SportPesa shareholders feud ends up in Court

The feud between billionaires behind the SportPesa brand is now in court. The company has sued one of its former chairmen over claims of fabricating statements and falsehoods against SportPesa.

Pevans East Africa limited trading name SportPesa has sued the former chair Paul Ndung’u over claims of fabricating unfound statements falsely misinformation to the public. Ndung’u gave comments on the transfer of funds to foreign account, partnership deal, and audits, claims which have attracted the suit in the report seen by a local news agency.

Pevans East Africa says approvals were made, but the same was never conducted. According to Pevans lawyers Otieno Ogola and company Advocates, the firm granted Asenath Maina her wish to audit the accounts. Maina holds a 21 percent stake in the firm that failed to carry out.

“The said Mrs. Maina has failed to carry out the forensic audit to date despite the board’s approval,” court papers read in part.

Ndung’u owned a 17 percent share in Pevans, making him the fourth-largest shareholder. Guerassim Nikolov, a Bulgarian, is touted to hold an equal stake with Maina.

The brand claims that Ndung’u statements released November 1 have ruined the brand’s reputation as a sports betting company, a sponsor of international top football clubs and sporting events. Pevans argued that the former Chairman was in a privileged position where he could access vital information or clarification on dealings. Besides, he sat at the company’s helm when all the problems he raised were dealt with; the firm further said that any information provided could be taken as truth on account of the position Ndungi held. “The first defendant (Ndung’u) in uttering impugned word was acting in abuse of that privileged he holds, to recklessly defame and malign the name and image of the plaintiff’s business partners and associates,” court papers read in part. In a supporting affidavit, Pevans director Robert Macharia rebuffed Ndung’u’s claims that the firm sent 500,000 dollars to South Africa. Macharia is also the betting brand Company secretary.

The director explained that overseas payments are done in two parts-payments for software to SportSoft at 2.4 percent of total stakes and shared services, which caters for global sponsorship and any other benefit of the SportPesa brand globally. Court papers show that the firm has partnered with Racing Point F1 and English football clubs like Arsenal, Everton, and Hull City. Simultaneously Macharia claimed that no payments were made without the approval of the Central Bank of Kenya.

“Whenever the company made overseas payments, the same was subject to control and regulation of the Central Bank of Kenya and receiving countries central bank or equivalent,” – his affidavit read.

Further, Macharia argued that Ndung’u was aware of the partnerships and sponsorship and attended some of the brand’s events. The director said money sent to start the SportPesa business in Tanzania was a loan that shall be repaid. Macharia denied that audit firm PricewaterhouseCoopers resigned as Pevans auditors. This comes as the High Court lifted a freeze order issued in favor of Kenya Revenue Authority (KRA) against Pevans account, claiming that it owed it Sh14 billion taxes.

As early reported, Justice David Manjanja found that KRA had given Justice Margaret Muigai a similar narrative and which she declined to continue freezing the brand accounts. “Apart from the fact that all these cases were known to KRA, the present application, the first application, and the pending appeals all deal with the same subject matter,”/justice Manjaja ruled on November 13.

About Post Author

Adeleye Awakan

Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa.

See author's posts

Adeleye Awakan

Author E-play Africa, sports betting reviews, thoughtful leardership articles in Africa gambling industry, marketing gaming platforms in Africa with strong networking relationship with gaming operators in Africa, Expertise in PR, marketing communication, and consultant on gaming in Africa.