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The Acorn Saga - Britam vs Cytonn
Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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We all have to start somewhere otherwise complaining about unethical behavior among politicians is merely useless grandstanding. I am glad that Britam is going to court. Whatever the case, the brand equity that Dande and Company had earned has been debased. Change has to start somewhere. In small doses? That's OK. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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As long as you recognize your hypocrisy or one-eyed view, its all good. All Kenyan. Sehemu ndio nyumba
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Rank: Member Joined: 2/8/2007 Posts: 808
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This saga has nothing to do with theft of clients. That I believe Britam would not make Britam throw their toys out of their cot. It's about money allegedly diverted going by the case details. I here there is possibly more that was shipped out. Let's just wait and see. Coulson Hourney and KPMG are two reputable institutions who would not reach such conclusions without tangible evidence.
I am going to pick a bucket of pop corn and a big 2 litre coke because I here Afrosinema continues this week oooh.
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Rank: Elder Joined: 9/15/2006 Posts: 3,901
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Kausha wrote:This saga has nothing to do with theft of clients. That I believe Britam would not make Britam throw their toys out of their cot. It's about money allegedly diverted going by the case details. I here there is possibly more that was shipped out. Let's just wait and see. Coulson Hourney and KPMG are two reputable institutions who would not reach such conclusions without tangible evidence.
I am going to pick a bucket of pop corn and a big 2 litre coke because I here Afrosinema continues this week oooh. 3.2 bn 3.2 bn 3.2bn 3.2bn... Agreed @Kausha, case is against Acorn Group for fraudulently, irregularly and without authority transferring money belonging to Britam-BAAM through Acorn Group (at Chase Bank) to seven entities (LLP) outside Britam's control; after classifying said amounts as expense rather than investment. Cyton must have been enjoined in the progressing suit. http://www.businessdailyafrica....18/-/dmpqpd/-/index.html
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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A journey of a 1,000 leagues starts with one step. A beautiful lotus can emerge in a cesspool. Let the cesspool be filtered. One drop at a time. Ethics are important for longevity of a firm. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 12/2/2009 Posts: 2,458 Location: Nairobi
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These are probably two non ethical entities playing their usual game.
It is all a matter of ethics not legalities... Ethics
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Serious fraud - check Offshore firms - check Funds lost - check I refuse to accept the top management or the board members were not aware of such sizable funds movement. And things begin to stink like CMC. #GoldenHandcuffs $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 8/16/2011 Posts: 2,260
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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The reputation of britam is on the line. Mr Market too is not amused with the drama.
The charts warned a few weeks back on the nasty reversal even before the news popped! This counter is heading below 20 coz the fallout means lost business now and forward. Their PR has a full plate to deal with the reputation damage.
A biz nightmare is to be on an acquisition spree then suddenly face serious fraud. Books get out of balance denting all forecast scenarios... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Does Britam have to take a write-down or write-off on the 'missing' KES 3.7bn? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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hisah wrote:Serious fraud - check
Offshore firms - check
Funds lost - check
I refuse to accept the top management or the board members were not aware of such sizable funds movement.
And things begin to stink like CMC.
#GoldenHandcuffs A couple of people here say it's not fraud... possunt quia posse videntur
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Rank: Member Joined: 2/1/2010 Posts: 272 Location: Nairobi
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maka wrote:hisah wrote:Serious fraud - check
Offshore firms - check
Funds lost - check
I refuse to accept the top management or the board members were not aware of such sizable funds movement.
And things begin to stink like CMC.
#GoldenHandcuffs A couple of people here say it's not fraud... Yet others say, yes, it's fraud but so what…It's the 'Kenyan Way', Britam should suck it up na wakubali matokeo The harder you work, the luckier you get
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Intraday low of 23 prints... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 8/16/2009 Posts: 994
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VituVingiSana wrote:Does Britam have to take a write-down or write-off on the 'missing' KES 3.7bn? The loss per share will translate to Sh3.9b/1.9b shares = Sh2.05 per share. If the assets cannot be recovered by the time the accounts are closed in Dec then the loss may have to be booked. A write back can be done in subsequent periods if there is a recovery. According to BD; “I discovered that the respondents had in their instructions to the administrator fraudulently passed the payment of Sh1.16 billion as being on account of expenses, yet they had signed a schedule indicating that the payment was an approved investment by the BREF Investment Committee,” said Jude Anyiko, acting CEO of BAAM, in court papers. It seems of 3.9b, 1.16b has already been booked as an expense. Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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Gatheuzi wrote:VituVingiSana wrote:Does Britam have to take a write-down or write-off on the 'missing' KES 3.7bn? The loss per share will translate to Sh3.9b/1.9b shares = Sh2.05 per share. If the assets cannot be recovered by the time the accounts are closed in Dec then the loss may have to be booked. A write back can be done in subsequent periods if there is a recovery. According to BD; “I discovered that the respondents had in their instructions to the administrator fraudulently passed the payment of Sh1.16 billion as being on account of expenses, yet they had signed a schedule indicating that the payment was an approved investment by the BREF Investment Committee,” said Jude Anyiko, acting CEO of BAAM, in court papers. It seems of 3.9b, 1.16b has already been booked as an expense. Those sort of expenses are often capitalized when considered as part of a project. It is a "Capital Expense" e.g. architectural renderings, etc that add value to a building. So the 'expense' may be offset by an asset. If the 1.16bn or 3.7bn has NOT been capitalized [& how can it be when the asset is no longer in BAAM's name or control] then the 'expense' goes straight to the bottomline i.e. P&L. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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VituVingiSana wrote:Gatheuzi wrote:VituVingiSana wrote:Does Britam have to take a write-down or write-off on the 'missing' KES 3.7bn? The loss per share will translate to Sh3.9b/1.9b shares = Sh2.05 per share. If the assets cannot be recovered by the time the accounts are closed in Dec then the loss may have to be booked. A write back can be done in subsequent periods if there is a recovery. According to BD; “I discovered that the respondents had in their instructions to the administrator fraudulently passed the payment of Sh1.16 billion as being on account of expenses, yet they had signed a schedule indicating that the payment was an approved investment by the BREF Investment Committee,” said Jude Anyiko, acting CEO of BAAM, in court papers. It seems of 3.9b, 1.16b has already been booked as an expense. Those sort of expenses are often capitalized when considered as part of a project. It is a "Capital Expense" e.g. architectural renderings, etc that add value to a building. So the 'expense' may be offset by an asset. If the 1.16bn or 3.7bn has NOT been capitalized [& how can it be when the asset is no longer in BAAM's name or control] then the 'expense' goes straight to the bottomline i.e. P&L. Exactly... And should the market become red in 2015, more equity income losses will compound the hole created by the fraud in the P&L.$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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Quote:Danish ship fuel supplier OW Bunker said it may go bankrupt after discovering fraud by unnamed senior employees in its Singapore-based subsidiary and that investors need to assume that the company's equity has been wiped out. Read more: http://www.dailymail.co....raud.html#ixzz3INcqJJqh Follow us: @MailOnline on Twitter | DailyMail on Facebook This is what happens when you do not pay attention to risk management. This Danish IPO went off the cliff-Nithi buses
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Still silence from CMA. Still silence from Britam PR. Investigative biz journos in KE, a big dead lot  What I expect from Britam PR, an explanation of whether the funds lots were commingled. What I expect from CMA, to find out if Britam was commingling funds. If Britam commingled/commingles funds, this fraud event will nail client funds! Bad business. CMA site doesn't contain any policy(ies) that define commingling!? Poor show!?  Reminds me of the most recent infamous case of MF Global aka Corzined funds... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Member Joined: 8/16/2012 Posts: 660
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hisah wrote:Still silence from CMA. Still silence from Britam PR. Investigative biz journos in KE, a big dead lot What I expect from Britam PR, an explanation of whether the funds lots were commingled. What I expect from CMA, to find out if Britam was commingling funds. If Britam commingled/commingles funds, this fraud event will nail client funds! Bad business. CMA site doesn't contain any policy(ies) that define commingling!? Poor show!? Reminds me of the most recent infamous case of MF Global aka Corzined funds... "MohaJichopevu" set the investigative journalism bar quite high. The business journos may never catch up to his standard of general public interest stories. As for the CMA   Live and learn; and don’t forget, nothing ventured, nothing gained.
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Rank: Chief Joined: 1/3/2007 Posts: 18,055 Location: Nairobi
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And another wrinkle in the saga. I have a feeling Britam knew that using Ngatia (in front on Onyocha) would benefit them! Coz Ngatia can talk to Onyocha on the basis of a confidential client-lawyer relationship... And that can always be used as a cover to discuss other things! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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