The National Assembly Joint Committees on Finance and National Planning and Communication, Information and Innovation has opened the lid on the individuals and companies that received payments on the 100 per cent shares buyback of Telkom Kenya Limited by the Government of Kenya.
In an ongoing investigation, the parliamentarians in the committee chaired by Kuria Kimani revealed that Jamhuri Holdings Limited financed a loan totalling 51 million USD (Ksh6.9 billion). The money was used to make payments to different agents to the tune of 50 million USD and currently has a balance of 1 million USD.
Out of the money, Mr Karim Anjarwalla’s law firm Anjarwalla & Khanna Advocates received 422,991 USD (Ksh57 million) in payments as legal fees.
Anjarwalla said that before the deal, he had known Paul Cunningham, the Director of Jamhuri Holdings Limited, for close to 10 years.
“Mr Cunningham is somebody I’ve known for eight to 10 years. I have met him many times in London where he lives. The first time I met him in Kenya was when he appeared before your joint committee in regards to this investigation,” said Mr Anjarwalla.
Signing of the Telkom deal
Mr Anjarwalla also informed the committee that he was not present during the signing of the Share Purchase Agreement between the Government and Jamhuri Holdings, and that Mr Cunningham and the government signed from wherever they were. He could however not certify whether the signing was done in person or via email.
Mr Anjawalla did not disclose the name and location of an investment bank that was paid 1 million USD as transaction advisor on Jamhuri’s exit from Telkom in early 2023.
Another company that received monies on the deal was Adili Trustees Limited, which received 2,661,675 USD (Ksh/60 million)on behalf of the Telkom Kenya Management Incentive Plan, funds which were subsequently paid out to the current and former staff of Telkom Kenya who had vested rights in the management incentive plan.
John Ngumi , the Executive Director Eagle Africa Limited, who was an advisor to Jamhuri Holdings Limited, got paid 3,071,163 USD (Ksh415 million) in a period of five months, for acting as an advisor to Jamhuri in connection with the sale of Jamhuri’s shares in Telkom.
“I was paid because I am the best in business and I had already helped Helios revive a company that was on its deathbed. They valued my advice against taking legal action against the Government of Kenya. It wasn’t me imposing a fee on them,” Ngumi said.
