Former KBC bosses to stand trial over fraud
Posted Wednesday, May 9 2012 at 22:30
Former Kenya Broadcasting Corporation (KBC) managing director David Waweru and secretary Hezekiel Oira have been put on their defence on allegations of irregular tendering of broadcast rights.
Senior principle magistrate Lucy Nyambura ruled that the two have a case to answer over impropriety in a contract to broadcast the 2010 FIFA World Cup matches live.
Ms Nyambura ruled that the prosecution had proved its case beyond any reasonable doubt to warrant the accused being put to trial.
During the hearing, Mr Charles Mwoki, the corporation’s board chairman told the court that Mr Waweru bypassed the board in entering into partnerships to broadcast the 2010 Fifa World Cup.
He said they were told KBC was distributing the shares of broadcasting and seeking partnerships with local media to recoup their money and to generate income.
According to Mr Mwoki, there was no procurement or tendering process for the partnerships.
He added that when they later met as the board, they discovered that there were discrepancies in following the correct procedures after which they handed the matter to the inspector of corporations to investigate.
The case is a result of allegations that KBC informally invited bids but rejected more competitive offers from other broadcasters in what had become an explosive scramble for the right to broadcast the 2010 Fifa World Cup.
According to the prosecution, Radio Africa Ltd paid KBC Sh26 million for the television rights in a deal which also entailed sharing of advertising revenue.
The government paid Sh75 million for the rights through KBC and it complained that it stood to lose the money it lent the public broadcaster to invest in the World Cup broadcasting rights. (READ: Ex-KBC boss denies fraud charge)