Despite millions of dollars spent on shares, records reveal that taxpayer holdings in a Kenyan phone company have plummeted by two thirds, says Blacklock's Reporter. Lori Kerr, CEO of FinDev Canada, the agency responsible for purchasing the shares, had previously assured Members of Parliament that FinDev was "an investor with impact."Kerr testified before the Commons public accounts committee on February 29, stating, "We are an investor with impact. We put that impact lens on everything we do."Since 2017, FinDev has invested $43.4 million in shares of M-Kopa Holdings Limited, a company based in Nairobi that specializes in door-to-door cellphone and home appliance sales. However, M-Kopa has yet to turn a profit or issue dividends to shareholders.Corporate records reveal that M-Kopa has repeatedly issued and reissued shares, effectively reducing Canadian taxpayers' equity investment in the company from 6% to 1.6%. Initially, M-Kopa issued 4.3 million shares when FinDev made its purchase. Since then, the number of shares issued has skyrocketed to 172.3 million.During her testimony before the committee, Kerr made no reference to M-Kopa, which represents FinDev's first investment abroad. Instead, she emphasized that FinDev is "in the business of supporting private development in emerging markets and developing economies.""We are about supporting development in emerging economies to support good quality jobs, to support raised incomes, tax revenues, etcetera," Kerr added. She also boasted about FinDev's growth, stating, "We grew essentially from zero to a billion dollars on our balance sheet," attributing this growth to increased taxpayer funding.Documents obtained through Access to Information revealed that FinDev purchased M-Kopa shares without consulting its chief investment officer and without disclosing financial details of the company's operations. M-Kopa Holdings has relied on the sale of shares to cover ongoing losses.In a notice to shareholders in 2021, management stated that the company was in discussions to raise additional capital with new and existing shareholders to support its operations. Despite the challenges, the directors expressed confidence in the company's ability to continue as a going concern.Jesse Moore, a former Toronto activist with ties to federally-subsidized youth forum Action Canada, emerged as the largest single shareholder in M-Kopa. Records show that Moore received significant compensation from the company, including stock options.Moore has declined interview requests and issued a company-wide email in 2021 warning staff not to speak to the media. He accused Blacklock's Reporter of publishing "false reporting" and expressed concern about the dissemination of misleading information about M-Kopa.
Despite millions of dollars spent on shares, records reveal that taxpayer holdings in a Kenyan phone company have plummeted by two thirds, says Blacklock's Reporter. Lori Kerr, CEO of FinDev Canada, the agency responsible for purchasing the shares, had previously assured Members of Parliament that FinDev was "an investor with impact."Kerr testified before the Commons public accounts committee on February 29, stating, "We are an investor with impact. We put that impact lens on everything we do."Since 2017, FinDev has invested $43.4 million in shares of M-Kopa Holdings Limited, a company based in Nairobi that specializes in door-to-door cellphone and home appliance sales. However, M-Kopa has yet to turn a profit or issue dividends to shareholders.Corporate records reveal that M-Kopa has repeatedly issued and reissued shares, effectively reducing Canadian taxpayers' equity investment in the company from 6% to 1.6%. Initially, M-Kopa issued 4.3 million shares when FinDev made its purchase. Since then, the number of shares issued has skyrocketed to 172.3 million.During her testimony before the committee, Kerr made no reference to M-Kopa, which represents FinDev's first investment abroad. Instead, she emphasized that FinDev is "in the business of supporting private development in emerging markets and developing economies.""We are about supporting development in emerging economies to support good quality jobs, to support raised incomes, tax revenues, etcetera," Kerr added. She also boasted about FinDev's growth, stating, "We grew essentially from zero to a billion dollars on our balance sheet," attributing this growth to increased taxpayer funding.Documents obtained through Access to Information revealed that FinDev purchased M-Kopa shares without consulting its chief investment officer and without disclosing financial details of the company's operations. M-Kopa Holdings has relied on the sale of shares to cover ongoing losses.In a notice to shareholders in 2021, management stated that the company was in discussions to raise additional capital with new and existing shareholders to support its operations. Despite the challenges, the directors expressed confidence in the company's ability to continue as a going concern.Jesse Moore, a former Toronto activist with ties to federally-subsidized youth forum Action Canada, emerged as the largest single shareholder in M-Kopa. Records show that Moore received significant compensation from the company, including stock options.Moore has declined interview requests and issued a company-wide email in 2021 warning staff not to speak to the media. He accused Blacklock's Reporter of publishing "false reporting" and expressed concern about the dissemination of misleading information about M-Kopa.
