New revelations have emerged into the corruption allegations facing telecommunication services giant Safaricom that were sparked by a leaked forensic audit report.
Reports now suggest that Nairobi Lawyer Ken Kiplagat has been holding a longtime grudge against Safaricom and leaked the document; a matter already forwarded to the Directorate of Criminal Investigations (DCI).
Lawyer Kiplagat, who is also a prominent businessman, is said to have illegally obtained a draft audit report that was being handled by accounting firm KPMG which he then shared to bloggers and a section of the media.
The draft KPMG report alleging that top Safaricom managers were involved in massive tendering irregularities was then circulated widely and aired on a national television station.
In an interview with a local daily, the veteran lawyer was quoted stating, “Safaricom and I have a fight right now”.
The feud between the businessman and Safaricom is said to have been sparked by a Sh15 Billion government contract awarded to the mobile services provider in 2014. The tender was for the supply and installation of high-tech police communications system.
Tetra Radio, a company linked to Mr Kiplagat, believed it ought to have won the security tender since it had secured a contract for construction, operation and provision of a communication system for the Kenya Police Service in 2001.
Tetra argued that the 2001 security contract was similar to that awarded to Safaricom, hence, the government was not supposed to award the 2014 tender to any other person or body.
According to the Communication Authority of Kenya (CA), the 2001 contract held by Tetra Radio had never been in operation since it was cancelled after the Authority realised the firm lacked technical and financial capability.
However, Tetra Radio disputed the claim by CA maintaining that it had the financial muscle to service the security tender.
Since then, Kiplagat has reportedly remained aggrieved for losing the multi-billion tender to Safaricom.
Some Safaricom officials claimed that in 2014, Kiplagat allegedly tried to end the dispute through an illicit financial settlement; claims that the businessman denied.
On Friday, Safaricom CEO Bob Collymore indicated that parties behind the leaking of the draft report had intentions of maligning the organisation's corporate image.
"We believe a proactive and routine corporate governance initiative is now being used to create negative perception and execute reputation attacks on Safaricom. We firmly believe the individuals behind this seek to intimidate, blackmail and extort Safaricom,” the CEO stated.
Mr Collymore maintained that besides being an anchor member of the UN Global Compact’s local chapter, building a more ethical business remained a key element of his personal agenda.
