A Lesson Previously Learned. - Comments (2)

Category: Behind the Lines,Venture in Africa
Author: John Malone
Date: 20th August, 2006 @ 11:35:20 PM

Some paths you only need to explore once.

My investment had been expropriated by a foreign government by police force. There was no subtlety involved at all.

About nine years earlier, we had an incident arise whereby a Kenyan bank simply took money – a lot of money – by crediting our crossed bank cheque to the account of account of a friend of one of the bank’s management, who was clearly not the payee. As we looked into the crime, we discovered the bank was run by a long-time poltical crony of the Kenyatta family.

His son was the general manager of the bank. The fellow who was the manager authorizing the funds to be transferred was the son of another Kenyatta crony, a former Permanent Secretary. The fellow into whose account the funds were transferred was also a son of a Kenyatta crony, and a former Powerful Permanent Secretary in charge of internal security.

We discovered these two sons of politicians’ relationship in connection with the “National Day of Prayer” breakfast held annually in Washington D.C.

I spoke directly with the offending general manager, and subsequently with his father, a very highly placed politico, who was then Chairman of the bank. Shortly thereafter, he died from a heart attack.

The bank insider who arranged the embezzlement has since become the Managing Director of one of the largest brokerage houses in Kenya: Shah Munge and Partners. John Munge, whose name appears as partner, was appointed by President Kibaki of Kenya to head the chief tax collection authority, the Kenya revenue Authority, but was forced to resign in disgrace.

We turned the matter over to the police, and soon arose to the Attorney General himself, who saw to it that incorrect charges were brought against the benficiary of the embezzlement. Bringing incorrect charges is one way to spring an offender in Kenya. The charges fail in court, and then double jeopardy provisions are invoked by the offending party to suppress proper prosecution.

We even traced the stolen funds down to a certain extent, and discovered that a large chunk had gone to replace embezzled funds from the Anglican Church of Kenya-ACK- in Kirinyaga, over which the next Archbishop of the ACK, David Gitari, then presided.

I laid these facts out to the famed ACK (then called the Church of the Province of Kenya- CPK) Archbishop Manasses Kuria at the time, but he told me there was nothing he could do. He did pray with me about the matter. He died last September.

Kuria was a politician as well as a clergyman, and was especially close to the Kenyatta family as well as former President Moi, despite his criticism of the latter. He was elevated, allegedly, by the sophistry and machinations of Charles Njonjo, a famed behind-the-scenes player from glory days of Jomo Kenyatta. Njonjo is from Kabete, the family stomping grounds of the famous Leakey family.

In 1997 Kuria was replaced by Gitari, after severing as Archbisop for about 20 years. Gitari only lasted 5 years.

Some more embezzled funds when to the brother of the perpetrator, who was then a Corporate Finance Director at Barclay’s Bank, kenya. He was subsequently been named to head the Nairobi Stock Exchange! Now he heads up a securities firm in Kenya that is a member of the Nairobi Exchange, and also chairs the missionary arm of the CPK. he is from the home of David Gitari, and for all I know, was deeply involved in the arrangements of securing the funds my money was taken by his brother to repay to the Diocese of Kirinyaga.

Some went to the perpetrator’s father, who lives very comfortably right in the center of the Kenyatta family’s holdings.

As the “prosecution” continued against the perpetrator, he was victimized by a stroke at age 39.

The matter of the embezzlement was also taken up with Charles Leakey, at the time a cabinet minister, by a former well-placed america from the Nairobi embassy. leakey was being approached by the individual because integrity was ascribed to the man’s heroics. Leakey had suffered the loss of both of his legs in what was widely considered to be an assasination attempt again him while he was flying his plane. But Leakey was unavailable to rectify the situation, being about other agendas, and he rebuffed the American’s attempt.

This matter still continues, both civilly against the bank, and criminally agains the individual. It is 12 years later.

So, I knew at the time of the expropriation, that all legal attempts criminal and civil are futile in redressing grievances born by corruption in Kenya, if one looks to Kenya’s system of jurisprudence.

The futility of the Kenyan legal system is an important distinction that needs to be made for the US State Department to call expropriation “expropriation.”

2 Comments » Leave a comment