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Supply of boilers to Prisons department

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The Prisons department

The Prisons department lost $3 million, aproximately three hundred and two million Kenyan shillings, after contracting Hallmark International, a company associated with Deepak Kamani of Kamsons Motors, for the supply of 30 boilers. Kamsons Motors is the same company mentioned in the supply of Mahindra Jeeps scandal. Only half of the boilers were delivered – from India and not the United States as had been agreed.

Deal to Build a CID Forensic Laboratory

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CID Forensic Laboratory

The Deal to Build a CID Forensic Laboratory was awarded to the Kamanis, the same ones involved in the The supply of Mahindra Jeeps Scandal as well as the The Anglo Leasing Scandal, On 7 June 2004 an amount of $4.7 million was wired back as a refund for the money paid for the Criminal Investigations Department forensic laboratory. Another 5.2 million Euros was paid back for the E-cop project, which involved computerisation of the police force and the installation of spy cameras in Nairobi by Infotalent Systems Private Limited. I understand the Kenyan CID Forensic Laboratory is under construction as at now.

The supply of Mahindra Jeeps

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the supply of Mahindra Jeeps

Chamanlal Kamani One behind the Anglo Leasing Scandal had been given a contract to supply Mahindra Jeeps under the company name Kamsons Motors. Kamsons Motors was also involved in the Supply of boilers to Prisons department scandal. Kampsons was to supply Mahindra Jeeps to the Police Department in the mid 1990s. The tender was estimated to be close to Sh1 million for every Jeep Supplied. At that time however, the showrooms would have charged customers a sixth of the price in the tender. Moreover, the vehicles were being bought for a government department and for this fact, they were imported duty-free. It is estimated that more than 1,000 units were supplied over a period of several years but only a few of them are in service today. Kamani was also involved in the Deal to Build a CID Forensic Laboratory

Euromarine Navy Ship Deal

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The Euromarine Navy Ship Deal was worth A Sh4.1 billion. A Navy project was given to Euromarine, a company associated with Anura Pereira, the same person linked to the Anglo-Leasing scandal as well as the Nexus Secret Military Communication centre.

The argument was that the tendering process that had awarded the Navy Ship deal to Euromarine company was irregular. The tender was worth Sh4.1 billion. Military analysts claimed that a similar vessel could have been built for aproximately Sh1.8 billion. The tender was thus double.

New Czech fighter jets

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new Czech fighter jets

Back in 2003, the military was split over plans to buy new Czech fighter jets. The controvery arose because the plan to buy the jet fighters would have cost the taxpayers Sh12.3 billion. The big question is, did the Millitary really need to spend that much for the Jet fighter, and were they really needed at the time?

Helicopter Servicing Contract in South Africa

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This was a Sh360 million helicopter servicing contract given to a South African firm. The controversy arose when military officers argued that the contract was too extravagantly overpriced and that the helicopters could be serviced locally. Despite this, Kenya Air Force (KAF) went ahead to spend Sh108 million as a down payment for servicing the Puma helicopters, whose tail number is logged as 418 at Denel Aviation, a South African firm.

The Goldenberg scandal

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The Goldenberg scandal was the longest-running scandal in Kenya back in the days.  In the Goldenberg scandal the Kenyan government was found to have subsidised exports of gold way beyond standard arrangements in the 1990s, through a company by the name Goldenberg International which received 35% more than the Kenyan foreign currency earnings. Although it notionally appears that the scheme was intended to earn hard currency for the country, it is estimated to have cost Kenya the equivalent of more than 10% of the country’s annual GDP, and it is possible that no or minimal amounts of gold were actually exported.

The chief architect behind the scheme was a relative of the Kenyan businessman Kamlesh Pattni pictured above. However, it was Pattni who established Goldenberg International the company behind the scheme. Almost all the politicians in the Moi Regime and a big percentage of the Kibaki’s Reign were accused. Major Banks in Kenya were mentioned in this scandal including National Bank of Kenya, Post Bank, Delphis Bank and Trans National Bank. The judicial system also appeared to have been deeply involved, with 23 of Kenya’s senior judges resigning after evidence indicated their involvement.

The Turkwel Hydroelectric Power Station

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Turkwel Hydroelectric Power Station
Turkwel Hydroelectric Power Station

The Turkwel Hydroelectric Power Station was construced between 1986 and 1991. The Turkwel Hydroelectric Power Station, Kenya’s tallest, with a height of 153m, crest length of 150m, volume of 170,000m³ and retains a water volume of 1,641,000m³. It’s construction was riddled with claims of corruption. The dam was eventually built at three times the estimated cost, twice the allocated amount and producing energy significantly below capacity.

The Ngei maize scandal

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Paul Ngei Maize scandal

This was the first corruption scandal in Kenya. It was widely known as the Ngei maize scandal. This scandal happened in 1965. Paul Ngei, an independence hero who was at that time the Minister for Marketing and Cooperatives, was involved in a maize scandal that caused a national maize shortage. The first commision of iquiry since independence, the Commission of Maize Inquiry, found that Ngei’s wife, Emma was getting preferential treatment for her business, Emma Stores – Uhuru Millers of Kangundo at that time, through which she bought maize directly from farmers, which was illegal in that era.

Capita Markets Functions In Long Term Investments

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What are capital markets? Capital Markets are a part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments. Capital markets trade securities with lives of more than one year. Capital Markets are grouped into various forms. Read Also: Investor Constraints, Strategies And Policies

Before we look at the functions, here are a few examples of Capital Markets;

  • New York Stock Exchange (NYSE)
  • American Stock Exchange
  • London Stock Exchange (LSE)
  • Nairobi Securities Exchange (NSE)
  • NASDAQ

 

Capital Market Functions

  1. Economic Function: The economic function of capital markets is to facilitate the transfer of money from savers to borrowers. For Example, mortgages, Treasury bonds, corporate stocks, and bonds. The majority not all of these investment options are long term with relatively low risk.
  2. Continuous Pricing Function: The continuous pricing function of capital markets means prices are available moment by moment. Continuous prices are an advantage for the investors. Investors are less confident in their ability to get a quick quotation for securities that do not trade often. This ensures that the investors only trade in the securities they are most likely to profit from other than investing in relatively inactive ones.
  3. Fair Price Function: The fair price function of capital markets means that an investor can trust the financial system. The function removes the fear of buying or selling at an unreasonable price. The more participants and the more formal the marketplace, the greater the likelihood that the buyer is getting a fair price. The price is therefore fairly determined to bear all the market factors at hand as at the time of the purchase or sale.

Read Also: Types of Orders in Buying and Selling Shares in the stock market.