Corporate News
Audit reveals how inflated tenders cost CMC Sh1.1 bn
Peter Muthoka, (left) and CMC’s chief executive Bill Lay (right). CMC Holdings lost more than Sh1.1 billion in inflated charges paid over five years to a transport and logistics firm owned by CMC board member and former chairman Peter Muthoka, a forensic audit by PricewaterhouseCoopers (PwC) has found. Mr Lay accused Mr Muthoka’s transport and logistics services firm, Andy Forwarders, of overbilling.
Posted Thursday, January 26 2012 at 23:07
Mr Forster claimed that his dismissal in March 2010 was prompted by his plan to transfer Andy’s tractor freight business to Marubeni, a Japanese logistics firm that charged up to 90 per cent less compared to Andy.
Mr Muthoka accuses Mr Lay of irregularly hiring a sales agent, Pewin Motors, in a deal that could have cost the company up to Sh11.7 million in inflated commission charges.
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