NAIROBI, Kenya April 6 –Former National Treasury PS Julius Muia has defended the buyback of Telkom Kenya during President Uhuru Kenyatta’s final days in office saying it was above board.
Muia was responding to an adverse report by Controller of Budget Margaret Nyakangó who said she was coerced to clear irregular spending by then-Treasury Cabinet Secretary Ukur Yatani.
Appearing for grilling before the joint sitting of the Departmental Committee on Finance and National Planning and the Departmental Committee on Communication Information and Innovation on Wednesday, he said the acquisition was lawful.
“The National Treasury complied with all the legal requirements. The payment was lawful and in accordance with the constitution. It was all done in the interest of the Kenyan people,” he stated.
Days before the August 9 2022 general election, the National Treasury paid Sh6.09 billion to acquire a 60 percent stake in Telkom Kenya from Helios Invest, a UK-based private equity fund.
On April 8 2022, Muia narrated that he received a letter from the Executive Office of the President detailing that the National Security Advisory Council (NSAC) had approved the exiting of Helios and for the government to reacquire the firm.
The Former PS stated that it was from that letter that the National Treasury granted approval of the deal and payments in July.
“Approval was used by the National Treasury to request the ex-chequer for payment and also request the Controller of Budget to approve the withdrawal,” he stated.
Muia insisted that the deal cannot be unlawful as the Controller of Budget granted approval on 3 August 2022.
“In August, the Central Bank of Kenya credited the National Treasury account for payment to Jamhuri Holdings and on 2 September the expenditure was reported to Parliament,” he added.
Revelations by Controller of Budget Margaret Nyakangó before the committee however shows that the National Treasury bypassed her in the transaction.
The Controller of Budget must approve the withdrawal of cash from the government’s main accounts and has powers to block access to funds suspected to breach the law.
Last month, Nyakang’o said that she didn’t give a nod for the withdrawal of the billions to buy out Telkom Kenya from Helios Invest.
“I rejected some of the withdrawals including the Sh6,091,140,702 that was funding to cater for the exit of Helios Investment in Telkom Kenya Ltd. And this was in writing,” said Nyakang’o.
The Treasury withdrew Sh6.09 billion on August 5, 2022, and paid Jamhuri Holdings Ltd, a Mauritius-based subsidiary of Helios basing the transaction on Article 223 of the Constitution.
Article 223 of the Constitution okays the Treasury to spend on emergencies without the approval of Parliament by withdrawing funds from the Consolidated Fund.
However, the law demands that the Treasury table a mini-budget for two months for parliamentary approval.
