CS Owalo Appoints Paul Macharia To Be KBC Acting MD, Suspends Samuel Maina For Commiting Govt To Pay $5bn In LCIA Arbitration
ICT Cabinet Secretary Eliud Owalo has suspended Samuel Maina as Kenya Broadcasting Corporation (KBC).
He has named Communication Economic Expert Paul Macharia to replace Maina who proceeds on suspension and will face disciplinary action for committing the government to pay $5 billion in LCIA Arbitration with Channel 2 Group without seeking concurrence of the Ministry, The National Treasury and the Attorney General.
Owalo’s letter with the new changes is addressed to KBC Board Chairman Eng. Benjamin Maingi who has been directed to expedite the recruitment process of a substantive MD.
“The appointment of Samuel Maina as acting MD is terminated with immediate effect and he should proceed on suspension and disciplinary action instituted against him by the board,” Owalo said in the letter dated December 19.
Macharia has been appointed acting MD for six months.
The dispute dates back to 2009 when KBC terminated a joint venture agreement with Dubai-based businessman Ajay Sheth, owner of Channel 2 Group.
According to court documents, KBC and Channel 2 entered a joint partnership in 2006 where the State broadcaster would provide technical equipment while the latter supplied the new digital station with staff, programming content and resources.
However, Channel 2 and Mr Sheth argue that KBC terminated the deal without notice in 2009, costing the businessman billions in foregone profits and expenses sunk into the joint venture.
The case has been under arbitration in London.
According to the latest data from the National Treasury, KBC reported Sh1 billion in internally generated funds in the 2020-21 financial year, largely from State transfers, and Sh305 million in losses.
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