A recent audit of Safaricom by KPMG has raised concerns over the lack of transparency regarding the ownership of certain vendors, including Mo Sound, which received nearly Kshs. 331 Million in Purchase Orders from Safaricom between 2013-2015.
According to the audit report, details about the ownership of Mo Sound were not available at the Registrar of Companies office, prompting calls for further investigation. The only known contacts associated with Mo Sound are Kavutha Mwanzia, Joy Wachira, and Hassan Liwali, whose brother Fakii Liwali works at Coca Cola.
Rita Okuthe and Peter Arina are alleged to have played a role in facilitating contracts for companies like Mo Sound, earning significant commissions in the process. The audit also notes that Mo Sound failed to provide detailed records of their activations, despite being contracted to do so.
Conflict of Interest and Cronyism ¶
A character by the name of Kelvin Mulei, a former DJ and founder of Groove Awards, appears to be linked to Mo Sound, raising questions about potential conflicts of interest. The company's ability to secure large contracts with Safaricom has led to accusations of cronyism and favoritism within the telecommunications giant.
The advertising industry in Kenya has been criticized for its failure to adapt to new trends and technologies, instead relying on traditional methods and cronyism. This has resulted in mediocre advertisements and a lack of creativity, with many Kenyans expressing frustration with the current state of the industry.
Call for Investigation and Transparency ¶
The KPMG audit report highlights the need for greater transparency and accountability within Safaricom's procurement processes. The lack of information about Mo Sound's ownership and the alleged involvement of Safaricom staff members in the company have raised red flags and necessitate further investigation.
In the coming days, more details from the Safaricom KPMG audit will be released, shedding light on the inner workings of Corporate Nairobi and the advertising department. This will include information on companies such as Scanad, Round-trip, and Squadd-Digital, including their ownership, directors, and other relevant details.
