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Telkom Kenya has been cleared of allegations of irregular privatisation, conflict of interest and restructuring of the company’s balance sheet by Ethics and Anti-Corruption Commission (EACC).
Following investigations by the EACC, it was established that there was no evidence of impropriety or culpability of the public officials involved in Telkom Kenya’s privatisation process, according to reports.
A statement from EACC said, “A report was prepared and forwarded to the Director of Public Prosecution (DPP) on July 22, 2020 with recommendation that the investigation file on allegations of irregular privatization, conflict of interest and restructuring of TKL balance sheet be closed with no further action for lack of evidence in support.”
Investigations were opened following allegations that the National Treasury committed the government to sign the recapitalisation and restructuring agreement without making sure that there was adequate budgetary provision to defend its stake in Telkom Kenya.
The National Treasury was accused of failing to avail the government’s capital contribution of Sh2.4 billion ($22 million) six months after signing the agreement which exposed the government to a loss of 10% stake in Telkom, with its stake falling from 40% to 30%.
The report, tabled in Parliament in February 2021, clears Telkom’s recapitalisation deal that was first approved in 2012.
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