MPs plan hearings on alleged Safaricom bids scam
Safaricom CEO Bob Collymore (right) and CFO John Tombleson during the company's announcement of its 2015 full-year financial results at Safaricom House in Nairobi on May 11, 2016. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- Audit by KPMG shows irregularities.
A parliamentary committee will meet on Thursday to draw up a schedule of when top Safaricom executives, suppliers and contractors will appear before lawmakers to shed light on allegations of multibillion-shilling tendering irregularities at the listed telco.
Benjamin Lagat, the National Assembly's Finance, Planning and Trade Committee chairman, said members would draw up a calendar to summon all those named in a forensic audit by KPMG, which tracked 23 questionable deals at the firm.
The parliamentary team is racing to beat a 60-day deadline given by Speaker Justin Muturi a fortnight ago to probe the tender dealings at Safaricom and report back to the House with findings and recommendations.
“We’re meeting on Thursday to draw up a schedule and then begin hearings,” said Mr Lagat in an interview.
Mr Michael Ngugi, a Nairobi-based businessman, has petitioned the National Assembly to investigate procurement-related scandals at Safaricom, where the Treasury directly holds a 35 per cent stake.
OPERATOR VODAFONE
Safaricom is also 40 per cent owned by British telecoms operator Vodafone.
The House argues that while the issues raised can be dealt with by courts of law or the procurement watchdog, the Constitution charges lawmakers with the responsibility to guard public interest.
“Article 95(2) which provides that the National Assembly deliberates on and resolves issues of concern to the people, obligates the House to also attempt to address such matters, with a view to resolving them,” said Mr Muturi.
The KPMG report reviewed dubious tenders at Safaricom dating from September 2013 to August 2015, cumulatively worth Sh289.4 billion.
Safaricom chief financial officer John Tombleson alongside four other senior executives are said to have influenced the purchase of a Sh1.15 billion five-acre piece of land at Garden City where the telco plans to build its headquarters.
The KPMG auditors also raised queries relating to payments worth Sh1.2 billion to seven firms to carry out marketing activities to promote Safaricom’s brand and products.
Other tenders probed by KPMG are the procurement of corporate promotional merchandise totalling Sh201 million from Vajas Manufacturers Ltd, Huawei’s $12.5 million contract to upgrade the M-Pesa platform, and payments amounting to Sh1.2 billion to Scanad, the creative arm of WPP Scangroup.
