Information and Communication Cabinet Secretary Eliud Owalo has suspended Kenya Broadcasting Corporation (KBC) Acting Managing Director Samuel Maina with immediate effect.
In a letter dated December 19, the CS said the appointment of Maina was terminated with immediate effect.
“The appointment of Mr. Samuel Maina as acting Managing Director is terminated with immediate effect,” the letter read in part.
According to the ministry, Maina was suspended for committing the government to pay USD5.0 billion in the London Court of International Arbitration, for Channel Group 2 Corporation vs KBC without seeking concurrence.
The money in question is approximately Ksh 750 billion.
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Besides, the letter stated that Maina neither consulted the ICT Ministry, National Treasury, Office of the Attorney General nor the Department of Justice.
Maina was ordered to proceed on suspension and await disciplinary action from the Board.
“Mr. Samuel Maina should proceed on suspension immediately and disciplinary action instituted against him by the Board,” the statement read in part.
Further, Owalo appointed Paul Macharia to replace Samuel Maina effective December 19, 2023.
“I duly appoint Mr. Paul Macharia, currently the Communication Economic Expert at the National Communications Secretariat which falls under the mandate of the Ministry of Information, Communications and the Digital Economy, as the Acting Managing Director with effect from 19 December 2023 for a period of six (6) months or upon the appointment of a substantive Chief Executive Officer pursuant to section 34 of the Public Service Commission Act, No. 10 of 2017,” part of the letter read.
Samuel Maina in Parliament
Earlier in September, Samuel Maina appeared before the Public Investment Committee to answer questions raised in the Auditor General’s report on a Ksh 7 billion loan borrowed by KBC to buy equipment in 1989.
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According to the Committee,KBC borrowed the said money from Overseas Economic Co-operation Fund (OECF) Japan to spruce up its operations.
However, decades later, the state corporation was still struggling to clear the debt prompting the intervention of the state to bail it out.
Nonetheless, the legislators noted that the equipment brought with the funds had not been in use despite plunging the broadcaster in debt.
Further, it emerged that the government through the National Treasury had been servicing the debt over the years, further sinking the corporation into debt.
According to the committee, KBC had Ksh2.8 billion owed to the government as result of the money used to service the debt.
Further, the broadcaster had tax arrears owed to the Kenya Revenue Authority to the tune of Ksh189 million which put at risk of incurring penalties.
In his response, theKBC Acting MD requested more time to gather enough information on the matters raised.