News

By Alari Alare

The Public Accounts Committee of the Parliament wants the Director of the Kenya Anti-Corruption Commission (KACC) to institute investigations into the five per cent owners of Safaricom.

The committee wants KACC to find out the circumstances under which 10 per cent of Telkom Kenya Limited shares in Safaricom were first transferred to Mobitelea Ventures without the consent of the Treasury. The report, released in Parliament on Thursday by the committee chaired by Siakago MP, Mr Justin Muturi, recommended investigations to be conducted both locally and internationally.

Report wants apparent grand corruption investigated

It recommends that Parliament invites the Organisation for Economic Cooperation and Development, United Nations, Transparency International and the Serious Fraud Office of London to undertake investigation on apparent grand corruption conceived and orchestrated by Vodafone Plc in Kenya.

"The committee examined at length the matter of shareholding of Safaricom Limited and we want to report to the House that this is a matter that members constantly and rightfully described as a mucky case of grand corruption," the report said.

In 1999, Telkom Kenya owned 70 per cent of Safaricom while Vodafone Kenya owned 30 per cent, PAC says. But by 2002, a third shareholder, Mobitelea Ventures Limited, whose shareholder is a shadowy firm registered in Guernsey Island and whose directors remain obscure, owned 10 per cent.