Mauritius, Kenya pursue joint probe into Peter Munga’s Sh7.1billion Britam shares transaction

Controversy is stalking Kenyan tycoon Peter Munga after Mauritius requested for in-depth probe into his Sh7.1 billion purchase of 452.5 million shares of Britam Holdings from the government of Mauritius that left the island nation riling from Sh3.9billion loss.

The two countries, Kenya and Mauritius will cooperate on the basis of Mutual Legal Assistance (MLA) to share evidence adduced in the actual happenings during the controversial deal and the role played by dismissed former National Treasury Cabinet Secretary Henry Rotich.

Already, the Capital Markets Authority (CMA) has initiated probe into the matter owing to glaring failure to make the necessary required disclosures that marred the flagged process.

After the controversial share transaction in 2016, Munga sold the 452.5 million shares barely two years later, in 2017 and 2018 in two transactions at prices that were not disclosed to the market.

Also, Munga pocketed Sh135.7 million worth of dividends, which were due to Mauritius given that the parties agreed to the transfer of the dividend rights in the contract.

The government of Mauritius is also keen to establish how the Mauritius Ministry of Finance and Economic Development facilitated the sale of shares to Munga despite a higher bidding of Sh11billion by a South African firm.

Of interest is the possible correspondences between the Kenya National Treasury and the Mauritius Ministry of Finance that will open lid to possible procedural flaws committed during the 2016 transaction.

“The investigations have commenced.” A source privy with the probe intimated.

The Port Louis commission of inquiry said Kenyan officials did not cooperate with the investigations either snubbing the Mauritius officials while some individuals only submitted brief written statements which the commission variously described as misleading, coached or ridiculous.

According to impeccable sources, the multi-pronged investigation will likely lope in past dealings between Munga and Mauritius associated entities like the SBM Bank Kenya and the collapsed Chase Bank.

The probe could be extended to other intermediary banks used in the transaction, for example, Equity Bank, through which Munga, a founding member used to settle the transaction.

Equity Bank was also involved in negotiating the currency conversion rates since the deal was denominated in Kenya Shillings.

A parallel investigation by the Mauritius government unearthed the role played by the then Financial Services, Good Governance and Institutional Reforms minister Roshi Bhadain to help Munga buy the stake in question.

A South Africa based insurance firm, MMI Holdings and Barclays Bank (now Absa Group) had pitched a Sh11billion bid for the same shares.