The National Assembly committee investigating the illegal transfer of KBC frequencies to GOTV now alleges that Multichoice Africa could have shortchanged Kenya Broadcasting Corporation in the 1994 partnership in which KBC owns 40 percent of Multichoice Africa.
The Committee on Public Investments, Social Services, and Administration which probed the management of Multichoice and GOTV Kenya claimed the National Broadcaster received the short arm of the deal and continues to suffer from the raw deal.
The committee, led by the chair Emmanuel Wangwe, had wanted Multichoice to explain their move out of the deal with KBC yet the national broadcaster had acquired high-level frequency equipment following digital migration making the corporation lose millions of shillings.
In its defense, Multichoice Holdings told the committee that Multichoice Africa Limited later changed to Multichoice Kenya Holdings in which KBC is no longer a shareholder.
According to Multichoice, the change in content had been done in agreement with KBC after certain channels proved not commercially viable.
The committee also questioned why Multichoice was giving donations to KBC yet it was an equal partner in Multichoice Africa Limited and why millions owed to KBC in dividends was yet to be remitted.
Wangwe has since ruled that GOTC and Multichoice appear before it with the 1994 contract as well as documents depicting how dividends have been shared over the years.
