Rolldrunk wrote:1) I think we're a little ahead of ourself, first how much does the government of Kenya own in KQ?
2) Is there any existing agreement between the government of Kenya and KQ to maintain a certain level of domestic employees? Remember KQ was once own by the government so unless I know if they had some agreements, I would be slow in bashing RAO. Note that it is common in developing economies for governments to negotiate employment levels with companies operating in their markets in exchange of favors like; tax breaks, credit, regulational favors, Resource licenses to name a few.
3)Even if there were no agreements to maintain a certain level of employees, Kenya government if it is indeed the largest investor/share holder, have a right to protest if they think the company is no utilizing capital optimumly and that include human capital. However I believe there are other avenues to protest other than public letters but RAO is a politician it is not going to advance his cause if he protest privately because MK might call press conference and take credit publicly if his private protest is successful!
Ans:
1) The last time i checked, GOK had 29% shareholding. And no tax breaks etc it runs like every other org.
2) No existing agreement on employees etc etc
3) Even if the govt has a right to protest. Its certainly not the way RAO did and remember there KQ was given a go ahead to retrench. Is he trying to muscle the Judiciary?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.