Editor's Review

Nyakang'o had earlier confessed that she received a call directing her to okay the release of the funds days before the August 2022 General Election.

The Controller of Budget Margaret Nyakang'o and former Treasury Cabinet Secretary Ukur Yattani are among the individuals set to be prosecuted over the Ksh6 billion acquisition of Telkom Kenya shares by the government of Kenya from Helios Investment Limited.

A report filed by the Ethics and Anticorruption Commission (EACC) and published on Friday, December 8, Kenya Gazette notice established that the deal was flawed and breached specific standards.

EACC investigations established that the search for potential investors stopped when former CS Yattani who served fourth President Uhuru Kenyatta wrote a letter dated March 29, 2022, indicating that Jamhuri Holdings Limited had exited Telkom.

Further, the anti-graft Investigations established that the Communications Authority of Kenya did not approve 60 per cent shares of Telkom Limited to the government since part of the conditions were not met by Telkom.

File photo of former Treasury CS Ukur Yattani. PHOTO | COURTESY

"Investigations revealed that despite the correspondence between the former Attorney-General (AG) and the former Cabinet Secretary (CS) National Treasury, the office of the AG did not issue a legal opinion, neither was the AG’s comments and advice incorporated in the contractual documents," the report read in part.

"Investigations also revealed that the acquisition of shares by GoK from JHL did not meet the threshold as provided in Regulation 40 (3) and (4) (a) of the Public Finance Management (National Government) Regulations, 2015 since the transaction was not unforeseen and unavoidable," the report added.

Following the investigations, EACC wants Yattani to be charged over his role in the loss of Ksh6 billion. Former Treasury PS Julius Muia is also listed among a group of former senior government officials that EACC wants to be prosecuted over the same.

Nyakang'o who was recently released on cash bail after being arrested on forgery and fraud charges, is also among those EACC wants charged for her role in the release of the colossal amount of money to aid the buy-out deal that happened a few days before the last general election.

Nyakang'o had earlier confessed that she received a call directing her to okay the release of the funds 2 days before the August 2022 General Election.

EACC also wants former director general public investments and portfolio management Eng. Stanley Kamau, Paul Cunningham who is the director of Jamhuri Holdings Ltd and CEO Telkom Paul Mugo Kibati to be prosecuted.

Others include Telkom Board Chair Edward Njoroge, Julius Kiplangat Cheptiony, JHL transaction advisor John Ngumi, Kosi Ali and Alan Wainaina Kongo.

In October, President William Ruto's Cabinet rescinded the decision to purchase a 60 per cent stake in Telkom from Helios investment for Ksh6.09 billion.

The Cabinet directed the company to refund the money.