Parliament Team Wants to Probe Safaricom IPO in Kenya

Mergers, Acquisitions and Financial Results

A parliamentary watchdog committee wants to investigate the Safaricom initial public offering, claiming that a foreign company was allowed to buy its shares fraudulently.

The Public Accounts Committee chairman, Dr Boni Khalwale (Ikolomani, New Ford-Kenya), pleaded with the House to let his 11-member team find out how a foreign company, Alcazar Capital Limited, was launched in Kenya just a few weeks before the closure of the Safaricom IPO and given the nod to take part in the offering.

He said searches at the Immigration department revealed that the directors of Alcazar never visited Kenya, and that the company is based in Dubai.

Wednesday, Dr Khalwale claimed that the instability of the Safaricom share prices was being influenced by some foreign investors who sought to create panic among local shareholders.

"They want locals to sell off their stake, so that they can take up the lion's share," he said.

However, Finance assistant minister, Dr Oburu Oginga said he had no information about the firm.

Dr Khalwale rose moments after Dr Oginga had given a statement as demanded by Gwassi MP John Mbadi (ODM) who sought to know why there were two sets of prospectuses.

The Ikolomani MP claimed that the issuance of the two sets of documents was deliberate, since the Government did not want to inform the investing public that Safaricom had a debt of Sh68.8 billion.

Deputy Speaker, Farah Maalim then ordered Dr Oginga to bring a comprehensive ministerial statement next Wednesday.

The Nation