Titanic Triton
The Central Bank of Kenya has issued a statement to reassure depositors at some banks that have had some panicked customers want to withdraw and safeguard their funds at their banks which they believe may be exposed to the Triton fraud and fall – which CBK says is less than 0.002% of the banking sector. Read more
Nation online says 3 small banks exposed to KES500m. Banks, any indication which ones? Keener.
I saw the article and then saw who wrote it and left it at that. I am going to read between the lines because the story is bigger than just this Ksh1.8bn.
So far, note that KCB has moved and dazzling speed to freeze devani’s assets. That tells me that collateral was zero or absent. Meanwhile the beancounters will spend many nights trying to figure out how much they should provide for in bad debts
What collateral? Security is only as good as the trustee. If you put up land as collateral in a bank but the registrar issues you with another copy and you sell the land then the bank remains exposed. The stock held by KPC was the security until collusion happened. The system failed the banks. @KPC off with their heads!This guy was a fraud and as often happens, he had politicians on his payroll.
The collateral/security as I understand it was the stock which KPC was not supposed to release without the banks consent. The banks in my opinion should demand their pound of flesh from KPC. The corruption that has been going on there is unimaginable.
To me the people to blame are KPC. KCB trusted them and the entire country but they went behind the scene to enrich themselves. I won’t be totally surprised if one or two politicians are involved. Besides, this Devani guy contributed to Kibaki’s campaign kitty. Have you noticed the number of shares being transacted on KCB counter? the free price fall? Punic at its best.
LOL… well… don’t say I didn’t tell you guys/gals that government institutions & agencies were at fault… and not the hapless Oil Marketers (e.g. Kenol, Total, etc)
While the gov’t (thru KPC, Ministry of Energy, PM, etc) blamed Oil Marketers for the shortages & gullible Kenyans echoed the same sentiments like blind sheep… I was insistent on who was to blame…
I fear Price Controls & giving NOCK the right to import 30% of Kenya’s fuel requirements is a recipe for even more scandals!
Anyway, there is always more to the story… http://www.coldtusker.blogspot.com
If this is a reflection of how business is being run in other parastatals, I can bet you, these are people who to quote a former envoy to Kenya, ‘spitting on our shoes’. At times like this, I wonder whether we by misfortune only get to have selfish idiots running our national institutions without care and abandon for the mwananchi, who include their sons, daughters, cousins and grant parents.
no records to show triton acknowledge receipt of 126 million litres. how are the financiers expected to recover there debt? some guyz from the ministry and kpc official must have been in Devani payroll…the guy is a big spender…
according to rich live data todays demand for kcb is higher than supply, it seems the news had no much big impact on investors perception on the value of kcb stock..
MainaT: three banks appear to have bought Triton commercial paper, equatorial, ecobank and one other.
Kipkemoi: that’s correct a banks’ consent is required, KPC owes the banks
Inspectordanger: I think Triton did some speculation – like rogue stockbrokers, and ‘borrowed’ but did not replace people’s fuel
Coldtusker: sorry but within GoK, the solutions are still (i) the Libyans will fix the refinery, (ii) the Chinese will fix the pipeline and (iii) NOCK will regulate the other marketers and consumer prices, this scandal changes nothing
Hatua: scary, but with the media bill, even an e-mail has more legal credibility now