The National Treasury is at pains to repay an over Ksh7 billion debt owed to the Communication Authority of Kenya (CA).
Appearing before the National Assembly’s Special Funds Account Committee, CA Director General, David Mugonyi, was ordered to adopt more aggressive measures to ensure that the debt is paid.
According to Mugonyi, Telkom Kenya owes the Authority over Ksh7 billion.
However, because the National Treasury is a shareholder at the company, it had committed to cover the frequency fees accrued over two financial years but had since failed to do so.
“Despite these commitments, no payments have been made, prompting the legislators to stress the critical importance of debt recovery, given the financial implications on public resources,” a statement from the committee read in part.
Also Read: Parliament to Investigate Sh6bn Allocated for Telkom Kenya Purchase Four Days to Elections
How Treasury Purchased Telkom Kenya 4 Days to Elections
In February 2023, parliament was informed that the National Treasury overruled the Controller of Budget and paid Ksh6.09 billion to acquire a 60 percent stake in Telkom Kenya, making the company fully State-owned.
Moreover, the company was bought from a UK-based private equity fund, four days before the 2022 General Election.
According to the controller of Budget Margaret Nyakang’o, she refused to authorize the withdrawal of the billions to buy out Helios Investment Partners in Telkom Kenya.
However, the deal was closed in the last days of former president Uhuru Kenyatta‘s term and came at the height of campaigns to succeed him.
When questioned, former Treasury Cabinet Secretary (CS) Ukur Yattani explained that the purchase was expedited due to security reasons as advised by the National Security Council.
In October 2023, President William Ruto led the cabinet in revoking the government’s purchase of 60 percent shares of Telkom Kenya from the United Kingdom (UK) based Helios Investment fund.
Also Read: Ex-Uhuru CS Ukur Yattani Arrested in Morning Raid
MPs Question Internet Connectivity Project for Schools
At the same time, the Committee questioned the mismanagement of the Education Broadband Connectivity project by the communication authority.
The project was meant to provide high-speed internet to schools across the country. However, the management of the project was never handed over to the Ministry of Education after five years.
According to the CA director general, there was no Memorandum of Understanding (MoU) in place to facilitate the handing over of the project.
“Several schools have resorted to partnering with alternative providers to maintain internet access.
“CA is now set to submit a list of schools still utilizing the provided infrastructure, paving the way for inspection visits by the Committee in the coming weeks,” added the report.
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