Failing to Prove a Point does not Mean Otherwise Mr. Ben Gethi.!!!
Never miss a chance to be in a jury. To give a verdict in the court of public opinion never fails, but always get all facts right and take your time to think.
Last month in JKL Live, Jeff Koinange invited me to be in the jury as he was interviewing this 31 years old man from a village in Nyeri by the name of Ben Gethi who was accused of stealing Sh 581 billion of NYS money.
Knowing how directly I was affected by corruption in this nation I was ready to participate on that mandate. I felt like the powerful judge before that mountainous decision of proclaiming guilty or not guilty.
I was surprised when this young man said he (they) own a company whose net worth is Sh 3 billion.
First a private company is one that decides not to access the public market for financing. They are always out of public eye for scrutiny and most analysts overlook them.
Different methods exist to value them like comparative one where they are compared to a similar public listed company or discounted cash flow where revenue growth is use for valuation. The valuation of such firm is characterized by a lot of guess and lack of transparency making it difficult. Hence when he mentioned during the interview that he has grown the company from Sh 500,000 in span of five years and he doesn’t even have a business management course let alone a MBA or even long experience in business.
I knew this case would be difficult.
When he insisted that he and company are a different entity, I became suspicious as I am convinced most investor would be proud of such achievement and at this point I knew he has been talking to someone.
So after all that hullabaloo Ben Gethi will be charged with tax evasion. Whoever is playing this NYS thing is very good at it…
— Pharis Kimaru (@Pharis) December 29, 2015
On 28th Jan 2016 month he will face the court to answer on criminal charges and other corruption accusations. I am furious I won’t be in that court because by the end of the interview I was left with so many unanswered questions.
How was he able to beat the market by more than 100 times each year consistently? How do you achieve 1000% growth annually? Which methods of valuation do they use? The petroleum they sold to NYS for the last two years was it affected by global fuel prices decline or even regulated by the ERC?
They supplied equipment to NYS what are their specificity and how much did they make in margin? What were their business objectives when they got registered? Who are the other directors, how many are they and what is their investment capital in the Horizon Ltd? What is the state of assets of their company; is it in cash or fixed assets form?
Who is their auditor and which other companies do they audit? Who is this person of influence who helps his company supply petroleum to NYS? What was the capacity of the fuel supplied? What is the model of their business; do they have a secret component that has not been discovered in the market?
Apart from the government who else are their customers? What is his understanding of the market; does he know document lies including the one from KRA?
In conclusion Jeff invited us to be the judges but did very little to help us decide! He failed to use the opportunity to help the jury make the verdict.
I hope in court he will answer these questions and many more and they will squeeze the truth out of him. I could not prove if he is a thief, but it does not mean otherwise!
CREDIT: GATHATHAI MWANGI