NAIROBI: The official version of the Pan African Network Group (Pang) ownership has now been disclosed before a parliamentary committee.
According to acting Chief Executive Officer Song Deng, Pang is currently owned by two other companies – Excel Magic that holds 25,000 (6.25 per cent) shares and Startimes China Africa Digital TV Media Ltd with 375,000 (93.75 per cent) shares.
The Excel Magic, which was incorporated in the Virgin Islands, is fully owned by Chinese investor Zao Zin.
Pang shareholding was disclosed before the Committee on Energy and Communication. It is one of the two companies fully licensed to distribute digital broadcasting signal in the country.
Mr Song said Pang was incorporated on March 4, 2011, by Startimes Communication Holdings which owned 99 per cent of the shares while one share was owned by an individual Woo Chang. These were the owners when the company applied for the signal distribution licence. In 2012, the shares were transferred to the two current owners.
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Eight months after registration, Pang, which the CEO said is based in Beijing, was granted the distribution licences followed by digital frequencies.
Song told the committee chaired by Kigumo MP Kamleck Kamau, that the parent company – Startimes Holdings – had undertaken construction of network and digital infrastructure in more than 30 African countries and also operated digital distribution in 13 of them.
He said due to the series of court cases on digital migration, the company had not been able to offload its shares to local investors.
According to the digital migration policy and a decision by the Supreme Court, the company is required to surrender some of its shares to Kenyans within six months which expire in March.
The Communications Authority of Kenya has been under pressure to disclose the ownership structure of Pang.
Song said Pang had invested $30 million (about Sh270 million) in equipment, land and staff. It had paid $450,000 (about Sh40.5 million for the licence).
The CEO was accompanied by two advocates. He said all other directors of Pang reside in China.
MPs demanded to have the real directors of Pang appear before them as Song could not field some of the questions on the ownership.
