George Ng’ambi’s Closet

Welcome to the world of reason, balance and truth.

Xenophobic South Africa is a shame.

A violent  south africaWhen South Africans fought against the whitemans’ injustices during the apartheid era, everyone understood as the white man had imposed alot of unfair laws against our black brothers back then. The release of Nelson Mandela in the early 90s announced the new dawn of life for the people not only in South Africa but the southern Africa as a whole. It announced the morning star rising, announcing time for an end to violence and killings that had characterised a South Africa pre-1990.

However, the events of the past few weeks involving native south africans killing and beating fellow africans from sorrounding countries who migrated to that country for a better living have taken us back to the apartheid days. It is sad that South Africans feel that violence against people from other countries is the solution to their social and political problems. These demeaning actions are orchestrated by lazy xenophobic elements who wrongly portray foriegners as the cause of thier economic problems in South Africa. Countries in the west are luring immigrants who inturn boost their economies. Its a shame that majority of South Africans are peace loving people but scenes of xenophobic violence threaten to cast doubt over how well prepared the south african government is, interms of security during the 2010 FIFA world cup, the World cup which will attract the same foriegners whom the native south africans are now despising. South Africans travel and continue to do so to so many countries around the world. Would they be happy to be treated the way they are treating migrants in Johannesburg. Sadly, the officials in South Africa have not acted strongly to this madness by their people. The deployment of the army to assist police in crowd control has had to take international pressure.

I bet Thabo Mbeki in his usual drama will say, this is not a disgrace.The allegations that the government knew in January 2008 that there was trouble of xenophobic nature blewing will cast doubt over Thabo Mbeki’s leadership. Why did the government let the situation get out of hand notwithstanding the intel they they received? I call upon all south africans to respect the rule of law and human rights and stop venting their frustration for unfulfilled ANC government promises on innocent foreigners. I worry for my sister and other Malawians in Johannesburg who must be feeling worried everytime they walk along the streeets to and from work. South Africans must remember that the struggle against apartheid could not have been won without the support from neighbouring and other african countries who are now being condemned to death by barbaric people.

23 May, 2008 Posted by George Ng'ambi | Uncategorized | | No Comments Yet

The Microsoft-Google-Yahoo Love Triangle

Some fews days ago, Microsoft withdrew its bid to acquire Yahoo after failing to agree to a price even after Microsoft raised its bid, which was about $5 billion more than the original offer. According to Yahoo CEO, the company was grossly undervalued by Microsoft. Consequently, Yahoo share price fell significantly following the withdrawal(BBC News,2008).

Now that the deal is no longer on the table, Yahoo must convince investors it can turn the company around and deliver on promises that it can grow its revenue at a pace that pleases Wall Street(equivalent of the City in London) and allows Yahoo to compete successfully against Google in online advertising.

Shareholders already are getting restless. Some Institutional shareholders plan to expand a complaint, originally filed as two lawsuits In March 2008, against the CEO and other members of Yahoo’s board of directors, saying they failed to act in the best interest of shareholders in rejecting Microsoft’s bid to buy Yahoo. It is expected that Yahoo will face similar law-suits in the coming months.

The attempt to acquire Yahoo by Microsoft was seen as an attempt to match Google on advertising revenue. It is alleged that Google played a part in undoing Microsoft bid for Yahoo to undermine Microsoft Advertising business(Yahoo News). Matter of fact, Yahoo did a test run on Google’s advertising Adsense inorder to discourage Microsoft from launching a hostile takeover bid (how smart of Google!!!). In the end Google wins in the Microsoft-Google-Yahoo triangle. But are Yahoo the most stupid in all this? How can a business out-source a strategic part of its business to a competitor?

The question is why would the CEO and other directors at Yahoo Inc. reject an offer which is seen by many analysts as a good offer at the expense of shareholders’ wishes? In the meantime, who is going to tame this animal-Google? Would Microsoft organic growth be enough to mount enough challenge.

In the end, the guys at Google are smart not only technically, but also business-wise. Sadly, it is the Yahoo shareholders who are the most victims.

6 May, 2008 Posted by George Ng'ambi | Business | | No Comments Yet

Would the Auditor General Review his own work???

I have just learnt that Mr Rexford Kampanje who was formerly the Accountant General has been confirmed as Auditor General. The parliament also confirmed the appointment of Lovemore Munlo as the Chief Justice.

I am not so much concerned by the appointment of Munlo, rather my concern hinges on the appointment of a fellow Accountant Rexford Kampanje. Normally, I should be celebrating at his appointment with hope that he is going to represent the interests of Accountants in Civil Service but most importantly he would institute controls within the civil service to avoid a repeat of the Field York Scandal and the K187m Education corruption from happening again by insuring amongst other things that procurement and expenditure authorisation procedures are adhered to by civil servants. Sadly am not celebrating and this why;

(a) Mr Kampanje is the former Accountant General, therefore by accepting the appointment, would he be auditing his own work? He has been at the OPC less than 12 months whilst waiting for parliamentary approval to become the Auditor General.

(b)Mr Kampanje is ACCA qualified. Under the code of professional ethics, Accountants must not take up appointment that would compromise their professional independence. So why would Kampanje accept the appointment? Is it because of political pressure?

Some few months ago the Finance Minister Goodall Gondwe rightly asserted that if Mr Kampanje was appointed Auditor General, he would be reviewing his own work. My view is that if we had good and transparent corporate governance structures in Malawi governement civil service, the proposal to appoint Kampanje should not have been made in the first place because there would be an obvious threat to independence. Would he be able to question accounts or expenditure he himself authorised?

The safeguard of appointing external auditors as suggested by the finance minister to avoid independence problems that may arise as a result of the appointment is not adequate. In any case, external auditors should be hired with or without the Auditor General in place. The appointment of an Auditor General does not subsume the need for independent external auditors, rather it is a way of setting up controls and monitoring of those controls in government and government departments. The external auditors should be appointed to act as an independent control to monitor tools set by the Auditor General and his team, otherwise , there might also be the danger that the AG woul be reviewing his own work.

The fact that the Malawi government has been without the Auditor General for quite a while is simply beyond me. Malawi is blessed with top Accountants who would uphold the moral standards by ensuring that government resourses are utilised effectively and efficiently. It is simply not right to have the position of Auditor General vacant for a long time. Does it suprise anyone why some corrupt practices in civil service have gone unchecked?

Although Kampanje has accepted the appointment, it has not come without its challenges. Firstly, there is a small matter where the Speaker’s ruling on parliamentary quorum is being challenged. This follows the boycotting of opposition MPs from deliberations. This means that the appointment was approved by the government side only. Is it legal? Would civil servants respect Kampanje?

Should the opposition succeed on their challenge of the parliamentary Quoram, the appointments of Munlo and Kampanje will be nullified. Is this cost effective on the part of government?

Am sure there are Malawians within the civil service equally capable and qualified if not better to carry out the duties of the office of the Auditor General. Is Mr Kampanje exceptionally good??

What is the difference between the Auditor General and Accountant General interms of ranking? What would motivate someone to take up one and leave the other? Is it a form of promotion or greed? Someone please educate me.

4 May, 2008 Posted by George Ng'ambi | Business | | No Comments Yet