- Kinyua said officials from Office of the Attorney General and ministry of Information and Communication could have been enjoined.
- The Committee had asked Kinyua to provide the names of the people who negotiated the controversial deal on behalf of the government.
Former Head of Public Service Joseph Kinyua fell short of revealing faces behind the controversial Sh6.09 billion Telkom Kenya buyback when he appeared before MPs probing the saga on Thursday.
Kinyua, however, told a joint sitting of the Departmental Committee on Finance and National Planning and the Departmental Committee on Communication Information and Innovation the officials were drawn from National Treasury.
He said it was the National Treasury that undertook the transaction but noted officials from Office of the Attorney General and ministry of Information and Communication could have been enjoined.
“Normally, it is the National Treasury that would undertake such a transaction. The Ministry had a team that sat and after it was convinced that the deal was in the interest of Kenyans, now prepare a Cabinet paper for onward submission,” he explained.
Kinyua added that details of the people involved in the negotiations are usually not provided in the paper.
The Committee had asked Kinyua to provide the names of the people who negotiated the deal on behalf of the government.
“All witnesses who have appeared before us have denied negotiating the exiting terms. Do you know who sat down with Jamhuri Holdings and negotiated the deal?” Departmental Committee on Finance and National Planning chair Francis Kimani asked.
The government paid Sh6.09 billion to acquire a 60 per cent stake in Telkom Kenya from a UK-based private equity fund, just four days before last year’s general election. The transaction lacked parliamentary approval.
Kinyua told the Committee that his role in the deal was limited to preparing minutes of discussions in the Cabinet.
Kinyua said there were a number of strategic reasons to justify the 100 per cent buy-back of Telkom Kenya by the government.
He said Telkom Kenya operates critical national security assets and services including mobile telephone services, money transfer services, data centre assets, national fibre optic infrastructure, fibre right of way and sub-sea assets.
“Furthermore, and perhaps more importantly, Telkom Kenya provides critical government communication services to the Office of the President, State House, Government Data Centre, Ministry of Defence, ministry of Interior and Coordination of National Government, the National Police Service, Parliament and other sensitive public agencies.
He added that the company also maintains government hotlines, Core Communications Network, as well as Department of Defence and National Intelligence Service restricted communication channels.
“It is in consideration of the above that the government considered 100 per cent buyback as the optimal option,” he added.
He noted that under the 100 per cent buy back, strategic assets owned by Telkom Kenya will be fully protected.
Telkom Kenya bosses have, however, put a strong pitch to MPs to have the firm reverted to the public even as Parliament continues with a probe into its buyout.
The firm's management told lawmakers on Wednesday that the ongoing inquiry into its Sh6.09 billion purchase by the government is painting the firm in speculative light.
“It is our considered view that concluding the share transfer in a manner that retains Telkom Kenya as a private company is the best outcome for all our stakeholders,” Telkom Kenya said.
The firm told MPs that employees, customers, partners and financial institutions and potential investors are seeking clarifications about its future.
“However, Telkom Kenya has a solid and sustainable growth strategy going forward,” the firm said.