Investment banker John Ngumi, who has been under investigation for his alleged involvement in the controversial sale of Telkom Kenya, has resigned from his position as an independent non-executive director at Kenya Airways.
Ngumi’s resignation was confirmed by Kenya Airways’ board of directors chairman, Michael Joseph, who also announced the appointment of James David Kabereri as an interim replacement pending an annual general meeting. The sudden departure marks the second high-profile resignation for Ngumi, who previously stepped down as Safaricom’s board chairman and director after just five months in office.
Ngumi’s decision to resign comes on the heels of his recent legal battle to prevent the Ethics and Anti-Corruption Commission (EACC) and the Office of the Director of Public Prosecutions (ODPP) from prosecuting him. In a statement, Ngumi cited the “tough work of stabilising KQ” (Kenya Airways) and his belief that it is the right time for others to build on the progress made by the airline’s board and management.
However, Ngumi’s departure from Kenya Airways only deepens the mystery surrounding his alleged involvement in the Telkom Kenya acquisition. He has been a target of various anti-graft agencies and recently appeared before the National Assembly’s Finance and National Planning and Communication, Innovation, and Information committees, which are jointly investigating the controversial sale.
Ngumi has vehemently pushed back against the state’s pursuit of him and obtained a court injunction preventing his arrest and prosecution. High Court Judge Diana Kavedza ruled in his favour, restraining the EACC and ODPP officials from taking any action that could jeopardize his banking career. While the judge required Ngumi to appear for questioning at the EACC and post an anticipatory bail, it remains unclear whether he complied with the directive.
The ongoing probe focuses on the acquisition of Telkom Kenya, which saw the government pay Sh6.2 billion without the approval of the National Assembly. Ngumi has been implicated in providing allegedly flawed advice to the Treasury regarding the transaction. Shockingly, Ngumi received a staggering Sh362.1 million ($3.07 million) from Jamhuri Holdings Ltd (JHL), the Special Purpose Vehicle (SPV) of Helios Investors LLP, for his advisory services.
As the investigation continues to unfold, Kenyans are left wondering about the extent of Ngumi’s involvement and the potential repercussions for those implicated in the controversial sale. The resignation of a high-profile figure like Ngumi from Kenya Airways raises severe concerns and underscores the need for transparency and accountability in the country’s financial sector. The eyes of the nation are now on the investigative committees, eagerly awaiting their findings and hoping for justice to prevail.
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