A $1.84b lesson

The CEO of the Volkswagen Group resigned recently after it was demonstrably proven that his company had lied for years about the emissions' tests of the company's cars. Then Volkwagen began a process of recalling cars from North America, Europe and other key markets such as India, Japan and Brazil that had been sold on the basis of those emissions' tests. That may be as many as 11 million cars recalled by the car maker. It is no surprise that it lost 1.84 billion dollars in its third financial quarter.

We still need to know how and why a venerable German manufacturer lied and cheated on something that would eventually be discovered. But once the scandal was exposed, even if he was pushed, the CEO resigned in disgrace. If he had any designs on a career in the public service or politics, he can kiss that career goodbye. I do not recall Angela Merkel or members of her Cabinet intervening in the affair, though they will be definitely interested in the outcome of the investigations and whether or not the Volkswagen Group will be paying billions of dollars in fines.

In Kenya, to say the least, things are less stringent. Two banks have been placed under supervision by the Central Bank of Kenya in the last one year. Not one CEO has resigned. No one is talking about mega-fines for the manner in which the banks have played with depositors' funds. The opacity behind the banks' supervision does not engender trust that we will ever know the truth about our so-called second tier banks. Ever. Or why they collapse. Speculation, on the other hand which is our stock in trade, will keep us intrigued, shifting focus away from the sclerotic institutions meant to keep our funds safe when we place them in the custody of banks.

But that is not even the worst thing about the sclerosis in regulatory institutions. Do you recall the last time there was a small flood in South C that stranded children - and their driver - in a school bus all night? That happened to be one of the few schools with a serviceable school bus. The vast majority of school buses are death traps. These vehicles are not built with the safety of schoolchildren in mind; they are built with an eye to gouge an extra few shillings from parents. What stands out is that the rapacious National Transport and Safety Authority, the Government of Nairobi City County and the Ministry of Education, Science and Technology are in see-no-evil-hear-no-evil mode and these death traps are still on the road.

I will be shocked if the Cabinet Secretary, His Principal Secretary, the Director-General of the NTSA, the Ministry's head of children's safety (if there is one) and the inspectors meant to keep an eye on things resign. No one resigns in Kenya. No one expects anyone to resign in Kenya. The VW scandal may be vastly larger compared to the scandal of child safety on our roads, but I submit to you that the lives of children are vastly more valuable than the $1.84 billion that VW lost this quarter. Therefore, CS Kaimenyi, PS Kipsang', D-G Meja and their colleagues best get their asses in gear if they will not resign. It's the least they can do.