Ksh6B Telkom Takeover: EACC Wants Margaret Nyakang'o Charged Alongside Uhuru Treasury CS & PS
The DPP is reviewing the file of the Telkom buyout probe before moving towards the next course of action.
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The Ethics and Anti-Corruption Commission (EACC) has asked the Director of Public Prosecutions (DPP) Renson Ingonga to press charges against Controller of Budget Margaret Nyakang'o alongside officials in former President Uhuru Kenyatta's administration over the controversial buyout of Telkom Kenya at a cost of Ksh6 billion.
EACC also wants former Treasury Cabinet Secretary Ukur Yatani, ex-Principal Secretary Julius Muia and Telkom management to take responsibility for what it alleged was the unlawful buyback of Telkom from a private company, Helios Invest, a UK-based private equity fund.
The anti-corruption body also wants the chairman of the board, the CEO, the Chief Finance Officer (CFO) and the Chief Strategy & Business Officer to be held to account. Also targeted is Helios' transaction advisor.
The DPP is reviewing the file of the Telkom buyout probe before moving towards the next course of action.
Telkom Plaza along Ralph Bunche Road in Nairobi. /FILE
The EACC found that the Communications Authority of Kenya (CA) did not allow for the acquisition of 60 per cent shares of Telkom Limited by the government.
It also established that during the buy-out plan, the Attorney General's advice was ignored and his opinion was not factored into the contract as per the law as the office bearer is also the chief government advisor.
EACC therefore established that the takeover was against the Public Finance Management Regulations 2015 on supplementary appropriation.
"Investigations also revealed that the acquisition of shares by the government did not meet the threshold as provided in Regulation 40 (3) and (4) (0) of the Public Finance Management Regulations. 2015 since the transaction was not unforeseen and unavoidable.
"On August 29, 2023, a report was compiled and forwarded to the DPP with recommendations to charge the former Cabinet Secretary (CS) for the National Treasury, the former Principal Secretary at The National Treasury, the Controller of Budget, the former Director General Public Investments and Portfolio Management," EACC stated.
EACC indicated that the chain of individuals lined up for prosecution should face among other charges economic crimes, abuse of office, money laundering and six counts of acquisition of proceeds of crime.
Nyakang'o had alleged that she was arm-twisted by Yatani to clear irregular spending before the 2022 general elections in August and that she never approved the withdrawal of the money to buy out Telkom Kenya from Helios Invest, which she revealed to be Ksh6.1 billion.
On his part, former PS Muia, who appeared before the joint sitting of the Departmental Committee on Finance and National Planning and the Departmental Committee on Communication Information and Innovation, argued that the Telkom acquisition met the threshold of the law.
“The National Treasury complied with all the legal requirements. The payment was lawful and in accordance with the constitution. It was all done in the interest of the Kenyan people,” Muia defended.
In early October, the Cabinet chaired by President William Ruto rescinded the decision to purchase a 60 per cent stake in Telkom from Helios investment and now wants the company to refund the money.
The Helios Company at the centre of the Telkom takeover row is based in the United Kingdom (UK) while its partner/subsidiary Jamhuri Holdings Limited is based in Mauritius.
Meanwhile, it could be more woes for Nyakang'o following her controversial arrest, arraignment in court in Mombasa and eventual release on a Ksh2 million bond, with the option of a similar surety or Ksh500,000 in cash.
Nyakang'o was arraigned before the court over conspiracy to defraud, operating an unlicensed Sacco, forgery, and uttering false documents, contrary to section 353 of the Penal Code.
