Kidero dismisses KPMG’s forensic report on Mumias

What you need to know:

  • Dr Kidero said the audit firm did not seek any clarification from him on any of the issues it raised in its report.
  • He maintained that the company had made cumulative profits of Sh14.8 billion shillings by the time of his departure adding that all the accounts produced at the time were presented and approved by Mumias Board.

Nairobi Governor Evans Kidero has dismissed the KPMG forensic report that links his tenure at the Mumias Sugar Company with an export scandal in which the miller lost Sh1.2 billion.

Dr Kidero said the audit firm did not seek any clarification from him on any of the issues it raised in its report.

“It (report) does not, therefore, meet the basic threshold of an audit report. It is not a legal document and it is surprising that anyone would use it as an authority.”

Dr Kidero maintained that the company had made cumulative profits of Sh14.8 billion shillings by the time of his departure adding that all the accounts produced at the time were presented and approved by Mumias Sugar's board.

He said: “I left MSC in a very sound financial state in June 2012. In my final year as managing director, the company made a net profit of Sh2.6 billion.”

He made the comments as the Kenya Revenue Authority (KRA) came under criticism from MPs for failing to ascertain whether Mumias exported sugar to the European Union between 2006 and 2009.

The National Assembly’s agriculture committee also grilled Kenya Sugar Board management over the alleged sugar exports by Mumias.

The committee put KRA and KSB managers to task, accusing them of collusion with the miller which has been rocked by corruption scandals.

KRA Acting Commissioner for Customs Julius Musyoki said the authority could not confirm whether the exports were made or not.

“We normally get sugar permits from KSB. In Mumias’ case, I can’t confirm that the sugar was exported. There were no matching permits,’’ Mr Musyoki told the MPs on Monday evening.

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