Poor Loss Making KQ owns only 3 aircrafts our of 28 aircrafts it operates..[emoji2][emoji2][emoji2][emoji2]

game over

JF-Expert Member
Jan 1, 2016
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Parliament is investigating the link between a bank associated with President Uhuru Kenyatta’s family and the takeover of JKIA management by loss-making Kenya Airways.

Members of the Public Investment Committee, citing conflict of interest, have summoned the Kenya Airports Authority board on Thursday to respond to their growing concerns.

Lawmakers are also demanding to know the identities of the other KQ shareholders, besides the State, amid jitters that the proposed takeover of JKIA will not be viable.

KAA board chairman Isaac Awuondo is also the Group Chief Executive officer of the Kenyatta-owned Commercial Bank of Africa.

CBA and NIC, which are at an advanced merger stage, are said to have lent the troubled national Sh5 billion which they are yet to recover

When he appeared before the committee yesterday, KAA chief executive officer John Andersen confirmed the debts.

The airline owes CBA Group Sh3.1 billion, NIC Sh2.1 billion, Equity Bank Sh5.2 billion, National Bank Sh3.5 billion, Co-operative Bank (Sh3.3 billion, DTB Sh2.1 billion and KCB Group Sh2.1 billion.

Andersen was pressed hard by MPs to disclose the powerful forces behind the airport deal but declined, saying he did not have details.

“I cannot speculate on the reason behind the deal or the faces behind it. We were approached by Kenya Airways on this matter and also got a Cabinet memo seeking that we manage the process,” he said.

Lawmakers have maintained there is more than meets the eye as the KAA chairperson is the same person whose bank seeks to recover money from KQ.

The takeover bid has sparked an outrage, with criticism of unidentified 'powerful forces' out to surrender the national airport to a private firm.

MPs said the deal, in which KQ tentatively would run JKIA for 30 years, is suspect and a case of connivance among influential forces to rip off taxpayers.

The legislators, citing a conspiracy, criticised the plan, saying the country is at risk of losing billions of shillings in revenue should KAA be allowed to proceed.

Lawmakers are also concerned that Kenya Airways owes KAA Sh3.8 billion and is losing its hold of the East African market share.

Further, an audit by KPMG is said to have revealed gaps that it wants KAA to address before further engagement with Kenya Airways on the deal.

MPs also asked the agency to be straightforward on how it settled on MMC Africa Law as the transaction adviser in the takeover bid. The firm was hired under a restricted tender.

Read: MPs oppose bid to have KQ run Jomo Kenyatta airport

Nandi Hills MP Alfred Keter, a friend of the committee, sought clarification of the ownership of the 28 airliners operated by Kenya Airways.

Of these, only three are owned by Kenya Airways, raising questions about who owns the others, said to be leased from private entities.

The airline currently controls 34 per cent of air traffic, down from the 50 per cent it held in 2011, yet it has brought KLM on board as a shareholder controlling 23 per cent.

“KQ is a loss-making entity, hence, cannot be entrusted with the management of a profit-making airport,” PIC chairman Abdulswamad Nassir said.

Legislators further questioned how Kenya Airways allegedly initiated the deal before the Cabinet memo on the venture was served to KAA.

The committee has written to the Investments Secretary, demanding to know who the real shareholders at KQ are, noting that the proposed JKIA takeover will not be viable.

The committee wants Treasury to furnish the information by the second week of April, saying there is a lot at stake.

Yesterday, Nassir reiterated that the deal between the national carrier and the KAA raises more questions than answers.

“As we said recently, we need to get to the bottom of this matter. There is something we are not being told and as a committee we will investigate,” he said.

The government, through the National Treasury, has invested in KQ in efforts to return it to a profit-maker.

KLM, which signed a 22-year venture with KQ, is reported to own a 13.71 per cent stake, the government 46 per cent and 11 per cent by commercial banks. The banks converted their debts to KQ into equity.

Read: Kenya Airways plan to run JKIA shelved

In June last year, the Cabinet, in a policy statement, said the planned merger was part of the financial restructuring to save the airline from collapse.

It was also expected to reposition and model its operations along those of its main rival Ethiopian Airlines, which runs Addis Ababa’s Bole International Airport.

The public-private partnership was to be signed last September. It would have enabled the takeover of all KAA staff and operations and expansion of its services, such as ground handling, maintenance, catering, warehousing and cargo.

The policy, ‘Project Simba’, showed the Sh75 billion state bailout was insufficient to resolve KQ’s problems and recommended that it operate under a comprehensive national aviation policy.

Andersen said the authority is still studying the proposal with a view to filling gaps cited in the audit process.

“Part of the gaps pointed out in the negotiation criteria will not be ignored. Our transaction adviser — MMC Africa Law — has also asked that we seek alternatives to the proposal to hand over JKIA to Kenya Airways.”

The CEO added that the board is aware of the deal and had asked the management to consider the proposal with a view to implementing the proposal.

“We have a proposal to work on and understand. We can’t be preemptive but will work with facts on the table before a final decision is made,” Andersen said.

But MPs advised that KAA goes slow on the venture, saying there was no way a private entity can be tasked to manage a national airport.

They also raised concerns of staff intimidation in the wake of the silence of Kenya Airport Workers Union, which has shelved protests against the deal.

“Is KAA under siege? Is there pressure from government? With KLM having the majority share in KQ, do they liquidate the same?” Embakasi East MP Babu Owino asked.

Read: IATA wades into proposed airport takeover by Kenya Airways

KAA CEO has been asked to furnish the committee with documentation related to the proposal, including the Cabinet memo, board resolutions, KAA's letter to the National Treasury and the Transport ministry, as well as responses from Kenya Airways.

Also opposed to KQ’s plan to manage Kenya’s international Airport is the aviation sector union, which has moved to court, alleging that the airline owes the Kenya Airports Authority, whose airport it plans to take over, nearly Sh4 billion.

Through lawyer Peter Wanyama, the airline’s employees moved to court on Friday last week to challenge the transfer planned for April, arguing the process is being rushed and will deny the public the right to scrutinise it.

The Kenyan Aviation Workers Union has also questioned the feasibility of the proposal to hand over JKIA to the airline, given its fragile financial health.

However, in a recent telephone interview with the Star, KQ chairman Michael Joseph said it makes more operational and financial sense for the airline to run JKIA.

“If we are allowed to operate JKIA, we will have one source to reinvent the airport and build economies of scales,” Joseph said.

JKIA takeover: MPs link Kenyatta family
 

game over

JF-Expert Member
Jan 1, 2016
6,846
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Meanwhile, Uhuru Kenyata ft his hungry colleagues is milking you guys dry, Do something
 

Geza Ulole

JF-Expert Member
Oct 31, 2009
30,593
2,000
Parliament is investigating the link between a bank associated with President Uhuru Kenyatta’s family and the takeover of JKIA management by loss-making Kenya Airways.

Members of the Public Investment Committee, citing conflict of interest, have summoned the Kenya Airports Authority board on Thursday to respond to their growing concerns.

Lawmakers are also demanding to know the identities of the other KQ shareholders, besides the State, amid jitters that the proposed takeover of JKIA will not be viable.

KAA board chairman Isaac Awuondo is also the Group Chief Executive officer of the Kenyatta-owned Commercial Bank of Africa.

CBA and NIC, which are at an advanced merger stage, are said to have lent the troubled national Sh5 billion which they are yet to recover

When he appeared before the committee yesterday, KAA chief executive officer John Andersen confirmed the debts.

The airline owes CBA Group Sh3.1 billion, NIC Sh2.1 billion, Equity Bank Sh5.2 billion, National Bank Sh3.5 billion, Co-operative Bank (Sh3.3 billion, DTB Sh2.1 billion and KCB Group Sh2.1 billion.

Andersen was pressed hard by MPs to disclose the powerful forces behind the airport deal but declined, saying he did not have details.

“I cannot speculate on the reason behind the deal or the faces behind it. We were approached by Kenya Airways on this matter and also got a Cabinet memo seeking that we manage the process,” he said.

Lawmakers have maintained there is more than meets the eye as the KAA chairperson is the same person whose bank seeks to recover money from KQ.

The takeover bid has sparked an outrage, with criticism of unidentified 'powerful forces' out to surrender the national airport to a private firm.

MPs said the deal, in which KQ tentatively would run JKIA for 30 years, is suspect and a case of connivance among influential forces to rip off taxpayers.

The legislators, citing a conspiracy, criticised the plan, saying the country is at risk of losing billions of shillings in revenue should KAA be allowed to proceed.

Lawmakers are also concerned that Kenya Airways owes KAA Sh3.8 billion and is losing its hold of the East African market share.

Further, an audit by KPMG is said to have revealed gaps that it wants KAA to address before further engagement with Kenya Airways on the deal.

MPs also asked the agency to be straightforward on how it settled on MMC Africa Law as the transaction adviser in the takeover bid. The firm was hired under a restricted tender.

Read: MPs oppose bid to have KQ run Jomo Kenyatta airport

Nandi Hills MP Alfred Keter, a friend of the committee, sought clarification of the ownership of the 28 airliners operated by Kenya Airways.

Of these, only three are owned by Kenya Airways, raising questions about who owns the others, said to be leased from private entities.

The airline currently controls 34 per cent of air traffic, down from the 50 per cent it held in 2011, yet it has brought KLM on board as a shareholder controlling 23 per cent.

“KQ is a loss-making entity, hence, cannot be entrusted with the management of a profit-making airport,” PIC chairman Abdulswamad Nassir said.

Legislators further questioned how Kenya Airways allegedly initiated the deal before the Cabinet memo on the venture was served to KAA.

The committee has written to the Investments Secretary, demanding to know who the real shareholders at KQ are, noting that the proposed JKIA takeover will not be viable.

The committee wants Treasury to furnish the information by the second week of April, saying there is a lot at stake.

Yesterday, Nassir reiterated that the deal between the national carrier and the KAA raises more questions than answers.

“As we said recently, we need to get to the bottom of this matter. There is something we are not being told and as a committee we will investigate,” he said.

The government, through the National Treasury, has invested in KQ in efforts to return it to a profit-maker.

KLM, which signed a 22-year venture with KQ, is reported to own a 13.71 per cent stake, the government 46 per cent and 11 per cent by commercial banks. The banks converted their debts to KQ into equity.

Read: Kenya Airways plan to run JKIA shelved

In June last year, the Cabinet, in a policy statement, said the planned merger was part of the financial restructuring to save the airline from collapse.

It was also expected to reposition and model its operations along those of its main rival Ethiopian Airlines, which runs Addis Ababa’s Bole International Airport.

The public-private partnership was to be signed last September. It would have enabled the takeover of all KAA staff and operations and expansion of its services, such as ground handling, maintenance, catering, warehousing and cargo.

The policy, ‘Project Simba’, showed the Sh75 billion state bailout was insufficient to resolve KQ’s problems and recommended that it operate under a comprehensive national aviation policy.

Andersen said the authority is still studying the proposal with a view to filling gaps cited in the audit process.

“Part of the gaps pointed out in the negotiation criteria will not be ignored. Our transaction adviser — MMC Africa Law — has also asked that we seek alternatives to the proposal to hand over JKIA to Kenya Airways.”

The CEO added that the board is aware of the deal and had asked the management to consider the proposal with a view to implementing the proposal.

“We have a proposal to work on and understand. We can’t be preemptive but will work with facts on the table before a final decision is made,” Andersen said.

But MPs advised that KAA goes slow on the venture, saying there was no way a private entity can be tasked to manage a national airport.

They also raised concerns of staff intimidation in the wake of the silence of Kenya Airport Workers Union, which has shelved protests against the deal.

“Is KAA under siege? Is there pressure from government? With KLM having the majority share in KQ, do they liquidate the same?” Embakasi East MP Babu Owino asked.

Read: IATA wades into proposed airport takeover by Kenya Airways

KAA CEO has been asked to furnish the committee with documentation related to the proposal, including the Cabinet memo, board resolutions, KAA's letter to the National Treasury and the Transport ministry, as well as responses from Kenya Airways.

Also opposed to KQ’s plan to manage Kenya’s international Airport is the aviation sector union, which has moved to court, alleging that the airline owes the Kenya Airports Authority, whose airport it plans to take over, nearly Sh4 billion.

Through lawyer Peter Wanyama, the airline’s employees moved to court on Friday last week to challenge the transfer planned for April, arguing the process is being rushed and will deny the public the right to scrutinise it.

The Kenyan Aviation Workers Union has also questioned the feasibility of the proposal to hand over JKIA to the airline, given its fragile financial health.

However, in a recent telephone interview with the Star, KQ chairman Michael Joseph said it makes more operational and financial sense for the airline to run JKIA.

“If we are allowed to operate JKIA, we will have one source to reinvent the airport and build economies of scales,” Joseph said.

JKIA takeover: MPs link Kenyatta family
Saw that! It's sad!
 

Geza Ulole

JF-Expert Member
Oct 31, 2009
30,593
2,000
Woyeee the likes of Kirubi n co r enriching themselves! Sitting n boards n influencing every procurement n debt to shares conversion. CK as an individual has been instrumental to many of shody deals in Kenya! For the past 10 years, none of his companies have been sparred of books cooking scandals!
 

Depay

JF-Expert Member
Jun 22, 2015
6,576
2,000
That's a tired,lousy, Gossipy,story without any substance characteristi c of a jilted broke lover....Try something else Game over....Maybe you can watch The Kardashians....
 

Lusematic

JF-Expert Member
Feb 2, 2017
7,398
2,000
Woyeee the likes of Kirubi n co r enriching themselves! Sitting n boards n influencing every procurement n debt to shares conversion. CK as an individual has been instrumental to many of shody deals in Kenya! For the past 10 years, none of his companies have been sparred of books cooking scandals!
Jamaa ni wapuzi sana

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Geza Ulole

JF-Expert Member
Oct 31, 2009
30,593
2,000
That's a tired,lousy, Gossipy,story without any substance characteristi c of a jilted broke lover....Try something else Game over....Maybe you can watch The Kardashians....
Never knew the Star is a tabloid! 😅
 

dong yi

JF-Expert Member
Jan 31, 2016
3,349
2,000
nahisi hapa hakuna cha loss wala nini..... zile figure za loss ya ksh4b huwa zinapikwa


wajanja kina uhuru na odinga wanafanya yao then wanaacha shirika likiwa na njaa!.......


hii ni level nyingine ya ufisadi aisee........ hawafai hawa!

Sent using Jamii Forums mobile app
 

MAKANJAMNA

JF-Expert Member
Aug 8, 2013
1,135
2,000
Kumbe wana ndege tatu hawa jamaa... aiseeeee.....

halafu JKIA inaidai KQ iweje tena KQ iende kuwa take over...... aiseeeeee....

kuna mengi sana ya kujifunza hapa
 

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