Panic grips Safaricom as bloggers unravel scandalous KPMG Audit Report

 

Panic has gripped tech-giant Safaricom as concerns mount over the implications of the explosive dossier which is being serialized by various Kenyan blogging sites.

The anxiety among the Safaricom workforce is said to be so high so that the embattled CEO Bob Collymore was forced to release an internal memo urging staff to ignore the stories which he claims were still in their formative stage.

The Guyanese-British CEO, who has been at the helm of the communications giant since  November 1, 2010 when he succeeded Michael Joseph, wrote to the more than 4000 permanent Safaricom employees appealing for calm after anxiety occasioned by low staff morale started to impact on productivity following reports that investigators were moving into Safaricom to probe corruption allegations.

Corporate commentators in Kenya observe that Collymore’s position is no longer tenable since he sits on the board of Safaricom and heads the management that have been exposed as not only approving the irregular high-value purchases at Safaricom, but also having interests in shell companies that were trading with Safaricom.

Collymore’s current position is further complicated by the fact that he is a member of both UN Global Compact Range and Kenya’s Vision 2030 Delivery Board which set high standard for social and corporate good governance that have zero tolerance to corruption among its ranks.

Vodafone PLC which is the majority shareholder at Safaricom and the firm that nominated Collymore to CEO Safaricom position is an active participant in global anti-corruption initiatives and it remains to be seen what action, if any, they will take on Collymore following the damning revelations contained in the KPMG forensic investigation report.

Here is Bob Collymore full statement to Safaricom staff:

From Bob’s Desk

Dear Colleagues,

You may have come across certain stories appearing in various media with regard to a draft forensic audit report that has been illegally obtained and circulated publicly.

As a responsible company, from time to time Safaricom seeks the views of external experts to ensure that compliance and governance processes are effectively implemented. It is in that regard that I commissioned KPMG to conduct such a review.

The draft report currently being circulated in the public domain was in its initial formation and the content, summaries and proposed findings therein were subject to further interrogation, discussion and clarification. As such, the contents of the draft report are not conclusive.

Understandably, these stories may be causing some anxiety amongst staff. We believe we are the target of actions being undertaken by individuals who have failed to meet the requirements of our robust procurement process.

I would like to personally assure each of you that we will overcome this challenge and I am proud that each one of you has done your part to ensure that we adhere to the strong corporate governance ideals that our shareholders demand from us.

Best Regards,

Bob Collymore

CHIEF EXECUTIVE OFFICER

Safaricom Limited