I am the best in business - Ngumi on Sh400m pay in Telkom deal

It has now emerged that Helios Investment Partners was willing to take the Sh6.1 billion in tranches even as Treasury rushed to make one off payment.

Investment banker John Ngumi, who brokered the deal, told Parliament that the company had, in negotiations leading to the conclusion of the deal, indicated it could take as much as five years to pay it for the 60 per cent shareholding.

"Helios would have exited at once but the government would have paid for some four to five years," he said.

"My client was ready to be paid over time, through bonds, I don't know why they were fast to pay one off. My client was ready to go with a structure with a Treasury bond issue."

Helios was exiting from Telkom Kenya after six years, having acquired its stake from Orange of France in 2016. The company had acquired the 70 per cent stake that Orange held in the telco but it was on condition that it cedes 10 per cent to the government and this in turn saw Treasury's shareholding go up to 40 per cent.

The ally of former President Uhuru Kenyatta yesterday revealed that he was paid Sh400 million ($3.7 million), which was compensation for his expertise. National Assembly Finance committee Chair Kuria Kimani wondered what kind of skill that he brought with lawyers that would make him Sh400 million in five months.

"What is it that you exactly did that warranted such kind of payment. Don't you think you were paid a lot of cash belonging to the tax payers? Wondered Kuria. He added: "Deep inside your heart do you think the money is commensurate with what you did? We're there other competitors? How were you picked?"

Best in business

"I was paid because I was the best in business, I had helped the UK firm save money and make a better decision. The money will come back into Kenya and I will spend the money, but I will pay 30 per cent," said Ngumi. "The purpose is to maximize returns. It needs the highest advise so that it does not make mistakes, so you go and get the best in business."

The government acquired Telkom Kenya from UK firm Helios Investment Partners just days before last year's elections. [File, Standard]

He has also sat on the boards of major State-owned companies, including Kenya Pipeline Company (KPC) and recently had a short stint as chairman of the leading telco Safaricom in which the government owns a 35 per cent stake. Cunningham, who was flanked by lawyers from the firm Anjarwalla & Khanna was hard-pressed for crucial details on the beneficiaries of the funds paid out in the deal.

"Across all of the advisors, we probably paid somewhere in the region of $4.5 million (Sh630 million) to $5 million (Sh700 million) dollars, which included legal, banking and transaction advisory," said Cunningham.

Cunningham told the MPs that the transaction with the government was above board.

Sale storm

Treasury's acquisition of Helios' stake in Telkom Kenya just days before the elections last year kicked up a storm, with current and former senior state officials blaming each other for what is now being termed as a rushed transaction and is not value for taxpayer funds.

Controller of Budget Margaret Nyakang'o, in March, told MPs that she was coerced into approving the transactions. She went on to table conversations with the former National Treasury Cabinet Secretary Ukur Yatani directing her into making approvals.

Yatani, however, fought back saying Article 223 of the Constitution allowed the Treasury CS to make certain expenditures without Parliament's approval but required to seek the same later through a supplementary budget. He also added that the claims made by the Controller of Budget were "false, malicious and actionable in law".

Solicitor General Shadrack Mose said the legal opinion of the Office of the Attorney General was not issued before the controversial deal.

"From our records, we do not appear to have received a response to our letter from the National Treasury. The legal opinion of the Attorney General was, therefore, not issued," he said.