The Ethics and Anti-Corruption Commission (EACC) has suggested to the Director of Public Prosecution (DPP) to press charges against key figures, including a former Treasury Cabinet Secretary (CS), a former Treasury Permanent Secretary (PS), and senior Telkom Kenya officials, in connection with the contentious nationalisation of the company.
The acquisition deal, which occurred four days before the August 9, 2022 elections, involved the government purchasing 60% of Telkom Kenya’s ordinary shares from UK-based Helios Investors LLP and its subsidiary for Sh6.09 billion.
In its quarterly report covering July 1 to September 30, published in the Kenya Gazette, the EACC revealed that investigations discovered the Communication Authority (CA) did not approve the takeover of Telkom Kenya Limited as certain conditions were not met.
The EACC’s inquiry originated from a complaint by the Clerk of the National Assembly dated March 6, 2023. The report further highlighted that the Office of the Attorney General did not issue a legal opinion, and the AG’s advice was not incorporated into the contractual documents.
Controller of Budget Margaret Nyakang’o informed Parliament’s Budget and Appropriations Committee on February 14 that she refused to authorize the withdrawal of Sh6,091,140,702 to accommodate Helios Investment’s exit from Telkom Kenya Ltd.
The EACC’s recommendations for prosecution include charges against the former Treasury CS, former Treasury PS, Controller of Budget, former Director General of Public Investments and Portfolio Management, Telkom Kenya Ltd CEO, board chair of Telkom Kenya Ltd, Chief Operating Officer, Chief Strategy and Business Development Officer, Chief Finance Officer, and a transaction officer for Helios Investors LLP.
The charges range from conspiracy to commit an offence of economic crime, abuse of office, willful failure to comply with laws, conflict of interest, neglect of official duty, fraudulent acquisition, money laundering, acquisition of proceeds of crime, deceiving principal, and willful failure to comply with laws relating to procurement.
On October 3, 2023, the Cabinet annulled the nationalisation of Telkom Kenya and directed the seller to refund the money.
The current Treasury Cabinet Secretary, Njuguna Ndung’u, announced that Infrastructure Corporation of Africa LLC (ICA) of the United Arab Emirates had been chosen as the new investor to acquire the 60% shareholding after a competitive process initiated in January 2023.
The government plans to work with Jamhuri/Helios to transfer their shareholding to ICA and implement regulatory reforms to correct structural imbalances in the telecommunications industry.
EACC CEO Twalib Mbarak stated that the commission had recommended charges against a former CS, a former PS, and some senior Telkom officials but refrained from disclosing names. The DPP’s concurrence is awaited for these recommendations.
