By Paul Ndiho
02/27/10
Since the inception of reforms in the early 1990s, analysts say Kenya has made greater strides towards democracy. Executive power has been lessened and the legislature and judiciary now have considerable autonomy. Despite these gains, observers say corruption and abuse of power continues.
The leaders of Kenya's fractious grand coalition played down fears of a crisis in government as the parliament reopened. Prime Minister Raila Odinga and President Mwai Kibaki have been in a tense coalition since 2008. Their unity government has struggled to make progress on reforms. The latest crack in the union emerged when Odinga suspended two ministers to allow investigations in their ministries. But during President Kibaki's speech to parliament, he reassured Kenyans that the country is on the right track.
"We, as the grand coalition government, have resolved to deal with the matter decisively. I am calling on the august House to work with the government in this endeavour. In order to win this war, we must apply the law in a manner that is impartial and just."
Dr. Migai Akech a fellow at the National Endowment for Democracy, says that Kenyans are tired of the political rows.
"It's difficult to say but they have to find a way to co-exist. I think it's in the interest of both of them to co-exist."
Observers say political corruption and abuse of power in Kenya spans the era of the Jomo Kenyatta. In 2009, Transparency International ranks Kenya among the world's most corrupt nations. Mr. Akech says that there is a need to create mechanisms to enhance the accountability of the three branches of government.
"In terms of how corruption runs in Kenya, I think it's a case of both. You have corruption at the top but you also have corruption at the bottom. And often I think we focus to much at the top level but we shouldn't forget that there is much corruption at the bottom level which is equally problematic."
Political analysts in Kenya say that during Daniel Arap Moi's erra, corruption was widespread. In the 1990s, Moi was part of the Goldenberg scandal, where smuggled gold was exported out of Kenya. Mwai Kibaki was elected president in 2002 on the promise to end corruption in Kenya. But Ackech also says that there is culture of impunity in Kenya, and that has to change.
"It's a culture that laws don't apply and I mean just look at drivers on the streets in Nairobi… Many people don't follow traffic rules. So I believe it has much to do with the mind set, I think the education system has much to do with it in that sense but also rules matter."
Kenyan government says that the coalition government vows to work together to establish a plan to fight corruption and bring about the reforms that were promised to Kenyans.
Saturday, February 27, 2010
Friday, February 19, 2010
Money Laundering from Africa to the United States
By Paul Ndiho
02/19/10
The U.S. Senate is investigating how four African countries are using American institutions to funnel millions of dollars into the United States. Some African politicians and their family members are buying expensive houses, luxury goods and banking millions of dollars in America.
A Senate subcommittee is looking at how politically powerful individuals from Equatorial Guinea, Angola, Gabon and, Nigeria are illegally moving millions of dollars through U.S. banks. U.S. Senator Carl Levin says the financial corruption must end.
"If we want to credibly lead efforts to stop illegal money abroad, we've got to stop it here at home as well. The fact is that those engaged in large-scale corruption want to put their money in a modern financial system that can store, protect, invest, and transfer their funds efficiently. They want access to U.S. banks. And it is our job to stop them and keep foreign corruption out of the United States."
A report co-authored by the U.S. Senate alleges that American lawyers, real estate agents and others are helping African officials to launder money in America. U.S. financial institutions have built stronger barriers to keep out suspicious funds. William J. Fox, Senior Vice-President at Bank of America takes responsibility for errors that allowed money to be moved through his institution.
"Our investigators missed looking back at the histories and wire activities that involves some accounts. I think this in our judgment was clearly a bad judgment call."
Transparency International names Equatorial Guinea, Angola, Gabon and, Nigeria, as some of the countries where corruption remains one of the biggest challenges.
In Equatorial Guinea, Teodoro Obiang Nguema, the 40-year old son of the President, allegedly moved more than $100 million in suspicious funds through U.S. bank accounts. Mr. Nguema reportedly paid $38 million dollars for a Gulfstream jet, and bought a $35 million dollar Manson in the United States, while earning only $5-thousand dollars a month as the country's Minister of Agriculture. Equatorial Guinea is one of the poorest countries in the world despite earning billions of dollars a year in oil revenenues.
Omar Bongo was President of Gabon for decades until his death last year, and his eldest son, Ali Bongo, takes his father's place as President. Both men are notorious for accumulating massive wealth in an impoverished country. Multi-million-dollar suspicious wire transfers were allegedly directed by President Omar Bongo through U.S. banks, and from 2000 and 2007, Bongo is said to have transferred large amounts of cash to his daughter, Yamilee Bongo-Astier, who was then living in New York.
Jennifer Douglas is a U.S. citizen and a wife of Atiku Abubakar, former Vice President of Nigeria. From 2000 to 2008, she allegedly helped her husband bring more than $40 million in suspicious money into the United States through wire transfers from offshore corporations.
02/19/10
The U.S. Senate is investigating how four African countries are using American institutions to funnel millions of dollars into the United States. Some African politicians and their family members are buying expensive houses, luxury goods and banking millions of dollars in America.
A Senate subcommittee is looking at how politically powerful individuals from Equatorial Guinea, Angola, Gabon and, Nigeria are illegally moving millions of dollars through U.S. banks. U.S. Senator Carl Levin says the financial corruption must end.
"If we want to credibly lead efforts to stop illegal money abroad, we've got to stop it here at home as well. The fact is that those engaged in large-scale corruption want to put their money in a modern financial system that can store, protect, invest, and transfer their funds efficiently. They want access to U.S. banks. And it is our job to stop them and keep foreign corruption out of the United States."
A report co-authored by the U.S. Senate alleges that American lawyers, real estate agents and others are helping African officials to launder money in America. U.S. financial institutions have built stronger barriers to keep out suspicious funds. William J. Fox, Senior Vice-President at Bank of America takes responsibility for errors that allowed money to be moved through his institution.
"Our investigators missed looking back at the histories and wire activities that involves some accounts. I think this in our judgment was clearly a bad judgment call."
Transparency International names Equatorial Guinea, Angola, Gabon and, Nigeria, as some of the countries where corruption remains one of the biggest challenges.
In Equatorial Guinea, Teodoro Obiang Nguema, the 40-year old son of the President, allegedly moved more than $100 million in suspicious funds through U.S. bank accounts. Mr. Nguema reportedly paid $38 million dollars for a Gulfstream jet, and bought a $35 million dollar Manson in the United States, while earning only $5-thousand dollars a month as the country's Minister of Agriculture. Equatorial Guinea is one of the poorest countries in the world despite earning billions of dollars a year in oil revenenues.
Omar Bongo was President of Gabon for decades until his death last year, and his eldest son, Ali Bongo, takes his father's place as President. Both men are notorious for accumulating massive wealth in an impoverished country. Multi-million-dollar suspicious wire transfers were allegedly directed by President Omar Bongo through U.S. banks, and from 2000 and 2007, Bongo is said to have transferred large amounts of cash to his daughter, Yamilee Bongo-Astier, who was then living in New York.
Jennifer Douglas is a U.S. citizen and a wife of Atiku Abubakar, former Vice President of Nigeria. From 2000 to 2008, she allegedly helped her husband bring more than $40 million in suspicious money into the United States through wire transfers from offshore corporations.
Tuesday, February 16, 2010
ZAMBIA MINING BACKLASH
By Paul Ndiho
Date:02/16/10
Chinese and Asian investors in Zambia are coming under fire from Zambia's main opposition for allegedly mistreating local workers in Africa's top copper producing nation.
Chinese and other Asian mining firms employing local people in their Zambian operations pay scant regard to workers, safety or local culture, according to Zambia's opposition. The opposition says that granting foreign mining investors special treatment by the government is a political and racial powder-keg. Patriotic Front leader Michael Sata, who has a fair chance of unseating President Rupiah Banda in 2011 elections, says the special tax status and "economic zones" given to foriegn mining companies is a ridiculous idea.
"Why should there be special conditions for the Chinese and Malaysians? Why should the Chinese and Malaysians come and participate in a mixed economy with all other nationalities? Why should they have special treatment? Why should they have discriminatory treatment? And after all, the Chinese and Malaysians are newcomers to Zambia."
Sata lost a closely contested election in 2008 to Rupiah Banda's Movement for Multi-party Democracy.
If his two-party opposition coalition holds together, he has a good chance of ousting Banda next year, according to some analysts.
It's unclear how his anti-Chinese rhetoric sits with Asian mining firms that now dominate Zambia's Copper Belt, although he has said nationalization of the mines is not an option. Zambian Mines minister Maxwell Mwale dismisses Sata's claims that Chinese mine bosses are duplicating China's poor mine safety conditions in Africa, but he did admit to a difference in approaches.
"They have their own home country cultures and we, as a host country, we have our own host country culture so it's basically as a host country to see that at some point the two cultures have to converge so that we have a win-win situation and personally I believe it's us, as a government, to enforce since we are the ones who carry out the oversight role to see to it that they conform to our work culture."
Economic analyst Chibamba Kanyama says there concerns about giving incentives to select investors.
"The critical thing at the moment is that the development agreements that govern these investments are not fully disclosed to the general populace and as a result people are not very sure as to whether this extends to one economy having an investment in another economy but without following the regulations of a given country and whether this is an extension of one country into another without following the physical incentives and really paying back to the government."
Kanyama says that there is a possibility that voices will be raised questioning the agreements between the government and Chinese investors.
“I definitely may foresee that in future somebody will raise to question these incentives and these initiatives by government so the bottom line right now is to ensure that these investors don't only negotiate with one party but they put their money and lock into these investments and sink in their capital only after a thorough agreement and consensus by the host country in which they are investing."
Foreign mining companies in Zambia include China's Luwmana Copper Mines and Chambishi Copper Smelter.
Date:02/16/10
Chinese and Asian investors in Zambia are coming under fire from Zambia's main opposition for allegedly mistreating local workers in Africa's top copper producing nation.
Chinese and other Asian mining firms employing local people in their Zambian operations pay scant regard to workers, safety or local culture, according to Zambia's opposition. The opposition says that granting foreign mining investors special treatment by the government is a political and racial powder-keg. Patriotic Front leader Michael Sata, who has a fair chance of unseating President Rupiah Banda in 2011 elections, says the special tax status and "economic zones" given to foriegn mining companies is a ridiculous idea.
"Why should there be special conditions for the Chinese and Malaysians? Why should the Chinese and Malaysians come and participate in a mixed economy with all other nationalities? Why should they have special treatment? Why should they have discriminatory treatment? And after all, the Chinese and Malaysians are newcomers to Zambia."
Sata lost a closely contested election in 2008 to Rupiah Banda's Movement for Multi-party Democracy.
If his two-party opposition coalition holds together, he has a good chance of ousting Banda next year, according to some analysts.
It's unclear how his anti-Chinese rhetoric sits with Asian mining firms that now dominate Zambia's Copper Belt, although he has said nationalization of the mines is not an option. Zambian Mines minister Maxwell Mwale dismisses Sata's claims that Chinese mine bosses are duplicating China's poor mine safety conditions in Africa, but he did admit to a difference in approaches.
"They have their own home country cultures and we, as a host country, we have our own host country culture so it's basically as a host country to see that at some point the two cultures have to converge so that we have a win-win situation and personally I believe it's us, as a government, to enforce since we are the ones who carry out the oversight role to see to it that they conform to our work culture."
Economic analyst Chibamba Kanyama says there concerns about giving incentives to select investors.
"The critical thing at the moment is that the development agreements that govern these investments are not fully disclosed to the general populace and as a result people are not very sure as to whether this extends to one economy having an investment in another economy but without following the regulations of a given country and whether this is an extension of one country into another without following the physical incentives and really paying back to the government."
Kanyama says that there is a possibility that voices will be raised questioning the agreements between the government and Chinese investors.
“I definitely may foresee that in future somebody will raise to question these incentives and these initiatives by government so the bottom line right now is to ensure that these investors don't only negotiate with one party but they put their money and lock into these investments and sink in their capital only after a thorough agreement and consensus by the host country in which they are investing."
Foreign mining companies in Zambia include China's Luwmana Copper Mines and Chambishi Copper Smelter.
Friday, February 12, 2010
The Role of The Family or the fellowship in Uganda
By Paul Ndiho
The U.S-based group, the Fellowship, otherwise knowns as "The Family," is getting a lot of attention from international media, especially after a report suggesting the group is behind proposed anti-homosexuality legislation in Uganda. However, members of the group say the Family has nothing to do with the bill and that it should not be adopted. The Family has a nongovernmental sister organization in Uganda called Cornerstone Development. Cornerstone denies claims that the Family is driving anti-gay legislation in Uganda. The Ugandan bill criminalizes homosexuality and calls for the death penalty for serial offenders. The Family says the group is not promoting the legislation and is only interested in helping to develop nations. In recent years, Cornerstone has begun work in Rwanda, Tanzania, Burundi, Southern Sudan and Kenya, focusing on developing Africa's next generation of leaders. Aloysius Bigirwa, graduated from Cornerstone academy in Uganda.
"All I can say about the family, is what I know very well, is that they give good education to less fortunate people in Uganda and other parts of the world."
Young people from Cornerstone say they are part of a movement seeking to improve society and promote reconciliation.
"What's very unique is that at Cornerstone they bring people from all backgrounds, talk about religious backgrounds, social, cultural, because we recruit from all over Uganda and the students that come into the schools, they are 25 per year, so that means in Uganda there are 50 students who benefit every year, and they come from all over the country."
Apart from doing development programs in Africa, The family is also the sponsor of The National Prayer Breakfast an annual gathering in Washington, D.C. The event on February 4th is organized by The Family, and it is attended by the President of the United States and representatives from more than 120 nations. The event has taken place since 1953 and every U.S. president since Dwight D. Eisenhower has participated in the breakfast.
The U.S-based group, the Fellowship, otherwise knowns as "The Family," is getting a lot of attention from international media, especially after a report suggesting the group is behind proposed anti-homosexuality legislation in Uganda. However, members of the group say the Family has nothing to do with the bill and that it should not be adopted. The Family has a nongovernmental sister organization in Uganda called Cornerstone Development. Cornerstone denies claims that the Family is driving anti-gay legislation in Uganda. The Ugandan bill criminalizes homosexuality and calls for the death penalty for serial offenders. The Family says the group is not promoting the legislation and is only interested in helping to develop nations. In recent years, Cornerstone has begun work in Rwanda, Tanzania, Burundi, Southern Sudan and Kenya, focusing on developing Africa's next generation of leaders. Aloysius Bigirwa, graduated from Cornerstone academy in Uganda.
"All I can say about the family, is what I know very well, is that they give good education to less fortunate people in Uganda and other parts of the world."
Young people from Cornerstone say they are part of a movement seeking to improve society and promote reconciliation.
"What's very unique is that at Cornerstone they bring people from all backgrounds, talk about religious backgrounds, social, cultural, because we recruit from all over Uganda and the students that come into the schools, they are 25 per year, so that means in Uganda there are 50 students who benefit every year, and they come from all over the country."
Apart from doing development programs in Africa, The family is also the sponsor of The National Prayer Breakfast an annual gathering in Washington, D.C. The event on February 4th is organized by The Family, and it is attended by the President of the United States and representatives from more than 120 nations. The event has taken place since 1953 and every U.S. president since Dwight D. Eisenhower has participated in the breakfast.
Monday, February 1, 2010
Tanzania's Tanzanite Industry in crisis
By Paul Ndiho
February 1, 2009
Gemologists say that tanzanite is ten times more rare than diamonds, and the precious stone is found in Tanzania. But it will probably be mined to depletion by the year 2016. VOA'S Paul Ndiho has more:
Discovered 40 years ago in Tanzania, tanzanite is found in the Merelani near Mount Kilimanjaro, the world's biggest mine for the stone.
Most of the gems are exported to Europe and the U.S. for processing, an export that is worth about 20 million dollars every year. But tanzanite prices have fallen dramatically, according to Zane Swanepoel, managing director of Tanzanite One. "The world financial crisis seems to have taken a turn and tanzanite being a luxury item has followed suit, we are working extensively at trying to bring the price of tanzanite up we know that we are the biggest single player within the tanzanite organization so people look at us as being the driving engine to start bringing the price up."
Tanzanite One's recovery plan targets African, Asian, American and European markets. Before foreign investors were granted mining concessions in 2005, the industry was unregulated. Small scale miners had the monopoly and worked in dangerous conditions, with many selling the gems on the black market. Modestus Maembe is concerned about the foreign mining companies and the rate at which the gem is being depleted.
“Block C is the richest area in Tanzanite, it is the epicenter of tanzanite, it holds about 70% of all reserves. They are mining at very high speed and they want to finish all our Tanzanite within 19 years."
A lot of Tanzanians in the gemstone trade say they cannot compete with the foreign companies. Government regulations require that local dealers and miners get their stones certified by Tanzanite One before they can be sold in order to stop fakes from entering the market. Innocent Maranu has been selling tanzanite for about 5 years now.
"For Tanzanite One to demand that other dealers should send their stones to them to get certified I think it is not right because we have to establish independent institutions to satisfy the stones but not a dealer like them, Tanzanite One, to ask to send their stones to them. Otherwise the ministry of energy and minerals has to establish an independent department to certify stones."
Since most of Tanzania's stones are cut and polished abroad, the country is losing out on profits from processing the gem. For example, the American market alone makes about 500 million dollars a year from selling processed tanzanite.
"If mineral gemstones were to be cut here in the country the government could make a big revenue out of it. Secondly, creation of employment to the local people if they have the skills and that was our main aim of initiating this small institution which imparts skills in gem cutting and knowledge in identifying, knowledge in grading mineral gemstones and training them how to cut and becoming experts."
Tanzanite One does process some stones locally and runs a museum in Mererani that targets mostly tourists. Kut Salor a tourist says she a great deal buying her gem. "More than reasonable yes, to the extent I'm aware of and I'm going to go to Tiffany's and see how much they charge and then know what a great deal I got here."
Local Tanzanians say that unless they can benefit directly from their own natural resources, the full value of tanzanite will continue to be reaped by countries other than Tanzania.
February 1, 2009
Gemologists say that tanzanite is ten times more rare than diamonds, and the precious stone is found in Tanzania. But it will probably be mined to depletion by the year 2016. VOA'S Paul Ndiho has more:
Discovered 40 years ago in Tanzania, tanzanite is found in the Merelani near Mount Kilimanjaro, the world's biggest mine for the stone.
Most of the gems are exported to Europe and the U.S. for processing, an export that is worth about 20 million dollars every year. But tanzanite prices have fallen dramatically, according to Zane Swanepoel, managing director of Tanzanite One. "The world financial crisis seems to have taken a turn and tanzanite being a luxury item has followed suit, we are working extensively at trying to bring the price of tanzanite up we know that we are the biggest single player within the tanzanite organization so people look at us as being the driving engine to start bringing the price up."
Tanzanite One's recovery plan targets African, Asian, American and European markets. Before foreign investors were granted mining concessions in 2005, the industry was unregulated. Small scale miners had the monopoly and worked in dangerous conditions, with many selling the gems on the black market. Modestus Maembe is concerned about the foreign mining companies and the rate at which the gem is being depleted.
“Block C is the richest area in Tanzanite, it is the epicenter of tanzanite, it holds about 70% of all reserves. They are mining at very high speed and they want to finish all our Tanzanite within 19 years."
A lot of Tanzanians in the gemstone trade say they cannot compete with the foreign companies. Government regulations require that local dealers and miners get their stones certified by Tanzanite One before they can be sold in order to stop fakes from entering the market. Innocent Maranu has been selling tanzanite for about 5 years now.
"For Tanzanite One to demand that other dealers should send their stones to them to get certified I think it is not right because we have to establish independent institutions to satisfy the stones but not a dealer like them, Tanzanite One, to ask to send their stones to them. Otherwise the ministry of energy and minerals has to establish an independent department to certify stones."
Since most of Tanzania's stones are cut and polished abroad, the country is losing out on profits from processing the gem. For example, the American market alone makes about 500 million dollars a year from selling processed tanzanite.
"If mineral gemstones were to be cut here in the country the government could make a big revenue out of it. Secondly, creation of employment to the local people if they have the skills and that was our main aim of initiating this small institution which imparts skills in gem cutting and knowledge in identifying, knowledge in grading mineral gemstones and training them how to cut and becoming experts."
Tanzanite One does process some stones locally and runs a museum in Mererani that targets mostly tourists. Kut Salor a tourist says she a great deal buying her gem. "More than reasonable yes, to the extent I'm aware of and I'm going to go to Tiffany's and see how much they charge and then know what a great deal I got here."
Local Tanzanians say that unless they can benefit directly from their own natural resources, the full value of tanzanite will continue to be reaped by countries other than Tanzania.
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