MPs summon Mugo Kibati over Telkom Sh4 billion towers deal

Telkom Kenya chief executive Mugo Kibati risks arrest after skipping a meeting with a parliamentary team investigating the acquisition of 715 towers by American Towers Corporation (ATC) for $155 million (Sh23 billion) five years ago.

This comes after the Senate Committee on Information and Technology issued a summons to Dr Kibati to appear before it on November 9, 2023.

The Parliamentary Powers and Privileges Act empowers committees to impose a fine of Sh500,000 and instruct the Inspector of Police to arrest and produce people who snub their summons.

"Dr Mugo Kibati has on numerous occasions failed to honour our invitations to shed light on this weighty matter. We have therefore resolved to direct the clerk to issue a summons compelling him to appear on November 9, 2023," ruled Trans Nzoia Senator Allan Chesang, who chairs the committee.

The committee is investigating the circumstances under which Telkom Kenya breached the tower sale and leaseback agreement by failing to pay Sh4 billion owed to the American company, despite the US firm providing services and fulfilling its part of the deal.

The breach led to a dispute that disrupted Telkom's network services across the country a few months ago.

The ongoing battle between Telkom and ATC escalated in July when ATC Kenya shut down half of its base stations spread across the country.

The showdown led to the loss of Telkom's network, with several Kenyans appealing to the company to restore the network.

The ICT committee decided to summon Dr Mugo, who was due to accompany ICT Cabinet Secretary Eliud Owalo, after he wrote to parliament saying he was currently out of the country.

"This is a sensitive legal case that we cannot proceed with in the absence of Telkom Kenya boss Mugo Kibati. We cannot talk about Telkom if he is not here," said Vihiga Senator Godfrey Osotsi.

"I remember when we were investigating the government's Sh6.2 billion buyback of Telkom Kenya, Dr Kibati took us round and round when we wanted him to shed light on Hellios LLP. He never showed up."

Mr Osotsi cited another instance where Dr Kibati skipped all invitations when the Senate was probing issues surrounding the multi-billion-shilling National Fibre Optic Backbone (Nofbi).

"I find his attitude rude to the Cabinet Secretary and the Principal Secretary who honoured our invitations to attend this meeting. If the CEO is not here, we can't proceed," said Mr Osotsi.

Mr Owalo, his PS Edward Kisiangani, and officials from the Communications Authority of Kenya (CA), ATC-Kenya and Telkom Kenya attended Thursday's aborted meeting.

"This is a sensitive matter involving billions of shillings. We need to summon him, fine him Sh500,000 and ask the Inspector General to arrest him and bring him before this committee," said Nandi Senator Samson Cherargei.

The MPs said the committee had heard the views of Thomas Sonesson, the managing director of ATC Kenya, who had to fly all the way from Europe to testify.

When he appeared before the committee in August, Mr Sonesson revealed that ATC was seeking Sh4 billion from Telkom Kenya, which has leased some of its 3,600 telecommunications towers.

He told the Chesang-led committee that ATC Kenya had been prevented by the state from making further investments in towers in Kenya.

The company has sent several notices to Telkom Kenya informing it of the huge debt, but Telkom has failed to respond. So the company has stopped paying for electricity to power the masts because of the debt.

In retaliation, ATC Kenya said, Telkom Kenya had deployed police officers at several masts, preventing ATC Kenya agents from accessing the sites where the masts are located, resulting in disruption of services.

"Telkom Kenya denied ATC Kenya access to the leased sites in breach of the terms of the lease agreement, affecting services such as connectivity, mobile money transfers and voice communications.

Eight customers, including mobile network operators, ISPs and broadcasters, have been off the air since May 15, 2023, hampering the government's digital transformation agenda," Sonesson said.

Telkom Kenya provides critical communications services to the Office of the President, State House and the Government Data Centre, the Ministry of Interior, the General Service Unit, the Ministry of Defence's restricted communications networks and other critical government functions. The military, police and wildlife services are served by Telkom Kenya.

The Data Centres, Data Rooms and Base Stations also manage critical security infrastructure, including carrier services, landing stations, undersea cables and meet-me rooms where telecommunications companies interconnect.

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