Kenya Rugby Union (KRU) could lose Sh2B for breach of contract
KRU is among 19 impactful projects listed in a $500 million principal investment by a consortium of commercial and political banks and non-banking financial institutions in several African countries.
The representatives of the consortium as well as the leader (Benchmark Solutions Limited) sounded the alarm on an agent, 270 Degree Sports Marketing and Consultancy who is accused of use transaction information illegally and for personal gain.
270 Degrees Sports Marketing and Consultancy Limited had been appointed by the agency appointed by the Kenya Rugby Union to seek strategic equity investors.
The agency allegedly leaked confidential and classified financial and non-financial information regarding the Investor Consortium to rogue agents, thereby weakening the possibility of reaching a successful deal.
“From the foregoing and based on your role in the transaction, you have received private, confidential and classified financial and non-financial information regarding the Consortium of Investors, and to our dismay, this information has since been unlawfully distributed among your rogue agents in a manner that contravenes clause 9 of contract number 200122021/13. This amounts to a gross breach, needless to say, seriously jeopardizing and impeding the success of this transaction,” part of the statement read.
Benchmark noted that the consortium could terminate or reallocate funding if the agent fails to comply with the warning, further adding that the agent risks being sued if it does not cooperate.
The Kenya Rugby Union seeks to raise funds through the issue of new shares to investors from which rugby activities such as Safari Sevens, National Team 15 Test Matches, National Sevens Tour, Kenya Cup , the Rugby Super Series, the Barthes Cup and national team expenses be supported.