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Pandora Papers: Uhuru Kenyatta family’s secret assets exposed by leak

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The family of Kenya’s President Uhuru Kenyatta secretly owned a network of offshore companies for decades, according to a huge leak of financial papers.

The Pandora Papers – 12 million files – is the biggest such leak in history.

Mr Kenyatta and six members of his family have been linked to 13 offshore companies.

He said he would “respond comprehensively” to the leak once he returned from a state visit abroad.

However, he added that the investigation would “go a long way in enhancing the financial transparency and openness that we require in Kenya and around the globe”.

The Kenyattas’ offshore investments, including a company with stocks and bonds worth $30m (£22m), were discovered among hundreds of thousands of pages of administrative paperwork from the archives of 14 law firms and service providers in Panama and the British Virgin Islands (BVI) and other tax havens.

The secret assets were uncovered by an investigation, published earlier on Sunday, by the International Consortium of Investigative Journalists (ICIJ), Finance UncoveredFinance UncoveredAfrica Uncensored and other news organisations.

Documents show that a foundation called Varies was set up in 2003 in Panama, naming Mr Kenyatta’s mother, Ngina, 88, as the first benefactor – and Kenya’s leader as the second benefactor, who would inherit it after her death.

The purpose of the foundation and the value of its assets are unknown.

Panamanian foundations are much sought after because the true owners of the assets are only known by their lawyers and they do not have to register their names with the Panamanian government, ICIJ reports.

The assets can also be designed to be transferred tax-free to a successor.

There’s no reliable estimate of the Kenyatta family’s net worth but its vast business interests span transport, insurance, hotels, farming, land ownership and the media industry in Kenya.

In 2018, Mr Kenyatta told the BBC Hardtalk programme that his family’s wealth was known to the public, and as president he had declared his assets as required by law.

“As I have always stated, what we own – what we have – is open to the public. As a public servant I’m supposed to make my wealth known and we declare every year,” Mr Kenyatta said.

“If there’s an instance where somebody can say that what we have done or obtained has not been legitimate, say so – we are ready to face any court,” he added.

In the same interview, Mr Kenyatta said he wanted fighting corruption and promoting transparency to be his legacy.

He promised to work with parliament to create a law that would oblige public officials to declare their wealth, but MPs are yet to pass this bill.

Other world leaders named in the Pandora Papers include the King of Jordan Abdullah II, former UK Prime Minister Tony Blair, Gabon’s President Ali Bongo Ondimba and President of Congo-Brazzaville Denis Sassou-Nguesso.

It is unclear if President Kenyatta, who retires next year after 10 years in office, knew about the Varies foundation but the timing of its opening may be instructive.

Seven months earlier, he had lost the 2002 presidential election to opposition candidate Mwai Kibaki, who had vowed to redress historical crimes as well as launch a war against corruption.

At the time, the family of outgoing president Daniel arap Moi, a friend of the Kenyattas, allegedly moved money out of the country, according to a 2014 leaked report by the international risk consultancy Kroll.

The Kenyatta family established its political and business interests during the rule of Kenya’s first president, Uhuru’s father Jomo. He has been accused of using his position to amass wealth.

After his death in 1978, Ngina Kenyatta, his fourth wife, played a pivotal role in expanding the family’s business interests.

In paperwork seen by the BBC, the Pandora Papers reveal that in 1999, Mrs Kenyatta and her two daughters, Kristina and Anna, set up an offshore company – Milrun International Limited – which was incorporated in the BVI.

According to the ICIJ, Mrs Kenyatta and her daughters were advised by experienced international wealth experts from the Swiss bank Union Bancaire Privée (UBP), which recruited Alcogal, a Panamanian law firm specialising in setting up and administering offshore companies.

The consortium says invoices from Alcogal to the bank show that the Swiss advisers referred to the Kenyattas with the code “client 13173”.

Alcogal provided a registered office for Milrun on the largest of the BVI islands, Tortola, and supplied staff members to act as the company’s official directors.

The result was an entirely anonymous company that could not be traced back to the Kenyatta family.

This company was used by Mrs Kenyatta and her daughters to buy an apartment in central London, which it still owns, according to filings at the UK Land Registry seen by Finance Uncovered.

The prime property, which was until recently rented by British Labour MP Emma Ann Hardy, is now estimated to be worth close to $1.3m.

Ms Hardy’s spokesperson said the MP, had “absolutely no knowledge” of who owned the property.

“She is shocked at what this investigation has uncovered, and believes it shows why more transparency is urgently needed,” her statement said.

According to Finance Uncovered, the Kenyatta family has used other offshore companies to buy two more properties in the UK.

UBP private-wealth advisers also helped Mr Kenyatta’s brother, Muhoho, set up a Panamanian entity called Criselle Foundation in 2003.

The foundation was registered to the offices of Alcogal in Panama City, and was nominally run by board members from the Panamanian law firm.

It was set up for the benefit of Muhoho Kenyatta, with his son Jomo Kamau Muhoho, as successor.

Another BVI company which Mr Muhoho owned had a $30m valuation in stocks and bonds as of November 2016.

A search of public records in BVI and Panama found that most of the companies linked to the Kenyattas are now dormant, some of them as a result of non-payment of regulatory fees.

It’s not illegal to run secret companies, but some have been used as a front to divert money, avoid taxes and for money laundering.

The Pandora Papers, however, show no evidence that the Kenyatta family stole or hid state assets in their offshore companies.

The Pandora Papers is a leak of almost 12 million documents and files exposing the secret wealth and dealings of world leaders, politicians and billionaires. The data was obtained by the International Consortium of Investigative Journalists in Washington DC which has led one of the the biggest ever global investigations.

More than 600 journalists from 117 countries have looked at the hidden fortunes of some of the most powerful people on the planet. BBC Panorama and the Guardian have led the investigation in the UK.

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Africa

Donors raise more than 2 billion euros for Sudan aid a year into war

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PARIS/CAIRO, April 15 (Reuters) – Donors pledged more than 2 billion euros ($2.13 billion) for war-torn Sudan at a conference in Paris on Monday, French President Emmanuel Macron said, on the first anniversary of what aid workers describe as a neglected but devastating conflict.
Efforts to help millions of people driven to the verge of famine by the war have been held up by continued fighting between the army and the paramilitary Rapid Support Forces (RSF), restrictions imposed by the warring sides, and demands on donors from other global crises including in Gaza and Ukraine.
Conflict in Sudan is threatening to expand, with fighting heating up in and around al-Fashir, a besieged aid hub and the last city in the western Darfur region not taken over by the RSF. Hundreds of thousands of displaced people have sought refuge in the area.
“The world is busy with other countries,” Bashir Awad, a resident of Omdurman, part of the wider capital and a key battleground, told Reuters last week. “We had to help ourselves, share food with each other, and depend on God.”
In Paris, the EU pledged 350 million euros, while France and Germany, the co-sponsors, committed 110 million euros and 244 million euros respectively. The United States pledged $147 million and Britain $110 million.
Speaking at the end of the conference, which included Sudanese civilian actors, Macron emphasized the need to coordinate overlapping and so far unsuccessful international efforts to resolve the conflict and to stop foreign support for the warring parties.
“Unfortunately the amount that we mobilised today is still probably less than was mobilised by several powers since the start of the war to help one or the other side kill each other,” he said.
As regional powers compete for influence in Sudan, U.N. experts say allegations that the United Arab Emirates helped arm the RSF are credible, while sources say the army has received weapons from Iran. Both sides have rejected the reports.
The war, which broke out between the Sudanese army and the RSF as they vied for power ahead of a planned transition, has crippled infrastructure, displaced more than 8.5 million people, and cut many off from food supplies and basic services.
“We can manage together to avoid a terrible famine catastrophe, but only if we get active together now,” German Foreign Minister Annalena Baerbock said, adding that, in the worst-case scenario, 1 million people could die of hunger this year.
The United Nations is seeking $2.7 billion this year for aid inside Sudan, where 25 million people need assistance, an appeal that was just 6% funded before the Paris meeting. It is seeking another $1.4 billion for assistance in neighbouring countries that have housed hundreds of thousands of refugees.
The international aid effort faces obstacles to gaining access on the ground.
The army has said it would not allow aid into the wide swathes of the country controlled by its foes from the RSF. Aid agencies have accused the RSF of looting aid. Both sides have denied holding up relief.
“I hope the money raised today is translated into aid that reaches people in need,” said Abdullah Al Rabeeah, head of Saudi Arabia’s KSRelief.
On Friday, Sudan’s army-aligned foreign ministry protested that it had not been invited to the conference. “We must remind the organisers that the international guardianship system has been abolished for decades,” it said in a statement.

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Africa

SA users of Starlink will be cut off at the end of the month

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Starlink users in South Africa are facing a major setback as the satellite internet service provider has issued a warning that their services will be terminated by the end of the month.

In an email sent to many South African users, Starlink stated that their internet access will cease on April 30 due to violation of its terms and conditions.

The email emphasized that using Starlink kits outside of designated areas, as indicated on the Starlink Availability Map, is against their terms. Consequently, users will only be able to access their Starlink account for updates after the termination.

Starlink, a company owned by Elon Musk’s SpaceX, operates a fleet of low earth orbit satellites that offer high-speed internet globally. Despite its potential to revolutionize connectivity, Starlink has been unable to obtain a license to operate in South Africa from the Independent Communications Authority of South Africa (Icasa).

Icasa’s requirements mandate that any applicant must have 30% ownership from historically disadvantaged groups to be considered for a license. However, many in South Africa resorted to creative methods to access Starlink services, including purchasing roaming packages from countries where Starlink is licensed.

However, Icasa clarified in a government gazette last November that using Starlink in this manner is illegal. Additionally, Starlink itself stated in the recent email to users that the ‘Mobile – Regional’ plans are meant for temporary travel and transit, not permanent use in a location. Continuous use of these plans outside the country where service was ordered will result in service restriction.

Starlink advised those interested in making its services available in their region to contact local authorities.

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Niger, Mali and Burkina Faso agree to create a joint force to fight worsening violence

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BAMAKO, Mali (AP) — A joint security force announced by the juntas ruling Mali, Niger and Burkina Faso to fight the worsening extremist violence in their Sahel region countries faces a number of challenges that cast doubt on its effectiveness, analysts said Thursday.

Niger’s top military chief, Brig. Gen. Moussa Salaou Barmou said in a statement after meeting with his counterparts Wednesday that the joint force would be “operational as soon as possible to meet the security challenges in our area.”

The announcement is the latest in a series of actions taken by the three countries to strike a more independent path away from regional and international allies since the region experienced a string of coups — the most recent in Niger in July last year.

They have already formed a security alliance after severing military ties with neighbors and European nations such as France and turning to Russia — already present in parts of the Sahel — for support.

Barmou did not give details about the operation of the force, which he referred to as an “operational concept that will enable us to achieve our defence and security objectives.”

Although the militaries had promised to end the insurgencies in their territories after deposing their respective elected governments, conflict analysts say the violence has instead worsened under their regimes. They all share borders in the conflict-hit Sahel region and their security forces fighting jihadi violence are overstretched.

The effectiveness of their security alliance would depend not just on their resources but on external support, said Bedr Issa, an independent analyst who researches the conflict in the Sahel.

The three regimes are also “very fragile,” James Barnett, a researcher specializing in West Africa at the U.S.-based Hudson Institute, said, raising doubts about their capacity to work together.

“They’ve come to power through coups, they are likely facing a high risk of coups themselves, so it is hard to build a stable security framework when the foundation of each individual regime is shaky,” said Barnett.

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Associated Press writer Chinedu Asadu in Abuja, Nigeria contributed.

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