Anti Corruption Body Approves Telkom – Airtel Merger
The Ethics and Anti Corruption Commission (EACC) has approved the Telkom – Airtel merger. The Commission earlier questioned the merger over the possibility of public funds lost as Treasury sought to convert its loans in Telkom to equity. However, EACC failed to pursue the matter in question saying the matter involves two private entities.
The government owns 40% of the shares in Telkom Kenya, whereas Helios owns the majority 60%. According to EACC, such means that Telkom Kenya is not a state corporation as parliament implied. Therefore, Telkom cannot yield to EACC questioning under the State corporations Act.
“Preliminary investigations established that Telkom Kenya Ltd is a private company owned by the Government of Kenya through Cabinet Secretary, National Treasury and Helios Investors through Jamhuru Holdings Limited” reads a letter to Communications Authority.