A confidential report by audit firm KPMG, submitted to Safaricom CEO Bob Collymore and Irene Miru, Head of Project Management in February 2016, has shed light on the company's ambitious ONE CAMPUS project.
The project, which aimed to bring all Safaricom operations under one roof, was suspended by Collymore on September 16, 2015. The KPMG report reveals a trail of irregularities, including the involvement of Mentor Management Ltd (MML) and DTZ Leadenhall as consultants for the project.
Background and Context ¶
The ONE CAMPUS project was conceived by Roy Masamba, Director of Resources, in November 2012. The project required the identification and acquisition of land, construction of a world-class facility, and provision of adequate facilities and parking for over 1,990 Safaricom employees.
John Tombleson, Safaricom's Chief Financial Officer, and Richard Mureszko, from Vodafone Group, played key roles in the project. Tombleson was reportedly recalled by Vodafone in June 2016, amid allegations of improper conduct related to the ONE CAMPUS project.
Evidence and Findings ¶
The KPMG report highlights a series of emails between Tombleson and MML CEO James Hoddell, discussing the project as early as January 2013, before any formal engagement. MML operated without a valid contract from Safaricom, instead using a series of purchase orders that were regularly varied.
The report also reveals that MML identified four properties for the project, including the Garden City site, which was ultimately purchased for KES 1.15 billion. A price comparison by KPMG found that adjacent land was being sold for KES 100 million per acre by EABL, raising questions about the inflated price paid by Safaricom.
Response and Consequences ¶
The audit report states that MML was owned 90% by ACTIS Limited, the company developing Garden City Mall. This raises concerns about conflict of interest and the potential exploitation of Safaricom by ACTIS.
The Safaricom Board, including CEO Bob Collymore, has been accused of complicity in the fiasco. The board formed an ad hoc committee, the Steering Committee, which oversaw the breach of procurement procedures and allowed MML and its affiliated companies to benefit from the project.
The resignation of Rob Spooner, who worked on the project through subcontractor PROFICA, was reportedly due to reputational risks resulting from the exploitation of Safaricom by ACTIS.
