Financial Fiasco: EACC Targets High-profile Figures in Telkom Scandal

Summary:
The Ethics and Anti-Corruption Commission (EACC) is pushing for the prosecution of Controller of Budget Margaret Nyakango and former Treasury CS Ukur Yatani over the contentious Ksh.6 billion Telkom Kenya buyout. The quarterly report by EACC reveals ignored advice from the Attorney General and lack of approval from the Communication Authority, questioning the legitimacy of the government’s acquisition of 60% shares from Jamhuri Holdings. Former Treasury PS Julius Muia and other high-ranking officials are also implicated, facing charges including economic crimes, abuse of office, money laundering, and acquisition of proceeds of crime. President William Ruto’s Cabinet has reversed the Telkom purchase decision, urging a refund from Helios Investment, the UK-based company at the center of the takeover dispute.

The Ethics and Anti-Corruption Commission (EACC) has taken a firm stance in the unfolding Telkom buyout controversy, recommending legal action against key figures involved. Controller of Budget Margaret Nyakango and former Treasury CS Ukur Yatani are in the spotlight, facing allegations of facilitating the Ksh.6 billion deal, which the EACC asserts was marred by procedural irregularities.

According to EACC CEO Twalib Mbarak, the report outlines substantial cases, with the Telkom issue taking a prominent place. The investigation reveals that the Attorney General’s counsel was disregarded during the buyout process, and the Communication Authority did not greenlight the acquisition of 60% shares. This raises serious questions about the legality of the government’s transaction with Jamhuri Holdings.

The recommended charges against Nyakango, Yatani, and other implicated individuals span economic crimes, abuse of office, money laundering, and counts related to the acquisition of proceeds of crime. Notable figures on the list include former Treasury PS Julius Muia, Telkom Board Chair Edward Njoroge, and various executives from Jamhuri Holdings Ltd and Telkom.

In early October, the Cabinet, led by President William Ruto, backtracked on the Telkom purchase decision, demanding a refund from Helios Investment, the UK-based company overseeing the takeover. The intricacies of this case point to potential financial mismanagement and irregularities in the acquisition process, prompting a thorough review by the Director of Public Prosecutions.

Frequently Asked Questions:

1. Why is the EACC recommending charges against Controller of Budget Margaret Nyakango and former Treasury CS Ukur Yatani?

• The EACC alleges that Nyakango and Yatani played significant roles in the controversial Ksh.6 billion Telkom buyout, citing procedural irregularities and potential financial mismanagement.

1. What led to the Cabinet’s decision to rescind the Telkom purchase and demand a refund from Helios Investment?

• The Cabinet, chaired by President William Ruto, reversed the decision due to concerns raised by the EACC regarding procedural lapses, the absence of Communication Authority approval, and the Attorney General’s ignored advice.

1. What charges are the implicated individuals facing according to the EACC recommendations?

• The recommended charges include economic crimes, abuse of office, money laundering, and counts related to the acquisition of proceeds of crime, forming a comprehensive legal case against the individuals involved in the Telkom buyout.