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Athi River Mining: What Should Shareholders Do?
In its website, the Athi River Mining (ARM) says that it is founded on good corporate governance “for the long term prosperity of its shareholders.” But the scam over the stolen government subsidized fertilizer has put special focus on the activities of the company and how it maintains the prosperity of its shareholders. In this case, it was caught repackaging subsidized government fertilizer in its own sacks of Mavuno Fertilizer for resale at a high price. There is not much the company can say in its defense except to admit that it was engaged in pure theft.
The unfortunate inference is that the shareholder profits are based on such illegal activities. What do the share holders say? How do they feel? And more importantly what will the Nairobi Stock Exchange do, seeing that the ARM is even one of its members of the 20 share index?
Policy of Deceit
Yet unfortunately the policy of deceit seems to be the foundation of the company. In its website, the founder is praised for his contribution to welfare of the communities around. And for this, the mayor of the Mavoko Municipal Council officiated at a street naming ceremony in honor of the founder. These are the “sterling” contributions as listed the website:
- Donations of food and clothing to the destitute in the town
- Donations to churches in Mulolongo
- Help in establishing a girls hostel in Kajiado (mark you, ARM didn’t establish, it helped)
Is this enough contribution for a street? Remember that the founder was allocated free public land on which to build his factory promising that it would help to improve the lives of those in the town. Is that the help?
Cities Become Ghost Towns
The trouble is that lies and conscienceless pursuit of profits seem to be the very foundation of most of the Indian owned companies in Kenya. Using the same tricks, Kamlesh Pattni nearly bankrupted the country. Banks, sugar industries, clothing factories, paper manufacturing industries have all been used by Indian traders in collusion with corrupt government officials, to fleece the economy after which they flee the country.
Large towns and cities such as Kisumu, Webuye and Eldoret whose economies have been based on such businesses are today struggling without any meaningful economy to provide decent employment to their residents. In Nairobi, it is significant that the government anti-corruption body, the Kenya Anti-Corruption Commission – is based on in a house that was abandoned by one of the fleeing Indians.
The Question
The question is: When will African Kenyans develop pride sufficient in their country to stop colluding with these corrupt Indian traders? When are we going to have faith in ourselves to stop bowing at every Indian businessman?
My father – Joel Kyendo – and other Kamba businessmen contributed a great deal to the development of Athi River town, but he was denied a street to honor him even when I provided abundantly convincing citation. Even the land on which he operated, I found to my amazement, has been grabbed and the books closed.
Yet my father, without sounding parochial, contributed more to welfare of the surrounding Akamba community than the ARM. Only the other day I was a guest at a large factory in Nairobi Industrial Area, owned by a man who learned his trade and skills as my father’s employee- and he was proud to relate the story to me. That man alone (and there are many who did the same) employs hundreds of workers who are acquiring genuine skills and getting out to start their own businesses, provide more jobs to others and develop the country.
Now, who between my father and the founder of Athi River Mining has made a genuine contribution worthy of praise, if you leave out filling personal pockets with illegally acquired money?
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