[size=15pt]It’s time to play by a different (ethical) set of rules (Part 7) Nigeria 1 of 5[/size]



___Sometimes the price can be very high in the fight against corruption.

I had the privilege of making Nigeria’s first GSM phone call back in 2001 when I called the regulator to say, “We’re live!” Who would’ve believed then that Nigeria today would have more than 167 million mobile phones?!

It all started out as a very exciting new chapter for enterprise in Africa. Shortly after President Obasanjo was elected, the new government announced an incredibly transparent international auction process for three national mobile phone licenses.

To participate in the bid, you not only had to raise money, but there had to be a member of the bidding consortium who was an experienced GSM operator. Econet Wireless met the requirements because of its experience in Zimbabwe and Botswana. Our Nigerian partners, which included state governments, local banks and high net worth individuals, were financial investors. The largest shareholder had only 10%. That was the written agreement.

I managed to assemble a consortium of 22 investors to put up the money needed to bid. Our shareholders were all Nigerian, mostly institutional investors including leading banks and two state governments, Lagos State and Delta State. The license cost us $285m and was the most expensive license ever issued in Africa at the time. This was 2001.

We considered the investment not only about putting together a network, but also about building a nation. We knew it had the potential to transform Nigeria’s entire business and social architecture.

Most of our investors had between 1-10% shareholding. Econet Wireless Nigeria had only 5% of the shares, but that was fine because it was 5% ownership of a very big pie.

As the "technical partner and operator," Econet was the company with the expertise to build and operate such a business. Our financial investors recognised this, and also allowed us to receive 3% of the turnover as our fees. This was standard practice in the industry.

We were one of the winning bidders and they gave us just six months to set up business and get our network operating. We were under a lot of pressure but our network was live two days before the others! Customers were pouring in. We were number one in the market with an estimated 57% market share.

___Then came the fateful day when I was told that our company must pay a total of $9m in bribes to senior politicians (in state government) who had facilitated the raising of the money to pay for the license.

I refused to authorise the illegal payments. Meeting after meeting was held to try to get me to agree, but I would not. The money would not be paid as long as Econet was the operator and I had signing authority.

James Ibori, the Governor of Delta State, was demanding $4,5m be paid to him in his personal capacity. He was one of the most powerful men in the country and had a reputation for violence. When he heard that I was refusing to approve payment he issued an ultimatum:

___"Pay or I will chase you and your people out of the country."

I refused.

The shareholders met and voted Econet Wireless Nigeria out of management. They cancelled our management contract. James Ibori and his colleagues personally attended the meeting to remove us. After the meeting one of them (a prominent local businessman even today) came up to me and said: "Unfortunately for you, God does not have a vote."

I had to withdraw all my staff and their families: 200 people in all. We left Nigeria.

Most of our people had to be retrenched. The loss of the contract almost drove us to bankruptcy as a group.

They invited a big international operator to replace us as technical partner and operator. They changed the name of the company from Econet to V-Mobile.

Within days of their arrival, the managers of the new operator signed off the payments demanded as bribes.

Then what happened?

A few noble Nigerians had both the integrity and courage to carefully collect all the documentation on the movement of the money, and pass it all on to me.

___There’s a saying worth remembering in uncovering the trail of destruction that is corruption: “Follow the money”…

I bided my time... then I wrote a letter to the United States Department of Justice!

It was 2003.

To be continued…




[size=15pt]Strive Masiyiwa
It’s time to play by a different (ethical) set of rules (Part 8 ) Nigeria 2[/size]

___As citizens, we have a duty to speak out to stop the rot




Nigeria has an agency known as the Economic and Financial Crimes Commission (EFCC). After we had to leave the country, a few noble people at the company tipped off not only me but the EFCC about the payment of the bribes, which had by this time risen from $9m to $13,5m.

I had never actually heard about this agency myself until I got a call from the Nigerian Embassy in South Africa to say they wanted to come and see me to interview me as a witness.

A team of very senior EFCC officers came to see us in South Africa. They were solid and professional in their enquiry. It was clear they wanted to do something about it.

However, when these officers returned home to Nigeria, they got into very serious trouble. Their investigations into the irregular payments had been brought to the attention of James Ibori (Governor of Delta State)…

Soon thereafter, the most senior officer leading the investigation was demoted and sent to a remote part of the country as an ordinary policeman!

Agencies like EFCC in Nigeria sometimes have brave and gallant law enforcement officers. Unfortunately, as I observed, they’re often let down by their political bosses, and sometimes even by the courts. This can change if activism from the citizenry emerges to support their work.

___We should not only support official efforts to stop corruption but also help these agencies and organisations in their investigations. If you have relevant information about illegal activities, passing it on could make all the difference between impunity and imprisonment.

In my letter to the US Justice Department, I detailed the full history of the demands for a bribe. I had dates, times, records. I then reminded them that since the big international operator had a listing on the New York Stock Exchange, they were duty-bound to launch an enquiry. Why did I go to them?

The United States government has a law called the Foreign Corrupt Practices Act. The United Kingdom has a similar one called the British Anti-Bribery Act. Whatever you do, make sure you never fall foul of those laws because, if they ever use them to come after you, you’re a "gonner" my friends.

A few weeks later, US officials wrote back advising me that an enquiry had been launched. They contacted the big international company seeking answers to my allegations. My contacts at the company called to tell me, "All hell has broken loose at the company."

The parent company of the South African-based multinational sent external auditors and lawyers from London to Nigeria. They immediately dismissed all the senior executives sent to Nigeria to run the company, and they left in a hurry!

Although they fled the scene of the crime and returned to their country -- after admitting even to both the US Justice Department and the EFCC that the money had been paid out – the stolen funds were never returned to the Nigerian people, even to this day.

Meanwhile, the departure of the other mobile operator did not mean we could return to Nigeria. The shareholders found another operator, this time from the Middle East.

They sold this new operator the control of the company even though Econet Wireless Nigeria had the "right of first refusal" over any sale. They simply ignored that provision in our agreement. This was illegal, both according to our shareholders agreement and Nigerian Company Law. It was left for us to take up the fight in another forum, the Nigerian courts.

To be continued…



[size=15pt]Strive Masiyiwa
It’s time to play by a different (ethical) set of rules (Part 9) Nigeria 3
[/size]
__ Beware the company you keep




The state government of Akwa Ibom held 15% of the equity in Econet Wireless Nigeria. This state was not one of the original investors but joined us later.

After five years, the governor of the state of Akwa Ibom decided to sell its stake. It had more than doubled in value in dollar terms, which meant it had been a good investment.

The state governor, an elderly gentleman called Victor Attah, sent a message through a friend that he wanted to see me in London to find out if I was interested in exercising Econet’s right to buy its shares. I agreed to meet him in London.

"I want to sell the shares to build an airport before I leave office," the governor explained.

The governor was accompanied to the meeting by a British lawyer who sat quietly taking notes. His name was Bhadresh Gohil.

With a wave of his hand, the governor said, "Mr Gohil is our legal advisor here in London. I have instructed him to handle all our negotiations with you."

The meeting did not last more than 30 minutes, as the governor was on his way to catch a flight to the U.S.

We agreed with Mr Gohil that we would meet with my own advisors a few days later to start the process.

A few days later, I went to his office with a professional banker who advised me on such transactions. We met in the lawyer's plush London offices. He was confident and smooth-spoken as he explained how much we were expected to pay. Then he explained that our money was to go to a "Special Purpose Vehicle" (SPV) before it was transferred to Nigeria. It was a sophisticated structure and he showed me a drawing of how it would work. I wrote it all down very carefully into my notebook.

___Such corporate entities as SPVs can definitely have legitimate purposes, but this one did not!

As I quizzed him about why such an unusual structure was necessary, Mr Gohil changed tact and tried to entice me with an offer I could not refuse (or so he hoped): "I'm also the advisor to the governor of Delta State, Mr James Ibori, and if you agree to pay for these shares using this structure, we will offer you shares belonging to all the state governments. In total, you can have more than 30% additional shares. It will be enough to take control of the company. My clients just want out, and they are willing to give you what you have always wanted."

I listened to him, quietly taking notes in my small notebook. I did not give away anything, but inside I was very angry. From the design of the structure, I knew immediately that it was meant to siphon off money before it reached the state governments. It was clear there was a conspiracy to steal a lot of money.

___Having already pocketed $13.5m, now the government officials could easily pocket probably another $100m through the sale process that they had developed with the help of Mr Gohil and other clever advisors in London!

When I left the meeting I immediately contacted the mutual friend who'd set up the governor's meeting. The friend was so embarrassed as I explained the corrupt structure clearly designed to steal money from the state governments. He promised to raise the issue with Governor Victor Attah. A few days later he came back and said Governor Attah had claimed ignorance about the proposal put to me by Mr Gohil. He said he would speak to Mr Gohil and tell him it had to be done properly without the structures.

We never heard from them again. Mr Gohil simply vanished. A few months later we were told that the shares had been offered to a company from the Middle East who subsequently bought them. I was not privy to how they did it except that they had violated my right to buy the shares... That is another chapter in the saga, but not for now.

Fast-forward three years, long after the sale. Our lawyers in London called me one day and asked if I could come urgently to a meeting with the Proceeds of Corruption Unit of the London Metropolitan Police: "You are not in any trouble, but I think you will find what they have to say very interesting!"

This special unit was launched by the British to investigate corruption by foreign government officials who try to launder stolen money to the U.S. and the UK.

The officers asked me to explain everything I knew about the sale of V-Mobile shares to Celtel (later Zain).

I explained the history of the entire transaction and the shareholders disputes that had led to our departure. After awhile, they asked me to focus on specific events, and, in particular, my meetings in London with the governor of Akwa Ibom, and also the meetings with Mr Gohil. It became clear to me that they had a lot of information!

"What can you tell us about this structure, using a Special Purpose Vehicle?"

I explained my understanding of it. Later on, I gave them my diary in which I had recorded the details of my meeting that day with Mr Gohil.

Below my drawing of the structure, I had written in bold letters:

"This is corrupt!!!"

Not long after my meeting with the Proceeds of Corruption Unit, Mr Gohil was arrested together with one of his partners and several others. I later learned that when the Middle Eastern company bought the shares, some of the proceeds had been diverted using the Gohil structure. Some of the money was sent to a bank in London. This large amount of money was enough to alert the British authorities that money was being laundered through their banking system.

Their investigations led them to Gohil and his associates. They raided his offices and found stashes of documents, including details of the structures. Now they were looking for witnesses to help prosecute them for corruption and money laundering.

The British authorities tried without success to get other parties, including the governor of Akwa Ibom, to come out and clear their names but they refused. Officials of President Umaru Musa Yar'Aduah's government successfully thwarted all extradition requests.

I was asked to be a witness in the trial of those who had been arrested in London. I willingly accepted. Next I will tell you about my role as a 'Witness to the Crown" on behalf of the people of Nigeria whose money had been stolen. It would be the first time that someone big went to jail (in a foreign country) for stealing money from Africans.

To be continued . . .


[size=15pt]Strive Masiyiwa
It’s time to play by a different (ethical) set of rules (Part 10) Nigeria 4[/size]

__Witness for the people of Africa.

Corruption often involves very sophisticated bankers and lawyers in Western financial centers. When corruption happens in Nigeria, or any other African country, it usually also happens at the same time with at least one accomplice on the other side of the world, whether in London, Geneva, or the like.

The London lawyer Bhadresh Gohil, who I wrote about in my last post, is just one of scores of international advisors who handle the sophisticated movement of money in the world, in this case the money stolen from the Nigerian people and hidden in overseas bank accounts.

___When you choose financial or legal advisors, choose very wisely. Your very life could depend on it.

When Mr Gohil and other family and associates of Delta State governor James Ibori were arrested in London, I was asked by the British government to be a state witness in their trial. I agreed without hesitation.

Being a witness in such a case is not easy. It meant that I had to stop working for several weeks and just focus on preparation to give evidence. I knew I would be grilled in an open court by expensive defense lawyers who would try to challenge my integrity.

I was told that many potential witnesses had declined to give evidence in open court out of fear.

Not me!

I headed to England as a "Witness to Her Majesty's Government." For me personally, I went as a "witness on behalf of the people of Nigeria and Africa." It was my duty.

A witness can help ensure justice is done. Solid evidence is crucial in ensuring the truth is heard and that the rule of law is upheld. Without witness testimony, criminals can operate with impunity, one of the greatest threats to Africa’s future.

What is impunity? It basically means evil actions have no legal consequences. As a result, criminals are allowed to stay busy committing their crimes, knowing they can get away with it without punishment.

___A culture of impunity endangers the prospects for prosperity and security in Africa in every imaginable way.

Mr Ibori's wife, his sister, and his mistress, who each had each received money from the sale of the shares in V-Mobile (which were assets of the people of Nigeria), were also arrested in London and were sentenced to five years in prison.

My written witness statements were submitted and I prepared to appear in court to be cross-examined.

The night before I was due to take the stand in an open London court as witness for the state, I was told Mr Gohil and his associates had suddenly pleaded guilty. My lawyers told me that my witness statement was too strong and Mr Gohil and his team were afraid they would get even stiffer sentences!

In late 2010, Mr Gohil was sentenced to a total of 10 years in prison for crimes including conspiracy to defraud, conspiracy to make false instruments, money laundering and proceeds of crime. The sentencing judge said to him, "You were a solicitor of the Supreme Court and holding out as a man of integrity... You have brought shame on your family, your profession and your country.”

When corrupt people like this get into trouble, they often pay some of the best lawyers in the world to help them get out of it. Taking them on successfully requires authorities equally determined and sophisticated in their approach. These authorities in turn need the cooperation of witnesses prepared to stand in court and help with the prosecution.


To be continued . . .

A nice lesson on a good day thanks OP

It’s time to play by a different (ethical) set of rules (Part 1 - Intro)

In this new series I want to return to one of my favourite subjects, which we haven’t discussed for a while: CORRUPTION.

Nothing does more to damage Africa than CORRUPTION. Africa will not reach its full potential unless we deal with CORRUPTION. The majority of Africans will not be prosperous unless we deal with CORRUPTION.

Now, before I get into this topic, let me make it absolutely clear that corruption is not an African phenomenon. It is found everywhere. I have dealt with instances of corruption in America, Europe, India, China, Papua New Guinea, and in the Middle East. Just about everywhere I’ve ever been, I’ve seen corruption.

___Some of the most corrupt people I have ever met in my life were not Africans.

Corruption has no colour, no religion, no gender, no age. Corruption is corruption. And make no mistake - both giver and receiver are corrupt.

__Some of the most corrupt people I've met were very poor, while others were very rich. CORRUPTION IS CORRUPTION!

Corruption comes in many forms and guises. The truth is - many people are engaged in forms of corruption without even knowing it is corruption.

Corruption has many names, including fraud, theft, kickbacks, bribery, stealing, bid-rigging, vote-buying, nepotism, patronage, tribalism, racism, graft, embezzlement, price fixing, protection rackets -- these are ALL names for forms of human depravity we call corruption.

Corruption does not just occur in government. It happens also in the private sector, and even in not-for-profit organisations. A policeman who demands a tip at a roadblock is as corrupt as a Minister who demands a multibillion dollar bribe. I'm yet to find a verse in the bible which says there are different Hells...just one! And they will both end up there.

As a new generation of entrepreneurs, we must pledge ourselves to play by a different set of rules. If we want to change the cycle of poverty in our beloved continent, we have to say "No!" to corruption.

Your fight against corruption will cost you something: it will cost you friends; it will cost you projects; it might cost you your business.

___It may even end up costing you your very life.

Corruption will not end until there is a generation prepared to pay the price to END it.

What did Martin Luther King, Jr. say? “There comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must take it because conscience tells him it is right.”

The word “corruption” comes from the Latin word corrumpere, which can mean to bribe, but also to mar, destroy, rot, seduce, tempt, contaminate or infect.

What does corruption mean to you? Winston Churchill said, "Courage is what it takes to stand up and speak; courage is also what it takes to sit down and listen." Let's talk about it.

This is going to be a long series in which I share with you some of the most extraordinary instances of corruption I have had to deal with over the last 30 years. Most importantly I will show you how I responded.
I believe very strongly that we have a generation out there that is willing to fight to end corruption. We also have some amazing tools to take on corruption now at our disposal, including this social media.

Strive Masiyiwa
The Executive Chairman & Founder of the Econet Group.
Culled from Facebook




It's time to play by a different (ethical) set of rules (Part 2)

[size=13pt]A brush with President Charles Taylor of Liberia.[/size]

When you’re setting up a cell phone network, one of the most critical facilities you have to build is what is known as the Switch Center. This is where we house the huge complex of computers that process calls coming in and out. The equipment is housed in highly secure buildings that cost millions. It takes months to prepare such a facility before you can even install the equipment.

In 2001 after we got the license in Nigeria, we set about trying to find a building big enough to house the Switch facilities in Lagos. It was not an easy task to find the right type of building, and time was running out. We had paid $285m for the license, and had been given six months to set up our operations. Failure to meet the deadline would have resulted in a loss of the license.

Then one day our estate agent came and told me they had found the perfect building. It was actually the Liberian Embassy building in Lagos. The government of Liberia, then ruled by Charles Taylor, wanted to sell the building and move to the political capital, Abuja.

It took only a few days for our people to reach agreement over the price. Sale and purchase documents were drawn up and payment terms prescribed. It was a lot of money, which meant I would have to personally sign off on the payment. As I sat there in my office in Lagos, looking at the documents, I noticed that payment had to go to an account in Switzerland...

"Why is the money not going to Liberia?" I quizzed my staff. Initially, it seemed to be a detail no one had picked up.

___"Is it really our business where they want the money sent?" someone asked.

I refused to sign.

The ambassador came to see me at my office, with an entourage of officials. There was a sense of urgency on their part.

I explained to the ambassador that I wanted a Government of Liberia bank account number, and I also wanted a Cabinet Minute authorising the sale. (A Cabinet Minute usually covers essential matters for consideration by a government cabinet minister, such as purpose, recommendation, background and options. It records the outcome of Cabinet's consideration of the previous week's Cabinet committee decisions).

He seemed to agree that my request was reasonable and promised to cooperate.

The following day he called me and said the President's brother had been dispatched to "sort out the misunderstanding over the account details."

"Ambassador, there is no misunderstanding. This is government property, and all I want is the necessary documentation to show that the sale has been formally approved by all relevant authorities, and I want an account in Liberia."

He was now getting quite desperate and agitated, even suggesting they had another buyer in the wings.

I would not budge.

On another occasion, he invited me to travel to Liberia as a guest of the President. He thought it would impress me. Sometimes (not always), corrupters try to dangle the "flattery" of high-level meetings with top leaders or their close family members to reel you into their illegal activities.

"Sorry Ambassador," I replied politely but firmly, "I have a network to launch. We have paid $285m for the license and have a tight deadline. Please give me the documents I need."

Of course, by this time I had long worked out what was happening and was already looking for an alternative building. I let them stew for a few days, then told him I was no longer interested and moved on.

We ordered specialised containers to store our equipment and airfreighted them to Lagos. It was a more costly solution than if we had bought the Liberian Embassy building.

Many years later, Charles Taylor was forced to hand over power to his vice president after a civil war in which tens of thousands of people were killed. He was eventually sentenced to a total of 50 years in prison by the United Nations-backed Special Court for Sierra Leone near The Hague, in the Netherlands for his leading role in war crimes, crimes against humanity and other violations of international humanitarian law.


Corruption Kills!

The solution we used to house the equipment cost us more money than if we had simply bought the Liberian Embassy Building. But this was nothing compared to the fact that Charles Taylor would have used the money to buy arms to maim and kill thousands of people. God spared me a part in Taylor's 'blood guilt'.

When we turn a blind eye to corruption we are exposing millions of people to suffering and even death:
_Schools are not built or have no books;
_No proper health facilities;
_Bad or non existent roads leading to accidents.
_there is no money to develop things properly.
This is how we must look at corruption: it kills!

Afterthought 1.
The moment I saw bank details of an account in Switzerland with no name, I knew in my heart that this was Charles Taylor's personal account. That was when I decided I would never sign the agreement. When you're doing a deal of whatever size, take careful note of all transaction details. If it's a business deal, make sure all your team does too. Never let anyone try to "rush" or flatter you into a decision and signature. Sometimes corruption is in the fine print. Let the buyer beware!

By
Strive Masiyiwa
The Executive Chairman & Founder of the Econet Group.
Culled from Facebook

Mwangi Khimani
What people never realise is that Corruption money will eventually fly away.
Someone in a seminar I was in told us a story of a chicken that found eggs by a fence, the eggs had been laid by a partridge (quail)...
The hen decided to sit on the eggs and they surely hatched, the hen took care of the chicks like her own... but when they were growing up... they realised they were different and when they heard the cry of their fellow quails, they flew away to join their relatives..
And the hen was left alone, and that's how corruption money is... at one time, the money will fly away. and even if the money won't fly away in your generation, your children will squander It.
And the concept is picked from the book of Jeremiah 17.
It changed my whole concept and decided to avoid corruption money.

More of Karma....

Quite thoughtful....

This is food for thought and lessons for all upcoming leaders! !!

Jonah Didymus
For those who don't know.the house in question is still standing today opposite the old icon house,besides the access bank branch along ldejo street,off adeola odeku street, in victoria lsland lagos.lt is currently housing the nigerian security & exchange commission(SEC) along ldejo street,v/i. in lagos.a large part of those buildings are still not in use today.lt took many years for them to get a buyer.l think it was union bank or union homes that either bought it & resold it or something cos @ some point,a sign post with their name or logo was hung at the gate for a long time.thanks for the insight.but the big question is,when sec finally bought the property,whose account did they paid into?or was it a corrupt govt. in/of nigeria strenghtening the hands of its liberian partners in crime by cooperating with them in their own terms?

Thanks for the article I have gained a lot. So as many wise people gained.

Maghan37:
Thanks for the article I have gained a lot. So as many wise people gained.

Glad,
Saw it on Facebook and posted it here

It’s time to play by a different (ethical) set of rules (Part 3)

"We want you to be our local partner," he began. "You are smart, and you have lots of friends in governments across Africa. When there's a tender which interests us, we'll call you and we can work on it together. We will pay you a 10% commission on every deal that we win together."

The company he worked for was big and prestigious. It is one of the largest in Europe.

The gentleman talking to me was a director, and had traveled all the way to see me.

"What happens if your tender is not the lowest?" I asked quietly.

"Then you must do everything to make sure we (you and us) get it."

He smiled.

"You want me to be a Commission Agent?"

"No, no," he said, "our local partner."

I could see I was making him uncomfortable.

"We make only the best equipment. This Chinese stuff is rubbish. Ours is the best, but you know it costs a little more, that is why we need someone like you with a little influence."

I looked at him.

"You are looking for a Commission Agent. I don't do that kind of business because it means that somewhere along the line I will be required to cut deals which are corrupt."

His face turned red, then white as a sheet. Then he got up hurriedly and left my office.

He could hear me laughing loudly as he left.

“Commission Agents...” Know them for what they are.

There are some countries where all business is done through so-called Commission Agents. This is organised corruption.

Do not admire people who make money as "Commission Agents," despite the conspicuous consumption that often follows their way of life. Commission Agents are not entrepreneurs. Also be wary about companies that simply want to use you as an agent and middleman. That is not entrepreneurship.

The business of "providing access" is one of the worst forms of corruption. Large international companies that have so called "local partners" whose role is simply to provide "access to the right people" are not innocent of corruption, even though their fancy lawyers might say otherwise.

Let's play by a different set of rules! Let's kick corruption and corrupt practices out of Africa.

Afterthought 1

Festus Mogae, the former President of Botswana, is one of my favorite Heads of State, ever. When we won the license to set up a mobile network in his country in 1998, I never once had to go and see him throughout his term of office. I did not realise that he appreciated this until one day I was sitting at an international conference he was also attending. He then singled me out and said one of the nicest things: "You see this gentleman here? He runs one of the largest businesses in my country. When he comes he never asks for access to the VIP lounge, he never comes to see me. He does not go to see Ministers. He just does his business. I personally like that very much; it means our policies are working."


Afterthought 2

We need to create policies that work for everybody, big and small, local and international. They must work for everybody in the same way, and in a transparent manner. Why should the “big guys” always go and see ministers and presidents about private sector business matters? These are the practices that create an impression that there's corruption, sometimes even when it doesn't actually exist.

Strive Masiyiwa 
The Executive Chairman & Founder of the Econet Group.
Culled from Facebook

The source:

https://www.facebook.com/pages/Strive-Masiyiwa/496453373762496

It’s time to play by a different (ethical) set of rules (Part 5)

Imagine participating in a tender in which one of the bidders wrote the actual bid documents!

It happened to me once...

It happened in Zimbabwe when we were fighting for the license to operate. After the Supreme Court first ruled that the state monopoly in telecoms must be ended, the judges then ordered the Minister of Telecommunications to issue a cell phone license by public tender. The judges gave a deadline by which it had to be done.

A few weeks later a tender was published in the newspapers by the minister. We had no choice but to participate in the process. We wondered at the time how the minister had managed to prepare the tender documents in such a short time. Little did we know that the bid documents had been prepared by one of the participants!

On the day of the closure, there were four bidders and they placed us last out of the four, awarding the tender to a company controlled by a well-known African businessman. The minister appeared jubilantly with the winner, and announced a "new era in telecommunications".

After the announcement of the bidders, I met with my lawyers and we decided to urgently petition the court to undertake a judicial review of the award of the tender. Few people at the time appreciated the existence of this procedure on a public tender.

Our lawyers approached the court and asked that all documents used in the award process be put under court seal. When the order was granted our lawyers rushed to the place where the tender adjudication committee had been holding their meetings and asked the court officials to place all documents including any notes of the members of the committee found in the room under court seal. It happened so quickly that no one had an opportunity to hide anything!

Months later when the hearing was due to start, lawyers from both sides were allowed to study the sealed documents.

Amongst the documents found was a telefax draft document of the original bid document. It had been sent to the chairman of the committee by the company that was ultimately awarded the tender.

__The date on the fax showed that it had been sent before the tender was published!


During the process of marking, our company had mysteriously been docked points to ensure it came last. When we showed these documents to the judge, he cancelled the license and licensed us instead, as we had actually won, even the rigged tender!


The minister in question accepted the decision of the court, and we were allowed to operate. However, she went ahead to reinstate the license that had been cancelled by a court to the bidder that had cheated so blatantly. No member of the committee including its chair was ever asked to explain.

Amazed?! You should not be. This kind of thing happens all the time.

To be continued…

Afterthought 1.
One of the most corrupt practices involves people who work with some corrupt officials even to prepare government legislation or laws simply to benefit them personally. People who do this kind of thing always see themselves as being so clever, as never to be exposed. What they do not realize is that someone is fully aware of everything. The day those people have the courage to speak out, Africa has changed forever. Maybe you are that person...what was it the Master said?

..."There is nothing hid that will not be exposed."

Afterthought 2.

One of the most important topics I will tackle in future is the importance of having a judicial system that is prepared to ensure justice. Personally, I believe the courts are the most important institution when it comes to a nation's ability to attract real investment. When we have brave courageous judges our nations prosper...that is biblical.

A spiritual reflection:
I'm often asked why I have always found it easy to walk away from a great opportunity once I know it is corrupt. My answer might surprise some of you:
FAITH.
There is something Jesus said, which has always guided me when I'm confronted with a situation where I have to simply walk away. I believe I will never suffer loss because I walked away from a corrupt deal, even if it was potentially worth billions. Jesus promised in Mark 10:29-30, that I will end up with something that is worth 100 times more...I believe Him. So I always have a big smile on my face.

Job put it this way:

".....and those with Clean hands become stronger and stronger".Job 17:9)

Selah (pause and think about it).

Godlove writes,

Exactly six hours ago, a visiting business person from Bamenda, Cameroon, concluded in similar fashion to your 'Afterthought 1', to wit:

"There is a large, silent majority, that continues to state the contrary of what they observe and know to be the truth.

They continue to say 'apples', when in reality they are looking at bananas, and know them to be such.

When that majority finally breaks ranks, and speaks out with determination and finality, it'll be game over for 'business-as-usual' in Africa. The tides will turn definitely and irreversibly for the good of Africa."

Maybe there's something in that red lunar eclipse I just witnessed after all!

Joshua writes,

Corruption has eaten so deep ,even the judicial system is corrupt... When we have corrupt judges who then do we table our complains too

When I embark on a journey by road transport , I would always want to purchase something to eat along the road, I stretch out my hand saying, Hey Boy!!(11Year old) !!!! Can I have some bananas or some oranges, Couple of times, the little boy would always give me the worst of them all packaged in a sack . Unveiling the package,I always wonder . Why should I be given something bad Why would he/she sell the bad stuff to me, maybe because I am in a moving vehicle and he feels I am in a haste... Why should A child of that age (11) have this twisted mind.. This is unacceptable,and it's very predominate were I live somewhere in Africa... Corruption has eaten so deep,I still believe it begins with me to stop this growing menace.

Kindly Advice on what to do,when faced with situations like this ..

My reply:
The thing that should also bother you, is why is that child not in school? An 11 year old selling fruit on the streets! We have to start changing these things.
And most importantly, is there anything I personally could do to send a child to school.
I recently read about a young Indian lady who decided to set up a play group under a tree, and in time it became a national organization. Now she did not have money but she had passion to make a change. In truth that is all it takes. It is the same way we will deal with corruption.

It’s time to play by a different (ethical) set of rules (Part 6)

__ The Rule of Law Drives Investment.

"If you don't meet my demands, I will have you thrown out of the country!" The man shouted at me over the phone. He was the chairman of our local partner in Kenya. This was after I asked him to put up his share of the investment in our joint venture.
It was more than 10 years ago but I still remember like it was yesterday.

Building the network was going to require over $100m in shareholder funds (equity). Our partners, who owned 70% in terms of the agreement, wanted us to put up the entire $100m, even though we would only have 30% of the equity. This had not been our original written understanding when we bid for the license in a public tender.

I suggested that we find other partners in Kenya who had the money to meet their investment obligations, but the partners refused.

When we appealed to the regulator to let us bring in new partners, the Minister of Telecommunications stepped in and began to support the position of the local shareholders. I knew that legally the minister was overstepping his role. It was also clear to me that he was not acting in a rational and fair manner.
By the time of that phone call, the stalemate had been going for months. Numerous meetings to resolve the issue had come to nothing. We were going in circles.

After the phone call, I wrote a letter to our partners and told them they must put up their share of the money or they would have to accept dilution. It was a Friday.

The following day, a Saturday, I was walking my daughters (then infants) in a local park in South Africa when I got an urgent call from our staff in Kenya: "The minister has issued a statement in which he has cancelled our license and ordered us to leave Kenya."

"Do you have a copy of the statement?" I asked calmly. "Gather the legal teams, and fly to Kenya right away."

By ten o'clock Monday morning we had been slotted for appearance before a judge of the High Court of Kenya. An hour later, the judge issued his ruling. He reinstated our license and rebuked the minister in open court.

The minister appealed the ruling of the judge and a higher court of judges threw him out of court. During the appeal process the minister sent an envoy asking me to come and see him "to resolve the issue."

I refused saying: "All he needs to do is publicly withdraw his invalid statement and withdraw his court application."

Not long after the minister was dropped in a cabinet reshuffle. I was later told the president of the country at the time had slammed the minister for "sending the wrong message to investors by behaving like a cowboy!"

Fast forward:
One day I was in my office many years later when we got a call from a very large global organisation. It was their legal department who said to me, “We are planning to make a very large investment in Kenya. As part of our due diligence we are looking at the Rule of Law. Would you mind sharing with us your experiences in terms of how their court system works?”

Our lawyers shared with them our experience, together with our recommendation that they invest in Kenya based on the strength of its legal system to protect investors.

Soon after, they set up their investment.

You see, how a country's legal system works is very important to how investors perceive risk in a country. These days, investors have access to decisions made in your country's courts. During due diligence, they study these judgments carefully. They also study press statements made by those in leadership and talk to other investors who are already invested in your country. No serious investor simply puts up money without looking at the rule of law in a country.

What exactly do I mean by rule of law? Aristotle said more than 2,000 years ago, "the rule of law is better than that of any individual." It means that government officials are held accountable under the law; that laws are just, and applied equally to all; that laws protect everyone's fundamental rights; that the legal process is fair and efficient, and that courts operate with independence and integrity.

Kenya is a country where we have invested heavily over the years. We continue to do so with great confidence, and for me it was the strength of the judicial system when it comes to protecting investors that has been the key.

To be continued...

Afterthought 1.
As an entrepreneur, you must always know your legal position in a dispute. Where possible, try and negotiate, only going to court as a last resort. But even as you negotiate, always ensure you have a full understanding of the legal position.

Afterthought 2.
Crises like this one are part and parcel of business. Whether they are big or small, the key is always to take them in your stride. Don't panic or flap about. And don't be intimidated because someone holds a powerful position or has powerful relatives.

Afterthought 3.
The speed with which the Kenyan courts acted was amazing. The judge had excellent training in commercial contracts and disputes. This is how it should be.

Knowing how real investment decisions are made in big companies, it does not surprise me that some of the largest investments that are not resource industries are increasingly being made in Kenya.

Afterthought 4.
No citizen of a country should feel he or she has the power to threaten other people in the manner I was threatened at the time. I don't think even the Head of State of a modern, law-abiding country makes threats to throw people out of a country without due process of the law. When that guy said he was going to get us thrown out of Kenya, I was ready for a battle all to the way to the Constitutional Courts. After I took a stand, so many Kenyans called me to show their support even at very high levels in the government.

Danlami Saad,
Writes:
Plesae i want you to write about your experience in nigeria because i was at a time following your case at the court but stop and i was later told that you have won your case.

My reply:
I always save the best to last Danlami.
Nigeria is next. I have 4 posts on the Nigerian saga. We fought legal battles in courts in 4 different countries at the same time:
Nigeria, South Africa, UK, and Netherlands.
We also had international arbitration in 3 different international jurisdictions: London, The Hague, Denmark, and Nigeria.
WE PREVAILED!
-six people including a Governor (James Ibori) were jailed.
-Nigerian courts ruled in our favor all the way to the Appeals courts. Producing world class judgements.
- we received record compensations.
- our shares were given back by the courts, and we remain a shareholder to this day.
"We can do nothing against the truth but for the truth."

It’s time to play by a different (ethical) set of rules (Part 7) Nigeria 1 of 5

___Sometimes the price can be very high in the fight against corruption.

I had the privilege of making Nigeria’s first GSM phone call back in 2001 when I called the regulator to say, “We’re live!” Who would’ve believed then that Nigeria today would have more than 167 million mobile phones?!

It all started out as a very exciting new chapter for enterprise in Africa. Shortly after President Obasanjo was elected, the new government announced an incredibly transparent international auction process for three national mobile phone licenses.

To participate in the bid, you not only had to raise money, but there had to be a member of the bidding consortium who was an experienced GSM operator. Econet Wireless met the requirements because of its experience in Zimbabwe and Botswana. Our Nigerian partners, which included state governments, local banks and high net worth individuals, were financial investors. The largest shareholder had only 10%. That was the written agreement.

I managed to assemble a consortium of 22 investors to put up the money needed to bid. Our shareholders were all Nigerian, mostly institutional investors including leading banks and two state governments, Lagos State and Delta State. The license cost us $285m and was the most expensive license ever issued in Africa at the time. This was 2001.

We considered the investment not only about putting together a network, but also about building a nation. We knew it had the potential to transform Nigeria’s entire business and social architecture.

Most of our investors had between 1-10% shareholding. Econet Wireless Nigeria had only 5% of the shares, but that was fine because it was 5% ownership of a very big pie.

As the "technical partner and operator," Econet was the company with the expertise to build and operate such a business. Our financial investors recognised this, and also allowed us to receive 3% of the turnover as our fees. This was standard practice in the industry.

We were one of the winning bidders and they gave us just six months to set up business and get our network operating. We were under a lot of pressure but our network was live two days before the others! Customers were pouring in. We were number one in the market with an estimated 57% market share.

___Then came the fateful day when I was told that our company must pay a total of $9m in bribes to senior politicians (in state government) who had facilitated the raising of the money to pay for the license.

I refused to authorise the illegal payments. Meeting after meeting was held to try to get me to agree, but I would not. The money would not be paid as long as Econet was the operator and I had signing authority.

James Ibori, the Governor of Delta State, was demanding $4,5m be paid to him in his personal capacity. He was one of the most powerful men in the country and had a reputation for violence. When he heard that I was refusing to approve payment he issued an ultimatum:

___"Pay or I will chase you and your people out of the country."

I refused.

The shareholders met and voted Econet Wireless Nigeria out of management. They cancelled our management contract. James Ibori and his colleagues personally attended the meeting to remove us. After the meeting one of them (a prominent local businessman even today) came up to me and said: "Unfortunately for you, God does not have a vote."

I had to withdraw all my staff and their families: 200 people in all. We left Nigeria.

Most of our people had to be retrenched. The loss of the contract almost drove us to bankruptcy as a group.

They invited a big international operator to replace us as technical partner and operator. They changed the name of the company from Econet to V-Mobile.

Within days of their arrival, the managers of the new operator signed off the payments demanded as bribes.

Then what happened?

A few noble Nigerians had both the integrity and courage to carefully collect all the documentation on the movement of the money, and pass it all on to me.

___There’s a saying worth remembering in uncovering the trail of destruction that is corruption: “Follow the money”…

I bided my time... then I wrote a letter to the United States Department of Justice!

It was 2003.

To be continued…

This latest expose is a condemnation of corruption in nigeria!
I pray that Ibori character rot away and never released from jail!

I have always been wondering why Econet became stagnant and was changing names like a chameleon while mtn and the others took off?

When we turn a blind eye to corruption we are exposing millions of people to suffering and even death:
_Schools are not built or have no books;
_No proper health facilities;
_Bad or non existent roads leading to accidents.
_there is no money to develop things properly.
This is how we must look at corruption: it kills!

This is the part for me and it is what we all need to understand.

Those who stand to defend Sarakis, Diezanis, IBBs and other who have caused untold hardship to the common man are as guilty as those looters.

PassingShot:


This is the part for me and it is what we all need to understand.

Those who stand to defend Sarakis, Diezanis, IBBs and other who have caused untold hardship to the common man are as guilty as those looters.

Until we all rise up to fight corruption, I see no real development in this generation.

Strive Masiyiwa
Spiritual Reflection
I could easily have agreed to pay the bribes and I would have remained in the company earning millions every year. My shares could have increased and I would have earned billions. It was all there for me. All I needed to do was to accept that the payments be made. After all, the money was not coming from my own pocket I also knew the price I and my company would have to pay:

-Lucrative contracts would be lost.
-Our reputation and prestige would be affected as these people would tell lies about the reasons we had to leave. They had powerful friends everywhere including some of the press;
-Many people would lose their jobs.
-My company could collapse.
-I faced personal danger.

Knowing all that, I still said NO!
In Matthew chapter 4, Satan says to Jesus, "If you bow down to me, I will give you all the kingdoms on earth and their wealth."
Those who engage in corruption ( or ignore it) have bowed down to Satan. Whenever I see someone who is corrupt, or chooses to be quiet about it, all I see is someone groveling at the feet of Satan.
Let's be the generation that fights corruption... and ends it! Will you join me?

Only God knows what MTN is doing to remain relevant in nigeria?

Strive Masiyiwa
Afterthought 1

So many of you have shared stories and concerns about systemic corruption in your own countries. I've read them all. You’ve also asked what can be done to stop it. First, in your spirit, you must reflect and discern - is this action wrong or is it right? If you have to ask yourself, it often means you already know something is wrong. Do not ask yourself, "Does the end justify the means?" For a Christian, that is the wrong question. As I said in the opening post on this subject, CORRUPTION is

Pangea:
This latest expose is a condemnation of corruption in nigeria!
I pray that Ibori character rot away and never released from jail!

I have always been wondering why Econet became stagnant and was changing names like a chameleon while mtn and the others took off?

This revelations raises more and more questions. Did MTN pay the bribes to powerful people in government? How did they manage to hang on?
He mentioned Lagos and Delta, Who was the governor then in lagos? Why is he walking free while Ibori is in gaol?
There were allegations that MTN paid a certain percentage 'kickbacks' to the President (OBJ) on *1* to stay afloat, why was it swept under the carpet?
The halliburton scandal also comes to mind, OBJ the then president was implicated there as taking kickbacks, why is he not standing trials?

questions, question and more questions.