Betting Company SportPesa has suffered another setback after Betting Control and Licensing Board (BCLB) summoned the directors of its new owners, Milestone Games Limited, to explain why its licence should not be canceled.
BCLB chairman Cyrus Maina in a letter to Milestone’s operations director Bernard Chauro, summoned the owners of the betting firm, Nob Five Limited and Wilson Karungaru Ngatia, to appear before the board in December 3, 2020 to explain the ownership of the betting firm and why its licence should not be withdrawn.
The betting regulator is seeking the relationship between Pevans Limited, the initial owner of SportPesa and Milestone Games Limited.
“It is the view of the board that the actions that the aforementioned actions of the company constitute a material breach of the applicable requirements for which its licence may be cancelled or varied,” Maina wrote to Milestone Ltd in a letter dated November 24, 2020.
The board have accused the new SportPesa owners of breaching an agreement they signed before being allowed to resume operation.
According to BCLB, the approval was to enable it to conduct due diligence on who owns Milestone, its directors, and the shareholders.
The board has questioned the ownership of Milestone Games Limited suspecting that it’s the same Pevans owners who are back to the game, but with a new face.
The betting watchdog therefore wants Milestone directors to explain the puzzle.
The board says that its investigations revealed Milestone’s shareholding had since changed since they were issued the betting licence.
BCLB said the licence was under the name of Milestone director James Muigai Ngengi on October 6, however Muigai’s name no longer feature as a shareholder in the company.
According to BCLB, Nob Five has 9,950 shares in Milestone while Karungaru’s stake in the firm is 50.
The board said that the ownership web does not end there adding that Nob Five is owned by Selenium Limited, holding 9,600 shares while Jacqueline Nyambura Kungu owns 400 shares.
It has also been established that Selenium Limited is being owned by Ronald Karauri who has 400 shares and Francis Waweru Kiarie has 300 shares.