How Kenyans Lost Sh105M In Telkom Buyback Deal

Top National Treasury officials inflated forex exchange rates in the sale of Telkom Kenya Ltd, increasing the amount by hundreds of millions.

A report by MPs on the inquiry on the 100 per cent buyback of Telkom Kenya by the government reveals how the Treasury mandarins made a kill by a simple move of reporting false exchange rates.

According to the report currently before the National Assembly, the Director General Accounting Services and Standards at the National Treasury, Benard Ndung’u approved the issuance of exchequer for payment of Sh6.1 billion following the approval by the Cabinet Secretary and Comptroller of Budget.

In line with approval processes, the Head of Accounting, Nemwel Motanya, prepared an exchequer requisition memo on July 28, 2022, addressed to Ndung’u.

As the Director General Accounting Services and Quality Assurance, Ndung’u facilitated the issuance of the exchequer and payment of Sh6.19 billion.

Having received the approval from the COB, the report states, that the directorate of accounting under the stewardship of Ndung’u processed the request for the withdrawal of the funds to the COB and the approval was granted.

“It is imperative to note that the amount of Sh6.1 billion (USD 51.2 million) at an estimated rate of USD 119/1,” reads the report.

However, the National Treasury remitted Sh6.19 billion (USD 51,186 million) at Central Bank of Kenya rate of Sh121.06 at the date of payment.

“The difference of Sh105.5 million was a result of the exchange rate difference. Again the request of withdrawal of the additional amount was approved by the COB,” state the MPs.

The MPs said the buyback of the company was ill thought, ill-timed and lacked the duty of care on the part of the officials who undertook the transactions.

The MPs have told the Ethics and Anti-Corruption Commission (EACC) to investigate former Treasury CS Ukur Yatani (pictured), Joe Mucheru (ICT) and former National Treasury Principal Secretary Julius Muia.