One of the dodgiest practices in creative accounting aka cooking books is the padding of income statement numbers using non cash items like revaluation gains, extra large changes to operating income using obscure items like capitalisation of R&D costs and staff redundancy expenses etc. I remember calling out Cytonn for having operating incomes not in tandem with their operating cash flows lakini nikaambiwa nirudi nikunywe busaa niwache kusumbua. Ona sasa.
Business Daily did an article about 2 months ago explaing this very phenomenon. That is how local banks use those fancy terminologies to under declare non perfoming loans.
These con games huinvolve very many big people including bank directors. Then, some of the investors are not real, they are conduits used to lure people
@itombwa hapa alikuwa amejaa kende la Dande mdomoni hadi hapumui vizuri, proper deep throating, na hizi ndio jamaa zimeingia serikali? Kama haoni utapeli uko hapa, bongo lala.
Bwana after this shenanigans imagine kuna madoggy bado zilipeleka hela huko expecting 19% return on investment. I remember asking then what the underlying assets were for their high yield investment to guarantee 19% return nikaambiwa bangi ndio inanisumbua. In portfolio management, tunasemanga any portfolio with a 10% return is good enough. Anything above that would call for extensive diversification and wouldn’t ordinarily be available to small timers kama most cyttonaires. Dafaq is even a cytonnaire?