Thursday, February 15, 2007

Vodafone in spotlight from Kenya corruption inquiry

Vodafone, the world's leading mobile phone operator, is under investigation in Kenya over its relationship with a Guernsey-registered company that acted as an advisor in east African telecoms.

Kenya's investment watchdog is trying to ascertain who is behind Mobitelea Ventures Ltd, a shell company that in 2003 was allowed by Vodafone to acquire a 5% stake in Safaricom, the country's biggest mobile operator. The shares are now worth at least $100m (£51m).
...

Vodafone has refused a formal request from the PIC to reveal who owns Mobitelea. Mr Muturi said he would be asking the Serious Fraud Office for assistance.

Mobitelea's shareholding in Safaricom was revealed in a local newspaper in November 2006. Until then it had been assumed - even by the Kenyan government - that Safaricom remained a 60:40 joint venture between government-owned Telkom and Vodafone.
...

"When Vodafone makes investments in new territories it is not uncommon that it works alongside a partner who typically gives advice on local business practices and protocol and the various challenges associated with investing in a new market. Vodafone would prefer to be in a position to make a comprehensive disclosure but, having taken legal advice, could be in breach of a duty of confidentiality were it to discuss Mobitelea further." (News by Xan Rice in Nairobi, Friday February 16, 2007
The Guardian )

No comments: