How Government lost the sh75million Fifa Worldcup deal
BY JAMES RATEMO IN NAIROBI
The Government has lost opportunity to recover sh75 million it spent to buy into broadcasting rights of the ongoing Fifa 2010 World cup due to alleged impropriety by the Kenya Broadcasting Corporation officials.
The deal has already seen KBC MD David Waweru and Company Secretary, Hezekiel Oira suspended with the Inspectorate of State Corporations called in to investigate.
Mr. Waithaka Waihenya, KBC’s Editor-In-Chief, has taken over as acting Managing Director.
Confirming the suspensions, Ministry of Information PS, Bitange Ndemo, said KBC had been given sh75 million to buy the world cup rights and was expected to sell advertising airtime to recover the money.
“The Government has lost the money and already the Inspectorate of State Corporations is investigating the matter…the two are suspended to pave way for investigations which will take about one month,” Ndemo told The Standard on phone.
Investigations
In a statement on Wednesday, KBC Board chairman Charles Muoki said the two have been suspended to allow for independent investigations into the matter.
According to insiders in the deal gone sour, KBC had signed a sh110 million agreement with Patrick Quacko of Radio Africa Group to co-screen the world cup matches.
This meant it would have saved the Government the sh75 million and still make profit of around sh35million thus the deal did not raise much storm as KBC argued it was a business deal.
Interestingly, Radio Africa Group had entered into an agreement with the Committee of Experts and expected to receive sh110million for the public awareness programme on the proposed constitution.
Royal media services
In what seems to be boardroom intrigues KBC also entered into a sh0.5million deal with Royal Media Services.
Unknown to KBC chiefs, Royal Media services went ahead to negotiate with the committee of experts and clinched the sh110million deal from Quacko to educate the public on the proposed constitution during the world cup season.
This meant Quacko lost the sh110milion deal to Royal Media Services which argued that it had countrywide coverage hence better placed to carry out the public awareness campaign.
Deal gone sour
This is how Quacko lost the money and hence he could not pay KBC. Intriguing still it meant KBC could not get the money from the committee of experts since Royal Media Services had already bagged the money.
The big puzzle is how the committee of Experts entered into deal with Royal Media Services and not the principal rights holder, KBC. It is also mind boggling how the CoE could enter into agreements without following proper procurement channels.
