Icpak says Ciano to remain committee chair until further Uchumi investigations

Former Uchumi Supermarkets CEO Jonathan Ciano is expected to retain his position as chairman of the Institute of Certified Public Accountants of Kenya (Icpak)’s disciplinary committee until the accounting body completes its own investigations into allegations that he cooked the retailer’s books.

Icpak said it has received a forensic audit report on Uchumi, which has accused Mr Ciano of manipulating the retail chain’s accounts to the tune of Sh1 billion.

“We will conduct our own investigations before proceeding with the hearings,” Icpak’s chief executive John Ngumi said in an interview. The move means the process that will ultimately find Mr Ciano innocent or guilty could take months.

“The company has also provided for … Sh1.04 billion which relates to items arising from management misrepresentation and manipulation of the system by the previous management,” Uchumi said when it released its results for the year ended June.

“Accordingly, some prior year numbers have been restated to reflect the correct financial position of the organisation as at June 30, 2014.”

Mr Ciano said he was not in a position to comment on matters raised by his former employer. Besides accounting issues, Mr Ciano has also been accused of serious conflict of interest in dealing with the company.

Uchumi’s CEO Julius Kipng’etich said Mr Ciano was a major fresh produce supplier and would pay himself in advance.