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PASSPORTS TO RICHES: Semlex’s dubious dealings with African governments

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The Democratic Republic of Congo, one of the poorest countries in the world has one of the most expensive passports and Comoros issues diplomatic passports to non-Comorians. By TAMA MULE

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PASSPORTS TO RICHES: Semlex’s dubious dealings with African governments
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Albert Karaziwan is a multi-millionaire who in 1992 founded Semlex, a privately traded company owned primarily by him and his family. Semlex supplies passports and identification cards. In 2008, Karaziwan claimed that his businesses had a combined value of 100 million euros.

Karaziwan has had close ties with the governments of at least 18 African countries spanning the whole of the continent, including Kenya, Uganda, Tanzania, Libya, Mozambique, and the Ivory Coast. The most prominent among these, as far as his connections go, is the Comoros Islands, from where he holds three diplomatic passports. He has also twice attended the United Nations General Assembly as a part of the Comoros delegation. He was made a roving ambassador of the Comoros and at least eight of his staff were nominated for Comoros honorary consulships between 2010 and 2012. Another big partner of his is the Democratic Republic of Congo. He was seen at the United Nations General Assembly with the Congolese delegation early in 2017.

Despite these surprisingly powerful connections, Karaziwan is neither a citizen of Comoros, DRC or of any other African nation with which he has been able to secure incredible financial footholds and political appointments. He is a Syria-born Belgian citizen who for close to two decades has used Semlex and its various partners, as well as political clout and connections on the continent, to secure multiple hundred-million-dollar deals to provide passports and other identification documents to African countries at exorbitant prices and sometimes without going through open tender processes.

In the Comoros, presidential decrees and various documents have revealed that Semlex-supplied Comoros passports have been bought by foreigners. A parliamentary investigation into the sale of passports to foreigners found that more than 2,800 Comoros diplomatic passports have been issued since 2008 – in a country with a population of about 800,000. At least 184 of these passports were issued to non-Comorians.

Karaziwan became involved in a Comoros programme to raise cash by selling citizenships. The plan was aimed mainly at the Bidoon people of Kuwait and the United Arab Emirates who do not possess citizenship of any country. It offered Gulf governments a means of identifying these people without giving them local citizenship. It also provided the Comoros with much-needed revenue. The Comoros government received just over $4,500 for each citizenship issued, according to government documents from 2012. The Emirati government estimated that the number of Bidoon within the country ranged from 20,000 to 100,000. Currently at least 40,000 of these people carry Comorian passports.

However, the citizenships and passports were also being sold to non-Bidoon people, sometimes at much higher prices, according to Comoros investigators. Comoros passports are of value because they offer citizenship with no tax obligations, allow the opening of bank accounts In Gulf States and facilitate visa-free travel through the Gulf and to many major business hubs globally, such as Singapore and Hong Kong, as well as to tax haven countries such as Bermuda, the Cayman Islands, the Cook Islands, Mauritius, Saint Kitts and Nevis and Panama, according to U.S officials in the State Department who specialise in the region.

The Comoros government allowed some of these sales to be facilitated by a Dubai-based firm called Lica International Consulting, according to an agreement between the two entities reviewed by Reuters. Three sources, one with direct knowledge of Semlex operations, said Lica is controlled by Karaziwan while two of these sources claim that Lica is run on behalf of Karaziwan by a business associate named Cedric Fevre, a name that appears many times during this saga. Lica was supposed to vet the candidates for citizenship and pay the Comoros government $10,000 per document issued, according to the agreement between the company and the government.

The Iranian connection

A presidential decree revealed a list of 21 foreigners who had been proposed by Lica for Comorian citizenship, which had then been granted by the president, while a former Comoros government official said he knew of at least 23 other passports sold through Lica to non-Comorians. Two sources with knowledge of Karaziwan’s activities claimed that Lica asked for at least 100,000 euros for supplying a Comoros passport. A series of presidential decrees have revealed that some of the Comoros passports were sold to people who had been accused by the United States of breaking sanctions with Iran.

A decree from July of 2015 revealed that a man named Hamid Reza Malakotipour was granted Comoros citizenship. He had been sanctioned in 2014 by the United States government, which alleged that he was in possession of an Iranian passport and had used his Comorian citizenship to circumvent the sanctions placed on Iran by the United States and to supply the Iranian Revolutionary Guards in Syria.

Also revealed in the same decree was that a man called Mohammed Zarrab of Turkish- Iranian origin was issued with Comorian citizenship. He was accused by U.S prosecutors in 2016 of violating the U.S sanctions on Iran by using the U.S financial system to undertake hundreds of millions of dollars worth of transactions on behalf of Iran. His brother Reza Zarrab was also indicted on claims that he had transacted on behalf of the Iran-based Mahan Air, which had been sanctioned for airlifting weapons to Iran’s Quds Forces and Hezbollah. A Reuters investigation was unable to glean how the two individuals received their passports, and the extent to which Semlex and Lica were involved

In January 2018, the Comoros government cancelled a batch of passports that had been issued to foreigners, saying they had been improperly issued. A confidential list of the passport recipients reviewed by Reuters discovered that more than 100 of the 155 passports that had been cancelled belonged to Iranians, among whom were senior executives of companies in sectors that had been targeted by U.S sanctions. The government of Iran does not officially permit its citizens to hold more than one passport, but a source familiar with the process stated that Iranian military intelligence had given the green light for some of these senior officials so that business transactions and travel could be carried out with ease.

According to details contained in a database of Comoros passports issued between 2008 (when the government programme to sell citizenships began) and 2017, more than 1,000 people whose place of birth was Iran bought Comoros passports. Some of the names on this list include names such as:

  • Mojtaba Arabmoheghi, one of the top managers of the Iranian oil industry, who obtained a Comoros passport in 2014 while he was the chairman of Sepeher Gostar Hamoun. He was also a commercial consultant for a firm called Silk Road Petroleum in the UAE whose financial director, a man named Naser Masoomian, also acquired a Comoros passport on the same day.
  • Mohammed Sadegh Kaveh, who heads Kaveh Port and Marine Services, obtained a Comoros passport in 2015. Kaveh and his family are among the main operators of Iran’s Shahid Rajaee port that handles most of Iran’s container traffic
  • Hossein Mokhtari Zanjani, an influential figure in Iran’s energy sector and a lawyer who handles domestic and international disputes, acquired a Comoros passport in 2013.

On its website, Lica listed a Dubai-based company called Bayat Group as a partner, which, according to the latter’s website, specialises in providing citizenships of places such as Comoros, Malta and St. Kitts and Nevis. Bayat Group is headed by Sam Bayat Makou, an Iranian who acquired a Comoros passport in July of 2013, though this was among the passports that were cancelled by the Comoros government. Makou said that Iranians acquired Comoros passports because “Comorians have better visa-free access than Iranians” to many Far East countries. Bayat Group, according to Makou, had done work with Lica, which he claimed was licenced by the government of Comoros to market the passports outside the Bidoon programme.

In January 2018, the Comoros government cancelled a batch of passports that had been issued to foreigners, saying they had been improperly issued. A confidential list of the passport recipients reviewed by Reuters discovered that more than 100 of the 155 passports that had been cancelled belonged to Iranians, among whom were senior executives of companies in sectors that had been targeted by U.S sanctions.

The incumbent President at the time was called Ahmed Abdallah Sambi, and throughout his 2006-2011 tenure, he began to forge strong ties with Iran. Sambi had been educated in the Iranian holy city of Qom, and when he ascended to power, he visited Tehran in 2008. The then Iranian president Mahmoud Ahmadinejad was looking to cultivate relations with African and Latin American states as the West took increasing measures to distance itself from Iran. Following Sambi’s visit to Tehran, Ahmadinejad visited Comoros in 2009. In addition, Sambi is said to have had Iranians within his personal guard and was referred to as “The Ayatollah of Comoros” by some islanders.

Though Sambi left power in 2011, he declined to comment on the sale of the said passports to non-Comorians. The sale of these passports continued under his successor, Ikililou Dhoinine, who was in office from 2011-2016. Though Dhoinine has no obvious links to Iran, he declined Reuters’ requests to comment on the situation.

His successor Azali Assoumani came to power in 2016 and changed tack completely, severing ties with Iran and aligning with Saudi Arabia and other Gulf Nations at odds with Iran. He set up a parliamentary commission of inquiry to investigate the programme that sold citizenship to the Bidoon. The commission found that as early as 2013, the UAE informed the Comoros government that hundreds of passports had been sold to foreigners outside the programme. This was after UAE officials noticed people who were neither Comorian nor Bidoon travelling through the country on Comoro passports. A Comoros security source said that the Comorian intelligence services had received reports of people with Comoros passports being killed on the battlefields of Iraq, Syria and Somalia, a demonstration of how widespread the sale of Comoros passports had become. As a result, the United States has begun to perform more thorough background checks on people travelling with Comoros passports.

According to a parliamentary report, at least $100 million in revenue from the sale of these passports was never received by the government of Comoros and had gone missing, though the government has not released a statement explaining where they think the money could have gone.

The deal in the DRC

The investigation in the Comoros followed a report published by Reuters in April of 2017 that revealed that Semlex was the same company responsible for issuing biometric passports in the impoverished Democratic Republic of Congo for the exorbitant price of $185 per passport, making the DRC passport among the most expensive passports in the world. This in a country where the average national income is $394.25 a year.

Between October 2014 and June 2015, Karaziwan corresponded with Congolese authorities on the passport deal. Initially, in an October 2014 correspondence, he told Joseph Kabila, the incumbent president of the DRC, that Semlex would be able to provide the biometric passports at a cost of between 20 and 40 euros each as Semlex had its own printing facilities. Five days later, Karaziwan invited two members from Kabila’s inner circle, Moise Ekana Lushyma and Emmanuel Adrupiako, to Dubai to discuss a possible contact. By 13 November 2014, the price for the passports had risen to $120.

In the Comoros, presidential decrees and various documents have revealed that Semlex-supplied Comoros passports have been bought by foreigners. A parliamentary investigation into the sale of passports to foreigners found that more than 2,800 Comoros diplomatic passports have been issued since 2008 – in a country with a population of about 800,000. At least 184 of these passports were issued to non-Comorians.

Fiinally, in March 2015, Karaziwan was invited to Congo to finalise the proposal for the passport programme. In June of the same year, the final contract was signed by Karaziwan, the Congolese Finance Minister Henry Yay Mulang and the Congolese Foreign Minister Raymond Tshibanda. Semlex had agreed to invest $222 million into the project and the Congoloese government ageed to raise the price of the passport, charging its citizens $185 for every passport issued. (The steep rise is doubly shocking considering a rival proposal from another Belgian company called Zetes. Zetes outlined a plan and confirmed making an offer in 2014 to supply Congo with biometric passports that would cost $28.50 each.) From the revenue made from the passports, only $65 dollars would go to the Congolese government. The remaining $120 would be given to a group of companies that include, Semlex Europe in Brussels, Semlex World in the UAE, Semlex’s Lithuanian printer and a UAE entity called LRPS.

In a second agreement in June of the same year, the $120 was further divided up, with $12 from every passport sale going to Mantenga Contacto, a Kinshasa-based firm that would handle the projects “human resources issues, including supplying staff”. The three Semlex firms from the previous agreement were allotted $48 per passport issued, leaving out $60 of the money allotted to the consortium of companies going to LRPS, who would in return help with administration, logistics and relationship with the government.

Though LRPS was represented in the government talks by Karaziwan, it is currently owned by Makie Makolo Wangoi, according to a source familiar with the passport deal. A Bloomberg investigation into the business interests of the Congolese president and his family revealed that Wangoi was Joseph Kabila’s sister. Corporate records confirmed that she was a shareholder in several companies with other Kabila family members.

A Reuters investigation was unable to verify the status of LRPS, but its certificate of incorporation from Ras al Khaimah in the UAE revealed that it was established on 14 January 2015 just as Semlex was negotiating the passport deal with Kabila’s representatives. The certificate of incorporation does not reveal who owned the company when it was established, but a second document from that same year revealed that in late 2015, LRPS was owned by Cedric Fevre, a business associate of Karaziwan based in Dubai, who also ran Lica International Consulting, one of the firms implicated in the sale of Comoros passports to non-Comorians.

Though the computer-created document that revealed this information is unsigned, the metadata embedded in it shows that it was created in the UAE in 2015 and printed on 25 June of the same year. On that same day, Fevre transferred all 10,000 shares in LRPS to Wangoi, according to a source with direct knowledge of the deal. The only signed copies of the share transfer agreement are in the possession of Fevre and Wangoi, both of whom declined to respond to questioning from Reuters investigators.

A few weeks after the deal was signed, bank documents and emails revealed that two UAE-based companies made deposits of $700,000 to the private bank accounts of Emmanuel Addrupiako, one of the advisors that Kabila sent to the UAE to meet with Karaziwan during the initial talks for the passport deal. One of the companies that made the payments was called Berea International and the other was called Cedovane. The incumbency certificate for Berea revealed that the Semlex CEO, Karaziwan, was the director, secretary and sole shareholder of Berea. Another director of Berea was none other than Cedric Fevre, who is also a director of Cedovane.

The investigation in the Comoros followed a report published by Reuters in April of 2017 that revealed that Semlex was the same company responsible for issuing biometric passports in the impoverished Democratic Republic of Congo for the exorbitant price of $185 per passport, making the DRC passport among the most expensive passports in the world.

The payments were made through United Arab Bank (UAB). UAB documents show that on 29 July 2015, Cedovane paid $300,000 to a Royal Bank of Canada account held by Adrupiako in Quebec. The documents cite a “loan agreement.” Then, on 25 August, Berea International paid $400,000 to Adrupiako’s account with Jyske Bank in Denmark. According to bank emails and contact with Berea, Adrupiako told Jyske Bank that the money was to pay for a four-storey building that Berea was renting from him in Kinshasa. The transaction triggered concern in Copenhagen. Reuters visited the site of this four-storey building and found that it was still under construction and Berea had no visible presence there.

The passport contract in Congo runs for five years and does not specify how many passports will be produced, but in recent years DRC has issued nearly 2.5 million passports annually. Sources with direct knowledge of the Semlex-Congo deal said that on one occasion Semlex had claimed that it had produced 145,000 passports by the end of January 2017, earning LRPS nearly $9 million. A Reuters reviewed document then revealed that Semlex said it would be able to supply DRC with 2 million passports per year once everything was fully operational, a deal that would make LRPS $120 million a year.

Kabila was due to step down from DRC’s presidency in December 2016, but elections were postponed, and he retains power as tension, violence and calls for him to step down increase. Dozens were killed in violent clashes between protestors and police, and his domestic opponents assert that his authority has run out – though even if Kabila does step down, LRPS will continue to make money as Article 14 of the contract for the deal states that the agreement remains valid even if “institutional changes” occur within the country.

Other dodgy contracts

Karaziwan’s and Semlex’s exploits in Africa do not end with the Congo or Comoros. Early in 2017, the government of Mozambique terminated a 10-year contract with Semlex worth several hundreds of millions of dollars that had been awarded in 2009 by the previous government. According to sources close to Semlex, the deal was struck without an open tender, and the new government claims that only a fraction of the $100 million that Semlex had promised to spend on training, electronic scanners and other types of infrastructure was invested. The passports were going to cost citizens of Mozambique $80 each in a nation whose average income per capita was under $500 per year. Officials from the Mozambique Centre for Public Integrity (CIP) published a review of the contract in 2015 revealing that the state only collected 8% of the revenues from the ID documents produced between 2011 and 2014

In Guinea Bissau, Helder Tavares Proenca was listed as a Semlex agent in the country, according to Semlex documents reviewed by Reuters. In November 2005, Proenca became the defence minister and in early 2006 Semlex won contracts to supply the country with passports, visas, ID cards and foreign resident cards. Semlex documents revealed that Proenca was paid at least 80,000 euros between 2004 and 2009.

Proenca was assassinated in 2009, but in 2010, Semlex employees, including Karaziwan, discussed what percentage of revenue they would have to pay former and current Guinea Bissau officials to secure a further contract to provide the country with passports and identification cards for foreigners. A proposal was made to pay a commission of 20% of the price of a passport and 15% of the revenue that Semlex received for residence permits issued to foreigners. Karaziwan was asked to sign off on the offer on 24 January 2011 and the next day he replied, “You can confirm it.”

In Guinea Bissau, Helder Tavares Proenca was listed as a Semlex agent in the country, according to Semlex documents reviewed by Reuters. In November 2005, Proenca became the defence minister and in early 2006 Semlex won contracts to supply the country with passports, visas, ID cards and foreign resident cards. Semlex documents revealed that Proenca was paid at least 80,000 euros between 2004 and 2009.

However, the Guinea Bissau government says that Semlex did not win a further contract but other Semlex emails show staff describing certain payments as bribes. In November of 2010, Michele Bauters, the Semlex finance manager, requested an employee to detail how he had spent close to $80,000 euros provided for operations in Africa, to which he plainly replied that it had gone towards rent and utility bills while 10,000 euros had gone towards “pot de vin” (the French term for bribes). When asked about what had happened to half of the $10,000, he responded that it had gone to pay “a bribe that Albert Karaziwan made me pay recently”.

In Madagascar, there is evidence of Semlex benefitting disproportionately in comparison to the state in a deal that the two entities signed. Semlex extended an existing contract to provide passports to Madagascar in 2013, and more than doubled the amount charged. In the deal, citizens would pay 36.25 euros for a passport. Of this amount, 33.75 euros would go to Semlex, leaving the Madagascan state with only 2.5 euros for every passport issued. Previously, Semlex only received 15.50 euros for every passport issued. And not that producing these passports is restrictively expensive. An invoice from Imprimerie National, a French printing firm that provided Semlex with blank passports prior to Semlex setting up their own printing facilities in Lithuania, showed that Semlex paid between 1.75 and 2 euros per document for projects in Madagascar, Gabon and Comoros between 2007 and 2008.

Semlex appears again in Gambia in a much bigger way than the two instances mentioned above. While the country was ruled by the now deposed dictator Yahya Jammeh, an opaque deal was signed with Semlex to manage the provision of identity documents to Gambia. Gambia’s new president, Adama Barrow, seems to be pursuing widespread reformative policies, such as removing restrictions on free speech. However, leaked data, including contracts, emails and international correspondence from company and government insiders, have revealed that the new government is seeking to renew the contract with Semlex to provide identity documents to the country. The former interior minister under Jammeh, Ousman Sonko, had signed a 5-year contract with Semlex in June 2015 to provide biometric ID cards and border control systems for Gambia. Semlex would retain 70% of the profits from this deal with the rest going to the government. Overall the company was estimated to make $67 million over the course of the 5 years.

The deal was met with protests from several civil society organisations that believed that the contract would allow Semlex to gain control over the identities of Gambia’s citizens. According to critics of the said contract, its flaws touch a wide range of areas. For instance, a signed version of the contract obtained by the Organised Crime and Corruption Reporting Project (OCCRP) does not mention any form of government oversight. The contract prohibits government interference with any third parties that Semlex or its partners select to carry out the work and allows the firm to repatriate profits anywhere without limits on the timeframe or the amount. The contract further places no restrictions on Semlex’s role in collecting, storing, using or safeguarding citizens’ private data. It also does not spell out who is responsible for oversight or handling of identity cards and passports. It is not clear on who is considered a non-citizen or alien. Finally, the contract also stipulates that the deal will not be affected by any institutional changes: “The validity and continuity of this contact shall not be affected by any institutional change within Gambia.” This is almost like the contract signed by Semlex and the government of the Democratic Republic of Congo.

As a response to this backlash, the national assembly launched an inquiry into the arrangement, while the government issued a press release stating that while the Semlex contract would remain in place, it was under review.

Since the contract was signed in 2016, it has remained largely unimplemented. A local company called Pristine had been provided, without bids, two contracts from 2009 to 2020 to produce identification documents for the country and has continued to provide the documents. The owners of Pristine have told reporters that if they lose the contract to the more politically connected Semlex, they would be in a lot of debt, as the family that owns it has invested $4.3 million for the work required for the provision of the documents.

Jammeh, Gambia’s former ruler, confused matters further when he gave the firms Zetex (another Belgain company) and its local partner Africard the same deal that he had given Semlex. There has been no evidence that any work has been undertaken by these two companies.

In January 2017, Semlex was also granted a contract to provide voter cards to Gambia. This was again carried out with no apparent government oversight and critics of the contract fear that it might use its power over the voter cards to influence elections, as the company is dependent on the success of the regime for its own personal success.

The original Semlex deal in Gambia was orchestrated by Laurent Lamothe, the former Prime Minister of Haiti and the director of Global Voice Group, a US-based communications company. Lamothe began working with Semlex in early 2007. The two companies drafted contracts and agreed to create a local venture known as Semlex Gambia and a company named Biometric International Group to be run by Lamothe. According to one version of the contract, Biometric International would earn 20% of the joint venture revenues, which would be paid out as bonuses, though who the benefactor/s of these bonuses are remains unclear. In July of 2007, they sent an email with a formal submission to the Gambian government, though it is unclear whether Biometric International was involved at the time. In addition, no deal seems to have been finalised at the time.

In 2016, Jammeh’s office instructed that the deal with Semlex be cancelled in favour of a contract with Zetex and Africard. This led to conflicting claims over which company had the rights to the contract. It then emerged that none of the three companies – Semlex, Pristine or Zetex – had ever been subjected to Gambia’s public procurement process. The office of the president in Gambia is allowed to “exempt any procuring organisation from requiring the approval of the Authority with respect to any procurement in whole or part”. Such exemptions are legally required to be published in the official Gazette. The government, however, seems to be siding with Semlex. As mentioned above, it maintains that Semlex’s contract is valid though its terms require re-evaluation. Critics fear the re-evaluation of the contract will not be effective as the national assembly is only allocated 10 days to investigate and review the contract.

How do Semlex, Karaziwan and his consortium of associates manage to secure these deals up and down the African continent? An important player in helping them secure these connections is Zina Wazouna Ahmed Idriss (referred to as “Madame Idriss” in Semlex emails). She is an ex-wife or President Idriss Deby of Chad. An email written by the Semlex finance manager, as well as sources with knowledge of Semlex’s operations, described her role as acting as an intermediary to help Semlex win new business in Africa.

In 2007 and 2008, Semlex secured two deals worth $21 million euros to produce passports, visas and ID cards for Gabon. From 2008 to 2010, Madame Idriss received payments totalling 1.6 million euros from Semlex, according to a Semlex spreadsheet of costs related to her. The invoices described the payments as commissions for helping land business in Gabon. The payments were made in various forms, including money for hotels, ski lessons, dresses, flights, credit card payments and cash, according to a Semlex spreadsheet from 2011. Payments totaling 565,561 euros went towards a house that Madame Idriss became the owner of in the upmarket district of Waterloo in Brussels. The payment was listed as “Maison Waterloo”. An additional 9,000 euros went towards rent for an apartment in Monaco. Madame Idriss was nominated by the Comoros foreign ministry as an honorary consul of the Comoros to Monaco in July 2010, according to Comoros foreign ministry documents.

How do Semlex, Karaziwan and his consortium of associates manage to secure these deals up and down the African continent? An important player in helping them secure these connections is Zina Wazouna Ahmed Idriss (referred to as “Madame Idriss” in Semlex emails). She is an ex-wife or President Idriss Deby of Chad. An email written by the Semlex finance manager, as well as sources with knowledge of Semlex’s operations, described her role as acting as an intermediary to help Semlex win new business in Africa.

***

In May 2018, Comoros officials in Brussels raided the headquarters of Semlex following the Reuters report on the company’ dealings in the DRC. Francis Koning, a lawyer who represents Karaziwan and Semlex, claimed that unidentified third parties were manipulating Reuters with the aim of damaging the reputation of Karaziwan and his company. He said, “Semlex Europe has no role in the decision to issue passports. This is the sole prerogative of the Comoros authorities who are the only authorised representatives to do so.” He then added that Semlex “is neither responsible nor to blame for the actions or acts” that are alleged in the Comoros parliamentary report on the sale of passports, “supposing they even took place”.

This report has been compiled from a series of investigations carried out and published by Reuters.

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Tama Mule is an editorial intern at The Elephant and an undergraduate at McGill University.

Politics

It’s Our Turn to Eat: Cousin of Kenya’s President Has Stake in Sportpesa Betting Firm

The Kenyatta family business, managed by one the president’s brothers, has sprawling interests across the Kenyan economy, and as Faull and Wafula reveal, the presidency has increased their stake in the economy.

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It’s Our Turn to Eat: Cousin of Kenya’s President Has Stake in Sportpesa Betting Firm
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A cousin of President Uhuru Kenyatta has quietly accumulated a financial stake in SportPesa’s controversial gambling empire, Finance Uncovered can reveal.

The finding — discovered in details buried in corporate filings in Kenya, the UK and the Isle of Man — came as the president signed a law to axe a 20% excise duty on bets staked, a levy that contributed to SportPesa’s withdrawal from its lucrative Kenyan market last year.

The proposal to drop the duty was included as an amendment to the Finance Bill, which had been passed by the National Assembly last week. The final hurdle to it becoming law was the president’s assent on Tuesday night.

A cousin of President Uhuru Kenyatta has quietly accumulated a financial stake in SportPesa’s controversial gambling empire, Finance Uncovered can reveal.

The president’s crucial decision is being analysed closely now it has been established that Peter Kihanya Muiruri, his second cousin, has over the past 14 months acquired stakes in three companies which are part of  SportPesa’s international gambling empire.

SportPesa is the shirt sponsor of English Premier League side, Everton FC. After the government introduced taxes on bets placed by punters, and aggressively pursued gambling firms for its payment, it prompted a number of leading gambling firms to close their businesses in Kenya.

The president’s crucial decision is being analysed closely now it has been established that Peter Kihanya Muiruri, his second cousin, has over the past 14 months acquired stakes in three companies which are part of SportPesa’s international gambling empire.

The taxes were brought in to both stem rampant gambling addiction in Kenya and also raise revenue from what has rapidly become a highly lucrative business.

Now it has been axed, it could see SportPesa, whose biggest shareholder and founder is Bulgarian national Guerassim Nikolov, re-enter the Kenya sport betting market and revive the wider gambling industry.

A SportPesa revival in Kenya would also benefit a member of Kenyatta’s own family.

A presidential spokesperson did not return calls or respond to a detailed text message asking whether Kenyatta knew about his cousin’s shareholding before he signed the bill into law.

A SportPesa revival in Kenya would also benefit a member of Kenyatta’s own family

The Kenyatta family business, managed by one the president’s brothers, has sprawling interests across the Kenyan economy, and individual family members also invest widely.

Shareholdings

Finance Uncovered, working with the Daily Nation in Kenya, accessed documents filed by SportPesa companies in Kenya, the UK and the Isle of Man.

The documents show Peter Kihanya Muiruri is a shareholder in three companies linked to SportPesa:

  • The first is a 1% stake in Pevans East Africa, the company which owns SportPesa in Kenya. Muiruri appeared on the shareholder register for the first time in May 2019, shortly before a government clampdown on the betting industry began. Muiruri is now also a director of Pevans. Pevans has previously disclosed that it amassed Sh20 billion in revenues and generated gross profits of Sh9 billion (£70m) in Kenya in 2018.
  • The second stake is a 0.5% shareholding in SportPesa Global Holdings Limited (UK) – a  company that owns SportPesa’s non-Kenyan betting companies in Tanzania, South Africa, Italy and Russia. It also owns a highly profitable UK business SPS Sportsoft Ltd, which provides IT services to SportPesa sister companies, including Pevans in Kenya. Muiruri acquired the stake last November. SportPesa Global Holdings made a profit after tax of almost £12m in 2018, according to its financial statements.
  • The third is a 3% stake in SportPesa Holdings Limited (Isle of Man). This is an offshore company which receives SportPesa’s revenues from bets staked in the UK. Companies based in the Isle of Man, a small British Crown dependency and tax haven in the Irish Sea, do not have to publicly disclose their accounts so no financial information is available. Muiruri acquired the stake last December.

The value of Muiruri’s shares in the three companies is unclear, because up-to-date financial information for these companies is not available. It is also unknown at this stage how much, if anything, Muiruri paid for the shares.

SportPesa did not respond to the Daily Nation’s emailed questions.

The company was asked whether it had  lobbied the President either directly or indirectly for the reinstatement of its betting licence or any tax reductions.

The firm was also asked to disclose how much the president’s cousin paid for his shares in each of the three companies, and when he became a director in Pevans.

There is no suggestion of wrongdoing either by Muiruri or SportPesa.

Family connection

Muiruri himself is a low-key businessman. Little is publicly known about him. Muiruri’s mother is Uhuru Kenyatta’s first cousin, while his grandfather was the younger half brother of Jomo Kenyatta, Kenya’s first president.

In November 2016, President Kenyatta attended the funeral service of Muiruri’s father, the late Mzee Josphat Muiruri Kihanya, at the Holy Family Basilica in Nairobi and gave a short address. The presidency also issued a formal press statement paying tribute to the former civil servant, although it made no mention of the family connection.

SportPesa lost its betting license last July. The company announced it was withdrawing from  Kenya last September in response to what it called “the hostile taxation and operating environment in the country”. Their withdrawal led to 400 job losses and the sudden cancellation of its local sports sponsorships.

In February this year SportPesa also withdrew from its international sponsorship commitments, including a reported £9.6 million a year shirt sponsorship with Everton.

The 20% duty was only introduced last November, according to the Kenya Revenue Authority.

Tax about-turn

Reversing any betting tax was not on the cards two months ago, when the Departmental Committee on Finance and National Planning chaired by Joseph Limo published the Finance Bill for public comment on 8 May. At that stage, the bill contained no plans to tinker with any betting taxes.

Committee meeting minutes show that an obscure stakeholder group — identified only by a non-existent URL as shade.co.ke — wrote to the committee on 15 May proposing the scrapping of the 20% excise duty on bets placed. “It has made many betting firms cash strapped hence cutting down on their sponsorships to local sports clubs,” they said.

The committee agreed, noting that “the high level of taxation had led to punters placing bets on foreign platforms that are not subject to tax and thereby denying the Government revenue”.

In its justification for approving the amendment, the committee explained to the National Assembly that it would “reverse the negative effects of this tax on the industry which has led to closure of betting companies in Kenya, yet international players continue to operate”.

The committee turned down other proposals by the unidentified stakeholder group to amend other tax laws affecting betting, which included a reduction in withholding tax on players’ winnings from 20% to 10% and exempting the betting industry from digital services tax.

A gambling nation

As the committee was still considering the excise tax proposals in May, Finance Uncovered working with the Daily Nation published leaked betting revenue declaration figures from the industry for May 2019.

The data showed that punters had wagered more than Shs30bn (£234m) in just one month. SportPesa alone accounted for two-thirds of these betting revenues, according to the data which all betting firms submitted to the Betting Control and Licencing Board (BCLB).

Such huge revenues for a single month showed what is at stake for the gambling companies in Kenya.

The controversial 20% excise duty would have been levied directly on these revenues, and could — on the basis of the leaked revenue data — have been worth up to Shs72bn (£562m) in annual taxes for the Kenya Revenue Authority (KRA).

SportPesa alone accounted for two-thirds of these betting revenues, according to the data which all betting firms submitted to the Betting Control and Licencing Board

However, this was when the industry was at its peak, and before the government began its tax and regulatory clampdown last July, including suspending  the betting licences of gambling firms including SportPesa and its next biggest rival Betin.

Two other associates of the president already hold a significant chunk of equity in SportPesa both locally and internationally.

They are Paul Wanderi Ndung’u, a key fundraiser for Kenyatta’s Jubilee political party during the 2017 election (17%); and Asenath Wachera Maina (21%), whose late husband Dick Wathika is a former Nairobi mayor whom Kenyatta has described as a long-time friend.

In addition to these links, SportPesa’s Nairobi headquarters share the same office complex that also houses the Kenyatta family-owned investment holding company.

This article was first published by Finance uncovered. An investigative journalism training and reporting project.

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Politics

The Battle Within: Uhuru’s War Against His Deputy

After joining forces with William Ruto to win the 2013 and 2017 elections, President Uhuru Kenyatta now seems determined to ensure that his deputy does not ascend to the presidency in 2022. The breakdown of their alliance has all the hallmarks of betrayal, brinkmanship, deception, fraud and subterfuge.

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The Battle Within: Uhuru’s War Against His Deputy
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“Lord, protect me from my friends; I can take care of my enemies.”

The above quote by Voltaire is one that Deputy President William Ruto could well be spending lots of time brooding over, especially in these times of coronavirus. Since official recognition of the pandemic’s arrival in Kenya over just three months ago, Ruto’s political battles – not with his enemies, but with people he had counted as friends – have intensified. The battles that are being fought in the Jubilee Party, the party of President Uhuru Muigai Kenyatta, are internal and among erstwhile friends.

Coming barely 30 months after the forceful UhuRuto duo won a controversial fresh presidential election on October 26, 2017, the two political brothers looked set to finish their second term the way they started the first: as a formidable team of like-minded captains, with the lead captain passing the baton to his comrade once his term expires. But that today is a dream: the waters have been poisoned and the former buddies are no longer swimming in the same direction, leave alone swimming in the same waters. The breakdown of the alliance has all the hallmarks of betrayal, brinkmanship, deception, fraud and subterfuge.

Jubilee Party mandarins did not see the break-up coming; if they did, they all pretended they were not aware of the imploding scenario. The ruling party is now a house of two diametrically opposed camps led by their respective protagonists: President Uhuru Kenyatta, who coalesces around the Kieleweke (it shall soon be evident) camp and William Ruto, who is spearheading the Tanga Tanga (roaming) team.

“We can no longer pretend that the current war being waged against William Ruto is not from within and therefore not from friends, or people he had presumed were his political friends,” said a Ruto confidante I spoke to. “To think otherwise now would, like the proverbial ostrich, be burying our heads in the sand. It is better to be fought by your enemies, who you have fought several times before and therefore you already know to deal with them, rather than be fought by friends, who have turned the tables against you, all the while posing as your compatriots.”

“Uhuru is employing political terrorism against his number two and to be honest, it is something we had not anticipated,” said Ruto’s friend of many years. “Yes, it has taken us by surprise, the intensity and all, but we must stay and fight back, even as we devise a strategy to stem the political bloodbath. It is all about the politics of succession in 2022 and there is no hiding the fact that Ruto obviously wants the seat. If you have been a deputy president for seven years, what else would you want as a politician in that position? It is also true that once Uhuru and Ruto were sworn in for the second and final term, we started popularising our candidate immediately – it was the natural thing to do – hitting the ground running. This was misconstrued to be a campaign, but even if it were, we weren’t doing anything outside of the constitution.”

Ruto’s loyal friend said that the popularisation strategy had a context: “Prior to the presidential election in December 2002, we all were in Kanu – Uhuru, Ruto and me. We would go to [President] Moi and tell him, ‘Mzee tell us who will be our candidate so that we can start preparing the grounds early.’ And he countered by saying: ‘Nyinyi vijana wacheni mbio, siku ikifika nitawambia. Mimi nimekuwa kwa siasa miaka mingi…nataka mwendelee kuwa wafuasi kamili wa Kanu.’ (You young men, why are you in a hurry? When the day comes, I’ll let you know. I’ve been in politics for many years, I know what I’m doing. For now I want you to be steadfast in your support for Kanu.) By the time he was proposing Uhuru as the party’s candidate, it was already too late and there wasn’t enough time to campaign for our candidate.”

The Ruto ally, who also counts President Uhuru as a first-name-basis friend, believes Uhuru lost the election in 2002 to Mwai Kibaki and the opposition, because Moi took too long to name the party’s flagbearer. “We could have won that election but for Moi’s delaying tactics, which backfired and we lived to regret that bad decision. Eighteen years later, with lessons learned, we’re not about to repeat the same mistake. You cannot win a presidential election if you start campaigning six months to the election date. That is what Uhuru is doing with our candidate and in Jubilee, and we won’t let him do that.”

The coronavirus appeared just in time to help President Uhuru fight his political battles, reasoned the DP’s bosom buddy. “He is now using the pandemic to wage war against his deputy. The semi-lockdown and the curfew are strictly not about COVID-19, but about clamping down on Ruto’s forces in the party and in government.” The pandemic, he observed, has acted like godsend: It has given Uhuru space to mount a sustained onslaught on Ruto, but it has also helped the DP to ward off (at least for the time being), the “nobody-can-stop-the-reggae” force, which was also threatening to overwhelm him.

“Uhuru is maximising on the COVID-19 pandemic as much as possible because he knows his antagonist, the DP, cannot organise and mobilise for his counter-attack, which he is good at. The people have been locked down, they are restricted, they cannot move, they are scared and are caught up with survival. President Uhuru can therefore wreak havoc in Ruto’s camp with as little distraction as possible,” he added.

The coronavirus appeared just in time to help President Uhuru fight his political battles, reasoned the DP’s bosom buddy. “He is now using the pandemic to wage war against his deputy. The semi-lockdown and the curfew are strictly not about COVID-19, but about clamping down on Ruto’s forces in the party and in government.”

Uhuru is not alone; since the onset of COVID-19, some world leaders have been using the pandemic as an excuse to amass more presidential powers, extend their presidential terms indefinitely, resort to dictatorial tendencies, and quash opponents.

But unlike the last election, the president does not have the unflinching support of his own people. “Uhuru’s biggest problem is that the Kikuyus have turned their back on him,” said a friend of Uhuru who also counts Ruto as his friend. “He thought he owned them and he could do whatever he wanted with them. He also thought they would always go back to him and do his bidding. Now, they seem dead set in ignoring him completely and the fact of the matter is, as a political leader, you can do little if you cannot galvanise the support of your people. You cannot claim legitimacy, you can only impose yourself on them and that is always counter-productive.”

Because of this, said the Jubilee Party mandarin, President Uhuru’s current headache is how to de-Rutoise central Kenya and the larger Mt Kenya region. “He’s been trying to tell the Kikuyus that Ruto has been disloyal to him, that he wants to grab their power, that he’s not fit to ascend to the presidential seat because he’s corrupt and power hungry. But they have refused to listen to him. With each passing day, he’s getting furious with the Kikuyus’ recalcitrant stand against him. Now, he has turned to appointing Kikuyus in prominent positions, including the recent reshuffles in Parliament to appease his Kikuyu base.”

The duo’s friend told me that President Uhuru’s allegations about his deputy’s insubordination was a red herring. “What disloyalty is Uhuru is talking about? When he was busy drinking, we held fort by taking care of government business, even as we covered his social vices. Now he has the temerity to talk about disloyalty. We’re not afraid of him. The Jubilee Party/Kanu coalition agreement is illegal as per our Jubilee Party constitution and it was cobbled up to stop Ruto from vying for the presidency”.

All the president’s men

To fight Ruto, President Uhuru Kenyatta formed an advisory team that meets at State House. Part of the team comprises David Murathe, Kinuthia Mbugua, Mutahi Ngunyi and Nancy Gitau.

Murathe has for the longest time been President Uhuru’s sidekick. His father, William Gatuhi Murathe, was one of the wealthiest Kikuyus, courtesy of Uhuru’s father and the country’s first president, Jomo Kenyatta, During Jomo’s time, the senior Murathe was the sole distributor of wines and spirits countrywide.

When David Murathe was routed out as the MP for Gatanga constituency by Peter Kenneth in 2002, his fortunes dwindled and he was even declared bankrupt at one stage. From that time, he has not left Uhuru’s side. The Tanga Tanga team describes Murathe as “Uhuru’s attack dog”. They believe that when Uhuru wants to communicate an important message, he uses Murathe. And they’ve learned to decipher his messages. Murathe is the man who has been put in charge of the advisory team’s budget.

On 6 January 2019, Murathe suddenly resigned from his post as the Jubilee Party’s vice chairman, citing conflict of interest. He said he wanted to fight Ruto and stop him from being the Jubilee Party’s sole candidate for the 2022 presidential election. On 2 March 2020, Murathe recollected his thoughts on his supposed resignation and claimed he had not really resigned because his resignation had not been accepted by President Uhuru Kenyatta, who is the chairman of the party.

Kinuthia Mbugua is the State House Comptroller; he keeps President Uhuru’s diary. He served as Nakuru County governor for one term. Eagerly looking to serve for a second term, he nonetheless lost the Jubilee Party nomination to Lee Kinyanjui. He was furious, and even looked to run as an independent, but was persuaded by Uhuru to join the presidential campaign team, with a promise of a bountiful reward once the campaign was over.

The Tanga Tanga team describes Murathe as “Uhuru’s attack dog”. They believe that when Uhuru wants to communicate an important message, he uses Murathe. And they’ve learned to decipher his messages.

Mbugua, a career civil servant, hails from Nyandarua. When he was the commandant of the Administration Police (AP), he employed many youth from Nyandarua and the adjoining areas. He equipped the force with personnel and machinery and soon there were murmurs from the regular police service, which felt that the AP was being favoured and was becoming extra powerful. After the 2007/2008 post-election violence, President Mwai Kibaki and his cohorts did not trust the regular police. Mbugua’s not-so-loudly spoken brief was to reorganise a force that had always played second fiddle to the boys in blue.

Mbugua to date believes William Ruto rigged him out of a nomination when he was left to man the Jubilee Party headquarters at Pangani during the chaotic and hectic nominations. He carries the grudge like an ace up his sleeve.

Mutahi Ngunyi is a private citizen who has immersed himself in state (house) politics and has distinguished himself as a maverick, a person who can swing like a pendulum and still remain standing, without falling. In the lead-up to the 2017 election, he made Raila Odinga, the opposition coalition leader of the National Super Alliance (NASA), his punching bag, terming him a “punctured politician”, an epithet that his detractors used to describe Raila’s father Jaramogi Oginga Odinga in the 1970s.

After Uhuru and Ruto romped back to State House, Mutahi quickly (perhaps too quickly) identified with Ruto’s camp and decreed that Ruto will be the next president come 2022. A crafty mythmaker, he even came up with the Hustler vs Dynasty narrative to define the rivalry between Ruto and the sons of prominent Kenyan leaders, including Uhuru Kenyatta, Raila Odinga and Gideon Moi. He wildly claimed in a May 2019 tweet that the only person who could liberate Kikuyus was Ruto. (Mutahi has since deleted all his tweets that were singing Ruto’s praises.) Then, beginning this year, Mutahi flipped, disavowed his hustler narrative and claimed that Uhuru Kenyatta was ordained to rule Kenya.

“Mutahi Ngunyi is a gun for hire,” said a Ruto aide. “For nearly two years he worked for us. He’s a mercenary, he’s a fugitive of justice.” When I contacted Mutahi and asked him if what was being said about him was true, he responded: “Tell them it is true, whatever that means. Tell them they can also hire me!”

The aide claimed that Mutahi was presented with the National Youth Service (NYS) file by the National Intelligence Service and was asked to cooperate…or else.

The NYS file he was referring to contains details of a huge scam that was perpetrated between 2014 and 2016 when Anne Waiguru Kamotho, the current governor of Kirinyaga County, was the powerful Devolution and Planning Cabinet Secretary. Mutahi was one of her advisers on the youth programme that was being implemented by NYS. The scam involved the misappropriation of billions of shillings of taxpayers’ money in which Mutahi was heavily implicated. At one time, he even purported to clear his name by claiming to have returned Sh12 million to the government coffers. Appearing before the Parliamentary Accounts Committee on September 20, 2016, Mutahi said he had rewired the money back to the Central Bank of Kenya. He said that the money had been “wrongly” credited to his company, The Consulting House. He further stated that he believed the money had come from an organisation that he had consulted for, not the Devolution Ministry.

Mutahi is now operating from State House and The Chancery building on Valley Road in Nairobi. The Chancery is owned by the Kenyatta family. Part of his brief is to spin favourable Kieleweke group narratives while conjuring up propaganda and disinformation on his former employer, William Ruto.

Nancy Gitau has been the resident State House adviser from the time of Mwai Kibaki. Before becoming a state aficionado, she worked for the United States Agency for International Development (USAID). While at USAID in the 1990s, she was involved in the democracy and governance sector, which was being heavily funded by the United States and other donors. The last big project that she oversaw was a partnership between Kenya’s Parliament and the State University of New York (SUNY, Albany)’s Centre for International Development (CID), which Sam Mwale and Fred Matiangí managed. Both Mwale and Matiangí would later become civil servant bureaucrats, serving as Permanent Secretary and Cabinet Secretary, respectively.

Mutahi is now operating from State House and The Chancery building on Valley Road. The Chancery is owned by the Kenyatta family. Part of his brief is to spin favourable Kieleweke group narratives while conjuring up propaganda and disinformation on his former employer, William Ruto.

Gitau was very well-known within the civil society and the NGO sector and interacted with many of them. “Gitau was one of the architects of a report implicating Ruto in the post-election violence and so there is no love lost between her and Ruto,” said Ruto’s aide. The deputy president is still upset about Gitau singling him out. During the days when Ruto and Uhuru were facing charges related to the post-election violence of 2007/2008 at the International Criminal Court (ICC) in The Hague, one of Ruto’s team members said to me: “Ruto never forgives and never forgets a wrong done to him.”

Expunging Ruto’s men

The Gitau-led advisory team ostensibly meets every Sunday morning at State House and during weekdays at La Mada Hotel located in the New Muthaiga residential area in Nairobi. La Mada is the hotel that Ruto claimed in 2019 where a plot to assassinate him was being hatched by people known to President Uhuru.

One of the team’s main jobs is the expunging of Ruto’s men in the Senate, with Kithure Kindiki, the Senator of Tharaka Nithi County, being the latest casualty. Until 22 May 2020, Kindiki was the Senate’s Deputy Speaker. The first two casualties were Kipchumba Murkomen and Susan Kihika, the former Majority Leader and Chief Whip, respectively. Murkomen’s job was given to Samuel Poghisio, a politician from West Pokot, while Kihika’s went to Irungu Kangáta, the Senator of Murangá County.

“The two were removed because the president and his men didn’t have the majority in the Jubilee Party’s National Executive Committee (NEC),” said a “renegade” senator, who accused President Uhuru of “using strong-arm tactics to coerce senators to vote according to his whims”.

During the days when Ruto and Uhuru were facing charges related to the post-election violence of 2007/2008 at the International Criminal Court (ICC) in The Hague, one of Ruto’s team members said to me: “Ruto never forgives and never forgets a wrong done to him.”

The senator said that the Speaker of the Senate, Ken Lusaka, was allegedly approached and reminded of the “small matter” of the wheelbarrows when he was the Governor of Bungoma County.

When Lusaka was the governor of Bungoma County between 2013 and 2017, the county bought 10 wheelbarrows worth Sh1.09 million (approximately $10,000 or $1,000 per wheelbarrow) – the most expensive wheelbarrows ever sold in Kenya, where an ordinary wheelbarrow goes for around Sh5,000 ($50). When he was asked by the Parliamentary Accounts Committee what was so special about the wheelbarrows, he claimed that they were made from “stainless, non-carcinogenic material”. Some of the county officials were jailed for the scam.

Everybody knows it was illegal for the speaker to acquiesce to President Uhuru’s demand that the Senate Parliament Group meet at State House, said the senator. “The reason why nominated senators are being intimidated and threatened is simply because Uhuru doesn’t have enough senators on his side to fight his deputy.”

Senators were allegedly paid Sh2 million to vote to remove Murkomen and Kihika. “On the day the senators were summoned to State House, President Uhuru didn’t have enough senators to push his motion,” said the senator. “The Jubilee Party had only 11 senators, Kanu, three and one independently-elected senator, Charles Kibiru. If you count Raphael Tuju and President Uhuru they made 17 votes. Tuju is the secretary general of Jubilee Party. So, they were way short of the required majority of 20 votes.” The senator claimed that the president had to send helicopters to pick senators from their far-flung regions.

“Uhuru can send choppers to senators who are supposed to be in lockdown and in quarantine, but he will not send planes to rescue and send food to flood victims. That’s how much he cares for the unity of this nation,” complained the senator.

It is just a matter of time before these elite squabbles are replicated on the ground. On 20 May 2020, two charged groups in Kikuyu town faced each other: one group supported President Uhuru Kenyatta and the other supported Deputy President Ruto along with the area MP Kimani Ichung’wa. So far Kimani has been an unswerving supporter of Ruto. They yelled and shouted at each other and exchanged invectives. It was a prelude to Ruto’s visit to the constituency on that day.

“Uhuru can send choppers to senators who are supposed to be in lockdown and in quarantine, but he will not send planes to rescue and send food to flood victims. That’s how much he cares for the unity of this nation,” complained the senator.

It is hard to tell whether the two groups had been paid by their masters to grandstand. But that is neither here nor there. The Jubilee Party honchos have indicated that Ruto’s presence in the Mt Kenya region cannot just be wished away – hence the Kieleweke group’s project to defang Ruto.

I asked a Ruto confidante why his boss had gone quiet. Was the heat becoming unbearable? “This is not the time to speak. We actually advised him not to open his mouth. There’s a time that he will speak, but not now.”

The confidante also reminded me of another saying: The man who speaks little makes mistakes, but what about the man who talks a lot? He makes big mistakes.

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Politics

A Monumental Disgrace: Is the Sun Finally Setting on British Imperial and Slaver Statues?

When BLM demonstrators tore the bronze statue of the seventeenth century slave ship owner Edward Colston from its plinth in Bristol, they triggered a discussion on whether statues and monuments of those who helped Britain extend her colonial tentacles around the world should also be removed. Hopefully, this discussion will also lead Kenyans to review their monument landscape.

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A Monumental Disgrace: Is the Sun Finally Setting on British Imperial and Slaver Statues?
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Britain is in a froth, and sharply divided, over the desecration or removal of statues of historical figures linked to slavery and empire.

What began as Black Lives Matter (BLM) protests, following the appalling murder of George Floyd by a white policeman in Minneapolis, swiftly morphed into attacks on statues and monuments in London, Bristol, Edinburgh and other towns and cities in the UK that implicitly venerate slavers and imperialists. Some were removed from their plinths, one was thrown into a river, others were vandalised, and a Union Jack flag on the Cenotaph, the national war memorial in central London, was set on fire. In Oxford, where there have long been calls to remove a statue of Cecil Rhodes from the wall of a college, the student-led Rhodes Must Fall movement (which originated in South Africa) was given new impetus, and large street protests were held. Some statues have been removed by local authorities “for their own protection”, such as that of eighteenth century slave-owner Robert Milligan, which stood in London’s Docklands.

Images of these events blazed across the media day after day have both incensed and delighted in equal measure. The British public learned more about its dark past in 48 hours (and rising) than in decades of being taught empire-light history in school classrooms. I was one of them. All we learned of empire was the victors’ story, and Britain’s “proud” role in the abolitionist movement. No wonder all this statue-smashing has come as a shock to the system – in every sense of the word. (Similar outrage over monuments linked to racial oppression and slavery has swept the US and other nations in the wake of BLM, but it is beyond the scope of this article to discuss the wider phenomenon.)

The right-wing media, the Tory government and other far-right commentators have predictably dubbed the attackers “mobs”, “thugs” and “vandals”, with Home Secretary Priti Patel (the daughter of Ugandan-Asian immigrants to Britain who could well have been denied entry under her hard-line regime) vowing to find and swiftly punish those responsible. (That may prove tricky since many were wearing protective masks against COVID-19.) In Tory hands, playing to the Brexit gallery, it fast became a “law and order” story. The courts were granted powers to fast-track prosecutions of demonstrators within 24 hours of an incident, “amid mounting concerns that Britain is facing a summer of disorder” (The Times, 12 June).

We are good at summers of disorder. Every dull English summer seems to require a new moral panic. In the middle of COVID lockdown, this uproar has almost come as light relief, not least to the mainstream print media, which is struggling to survive. The right-wing tabloid Daily Mail devoted its front-page lead and 7 inside pages to the story on 10 June, and the issue was still taking up the entire two-page spread of readers’ letters two days later (including an edited letter from me, calling in part for changes to the school history curriculum). At a time of COVID crisis, this was extraordinary. Every national newspaper has covered it too, with the downmarket Daily Star poking fun by giving away cut-out paper “statues” of famous people for readers to shout at if they so wished. (It’s a “free” country.)

The broadcast media has also covered the story extensively. A question about statues and apologies for imperial wrongdoing was the first to be asked on the BBC’s weekly televised Question Time on 11 June. Booker Prize-winning novelist Bernadine Evaristo, a woman of colour, gave a robust argument for the defence, calling in part for dark history to be recontextualised, challenged and interrogated. “I absolutely relished the toppling of the [Colston] statue in Bristol. He was a really toxic symbol,” she said. (More on Colston below.)

For the prosecution, we have Nigel Farage, leader of the Brexit campaign, leading the charge. “Where are the police?” cried this arch Brexiter on Twitter. “Where are you Boris? Do we have a leader?” And, next to a photograph of a graffiti-daubed statue of war-time premier Winston Churchill: “Boris Johnson is supposed to be a Churchill fan, but he says and does nothing. He is not half the man.”

A question about statues and apologies for imperial wrongdoing was the first to be asked on the BBC’s weekly televised Question Time on 11 June. Booker Prize-winning novelist Bernadine Evaristo, a woman of colour, gave a robust argument for the defence, calling in part for dark history to be recontextualised, challenged and interrogated.

In the Telegraph (9 June), Farage accused “our craven leaders” of “failing to stand up to a Marxist mob which wants to tear down our history”. Prime Minister Boris Johnson responded a few days later, fuming that his hero had been dubbed a “racist”. (Boris wrote a much-derided 2014 biography of Winston Churchill, on whom he clearly models himself.) This was pretty rich coming from a man who, in his former career as a journalist, described Africans as “piccaninnies” with “watermelon smiles”, compared niqab-wearing Muslim women to “letterboxes”, and said of colonialism in Africa: “The problem is not that we were in charge, but that we’re not in charge any more.”

I will say more about far-right white youth rage in a moment, but it takes its cue from Boris, Fa-RAGE (as I prefer to call him), and links to Brexit-related frustrations. Brexit is meant to have happened on 31 January this year, but curiously, those who voted for it seem angrier than ever.

How it all began: Slaver Edward Colston

When BLM demonstrators tore the bronze statue of the seventeenth century slave ship owner Edward Colston from its plinth in Bristol on 7 June, dragged it to the harbour and threw it in, police wisely decided not to intervene. This, and police refusal to intervene in similar incidents elsewhere, is what Farage (plus fellow Brexiters and Tories) are so incensed about.

Colston, a rich merchant and MP, was venerated as a benefactor and philanthropist, with schools, a concert hall and streets named after him. (Some have been renamed.) Bristol residents had been calling for the statue’s removal for years, and had presented an 11,000-signature petition to the council. But nothing had come of asking nicely, hence some decided it was high time to sling Colston’s hook themselves. His reburial in a watery “grave” was itself laden with symbolism, since it was from this harbour that Colston’s slave ships sailed. They carried more than 100,000 West Africans to the New World between 1672 and 1689. More than 20,000 slaves died en route and were thrown overboard – something the slavers welcomed because they could claim insurance.

The Chief Constable of Avon and Somerset police, Andy Bennett, defended his force’s actions that day, telling the BBC he understood that Colston was “a historical figure that’s caused the black community quite a lot of angst over the last couple of years”. He said he understood their anger, and the symbolism of the statue. He went on: “You might wonder why we didn’t intervene and why we just allowed people to put it in the docks – we made a very tactical decision, to stop people from doing the act may have caused further disorder and we decided the safest thing to do, in terms of our policing tactics, was to allow it to take place.” (A furious Priti Patel reportedly gave him a dressing-down.)

Marvin Rees, Bristol’s Labour mayor and the first directly-elected black mayor in Europe, was widely praised (and condemned by the usual suspects) for his considered comments in the media. He termed the toppling of the statue “a piece of historical poetry”, and has called for a “city-wide conversation” on the future of the statue (which has now been hauled out of the harbour). It may be placed in a museum, along with demonstrators’ placards taken from the scene of the “crime”. He added: “I’d like to make sure that conversation is informed by good history.” Hence he is putting together a team, including local historians, to make a study of statues, memorials, street names and the like, so that future decisions are based on “good history, good understanding”.

Marvin Rees, Bristol’s Labour mayor and the first directly-elected black mayor in Europe, was widely praised (and condemned by the usual suspects) for his considered comments in the media. He termed the toppling of the statue “a piece of historical poetry”

Other targeted statues of imperial, fascist or slaver figures are listed on a new website called Topple the Racists (www.toppletheracists.org). They include Lord Nelson (as in Nelson’s Column, Trafalgar Square), Robert Clive (of British India infamy), Scotland’s Robert Dundas (son of a man who deliberately delayed the abolition of slavery), Jan Smuts, the architect of apartheid, and Lord Baden-Powell, the founder of the scouts movement. The latter also has links to Kenya: he is buried in a Nyeri churchyard, near a cottage in the grounds of the Outspan Hotel where he spent his final years. Baden-Powell is accused of atrocities against Zulus during his military career in South Africa, and for his flirtation with fascism. In his 1939 diary, he wrote: “Lay up all day. Read Mein Kampf. A wonderful book.” Former scouts travelled to Poole in Dorset to protect a statue of their idol, which has been placed under 24-hour protection. They cut ridiculous figures: middle-aged men in shorts, brown shirts and woggles (a device used to fasten scouts’ neckerchiefs), vowing to follow the scouting motto: “Be prepared!” Kenyan scouts have also pledged allegiance to their founder.

Far-right youth

Those ripping statues from their plinths, or “vandalising” them if removal is physically impossible, are white, black, and all shades in-between. But the racism in critics’ hysterical responses is palpable. Far-right white supremacist youths have waded in, joined by older beer-bellied men, with supporters of Tommy Robinson (a notorious far-right Islamophobic activist) and groups like Britain First vowing to “defend” and “protect” monuments from “commies” and the “unwashed”. Self-styled “Tommy Teams” rushed to scrub the graffiti off monuments, including Churchill and the Cenotaph, and stayed to “protect” them since the police were not doing so at that stage.

In some provincial towns, they also collaborated with angry older men, many with military backgrounds, to “protect” monuments, including war memorials. Posting videos of their exploits on Twitter, they spoke of protecting British heritage, and defending historical icons. Bragging of their manhood, they asked (as Farage had done) where the “real men” were.

As I write this, far-right groups from across the country had travelled to London to “protect” the monuments from BLM, which had planned more demonstrations in the city. Police boarded up major monuments to keep both BLM protesters and their opponents away; these included statues of Mahatma Gandhi and Nelson Mandela. Boris Johnson called the boarding up of Churchill “absurd” and “stupid”, conveniently forgetting that he had done the same with certain monuments when he was mayor of London.

Priti Patel publicly denounced the current London mayor, Labour’s Sadiq Khan (a hate figure to far-right Islamophobes, Tories and Brexiters), who had ordered the protective measures. The government also hates the fact that Khan has set up a commission to review all monuments in the capital, while more than a hundred Labour councils across England have pledged to review monuments on public land. In a bizarre twist, the far-right protestors gave Heil Hitler salutes before Churchill, a man revered for fighting fascism. Having denounced supposed BLM violence, it was they who ended up getting drunk and fighting the police. The word “Eng-er-land” (their chant) is trending now. Angerland?

Why has this issue fired up far-right, mainly white, youth groups? Rootlessness, a lack of identity, unemployment or low-paid insecure work, lack of educational attainment, poor prospects, the crisis in masculinity and other factors combine to create youth disaffection not unlike that which produced the Mods and Rockers, two rival youth groups that rioted in seaside towns in southern England in 1964, though in some ways, today’s youth alienation is worse. (One could write a whole thesis on this alone, and no doubt scholars already are.)

Throw into the mix the economic crisis which will hit the poorest, including Brexit-voting, communities, hardest. The UK is said to be heading for its worst economic depression in 300 years following COVID, and is likely to fall off a cliff once Brexit is fully implemented. The anti-immigrant, anti-Muslim, anti-“woke” rhetoric of right-wing politicians and media commentators who call on “true patriots” to show their allegiance to Britain and British “values”, the failure of Brexit to deliver yet (if indeed it ever does), and the frustration of weeks of COVID lockdown: all this and more stokes the anger of particular groups. In their insecurity, Tommy’s boys – and some girls – have long clung to perceived icons of national identity. (Their Twitter profiles feature images of Churchill in particular, bulldogs and St George flags, though in fact St George wasn’t English and never set foot here).

Why has this issue fired up far-right, mainly white, youth groups? Rootlessness, a lack of identity, unemployment or low-paid insecure work, lack of educational attainment, poor prospects, the crisis in masculinity and other factors combine to create youth disaffection…

But let’s not get too carried away with the perceived threat to society, which is how the Tories want to frame all this. Sociologist Stanley Cohen, in his classic 1972 book Folk Devils and Moral Panics: The Creation of the Mods and Rockers, identified how certain figures, groups or events periodically spark moral outrage, and are scapegoated as “evil” threats to civilised society. Cohen noted the Mods’ and Rockers’ overwhelming sense of boredom. Street clashes or the prospect of them were as thrilling then as they are now – “just simply being present in a crowd was an event…” Having studied white street gangs in the 1970s, I know that putting the boot in (and crime in general) is very exciting when you are working class, young and bored. If you can film the bovver on your phone as it happens, take selfies and tweet to the world, that’s all the more satisfying.

Turning briefly to Kenya

The imprint of empire’s boot is still visible on the monument landscape of Kenya, though there have been some notable changes down the years. The Nairobi city centre statue of Lord Delamere was removed at independence to the Delameres’ Soysambu estate, but the Vasco da Gama pillar is still a major tourist attraction at Malindi. Street names have changed: for example, Victoria Street became Tom Mboya Street. Many South Asian street names have been Africanised.

The statue of Queen Victoria that previously stood in Jeevanjee Gardens, a public park Nairobi, was beheaded by unknown vandals in 2015. I am told by A.M. Jeevanjee’s great-granddaughter, the historian, activist and writer Zarina Patel, that the county government later removed the rest of the monument, which now lies in a storeroom. “Who did it, and why remains a mystery,” she says. “Was it politically motivated? That would be understandable because Queen Victoria represented an unjust colonial power.”

However, she has concerns that one of the conditions her forefather made when handing over the gardens to the then colonial government was that the statue should never be moved. In so doing, he hoped to protect the gardens from future land grabs. In 1991, Zarina campaigned successfully against an attempted grab of the park by “the highest powers-that-be in the land”, adding, “of course they have never been identified”.

Zarina Patel welcomes the arrival of statues commemorating Dedan Kimathi and Tom Mboya, and the Mau Mau Memorial in Uhuru Park, which she hopes will set a trend. She also believes that the Nyayo monuments in Uhuru Gardens, erected by former president Daniel arap Moi, will be moved at some point.

What is her take on colonial-era monuments, and those glorifying post-independence leaders? “The statues celebrating colonists and dictators are part of Kenyan history – rather than destroying them I think they should be kept in some suburban parks or museums with explanatory texts to give them proper historical context; so that our future generations can be reminded of the battles we have fought for freedom, justice and democracy.”

A review is surely long overdue of place-names with colonial connections. Lake Victoria is the obvious one. Smaller fry include Uplands and Thomson’s Falls, though Scottish geologist/explorer Joseph Thomson did not (as far as I know) enslave anyone. Lugard’s Falls in Tsavo West is more clear-cut, since Lord Lugard was a colonial administrator.

And what do we do about tourism centred on colonial nostalgia, starting with Karen Blixen? Why is Karen the suburb still on the map of Nairobi? Why is the Norfolk Hotel (among others) still proudly branding itself as a white settler hang-out, and every safari lodge and camp in the Mara selling a Blixenesque sundowner fantasy? This type of tourism generates huge sums, but at what cost? It reinforces the notion that Kenya is one big Happy Valley playground, a safari-suited hyper-real theme park (see Baudrillard’s Simulacra and Simulation) where racy white mischief can still be had, at a price. I’ve even seen Japanese tourists in pith helmets at Elsamere, Lake Naivasha, who had no idea how uncool they looked. If I find all this embarrassing, how do Kenyans feel?

A review is surely long overdue of place-names with colonial connections. Lake Victoria is the obvious one. Smaller fry include Uplands and Thomson’s Falls, though Scottish geologist/explorer Joseph Thomson did not (as far as I know) enslave anyone. Lugard’s Falls in Tsavo West is more clear-cut, since Lord Lugard was a colonial administrator.

Maybe it’s time for a national conversation – led by citizens, not government – on what Kenyans would like to see changed or removed. If the conversation is anything like the one convulsing Britain right now, be prepared for a huge row. A very healthy one.

I concur with those who see this as an unmissable opportunity to re-educate global citizens about the past. The destruction or removal of monuments from sight is not the answer; they should be moved to a dedicated museum, with educational materials (textual and audio-visual) providing deeper context. Use them for debate, alongside alternative narratives. Fill the monument landscape (if you must) with new figures who more accurately reflect your diverse societies and the best of your ideals. Then bin the current school history curriculum, and replace it with something fit for purpose in the post-post-colonial twenty-first century.

Postscript

Latest news from Bristol: a statue of the Jamaican poet, playwright and actor, Alfred Fagon, was doused with a “bleach-like substance” on the night of 12 June. It was erected in 1987, in the largely black and mixed-race area of St Pauls, on the first anniversary of his death. Fagon was the first black person to have had a statue erected in his honour in the city. One of his first plays, No Soldiers in St Pauls, explored the social tensions between the police and the black community in 1970s Bristol.

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