OFF LOADED: Safaricom ‘fires Super Dealers’


06 May 2015 | by
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 OFF LOADED: Safaricom ‘fires Super Dealers’

Safaricom has suspended eighteen out of twenty super dealers to allow for investigations into alleged fraud.

The decision was reached by Safaricom management after it was suspected the super dealers, some without many outlets had been 'undercutting' their competition and therefore getting undue advantage over others.

Sources within Safaricom intimated that the suspended dealers most of them operated by influential personalities had been getting concessions from senior Safaricom employees.

 A number of Safaricom employees have since left the company including a young man in the financial department who defrauded the company of over Sh 400 million.

 He is alleged to have activated dormant dealers’ orders and diverted to funds to a newly created company.

The move follows the exit of Safaricom’s longest serving General Manager in charge of Consumer Business Peter Arina and Customer Care Director Pauline Warui.The exits which were received with mixed reactions in the business fraternity had been followed by the resignation of another top manager over personal reasons and the sacking of two regional managers. Then, the announcement by Safaricom CEO Bob Collymore who himself is seeking an extension of his contract at the dominant telecommunications operator, Safaricom has raised concerns whether the Nairobi Stock Exchange (NSE) listed corporation is facing serious internal realignments.But the former senior managers had been bound by an exit clause in their contract that prevents them from entering any contract for gainful employment with especially Safaricom’s competitors for over one year after being paid their severance pay that runs into millions of shillings. For over a year and half, internal investigators led by the Head of Security Mike Kariuki, Director of Risk Management, Nicholas Mulila and an external private investigator have been conducting an audit of systems within Safaricom aimed at sealing any loopholes that might lead to loss of  resources. Between six hundred million and one billion shillings are believed to have lost in fraud since the company was formed. However, the corporation has not arraigned any staff member over fraud or corruption.  Collymore clandestinely ordered an investigation of senior management the CEO following the dismissal of over fifty staff member of the Mombasa road based Jambo Contact Centre implicated in airtime, Lipa Na Mpesa service and M-Pesa fraud.

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