SportPesa Considers Previous Chairmanship of the Court of Justice
Kenyan number 1 sports betting operator SportPesa is considering seeking legal action against its former chairman Paul Ndung'u, following a string of complaints of fraud from the company's non-kenyan owners.
Offshore Assets Move
SportPesa officials agree that the magnitude of Paul Ndung’u's entirely misleading statements demands a formal answer that is nothing short of legal action. SportPesa's former chairman, who still holds 17% of the operator's former holding company Pevans East Africa, said non-Kenyan owners had requested money transfers in many different countries to various offshore funds.
A SportPesa spokesperson refuted these claims, adding that the organization has already complied with both regulatory and tax provisions in all jurisdictions in which it operates. These and other claims of irregular dealings by Ndung'u lead to resignation of the auditor of SportPesa's Kenyan company PriceWaterHouseCoopers.
Investigation By Agency For Serious Crime
Regarding SportPesa's UK company, Ndung'u made claims that the Serious Fraud Office investigated SportPesa Global Holdings as officials from the Government's non-ministerial department investigating and prosecuting serious fraud and corruption visited the Nairobi office of SportPesa. These allegations were refuted by the operator's representative saying that SportPesa is "not aware of any inquiry by the UK Serious Fraud Office."
Another accusation from Ndung'u, that the company's board was excluded in making big decisions, when he first learnt about the brand name partnership with landmark games, considering his considerable stake in Pevans, when the contract was officially announced by SportPesa CEO Ronald Karauri, was also refuted by the spokesperson:
“All Sportpesa brand actions have always been done with the knowledge and explicit approval of the board members of all companies involved and in compliance with company bylaws and local regulatory guidance.”
Local Owners In The Shadows
Last week, the long-awaited return of the country's no 1 sports betting operator materialized but the Betting Control and Licensing Board (BCLB) operations stopped again after an interference by the Kenyan gambling regulator.
Milestone Games, which unsuccessfully attempted to revive under the SportPesa name, had signed a partnership deal with Sportpesa Global Holdings, a business whose managers are executives at Pevans East Africa.
However, the BCLB argued that Pevans is the legitimate owner of the SportPesa brand, and besides that, landmark's license renewal application was for a "Milestone Bet" brand name, the BLCB further explained.
It turned out that either the company has been sold to SportPesa Global Holdings or it has no right to enter into deals surrounding a brand it does not own. If a brand move occurred, Ndung'u's argument that the announcement for SportPesa's return to Kenya actually announced the brand's transition is false. Earlier it was reported that mobile payment was declined in Kenya.
As for Milestones' ownership, Ndung'u said he had no clue, saying that this was another part of local business shareholders being left in the dark.
