By MUNA WAHOME

Posted Tuesday, July 12 2011 at 00:00

The Central Bank of Kenya is for the first time targeting the diaspora with a Sh36 billion infrastructure bond with the twin aims of boosting currency reserves and plugging State budget deficit.

With what is expected to be double-digit returns, the product is likely to force banks to raise yields on hard currency accounts of Kenyans living abroad and attract larger inflows.

World Bank recently noted that countries, including Kenya, had overlooked the role remittances could play in dealing with financial shocks, eradicating poverty and improving access to finance. Countries like Ethiopia and Egypt have for years established formal systems for dealing with the diaspora inflows.

“World Bank estimate indicates that the diaspora holds up to $1.8 billion in chequing accounts earning zero interest and the proposed infrastructure bond will therefore provide an attractive alternative investment,” said CBK governor Njuguna Ndung’u.

But Bonds Traders Association yesterday said market leaders had held meetings with CBK but were not aware the instruments were to be issued soon. They noted the market players had requested that CBK keeps them updated early enough for effective marketing but that they welcomed the development.

“This would avoid conditions associated with a sovereign bond like in the case of Ghana where the state is fed up enough to the extent they would want out,” said Fred Mweni who is also the managing director of Tsavo Securities.

“The diaspora is holding hard currency of hundreds of millions in current accounts which are earning 0 to one per cent. A double-digit return will bring in even more hard currency.”

The government wants to raise Sh119.5 billion in 2011/12 from the domestic market, as it seeks to plug a Sh184.4 billion deficit, of which Sh36 billion or a third would come from infrastructure bond issues. The State has raised Sh88 billion through infrastructure bonds since early 2009.

In the current financial year, massive infrastructure projects including airport and road upgrades and a peri-urban railway system are in the works.

“Modalities to achieve this (diaspora participation) are being worked out but it is anticipated that the Foreign currency amounting to approximately $400 million will be retained by Central Bank and the shilling equivalent passed on to Government for implementing the infrastructure projects targeted,” said CBK.

The bank said after the pilot diaspora marketing, it would target the same Kenyans with long-term bonds including the 30-year Savings Development Bond.

In all, it hopes to raise $600 million from the bond issues by the end of this year, the CBK governor said. The bank industry regulator has been holding an average of $3.9 billion which is below the statutory four-month and has been fighting to increase this to four months. Commercial banks hold another $1.2 billion.

“The Central Bank has resumed its plan to build up international reserves over time with the view to reach coverage of four months of imports of goods and services within the programme period,” IMF said last week in its assessment of the country.

Targeting commercial bank current accounts comes weeks after the governor engaged in a bitter war with the commercial banks accusing them of arbitrage and speculation that has caused the Shilling to fall to record lows. Apart from asking banks to punish the culpable dealers, it has also opened bidding for its hard currency to all banks and forex bureaus.

The Kenya diaspora this year has averaged $66 million in monthly remittances and overall has overtaken tourism as the most important source of foreign currency, with substantial improvement expected over the $641 million total recorded last year.

“The increase in remittances in 2011 reflects economic recovery in source markets, and a favourable domestic economic environment,” says Charles Koori, the director of research at the CBK.

Apart from the diaspora, foreigners are expected to invest in the infrastructure bonds due to various incentives, boosting the flagging Shilling apart from contributing to de-bottlenecking Kenya infrastructure.

“Foreign investors usually participate because there is no withholding and capital gain taxes on the issues,” said Mr Mweni. Past issues have all been fully subscribed.

mwahome@ke.nationmedia.com

On behalf of fellow Kenyans, you are hereby cordially invited to partner with fellow Kenyans in Washington DC at Kenyan Embassy, on Tuesday July 26th, 2011 at 1:00pm.

The main objective of the meeting is to register our protest to the continued refusal by Members of Kenyan Parliament to pay their taxes like all other Kenyan do. It is with great concern that Kenyans have noted the MPs unrelenting stubbornness, arrogance and total disregard of the welfare of fellow citizens. As they continue to allocate themselves from the coffers, it is only fair that they pay all their back taxes to enable the government to provide most needed services to citizens. Other key issues such as corruption and insecurity will be addressed.

We hope that you will encourage your membership to join fellow Kenyans so that together we can speak truth to power in one voice!
Please feel free to contact me for more information and let me know if you would like an opportunity to address fellow Kenyans during this event.

Best Regards,

Dan Mbuthia
Director, Congress of Africa
Email:dmbuthia@rocketmail.com

Kent County/Grand Rapids Grassroots Planning Session and Training (Grassroots Planning Session)

Grassroots Planning Sessions are starting now—and we need you to join us for these critical strategy meetings. Your input will shape our roadmap to victory, since it’s going to take meetings all over our state to spread the word about this campaign and our movement. Now is the time to get involved to take real action for President Obama and democrats up and down the ticket, since your ideas and feedback will determine our organizing in your community. This session (recurs the 3rd Saturday of each month) will also hone our skills in knowledge of issues, reaching voters through effective communication, holding house parties, building Neighborhood Teams, canvassing door-to-door and small businesses, and registering voters. You will be energized and pleased that a small investment of your time can mean so much to our community !

Times:
Date:
Start: Saturday, June 18, 2011 1:00 PM - 3:00 PM
End:Saturday, July 16, 2011
Host:
Host:
Gail Collins
Contact Phone:
Contact Phone:
616-901-9358
Location:
Location:
Kent/Ionia Labor Council Building (Grand Rapids, MI)
918 Benjamin NE
Grand Rapids, MI 49503

From Fuller NE (north of I-96 and south of Leonard NE) turn east on Mason NE by Burgett Floral. Go 1 block to the corner of Mason & Benjamin.

East Grand Rapids for Obama, Grand Rapids Community College for Barack!, West Michigan is In!


Signup for 'Kent County/Grand Rapids Grassroots Planning Session and Training'
Will you attend:

You must enter a number of attendees greater than 0.
Saturday, June 18, 2011 1:00 PM - 3:00 PM
Attend this day? Attendees (including yourself)
Saturday, July 16, 2011
Attend this day? Attendees (including yourself)


Saturday, July 16, 2011

The day capacity limit is 180 attendees
1 person has signed up to attend this event on Saturday, July 16, 2011
The day capacity limit is 180 attendees

"How many deaths will it take till they know that too many people have died?" sang Bob Dylan of the civil rights struggle and the war in Vietnam. But the same might be said of efforts to cut, curtail or curb the rate of growth in Medicare.

Count the corpses:
1. Hillary Clinton's healthcare proposals led to the Democrats' loss of Congress in 1994.

2. Newt Gingrich's proposed cuts in the rate of growth in Medicare led to Bill Clinton's reelection in 1996.

3. Obama's and Pelosi's cut of $500 billion in Medicare led to the Republican victory in the House in 2010.

Now, the GOP, unmindful of the odds, is falling into the very same trap. As George Santayana said, "Those who do not study history are doomed to repeat it."

Having defeated Nancy Pelosi in 2010 over the Medicare cut, the Republicans marched right back into the House of Representatives -- now under their management -- and voted to affirm the cut in their budget. All $500 billion of it. The House Republicans took their signature issue and broke their pledge to stop the Medicare cut. They took the noose they had fashioned for Nancy Pelosi and put their own necks into it. They fell into a trap of their own making!

It will make no difference to the voters that the $500 billion will be kept in the Medicare trust fund to prolong the program's existence. Especially when one's life is at stake, funding for tomorrow's medical care is scant comfort today. Except for a tiny $10 billion restoration of funding for Medicare Advantage programs, the entire cut that got the Republicans elected in 2010 is still there. And now they have added to it a plan to replace Medicare with a voucher in 10 years.

The voucher plan might well work like the prescription drug benefit did -- companies might well bring down their costs to fit within the parameters of the voucher. But voters will have 10 years to worry about it and to vote Democratic to prevent it.

And the Medicare cut is totally unneeded and gratuitous. It is not Medicare that got us into this budget deficit. And, until the boomers start to retire in droves in the next decade, we do not need to reduce Medicare spending to get out of it.

Medicare has only gone up by 16 percent since Obama took office. Medicaid, food stamps, unemployment compensation, Section 8 housing, AFDC and other welfare entitlements have risen by 54 percent. And regular discretionary domestic spending has risen by 41 percent. By directing the nation's attention to Medicare -- as opposed to these other programs -- the House Republicans have totally played into Obama's hands.

The leadership has it backward. The Tea Party does not demand cuts in Medicare. It opposed them in 2010 and opposes them now. It wants welfare spending slashed. The watchword must be welfare, not Medicare. Medicaid, not other entitlements. Discretionary government spending, not aid to the elderly.

By making all but four of their members vote for the Medicare cuts in the Ryan budget, the House Republicans have set the stage for their own demise. The leadership, if it wishes to be known by that moniker in the future, must offer its members a chance to backtrack on that vote. Wisely, the budget negotiators have indicated that they will not put Medicare on the table in their talks with the White House and the Senate. But the House freshmen, if they wish to become sophomores, must demand that Speaker Boehner set a vote that permits them to undo their support for the Medicare portion of the Ryan budget.

Kenyans in the Diaspora will field a presidential candidate in the 2012 general election, a forum has announced. More than three million Kenyans who have attained the age of voting, but live outside the country, have never participated in elections.

The co-convener of New Vision Kenya Movement Shem Ochuodho said the Kenya Diaspora Alliance is supporting former MP Bonny Khalwale in the May 23 Ikolomani by-elections.

Speaking at a Nyeri Hotel during a sensitization workshop attended by youth, grassroots leaders, civil society groups and opinion leaders from the six constituencies of Nyeri County, Ochuodho said the movement encourages leaders to have integrity and openness. "We are supporting the chairman of Bull Fighting whom we believe is not corrupt and is non-violent. He is selfless and tolerant," said Ochuodho.

Ochuodho said the leadership in the country is unable to unite Kenyans.

The workshop which drew 60 participants was organised by the New Vision Kenya Movement, the Kenya Diaspora Alliance and the Nyeri Social Forum.

Nyeri Social Forum coordinator David Ngige said they will support vision-driven servant leaders who aim to economically empower their constituents to earn a sustainable livelihood.

Among the speakers were the former president of Kenya Community Abroad Gichane Muraguri, the president of Diaspora Movement of Kenya based in Salt Lake City Robinson Gichuhi, Kenya Dairy Board MD Machira Gichohi and Omieri Angima from the Centre for Multiparty Democracy.

* Unlike any presidential candidate Kenya has ever seen, GLW identifies with the majority of ... See More ordinary Kenyans, having had a humble begining typical of any Kenyan peasantry life. He went to an ordinary public school and has never enjoyed any comparative advantage as those politicians born in the affluent ruling class. GLW suffered through the tough education system from Standard one to form six and excelled out of sheer determination. He has gone through all the suffering any ordinary Kenyan peasant's child has experienced. This makes him better placed to understand and appreciate the common Mwananchi's problems, suffering and their plight for social justice and economic emancipation.

* Let Justice be Our Shield and Defender; Having suffered the injustices of a corrupt and system riddled with bad governance first as a lowly paid dedicated public servant and secondly as a victim of the same security service for which he dedicated many years of his life with deligence.

* Man of the People; Without employing the deceitful tactics of Kenya's notorious opportunists, GLW has come in at the time when governance of our beloved country is wanting. Every Kenyan is tired of injustices, lip service corruption, nepotism and bad governance. He is simply Kenya's answer to many a Kenyan's cry for socio-economic freedom and prosperity. He is the voice of the silent majority.
Fred Okello via Facebook

Overview
By Gerald Baraza, The writer is a Ph.D Candidate in Organizational Development

Cecil John Rhodes, an English entrepreneur during the latter half of the 18th Century founded De Beers Corporation as the diamond marketing wing of the giant Anglo-American Corporation Company (AAC). The ACC is listed on London, New York and Johannesburg stock exchange as a public mining company. The AAC owns 45% of the private De Beers Societe Anonyme, De Beers in short, which is under analyses in this paper. De Beers Investments is the privately held and is registered in Luxembourg. It is made up of three shareholdings: Anglo American plc has a 45% shareholding, Central Holdings (the Oppenheimer family) has a 40% shareholding, and the Government of the Republic of Botswana owns 15% directly.

Nicholas Oppenheimer is the Chairman of De Beers and his key players are active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea. Its mining operations take place in Australia, Botswana, Namibia, South Africa and Canada. De Beers was formed in 1888 by the merger of the companies of Barney Barnato and Cecil Rhodes, by which time the company was the sole owner of all diamond mining operations in Southern Africa. In 1889, Cecil Rhodes negotiated a strategic agreement with the London-based Diamond Syndicate, which agreed to purchase a fix quantity of diamonds at an agreed price, thereby regulating output and maintaining prices. The agreement soon proved to be very successful - for example during the trade slump of 1891-1892, and during the First and Second World Wars supply was simply curtailed to maintain the price. In 2001, De Beers entered into a retail joint venture with French luxury goods company Louis Vuitton Moet Hennessy (LVMH) to establish an independently managed De Beers diamond jewellery company.

Open System Characteristics
The De Beers management mandate is to use rational, systematic, science-based techniques to inform and improve decisions of all kinds in all its global operations. It has decentralized operations and empowered each unit whether it’s a mine or a diamond processing palnt to make decisions that are compartible with its environment.

Importation of energy
The joint venture, called De Beers Diamond Jewellers Ltd sells diamond jewellery in major cities throughout the world. The first De Beers store opened on Old Bond Street in London and there are now De Beers retail stores in New York, Chicago, Hong Kong, Hollywood, Paris, Munich, just to mention a few. These stores are the sources of energy for the company. They are independent outlet that respond to their own situations in different environments to recruit and manage staff, negotiate prices, and make decisions that must not only sustain the organization but make it grow as well.

The strategy for open systems management is put into operations under the directions of the Chairman, Nicholasoppenheimer and involves surveying new diamond mines, investing in equipment and technology, scheduling mining operations, deciding the appropriate place to site new retailing outlet, or diamond processing plant, managing the flow of diamonnds from various mining operations to retail outlets, identifying threats and oportunities to all operations and making possible safeguards, investing in employees and future technology, establishing the information needs and appropriate systems to manage knowledge and the necessary information. supply them within the health service, and identifying and understanding the strategies adopted by competition so as to advance effective strategies.

Throughput
The transformation of rough diamonds into products that will eventually be sold on the markets is done by the most qualified and skilled jewelry architects, artisans, and engineers housed in three locations in Johannesburg, London and London. De Beers offers scholarships (these are separate from the famous Rhodes Scholarships) to architectural and mining engineering graduate students at major universities such as MIT in the US, Imperial College London or Witwatersrand University in South Africa.

Output

The output of De Beers is jewels in which gold, silver and diamonds are the main raw materials. De Beers are the appointed jewelers for most monarchs including the British Monarch. They are the jewelers of choice for the wealth and famous and have opened a 24 hour retail outlet in Hollywood to meet the needs of such celebrities.
Each retail outlet responds to design needs of the discerning clientele in its market segment. For example the stars in Hollywood may prefer the diamonds on an alloy of gold and silver while the monarchs around the world may prefer their diamonds to be on pure gold platforms.


Negative entropy
From the directorship of Cecil John Rhodes, the De Beers Company has survived nearly two centuries now. This has been the case because the company is controlled directly by the heirs to the Cecil John Rhodes estate. Those who take the reigns of power such as Nicholas Oppenheimer are qualified economists from Oxford University. Such leadership can employ sound management practices that can not only sustain the organization but ensure its success.

In South Africa, Luxemburg, the UK or the US, organizations that are incorporated under the various company laws become separate legal entities. This means such organizations are able to go on in existence as long as they can make enough money to sustain them, pay their tax obligations and remunerate employees in terms of bona fide contracts for employment or services. Such organizations become separate legal entities from their owners. Thus they can sue or be sued.

At the end of each trading period De Beers like all other successful organizations put aside money for a rainy day in their reserve accounts at the bank. Such money becomes handy when there are not enough diamonds coming from the mines. The retail outlets do trade in other items that are not necessarily “diamonds related” such as artificial jewelry, handbags, and cosmetics accessories, just to mention a few. De Beers itself engages in cutting-edge social research. Such research enables De Beers to articulate the political, economical, threats and opportunities it faces in each market segment.


Information input, negative feedback and coding process
Essential information is important to the De Beers Company. As mentioned earlier on, De Beers can afford to employ the best accountants, engineers, economists, among many other professions, who are tasked with creating the knowledge required to sustain De Beers and also make it unique. Such professionals meet as a community of practice to create, diffuse and distribute the knowledge required by De Beers organization at every operational unit. These professionals collaborate to use their experience to reconfigure the information required for consumption by different users within the De Beers organization. Negative feedback is referred to the public relations department where it is scrutinized and addressed. In addition the Company uses the negative feedback to advance better strategy by analyzing its strengths, weaknesses, opportunities and threats it faces in each environment it operates.


Steady state and dynamic homeostasis
In all systems inputs, throughputs and outputs create a continual flow of energy. At De Beers maintaining a steady flow of energy is attained because the organization reviews its strategic planning weekly, monthly and annually. Each unit is empowered to change in response to environmental situation in its own locality. In addition the De Beers Corporation has a detailed expansion and growth plans as part of its corporate strategy. These plans include investment in research and technology, financial support of special interest groups, succession plans, among many other activities.

Different positions that are filled by individuals who are qualified in the core business of the De Beers Company. Specialized roles such as auditing, research and development, among others are outsourced to special collaborative organizations. Specialized positions such as those for financial management or information systems management are occupied by knowledgeable leaders in those fields. But there is a continual need to fill most positions with people who possess the core expertise pertaining to the De Beers Company.

Equifinality
The final characteristics of an open system are that the same results can be achieved through different configurations. Management in organizations such as the De Beers Company have similar goals which can be identified as cost-awareness, profit-motive, quality and quantity standards, customer-focus, product development, need for innovation, among many others. These goals and standards ensure almost the same results when repeated in a different way.

Generic Subsystems of the De Beers Company
The De Beers Company has the following sub-systems;
Corporate Department in which is presided by the executive chairman Nicholas Oppenheimer and his key strategists such as the presidents for finance; operations; organization and strategy; human resource and industrial relations; legal and public affairs; research and development; and information systems and security and retailing. There are six presidents in all who are supported by six vice presidents as well.


Adaptive subsystems
The retail outlets are in partnerships with local businesses so that risk is spread and minimized. These retail outlets are not involved in the mining or manufacturing but do take design orders from the public. They play an important role in identifying the key stakeholders such as customers and those charitable members of the community could use De Beers Company donated funds.

Maintenance Sub-systems
The human resources, legal and corporate and public relations, information systems and security, finance and accounting help the organization by providing a role that enables the De Beers Company to accomplish its desirable goals. Each division is headed by an expert in that particular field. For example the finance division is headed by a qualified chartered accountant or certified financial accountant.


Managerial sub-system
Each division has a structure that has different managers doing different work. But this work is all related professionally to the core goals of the division. For example in the Human resource division there are managers for compensation, training, organization development, industrial relations, recruitment, welfare, and research.


Culture

There are many variables that can make up an organizational culture. For example technology, skills, knowledge, practices, among many others make up what can be a standard culture in a company. Schein (1997) suggests that an organization’s culture is made up of the organization’s technical language, customs which could include rules and regulations, traditions, group norms: standards and values, organizational skills, and climate under which members operate. The culture at De Beers is unique to its organization. First the skills found within the organization include engineering, architectural, administration, marketing and retailing, art and jewelry designing, to mention just a few of the many skills. These skills are so engineered to support the Mission of the organization. For example diamond designing and cutting are invaluable skills in the jewelry making business. Security in mining and production operations is important because even the smallest diamonds can still be wok-in-progress, assets of the company. Therefore a culture reflects the attributes that make the organization.

Mission and Strategy

The Mission of “Diamonds are forever” must be developed and shared among all units, divisions, departments and associates. The mission is part of the organizational culture that guides operations and activities. It helps the organization to achieve its desired goals. The Mission can be a summarized aim of the organization from which organizational goals become sub objectives.

The Mission statement is there to motivate and guide operations and decision making. In its efforts to maintain this Mission, the De Beers Company values “corporate responsibility and global citizenship”. The leadership of the organization under the chairmanship of Nicky Oppenheimer asserts that social responsibility is more of an asset rather than an expense. Rebernak (2007p1.) states that “the reputation of the Group as a good global citizen is of great importance” and that “the cornerstone of De Beers’ diamond reputation is its Diamond Best Practice Principles, currently being implemented across De Beers and its global retailing, designing units which are independently audited:”. De Beers values are globally upheld and supported in all associated companies and units.

Mechanistic vs. Organic Structures

In 1961 Burns and Stalker studied the structures and organization methods of several companies are found that there were two main distinctions, the mechanistic and organic structures. The mechanistic organization is not flexible at all. .It is too rigid characterized by individual specialization as depicted in Adam Smith’s pin-making factory. In this factory, the pin making operations are divided into several functions that made up the whole operations. In such pin making activities cutting the wire into the right sizes, making the pin’s head, sharpening the pin, polishing and packaging the finished product are unique functions that characterize a mechanistic organization. Employees work separately and specialize in one task; there is a hierarchy of authority and well defined responsibilities. There is also a centralization of the decision making. All important decisions to do the job have to be made from a central point in most cases these will be made by one person or just a few individuals have the authority to make defined decisions.

In an organic structure there is quite the opposite to centralization of authority, there is delegated authorities and responsibility which increase as one climbs the hierarchical ladder. Organization is network of persons or teams. People work in different capacities simultaneously and over time. Communications are vertical indicating a strong reporting structure.

At De Beers the organizational structure is a mixture of all the two formats but leans towards the organic structure at best. The De Beers structure is characterized by business units, divisions, and functions that make decisions of their own. This is typical of an organic structure. In addition the chairman maintains an open-door system for all his board members, top management and listens to all constructive criticisms and suggestion. There are different types of boards in each country where De Beers has interests. For example in South Africa there is a board responsible for social responsibilities and another one for development and implementation of corporate strategy. The two boards feed each other with information and all report to the same chairman.

In all its other operations for example in Europe or the US, there is only one single board appointed to attend to both social and corporate responsibilities of the company in those countries. This is a organic structure but the positions of the board members are similar to those found in other similar corporations for example the directors of mining operations, explorations or finance all have similar functions. Since Burn & Stalker (1961) there has been emphasis on horizontal as opposed to vertical coordination for firms operating in turbulent environments such as those found in Africa (West African states such as Sierra Leone or Southern African states such as South Africa, Namibia or Botswana where democracy has teething problems) where De Beers has interests. In such environments politics create pressure on organizations and that impels them to behave in certain ways leading to the formation of an organic structure. The De Beers organization is no exception in confirming to such political demands.

At De Beers there is an amoebic organic structure in each country of operations that conforms to the main corporate strategy in Luxemburg. The structures in each country of operations are amoebic because they have same DNA or properties as the main corporate board in Luxemburg. An organic structure encourages innovation and motivates stakeholders to embrace the mission of the organization. Employees work in teams, there is flexibility in operations and stakeholders work in communities of practice, and there are concerted efforts for productivity.

Control Systems


Technology, Differentiation, and Integration
According to the resource view of organization, a company must have capabilities, knowledge and technology that are different and superior to those of similar companies in order to create the competitive advantage. Mupepi (2003) suggests that technology is made up of the tools and artifacts that are used to enhance productivity or improve organizational life. Technology helps to create the competitive advantage in many respects. When technology helps the organization to improve controls and reduce costs it enables the company to produce products and services at competitive prices.

Control Systems

Technology is an integral part of control systems. Different technologies have affected mining operations worldwide and diamond operations are no exception. For example technology has enabled gold mining dumps to be re-worked yielding a viable amount of re-claimed gold. De Beers sponsors engineering programs at top universities to encourage scholars to find sustainable and environmentally friendly methods of mining. Different types of technologies are used in administration, mineral exploration, new mine development, in exploiting the minerals, just to mention a few examples. The submersible water pump is believed to have been invented with funding at the Massachusetts Institute of Science and Technology from Cecil John Rhodes in the late 18th Century when diamonds were discovered at the Kimberley Reef in South Africa. The De Beers company partners with other renowned global research and development centers to advance the type of technology that sustains its business. Mupepi asserts that the creation, diffusion and distribution of the knowledge required in organization can be integrated through the use of communities of practice. At De Beers business and its operations are integrated at various levels within each country of operations. The main corporate body in Luxemburg remains in-charge of the final direction the De Beers Company will adapt and follow.

Administrative, Accounting and Financial Control Systems
Described as administrative control systems these standards help the organization to account for activities and use of resources. At De Beers such standards conform to company tax and legal requirements of business operations in each country where De Beers has vested interests.

Differentiation
DiMaggio & Powell (1991) argue that organizations mimetic each other in order to minimize risk. The corporate hierarchical structures found in most corporations confirm that such organizations copy each other in order to do similar risk free operations or minimize risk. De Beers organization is unique in many respects but it still has a finance and accounting, marketing, research and development, operations or human resources departments which can also be found in many other organizations. Environmental analyses have shown that corporations compete for similar talent and skills, the same consumer bodies or resources. Differentiation can also be made through products by variations in packages, advertising or pricing. By exploiting the four “Ps” in marketing, product, prices, packaging, and place, a company can be different from other similar organizations producing similar products.

Integration and Coordination
The De Beers Company is integrated in the countries it operates. For example in Botswana the government has a 15% shareholding in its business. In addition to employing local people the Company contributes to the health needs of its communities in Sub-Sahara Africa. In Angola, Botswana, Democratic Republic of the Congo, South Africa, Namibia and Tanzania the Company supports local education, rural health centers, specialized workforce clinics, HIV-Aids/Virus medications and many other social programs. The Company has meetings with stakeholders to determine the needs of the community and determine any form of financial assistance.

Life Cycle

De Beers as a company has been in existence since 1888 and has survived all these years because of a sound capital base and astute investing strategy. Its products last “forever” as the mission states. Ray et al (2004) consider that product life cycle goes through many phases, involves many professional disciplines, and requires many skills, tools and processes. At De Beers the mining of and processing of diamonds is an year-round contunuous process that continues until the mine is exhausted. Ray et al suggest that the product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas the product lifecycle management (PLM) has to do with managing descriptions and properties of a product through its development and useful life mainly from a business and engineering point of view. De Beers annual reports indicate that there are different stages in diamonds/jewelry life cycle. The first stage is the market introduction where costs are high and sales volume low initially. Most of the retail outlets are past this stage, customers have to be propmted to try the products (for example the discerning customers in Beverly Hills need to be informed about new diamond designed products that supposedly enahnces image ) and the competition appears to be very little. The second stage is growth. Costs must be reduced to encourage growth, sales volumes must increase significantly and prices must be established that can guarantee an increase in market share. The third stage is maturity. Here costs are supposed to be very low, there is no need for advertising and sales volumes tend to increase. The fourth stage is saturation where costs become counter-optimal and sales decilne. De Beers attempt to control this decilne by limiting the availability of diamonds, the key raw material in the precious jewel industry. They attempt to buy all the world’s diamond output and hope to control prices in the global marketing of diamonds. Profit becomes more a challenge of production/distribution efficiency than increased sales and in this strategy the company’s PLC and PLM tend to continue in semi-perpertual motion.

Conclusions
Organic organization lead to productive teamwork. An organic organization is when the organization exists dependently, meaning that the organization takes into consideration the needs of its employees. Since in an organic organization the ideas and opinions of the employees are taken into consideration, this tend to lead to effectiveness in organization. Group leadership, is better than individual leadership because there are several people controlling the environment, instead of one person telling everyone what is expected. Since organic organizations take into consideration the ideas of the employees this opens the doors to innovation, productive teamwork among employees. The De Beers structure indicate that organic organization is good because it enhances the incentive to employees to perform to the best of their ability.

References
Baker, Kenneth R.; & Dean H. Kropp (1985). Management Science: An Introduction to the Use of Decision Models. New York: Oxford University Pres
Burns, T., & Stalker, G. M. 1961. The management of innovation. London: Tavistock
De Beers Company (2008). Website inforamtion downloaded on December 16, 2008 from http://www.debeersgroup.com/Inside-De-Beers/
Mupepi, Mambo G.; Ram V. Tenkasi; Sylvia C. Mupepi & Gayla D. Jewell (2008). Precison in managing organizational change: identifying and anlayzing needs using social constructs. International Journal of Management Practice Vol. 3. No. 2; 151-162
Mupepi, Mambo G.; Ram V. Tenkasi; Sylvia C. Mupepi & Gayla D. Jewell (2007). Creating High Impact Organizations in the SADC: Adapting Organization Development Methods and Practices. The OD Practitioner Vol 39, No. 2 :(34-39)
Mupepi, Mambo G (2003). A Schematic analysis of a socially constructed competency model in organization. In Darla Domke-Damonte (Ed.). Proceedings of the Southwest Foty-fufth Annual Meeting. Coatal Carolina University Press pp 202- 213
Rey F.J., Martín-Gil J., Velasco E.; (2004) Life Cycle Assessment and external environmental cost analysis of heat pumps. Environmental Engineering Science, Vol 21, September 2004, pp 591-605
Thompson, Gerald E. (1982). Management Science: An Introduction to Modern Quantitative Analysis and Decision Making. New York : McGraw-Hill Publishing Co.
Ziegler, Philip (2008). Legacy: Cecil Rhodes, the Rhodes Trust and Rhodes Scholarships. Yale: Yale University Press.  

The United Nations Security Council working group monitoring the flow of Weapons into Somalia and sanctions against Eritrea has had its mandate extended for another 12 months. The Kenyan Diaspora Pro-Democracy Movement feels that an unstable Somalia is a direct threat to the National Security of Kenya and the entire East African region.

Hitherto, Kenya should undertake the obligations and recomendations that have been
made under Resolution 1916 (2010) to prevent the politicization and misappropriation of the Aid that has been donated by other parties. The KDPM also calls upon the Kenyan Government to cooperate with the UN investigations whenever its members are in Kenya or in the region. We also urge support in whatever form whenever it is needed.

Margaret C. Kimosop,
Vice President, KDPM

Kenya: Parties Face Sh600,000 Bill to Register
Lucas Barasa 4 September 2008

Nairobi — Tough new rules for political parties include a registration fee of Sh600,000, it was announced on Thursday.

In addition, major political parties, whose names and symbols look alike, could be forced to change them or disband.

The rules, which affect all 300 political parties in Kenya, have been introduced by the Electoral Commission of Kenya.

From now on, parties such as Narc and Narc Kenya; Ford Asili, Asili Saba Saba, Ford Kenya, New Ford Kenya and Ford People; ODM and ODM Kenya and Kanu and New Kanu; might end up fighting to retain their identities when the rules come into force.

These are the parties that initially started as one strong entity but later split due to disagreement between leaders who still wanted to retain the brand name.

Object of hate

The Political Parties Bill, which became law in July, empowered the Electoral Commission, which has become a hate object for political parties since the presidential elections last year, to make rules and regulations for political parties.

Parties now have just about four months to comply with the rules, including opening branches in all 210 constituencies.

Attempts by President Kibaki to reorganise his Party of National Unity into one strong entity have been opposed by affiliate parties Narc-K, Ford Kenya and Democratic Party of Kenya.

The new registration fee, which was published in a special issue of the Kenya Gazette, Supplement Number 62, has elicited strong opposition from more than 100 political parties, which have described them as exorbitant and meant to stop them from operation.

The parties have called a meeting in Nairobi today to formally denounce the new requirements and chart a way forward.

According to the legal notice obtained by the Nation, political parties are supposed to pay Sh100,000 for application for provisional registration and Sh500,000 for full registration.

In case of official searches, the parties have to part with Sh500 while application for a copy of any certificate or filed document or for a certified extract from the register will cost Sh10 per page.

ECK chairman Samuel Kivuitu published the rules as per Section 43 of the Political Parties Act.

The section empowers the commission boss to prescribe the fees but does not specify the amount.

Winding up

The section also deals with the manner of registration of parties, use, change of names, income, expenditure, the rate and manner in which funding may be granted, and winding up of a party.

On Thursday, 78 non-parliamentary parties took issue with the new requirements and questioned criteria used by ECK to come up with the Sh600,000 fee.

"Why is the amount not say Sh600 or Sh6,000," Mr Gachuru Karenge of the Kenya People's Party asked at the Centre for Multi-Party Democracy offices in Nairobi. He was accompanied by Mr David Wakau of the National Patriotic Party and Amos Mugambi of Kenya Citizens Congress.

Mr Wakau chairs a committee that groups officials from 78 non-parliamentary parties on whose behalf he spoke.

Not practical

The officials said 155 parties, except Narc-K, had confirmed taking part in Friday's meeting to petition ECK to rescind the new requirements "as they are not practical. The parties include giants ODM, PNU and ODM-Kenya, Mr Wakau said.

"We want to deal with ECK. Although the law gives it powers to make regulations for purposes of carrying out or giving effect to the Political Parties Act, it does not specify the registration fee," Mr Karenge said.

The officials said many parties could not afford the fees and that if the rules will be implemented, only two or three parties will exist.

They questioned why ECK had rushed to set the registration fee, yet the funding of political parties had not been effected.

The officials were also unhappy with the requirement that for a new party to be registered, it has to have offices in all the districts. This, they said, would only leave big political parties to dominate the scene.

According to rules ECK published, dated August 29, an application for provisional registration of a party should be submitted in duplicate along with two copies of the constitution and rules of the party.

The applicant should further have a declaration in support of the application and the name, emblem, motto and any other marks or features of the proposed political party, which shall be distinct from, and bear no resemblance to that of any other political party which has already been registered.

After meeting the requirements, the registrar will issue a certificate of provisional registration within 30 days on payment by the applicant of Sh100,000 fees.

Application for full registration must be accompanied by a declaration of two office bearers of the proposed party and certificate issued after payment of Sh500,000.

If an office bearer of a party ceases to hold office, the registrar has to be informed within 30 days while a party that changes office or postal address has to notify the registrar within 14 days.

The new rules warn that the registrar may remove a political party's entry from the register in case of the party that has been registered provisionally and has not applied for full registration within six months.

Every party has to submit to registrar a copy of an audited statement of accounts and the auditor's report on those accounts not later than six months after the end of financial year.

The parties further have to submit to the registrar annually a return related to its constitution, objects, office-bearers, membership and finances.

Office-bearers of the party have also been warned that they will be liable on conviction to a fine not exceeding Sh50,000 or to imprisonment for a term not exceeding six months or to both if a party breaches any provision of the regulations.

In an advertisement in the Nation on Wednesday, ECK told political parties that were registered under Societies Act to ensure they complied with Political Parties Act in 90 days.

The parties, acting Registrar of Parties Lucy Ndung'u said, should amend their constitution or rules to comply with the Act, failure of which they will become "unlawful political parties and shall be de-registered." Following the coming into force of the new law, the registrar of political parties will operate under ECK at its Anniversary Towers headquarters in Nairobi.

The new law spells doom for "briefcase" parties that were registered just before last year's General Election, but failed to field candidates for presidential, parliamentary or civic seats.

The strict discipline which the political parties registrar will enforce include de-registering parties that fail to field candidates at the next election or in six years.

The Act, had been welcomed by some politicians who said it will go a long way "in nurturing democracy in this country."

My
Kenyans,
It is that time again of the season and my 10th great grandfather Ragem has appeared to me with the following message;

"No Life can escape being blown about, by the winds of change and chance. And although you never know all the steps, you must learn to join the dance. My son, I empower you to reveal."

And therefore straight to my predictions I go:

1. PNU affiliated MPs will table a motion to cange standing orders and allo the president to appoint leader of Government business. ODM affiliated MPs will lose in opposing the motion to be voted on, but when the vote is done, the motion will not pass.

2. Contrary to current political temperatures, Ruto and Raila will remain in ODM, remain friends and learn to trust each other again.

3. Ocampo's request to open investigations at the ICC will not be granted due to the evidence not reaching the thresh hold for such cases. Kiplagat will resign as the TJRC. Nothing will happen to the perpetrators of the PEV.

4. The Zamba Kitonga Team will complete it's rewriting of the Draft Constitution, and hand it over to Parliament this Thursday. Parliament will pass the draft and okay it for the Referendum. At the referendum the yeas will have it.

5. Once the new constitution is gazetted, A new political dispensation will emerge. In fact it is already taking shape. Watch these characters very closely. Ababu Namwamba, Abdikadir Mohamed, Peter Kenneth, George Luchiri Wajackoyah, Omondi 'Bunde' Karoli, Agnes Munyi Vanselow, Heb Mosomi, Miguna Miguna, Nicholas Oyoo Ochieng, Amason Kingi, Jane Munga & Barack Abonyo. These are our new young turks. Watch them very closely.

6. As for our old guard, only Raila Odinga, Kalembe Ndile, William Ruto, Danson Buya Mungatana, Uhuru Kenyatta, Kalonzo Musyoka, Henry Kosgey, James Orengo, Charity Ngilu, Omingo Magara, Amos Kimunya, Musalia Mudavadi will remain relevant to the presidential race and surprisingly will be competing against the young turks.

7. The National Accord & the Grand Coalition Government will collapse before the end of this year.

8. There will be a period of uncertainty and power vacuum following the collapse of the Grand Coalition Government. Once again speaker of the House, Kenneth Marende will save the day by acting as head of Government for 60 days. Contrary to the desire of his kitchen cabinet, Kibaki will not heed the call to run again for the presidency. Lucy will give the press conference.

9. Kenya is headed for a period of conspiracy theorie between now and the time the Grand Coalition Government collapses. I could explain more here but desist to avoid creating panic in the nation.

10. Again there will be no outright winner in the next elections due to many alliances formed with no candidate getting 50% + 1 vote, leading to a run off of the top two candidates. There will be no chaos nor violence however. When the dust settles, we will get a president who is of no surprise at all to many, and yet one who was thought of by the extremists as an impossible improbable possibility.

Now be careful not to call me mad, for when you visit Mathari, you see those inside the fence yelling at you with those words.


--
Joram Ragem
wuod Ndinya, wuod Onam, wuod Amolo, wuod Owuoth, wuod Oganyo, wuod Mumbe, wuod Odongo, wuod Olwande, wuod Adhaya, wuod Ojuodhi, wuod Ragem! (Are you my relative?)