Via Punda Amechoka.....
DCI Kinoti, DPP and UKenyatta it's either you
are on specific mission or something we Kenyans don't know. You are busy with
small Fish ignoring the above grand theft or maybe it's so sophisticated for
you and your team to comprehend. For instance Mwilu's case bounders btw
Criminal but lies more on civil case but the DPP got a Queens counsel. The
above grand theft lies unearthed as culprits enjoy their Ill gotten proceeds.
KQ did announce a loss of over 25bn most of it attributed to fuel hedging
around 2016 end of 2015-2016 financial yr. Not sure of the timeline but the
figure is correct.
KQ did a hedge that does not exist anywhere in our books of
economics. That they made a loss due to plummeting of crude oil prices. How is
that possible? Hedging is like an insurance a consumer protects it self against
rising prices and a producer against lowering of prices of the products they
produce. For the consumer if prices fall the insurance or hedge for our
purposes doesn't apply. But KQ went for non existent hedge that if prices rise
they buy at the same price. Which sounds ok, for instance if the price for Jet
fuel as per the signing of contract was 100 USD per litre and the price went to
150 USD per litre they would still buy at 100 USD per litre. But the same oil marketer
knew due to supply glut the prices we're gonna plummet that's why that marketer
entered such contract ofcourse it was a conspiracy with insiders.
When the barrel of crude oil plummeted from 120 USD per
barrel to 26 USD per barrel early Jan 2016. KQ still bought the Jet fuel at the
former higher price. Now in financial Markets a consumer hedges by buying
Call Options where if prices drop you loose a tiny premium or buy crude oil
futures long or use cost less collars. KQ dint deploy in of the hedging tricks
in the book. They invented their own Naikuni hedging in order to fleece KQ sure
indeed they brought it to it's knees to date. The current shame of Africa KQ a
former shadow of itself. I have written before a detailed expose but to no
avail.
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