Technological company Seven Seas Technologies (SST) owned by Mike Macharia is facing a dead end after years of dubious operations covered with false financial statements and fabricated PR stunts.
Currently, the company is struggling to offset a tax burden worth millions it owes the Kenya Revenue Authority, even after winning a government tender worth Ksh4.7 billion in the Ministry of Health.
Due to dwindling financial muscle of the company, it has been unable to deliver the multi-billion project that sought to centralise data centre at the Kenyatta National Hospital. Worse still, the company has been blacklisted from doing business with the government for failing to implement the project.
SST was awarded the Ksh4.7 billion tender to connect all medical facilities above Level 4 in September last year and was expected to have finalised in 90 days. The KNH project was a pilot.
The firm cannot offset its burden through loan, after being blacklisted both locally and internationally by financial institutions for defaulting its financial obligations.
Years back, when the firm was at the verge of collapsing, Macharia used PR stunts as well as a fabricated financial report to woo investors on board. He falsely valued the company at Ksh3.2 billion, with him holding 35% stake (Ksh1.12 billion).
This worked well for him. The famous Abraaj Group and the late James Gachui Empire joined SST, optimistic that they would have a share of the ‘successful’ company’s profit. Another investor to join SST was Japan’s Toyota Tsusho, who injected Ksh300 million.
One of its Russian pioneers, Rob Van Hoek, left the group upon discovering what was happening.
Four years ago, Macharia was involved in a club fight with senior Supersport official over a debt he(Macharia) had failed to pay.
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