The Betting Control and Licensing Board (BCLB) is now threatening to withdraw the license of Milestone Games Limited, which is the new front of SportPesa, for a second time.
BCLB former chairman Paul Wanderi wrote to Milestone on Tuesday accusing Chief Executive Ronald Karuari of grabbing the company and tax evasion.
“It has come to the attention of the board that the shareholding in Milestones Games Limited as of October 22, 2020 when its bookmaker’s licence was issued has since been changed in blatant breach of the aforementioned operation requirements,” the letter signed by BCLB chairman Cyrus Maina.
BCLB says that firm obtained its licence under one set of owners, only to later transfer its shareholding of Milestone Games Limited to bring onboard another company, Selenium Limited, which is owned by Ronald Karauri, thereby preventing the board’s due diligence requirements on betting company ownership.
Being the CEO of SportPesa, Karuari holds shares in Pevans East Africa Limited.
SportPesa is locked in a bitter ownership and tax row with the Kenya Revenue Authority (KRA).
Further, Ndung’u claims that the decision to approve the registration of a new betting outfit, Milestone Gaming Limited, would leave other local shareholders with a raw deal.
“This is meant to deprive the Kenyan shareholders their long-term investment in PEAL by Milestone taking over and stripping off the assets of PEAL,” accused Ndung’u, writing to BCLB CEO Peter Mbugi.
The regulator now wants Milestone to show cause in writing within seven days why its bookmakers off the course license number 0000205 should not be cancelled.
Furthermore, it also wants the firm and its directors to appear before it next Thursday at 11 am for deliberations on the same.
By Joy Kyalo