just another episode in bonobostanMystery over US disclosure of Sh139bn Kenya loan deal deepens
Tuesday April 06 2021
Treasury says a letter Kallo Inc submitted to the US Securities Exchange Commission is fake and a forgery of Mr Yatani’s signatures.
By OTIATO GUGUYU
More by this Author
IN SUMMARY
A US-listed firm at the centre of a disputed Sh139.5 billion (1.06 billion euros) loan deal with Kenya has made fresh disclosures to the American stocks regulator that the Treasury has dismissed as fake and containing forged signatures.
- Kallo Inc reckons in the new disclosures to the Securities Exchange Commission (SEC) that Kenya has frozen the contract for building mobile clinics and upgrading hospitals in the wake of the coronavirus crisis.
- But Treasury termed the letter fake and a forgery of Mr Yatani’s signatures.
Kallo Inc reckons in the new disclosures to the Securities Exchange Commission (SEC) that Kenya has frozen the contract for building mobile clinics and upgrading hospitals in the wake of the coronavirus crisis.
The filings with SEC were done on March 25, just two days after the powerful SEC suspended the Canadian firm from trading in the United States for failing to shed light on its earlier disclosure of the Kenya loan agreement.
“We received a letter dated March 22, 2021, from the Cabinet Secretary for the National Treasury & Planning, the Republic of Kenya informing us that the project and agreements that we previously entered into… namely, the Project Contract and the Loan Contract (the “Project”) have been put on hold,” Kallo Inc informed SEC.
It attached the letter, purportedly from the Treasury Cabinet Secretary Ukur Yatani.
On Monday, the Treasury termed the letter fake and a forgery of Mr Yatani’s signatures.
“The letterhead has no reference number used in official government communication and the signature is fake. We will send you letters signed by the CS and you can compare,” the Treasury’s communications team said.
Firms are required to make filings with the powerful SEC if their securities are publicly traded in America, raised funds in the US or have shareholders required to file corporate actions with regulators in Washington.
The Treasury said it would once again inform SEC of the fraudulent disclosures from Kallo Inc and that similar reports would be made to Kenya’s Director of Criminal Investigations.
The Business Daily on March 18 reported from disclosures on SEC website indicating that Kallo Inc had in June last year signed a Sh139.5 billion (1.06 billion euros) loan deal with Kenya to build mobile clinics and upgrade hospitals in the counties at the height of the coronavirus crisis.
The Treasury denied the existence of the loan, and protested to SEC—which suspended Kallo Inc from trading between March 24 and April 7 to “protect investor interest.”
On hold
“There is a lack of accurate information of questions regarding the accuracy of statements the company has made in filings with the commission, including a Form 10-K for the year ending December 31, 2020, filed on March 3, 2021,” SEC said in a statement on March 24.
“The commission has serious concerns, for example, about the accuracy of the company’s claim that it has entered into a contract with the Republic of Kenya to establish a comprehensive healthcare structure.”
But Kallo Inc in the latest filings maintains the loan agreement existed, and that it has only been placed on ice.
“Please note the project is not being terminated but put on hold for a certain period of time,” said the letter purportedly signed by Mr Yatani that Kallo Inc filed with SEC.
Kallo Inc failed to respond to Business Daily'squestions on the loan deal.
Mystery over US disclosure of Sh139bn Kenya loan deal deepens
Tuesday April 06 2021
Treasury says a letter Kallo Inc submitted to the US Securities Exchange Commission is fake and a forgery of Mr Yatani’s signatures.
By OTIATO GUGUYU
More by this Author
IN SUMMARY
A US-listed firm at the centre of a disputed Sh139.5 billion (1.06 billion euros) loan deal with Kenya has made fresh disclosures to the American stocks regulator that the Treasury has dismissed as fake and containing forged signatures.
- Kallo Inc reckons in the new disclosures to the Securities Exchange Commission (SEC) that Kenya has frozen the contract for building mobile clinics and upgrading hospitals in the wake of the coronavirus crisis.
- But Treasury termed the letter fake and a forgery of Mr Yatani’s signatures.
Kallo Inc reckons in the new disclosures to the Securities Exchange Commission (SEC) that Kenya has frozen the contract for building mobile clinics and upgrading hospitals in the wake of the coronavirus crisis.
The filings with SEC were done on March 25, just two days after the powerful SEC suspended the Canadian firm from trading in the United States for failing to shed light on its earlier disclosure of the Kenya loan agreement.
“We received a letter dated March 22, 2021, from the Cabinet Secretary for the National Treasury & Planning, the Republic of Kenya informing us that the project and agreements that we previously entered into… namely, the Project Contract and the Loan Contract (the “Project”) have been put on hold,” Kallo Inc informed SEC.
It attached the letter, purportedly from the Treasury Cabinet Secretary Ukur Yatani.
On Monday, the Treasury termed the letter fake and a forgery of Mr Yatani’s signatures.
“The letterhead has no reference number used in official government communication and the signature is fake. We will send you letters signed by the CS and you can compare,” the Treasury’s communications team said.
Firms are required to make filings with the powerful SEC if their securities are publicly traded in America, raised funds in the US or have shareholders required to file corporate actions with regulators in Washington.
The Treasury said it would once again inform SEC of the fraudulent disclosures from Kallo Inc and that similar reports would be made to Kenya’s Director of Criminal Investigations.
The Business Daily on March 18 reported from disclosures on SEC website indicating that Kallo Inc had in June last year signed a Sh139.5 billion (1.06 billion euros) loan deal with Kenya to build mobile clinics and upgrade hospitals in the counties at the height of the coronavirus crisis.
The Treasury denied the existence of the loan, and protested to SEC—which suspended Kallo Inc from trading between March 24 and April 7 to “protect investor interest.”
On hold
“There is a lack of accurate information of questions regarding the accuracy of statements the company has made in filings with the commission, including a Form 10-K for the year ending December 31, 2020, filed on March 3, 2021,” SEC said in a statement on March 24.
“The commission has serious concerns, for example, about the accuracy of the company’s claim that it has entered into a contract with the Republic of Kenya to establish a comprehensive healthcare structure.”
But Kallo Inc in the latest filings maintains the loan agreement existed, and that it has only been placed on ice.
“Please note the project is not being terminated but put on hold for a certain period of time,” said the letter purportedly signed by Mr Yatani that Kallo Inc filed with SEC.
Kallo Inc failed to respond to Business Daily'squestions on the loan deal.
www.theafricareport.com
Some people hate to admit when they make mistakes. The good thing is most people are willing to unsupport things they previously supported when they realise their error
Thats an anti climatic closure to the saga, I was hoping for another Rashid esque thriller, complete with a Ukur Yattani doppelgänger, access to treasury offices and finally a pamba who "eats his own bullet"That Kallo Inc company are just crooks. It is just a shell corporation. They haven't had any contract for the past 7 years then ghafla bin vu, they have several contracts with African countries including Kenya and Eritrea. I wish Kenyan media did further research on Kallo Inc. On this I think GOK is innocent
They are the same ones involved in the below scam but under a different name. When it was discovered sometimes last year, they went to the website and deleted the pictures. But the internet never forgets.
Nigeria: how fake representatives of a Qatari sovereign wealth fund fooled oil explorer Lekoil
A fraudulent loan and a bogus consultancy firm have put a damper on Nigerian oil producer Lekoil which, since it discovered and announced the fraudulent nature of an $184m loan arrangement with the…
That Kallo Inc company are just crooks. It is just a shell corporation. They haven't had any contract for the past 7 years then ghafla bin vu, they have several contracts with African countries including Kenya and Eritrea. I wish Kenyan media did further research on Kallo Inc. On this I think GOK is innocent
They are the same ones involved in the below scam but under a different name. When it was discovered sometimes last year, they went to the website and deleted the pictures. But the internet never forgets.
Nigeria: how fake representatives of a Qatari sovereign wealth fund fooled oil explorer Lekoil
A fraudulent loan and a bogus consultancy firm have put a damper on Nigerian oil producer Lekoil which, since it discovered and announced the fraudulent nature of an $184m loan arrangement with the…
Don't be too sure.
No... please don't...don't even think of using that as an argument. With or without devolution, Uhuru would still have mismanaged the economy which he has done spectacularly
