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SportPesa rocked by boardroom wars

 

SportPesa shareholder Paul Wanderi has said he did not know the betting firm was back in business.  

"Just like the rest of the Kenyan public, I came to learn of the resumption of SportPesa business through social media at 9pm on Friday," he said in a letter. 

Wanderi, who relinquished chairmanship position at Pevans East Africa Limited in December last year, said he was shocked to learn that the firm was planning to resume business under a new name.

Pevans East Africa Limited ceased business in July 2019, following revocation of its licence by the Betting Control and Licencing Board (BCLB) arising from huge tax arrears dispute with the Kenya Revenue Authority (KRA).

On Friday, SportPesa, under a new vehicle, Milestone Games Limited, said it was resuming business. The announcement was, however, short-lived after the betting regulator suspended operational accounts, citing a pending domain dispute case in court.  The matter will be heard in court on November 17

Wanderi said shareholders of Pevans East Africa Limited, who are the owners of the SportPesa Brand intellectual properties, its shortcodes, and assorted M-Pesa pay bill numbers at both Safaricom and Airtel, have never been informed of any impending resumption of SportPesa business in Kenya.

He said Sportpesa CEO Ronald Karauri together with non-Kenyan shareholders and executive directors, ran the company without reference to the board and frustrated all efforts to hold board meetings. 

He, for instance, claimed that the company made transactions worth $250 million (approximately Sh27.2 billion) within three years to Isle of Man, Dubai, Las Palmas, Canary Islands and the United Kingdom between 2015 and 2018 as captured in audited accounts. 

He also claimed that, subsequent to ceasing operations, $500,000 (about Sh54.4 million) has been transferred from Pevans to SportPesa South Africa, while within the two years $17.5 million (Sh1.85 billion) has been transferred to SportPesa Tanzania.

 He is appealing to CBK, KRA, BLCB and Financial Reporting Centre to assist in investigating where the funds ultimately went.

A brand ownership certificate seen by the Star on Monday indicates that the SportPesa brand is owned by SportPesa Global Holdings Limited - SGHL.

The intellectual property certificate from the World Intellectual Property Organisation (WIPO) shows (SGHL) registered the Sportpesa brand on January 17, 2019. It expires on January 27, 2027. 

Karauri was not available for comment. Even so, the CEO confirmed to a local media outlet late last year that there were changes to the shareholding structure without giving more information.

SPHL is the holding company that owns the trading licences and businesses of SportPesa Tanzania, SportPesa UK, SportPesa Italy and SportPesa Russia.

According to Wanderi, SPHL ownership was a mirror of Pevans EA Limited but, within this year, foreign shareholders have transferred the shareholding to themselves along with their associates.

This is, however, not the first time the businessman is finding himself in contestation with fellow shareholders. 

He was at the centre of a corporate battle at the Coopers Motor Corporation (CMC) which later saw the firm sold to Al-Futtaim Group. 

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