about 200 houses in all.

Lavington House

Client material indicates that Kulei owns the property Lavington House. Further enquiries to establish the address are required.

Karen Residence

Client material indicates that Kulei owns a residence in Karen. Further enquiries to establish the address are required.

Nakuru Residence

Client material indicates that Kulei owns a residence in Nakuru, Further enquiries to establish the address are required.

USA

Source enquiries reveal that Kulei owns seve^ral unidentified properties in the USA[18].

South Africa

Source enquiries reveal that Kulei has property interests in South Africa[19].

Finance

UBP, Geneva & Trans-National Bank, Kenya

Gabriel Moussa Katri, one of the biggest money launderers in Geneva, masterminded the flow of an estimated USS200 million through Trans-National Bank in Kenya to off shore accounts in various jurisdictions on behalf of ex-President Sani Abacha, and it is estimated that at least twice as much on behalf of the Mois.

Katri devised an elaborate system. Rather than send corrupt money straight to banks overseas, he would use local banks in Kenya, such as Trans-National Bank, owned by the Mois, Biwott and Kulei, to send vast sums through Nostro accounts – the bank's forex accounts overseas – and then several months/years later would send the money on and split it between several banks such as UBP.

At Trans-National Bank, Katri worked with Ashok Gohil, Kulei's right hand, who was in charge of forex operations, and who apparently died in 2001. They set up companies in Kenya, such as Ashar Ltd and Chen, with Moi's lawyer, Matula Kilonzo, as the company director. Further enquiries are continuing.

When these vast sums arrived at UBP into the accounts of companies created by Katri, such as Allied Network Ltd, they would go unquestioned. According to banking laws, Nostro accounts belonging to legitimate banks do not require due diligence, unless there are questions raised by the bank in the originating country. Katri himself was never a signatory to these accounts as the companies were in the names of small-scale lawyers and businessmen.

One lawyer, in particular called Phillip Meyer, who was debarred and then reinstated seems to have been used by Katri. Swiss lawyers be^lieve it would be impossible to freeze Katri's assets.

It is thought that Katri might have used wealthy business associates to hide corrupt money, by sending large sums to their bank accounts, only to recycle it back from a different account belonging to the same associate, and dispersing it to several other accounts belonging to Katri companies. This way it became difficult to follow the paper trail, and gave an air of legitimacy to the money.

It is alleged that one of the reasons why Katri used UBP is that he was a shareholder until 2000, when the looted millions belonging to Abacha hit the press. At this time Edgar Pinccotto, the head of UBP, who has been known to engage in questionable business practices, fell out with Katri and forced him to resign. Katri's name was becoming too dangerous for the reputation of the bank. It became clear that Katri introduced 90 percent of the corrupt Nigerian money to UBP, as a shareholder of the bank and a string-puller from within.

Katri would use his position to go direct to portfolio managers to push questionable money through. When necessary either Edgar Pinccotto or his son Guy would intervene and prevent due diligence investigations. Katri presided over multiple accounts at UBP and other Swiss banks for the Abacha's, and it is thought for the Moi's too. Katri then lost his Financial Intermediary License in 2001, when an investigation, conducted by the Federal Authorities of Switzerland, looked into his connection to money laundered through Kenya by Kulei. Katri's finance companies, GK Finance et Commerce and Societe Genevoise d'Investissements Forreiers are still active but their operations have been closed down and the documents have been cleared.

Katri has gone underground since 2001, when a Swiss investigation was launched into his dealings in Kenya. It is understood that he lives in Monte Carlo. Katri has also been connected to the Halliburton scandal in Nigeria through Jeffrey Tessler who he helped to set up an account at UBP five years ago. Tessler, an unscrupulous lawyer from North London, was getting commissions somehow connected to the brides paid out by Halliburton, and new evidence implies he is still receiving commissions.

Although Katri is no longer dealing directly with UBP there is a strong possibility that he continues to maintain contacts within the bank given that his clients still hold accounts therein. It is unlikely they would use another financial advisor on such sensitive matters.

Katri's favourite other banks are the following: Banque Patrimoines Prives, Bahamas; Banque Privee Edmond de Rothschild; Discount Bank & Trust Company "The Recanti Bane.

Loan Balances in Kenya

Kulei has the following loans balances in Kenya[20]:

Name of Bank	Account Number	Loan Amount
Msamaha alleges that Kulei has the following loan balances:

Middle East Bank	200739027	KSh 25 849 496
Middle East Bank	200739035	KSh 19 899 262
Middle East Bank	200739043	KSh 29 999 826
Middle East Bank	200739051	KSh 29 757 775
Middle East Bank	200739078	KSh 19 999 210
I & m Bank	Unknown	KSh 150 Million
Trans-National Bank	Unknown	Ksh 27 million

OTHERS
Middle East Bank	Savings and Loans	Ksh 45 million
Middle East Bank	Local House Morgage	Ksh 1 Million

Business Associates

Terer Kulei

It is understood that in New York, Kulei's younger brother Terer - the only brother – manages several properties which Kulei owns in the USA. Within New York, Kulei is believed to maintain very healthy bank accounts, fashioned in the names of himself, for wife and that of his younger brother[21].

In London and New York, Kulei retains the services of top-notch stockbrokers who trade in stocks on his behalf. Terer lives with his family in the USA for the most part of the year, occasionally returning to Nairobi where he is mostly seen in Kulei's Trans-National House offices.

Pankaj Somaia

According to Source A, Kulei's bagman was Pankaj Somaia. Somaia was poised to buy the Avis dealership in Nairobi. Similarly, before the deal went through Somaia received a call informing him that Mrs DT Dobie and Moi wanted to buy the share.

Ketan Somaia

According to Source A, Equatorial Bank was controlled by Ketan Somaia, the cousin of Pankaj Somaia. A lot of the former president's money was deposited in this bank. Ezekiel Oyugi, the permanent secretary in the office of the president and Biwott, also used it. Somaia was Oyugi's bagman. Source A believes that when Oyugi died Somaia held on to his money at the Equatorial Bank.

Oyugi was in charge of procurements, including weapons systems for the Kenyan military. Ketan Somaia was the middleman who enriched himself through arms sales. According to Source A the register of Crown Agents in the UK should be examined to prove this connection.

Josiah Kiplagat

According to Source A, Josiah Kiplagat and separately Kulei arranged about seven or eight private meetings between ex-President Moi and Alnoor Kassam. During each occasion Kassam was advised to bring a briefcase stuffed with KSh2 to 4 million and to leave it behind after the meeting. This was considered payment for access to the president.

Alnoor Kassam

Alnoor Kassam was posed to buy a 25 percent holding of Nairobi's Intercontinental Hotel, held by Kulei. Kassam agreed the deal with Alec Furrer, a Lebanese businessman who was area manager for Intercontinental Hotels. Shortly before the deal was go to through, Kassam received a call to say that Kulei had called on behalf of the then president to inform them that Moi wanted the share. Moi and Kulei paid US$12 million for their share.

Mr Turn

Mr Turn, connected to Kenya Seed Company, is an associate of Kulei, and believed to be close to ex-President Moi.

[1] Msamaha

[2] Source A recalls Kulei owning 25% of the Intercontinental Hotel in Nairobi

[3] According to Source B floricultural enterprises serve as moneylaundering conduit.

[4] Client material suggests Kulei was nominee director on behalf of Moi

[5] Sourcce Enquiries and client material suggest Kulei has a shareholding interest

[6] Cliente material suggest Kulei nominee director and shareholding in association with Moi

[7] Contradicting Msamaha’s later claiming that Biwott has a 100% ownership of Kobil

[8] Client material suggests Kulei was nominee director on behalf of Moi

[9] Although it is alleged that it belongs to Merali

[10] Although it is alleged that it belongs to Deepak KAmani

[11] See Appendix for further detail relating to Sovereign Group

[12] Laundryman

[13] Laundryman

[14] Source B

[15] Source enquiries conducted with Msamaha

[16] Source enquiries conducted with Msamaha

[17] Source enquiries conducted with Source A

[18] Source enquiries conducted with the Laundryman

[19] Source enquiries conducted with Source B

[20] Msamaha

[21] Laundryman"

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